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Saturday, July 6, 2013

We are all Eurosceptics now

There was a time when the Conservative party was bitterly divided between pro-europeans and eurosceptics.

This is no longer true.

The Conservatives are now more united about Europe than either of the other main parties. The occasional disagreement about tactics has sometimes given our opponents and the press the opportunity to rehearse old headlines like "Tories split on Europe" but it isn't really true.

To win elections it is important that Conservatives behave with discipline and avoid the kind of self-indulgent posturing which lets the press run "Tory split" headlines, not least because they interfere with our ability to get the message over about where we actually stand.

And what we really stand for is a less centralised Europe, a more democratic Europe, a Europe of nations in which power has been given back to individual countries, a Europe which imposes fewer job-destroying regulations.

I can remember the exact moment when I became a Eurosceptic: I had a "Road to Damascus" moment at, of all places, an annual conference of the Tory Reform Group.

It came while I was listening to a speaker from Germany, a senior Christian Democrat and ally of Helmut Kohl who was then the German Chancellor. The speaker was clearly a civilised and intelligent man who at first impressed me, who was friendly to Britain and who I thought we could do business with.

Until someone asked him about a decision taken during the reunification of Germany which had produced dire consequences - not only in that country, but also knock-on effects in the rest of Europe - namely the decision to merge the West and East German currencies at a 1:1 exchange rate.

The speaker made no attempt to engage with the issue of the serious economic consequences of this decision. He merely criticised those who had correctly predicted in advance exactly how this would go wrong:

 * inflation through the undermining of Bundesbank monetary targets;
 * increased unemployment particularly in Eastern Germany because the 1:1 exchange rate put them in a position of unrealistic and uncompetitive prices;
 * and interest rate instability as a result of poor monetary control.

He showed no recognition of the fact that these critics had been absolutely right about the impact on people's welfare and livelihoods, and instead attacked them for not understanding the political imperatives.

This was at a time when one of the most important current debates was whether to scrap national currencies in favour of a single European currency. I already had grave reservations about this proposal, but from that moment I was implacably opposed to British participation in any top down scheme to create a single currency.

I asked myself

"What would happen if European leaders took the decisions relating to a single European currency in the way the speaker has just admitted that equivalent decisions relating to a single German currency were taken?"

The thought of the sort of damage which could be done throughout Europe by taking crucial economic decisions relating to a European currency union on the basis of allowing political imperatives to over-ride any consideration of their implications for jobs, incomes, growth and inflation made my blood run cold.

And I also realised that it would nevcr be safe to assume that a decision which a majority of European leaders believed, rightly or wrongly, would be in their countries' interests must automatically be in Britain's best interests too.

Proposals coming from Brussels should always be carefully scrutinised and subjected to careful analysis rather than being assumed to be right - which is exactly what it means in the English and Greek languages to be sceptical about something.

Of course, being sceptical about the European Union does not have to mean, as the more pro-European elements of the press such as the Guardian and the BBC all too often assume, that one is a xenophobic little Englander who hates everything to do with foreigners and thinks each and every idea or proposal which comes out of Brussels is wrong.

When Peter Lilley was a minister I remember visiting his office in Whitehall, and remarking that I noticed he had a picture of Charles de Gaulle on his office wall. He smiled and said that the last French delegation to visit him there had been very impressed and pleased to see that picture . He hadn't thought it necessary to explain to them that part of his reason for admiring de Gaulle was that he wanted to defend British interests as vigorously as General de Gaulle had defended those of France!

When I describe myself as a Eurosceptic, this is what I mean by it.

* You can criticise and campaign to reform the failings of the European Union without hating the other countries of Europe.

* You can fight tooth and nail against bad ideas which come from the EU without opposing the occasional good idea.

* You can welcome greater trade and a single market without supporting a federal superstate.

* You can love the culture of other European countries while being proud of and wwishing to protect British culture.

* You can defend British interests without being a "Bad European" - or allowing it to upset you when other people make that accusation.

* You can also fight for British interests while forging alliances with other people in Europe whose national interests coincide with ours: Britain is not the only country where we don't want our businesses strangled by high taxes or excessive red tape.

* Above all, you can campaign to avoid letting the other countries of Europe tell people in Britain how to run our own affairs while recognising that they don't want us telling them how to run their affairs either, and believe that the desire to control our own destinies is justified for all countries.

And on that basis pretty much the whole Conservative party is now Eurosceptic. Which is a good thing: if we're singing from the same hymn sheet and campaigning for the same goals, we have a chance of achieving them.

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