Tag Archives: Europe

Our Europe, their Europe

Marxists are by definition internationalists. Therefore we are opposed to nationalism in all its variants, whether it be the classic Little-England type or the ‘left’ version of socialism in one country (national socialism) – something normally associated with Stalinism.

How does this impact on the Brexit debate? For a very large part of liberal opinion, and the left which tails it – such as Another Europe is Possible -, the actually existing European Union has become an emblem of everything that is progressive – the cherished ideal of anti-racism harmony in marked contrast to the increasingly rancorous nationalism of the UK Independence Party, the European Research Group (headed by the weird retro-Victorian Jacob Rees-Mogg), the desperate Boris Johnson, etc. A social democratic refuge from the onslaught of neo-liberalism and the market.

Does that mean Marxists are enthusiastic about today’s EU or would consider voting ‘remain’ in any possible future referendum? The answer to both these questions is no. In reality, the bloc is committed heart and soul to market values, for all of the flummery about “human dignity”, “tolerance”, “fundamental rights”, and so on. The whole project marches according to the rhythm, requirements and restrictions imposed by capital. Indeed, the EU constitution is a paean of praise for the market and the virtues of competition.

Then remember how the European Commission – in cahoots with the European Central Bank and the International Monetary Fund – imposed a regime of savage austerity upon Greece for daring to defy its diktats, driving millions into penury, homelessness and even suicide.

However, it does not follow that Marxists call for the UK to pull out of the EU because it is a “bosses’ club”, or because it is not “socialist” – silly and also a criminal desertion of internationalism. One might just as well suggest pulling the working class out of the “bosses’ club” of Britain. Or is the pound sterling more socialistic than the euro?

Capitalism and the capitalist state, as it historically presents itself in the here and now, is where the socialist project starts – in this case, the EU. The idea that the working class and the fight for socialism would be collectively strengthened if one or two of our national battalions aligned themselves with this or that faction of the bourgeoisie with a view to forcing a Britain, a France, a Spain or an Italy to withdraw from the EU displays a complete lack of seriousness. Disastrously, we would be weakening our forces.

Instead, Marxists argue for a positive programme. A Europe without unelected bureaucrats, technocrats, monarchies, and standing armies. Communists strive for working class unity within, but against, the existing EU – ultimately we want to overthrow it, just like the British state. Winning the battle for democracy in the EU and securing working class rule over this relatively small but strategically vital continent is the best service we can do for our comrades in the Americas, Africa, Asia and Australasia – as opposed to building “Fortress Europe”.

In other words, we are for a republican United States of Europe. Armed with a continental-wide programme, the United Socialist States of Europe can be realised – the “bosses’ club” is replaced by a workers’ club. In turn, such an internationalist perspective directly points to the necessity of organising across the EU at the highest level – crucially a revolutionary Marxist party covering the entire European Union.

No to a second – or any – referendum

Referendums, by their very nature, are undemocratic. At first, this might sound paradoxical or counter-intuitive – you get to vote in an act of ‘direct democracy’, after all. But, whilst referendums have the great virtue of appearing to be the epitome of democracy, the reality is quite the opposite. They bypass representative institutions and serve, in general, to fool enough of the people enough of the time. Often complex issues are simplified, drained of nuance and reduced to a crude choice that cuts across class loyalties. Hence today, thanks to Brexit, one half of the working class is found in the ‘leave’ camp – the other half is with ‘remain’. That is hardly a situation to be celebrated.

There are very few situations where there is a simple binary choice in politics, and that can be illustrated by what followed the referendum. Yes, a relatively small majority voted ‘leave’, but on what terms – hard Brexit, soft Brexit, Brexit-in-name-only? If there had been a ‘remain’ victory, as most people had expected right to the wire, we would have been confronted by the same conundrum – ie, how to interpret the result.

Furthermore, what about the long-term validity of that result? For example, many of those who argue against a second referendum today claim that ‘the people have spoken’ and so their verdict must be regarded as final. But in fact the 2016 poll was itself the ‘second referendum’ on the subject. In 1975 Harold Wilson called one to decide whether Britain should remain in what was then called the ‘European Community’ (or ‘Common Market’), even though it had only joined two years earlier. There was a substantial 67% majority to stay in the EC. Clearly people can change their minds.

The problem is that referendums are totally inadequate compared to representative democracy. The latter is based on the election of well-tested working class representatives, who must be made accountable to those who elected them. Under such a system we should trust those representatives to take the necessary decisions – and ensure that they face the consequences if they embark on a path that is not in our interests. Referendums, on the contrary, tend to divide the working class, weaken its party spirit and produce the strangest of bedfellows. For example, in 2016 committed socialists were urging the same vote as the far right, while others were aligned with the liberal establishment. Now we find Nigel Farage on the same side as George Galloway.

In 1911 Labour leader Ramsay MacDonald called referendums “a clumsy and ineffective weapon, which the reaction can always use more effectively than democracy, because it, being the power to say ‘no’, is far more useful to the few than the many”. Yes, a couple of decades later he completely sold out by agreeing to lead a national government with the Tories, but in 1911 he was totally right.

The Labour Party should be opposed to referendums as a matter of principle.

EU: There will be no reciprocation

David Sherrief says that the Tories seem determined to put the interests of party above those of capital. However, instead of presenting itself as a defender of British business, Labour needs a socialist vision when it comes to Europe

Theresa May’s government is deeply divided and looks set to take Brexit negotiations to a disastrous ‘cliff edge’. Despite article 50 and the tick-tocking of the Brexit countdown, there is little progress being made in Brussels. No agreement over the divorce bill. No agreement over Northern Ireland. Then there is Boris Johnson and his Sunday Telegraph article calling for a low-tax, low-regulation Britain finding a “glorious” future outside both the single market and the customs union. A cat in the nest of singing birds.

True, the government comfortably got the European Union (Withdrawal) Bill through its second reading in the Commons. The final vote was 326-290. However, the war is far from over. Tory MPs – not least Nicky Morgan, Dominic Grieve and Anna Soubry – have tabled amendments aimed at shooting holes into May’s Brexit plans: eg, they want to include the EU’s charter of fundamental rights. There will also be challenges to the use of so-called Henry VIII powers and demands for a vote on the final terms. This brings the distinct possibility of a government defeat. Of course, that would not trigger a general election. For the moment at least, May is secure. She would win a vote of confidence. Nonetheless, the government is vulnerable and we should expect compromises, gruelling late-night sittings, MPs being brought in from sick beds and desperately fought by-elections.

But, surely, the government’s main problem is that a hard Brexit runs counter to the interests of the dominant sectors of big capital in Britain. For example, the recent Downing Street approach to large private companies and selected FT-100 firms, in the attempt to obtain endorsement for the government’s post-Brexit plans for a “global Britain”, was greeted with derision. Technology, aerospace, pharmaceutical, energy, manufacturing, banking and financial services firms have all warned that the drifting Brexit negotiations in Brussels could lead them to transfer some operations from Britain. Toyota is already openly questioning the future of its Burnaston plant in Derbyshire.

Many capitalists fear that they will face tariffs and other damaging barriers after March 2019 … if there is no deal. Nor do they have any liking for the government’s leaked proposals to limit immigration post-Brexit. The markets confirm what the personifications of capital say. Since the June 2016 referendum the pound sterling has fallen by around 20%, compared with other major currencies. Reports that outward investment has doubled in the last quarter shows the thinking of collective capital. Despite having to pay what is in effect a 20% premium, the bet is that Britain is heading for difficult times. In other words, Brexit is bad for making a profit.

Of course, at Phillip Hammond’s prompting, there has been an acceptance that Britain will need a negotiated transition period. This has been cautiously welcomed by many of the CEOs and boardrooms of blue-chip companies. But the lack of detail causes uncertainty, frustration, even anguish.

A recent survey of 1,000 UK businesses reported that more than two-thirds of them needed to “know the details of any transition arrangement after Brexit by June 2018 – just nine months from now – in order to plan properly”. If investment and recruitment decisions that have been put “on hold” are to be “unblocked”, 40% of the businesses say the government must set out what the transition will involve, when it comes to vital areas, such as the movement of goods, capital and people, as well as legal arrangements.1)Financial Times September 12 2017

Far from May and her cabinet providing Britain with ‘strong and stable’ leadership, big capital worries that party interests are being put first. Hence addressing widespread concerns amongst voters about ‘unrestricted’ immigration is being prioritised over guaranteeing access to the single market. Private meetings and frantic lobbying have had little effect on David Davies and his department for exiting the EU. The government says it has its mandate and appears intent on brushing aside the interests of big capital. All in all, therefore “big business is in a difficult position”, says John Colley of the Warwick Business School.2)https://uk.finance.yahoo.com/news/businesss-government-lobbying-brexit-isnt-working-heres-143415309.html

Maybe the loss of direct and indirect influence over the Conservative Party, the inability to exercise control, reflects the increasingly cosmopolitan nature of modern capitalism. For instance, foreign investment in Britain stood at around £950 billion in 2015.3)House of Commons Library Debate pack Number CDP 2017/0159, September 8 2017 A few big businesses, such as JCB, Westfield and Bloomberg Europe, have donated considerable sums to the Tories.4)The Guardian April 1 2015 But most of the money going to Tory HQ nowadays comes from very wealthy – often very quirky – individuals (many of them after access to government, dinners with ministers, knighthoods, membership of the House of Lords, etc).5)www.cityam.com/264987/party-donors-biggest-names-bank-rolling-conservative Over the years the number of companies making donations has declined.6)B Jones (ed) Political issues in Britain today Manchester 1999, p313 Yet, with the bulk of Tory finances coming from the rich and the super-rich, with hundreds of Tory parliamentarians holding directorships, with Tory MPs coming from business and going back to business, with the visceral hostility to trade unions, it is clear that the standard Marxist description of the Conservative Party as the party of big business remains correct, albeit it with qualifications.

Nevertheless, the tension that exists between the interests of big capital and the direction being taken by May’s party and government is unmistakable.

The origins of this divergence lies squarely in electoral calculation. Having outmanoeuvred her rivals and taken over from the hapless David Cameron – following his June 2016 referendum humiliation – Theresa May clearly thought that she could inflict a massive general election defeat on the Jeremy Corbyn-led Labour Party … if she seized hold of the political programme of the UK Independence Party. Of course, her gamble did not pay off. May’s presidential campaign proved to be a disaster, while Jeremy Corbyn’s For the many, not the few campaign was, by contrast, a brilliant success.

Now, irreversibly committed to a hard Brexit, the Tories resemble the Loony Tunes cartoon character, Wile E Coyote. Fixated on chasing the Road Runner, his nemesis, Wile E Coyote, suddenly finds himself in mid-air over a precipitous canyon. His legs still move and so does he. For a brief moment it appears nothing is wrong, that the momentum can be maintained. But, inevitably, Wile E Coyote realises that he is suspended in mid-air … then comes the long plunge to the ground.

Since the 48.11%-51.89% referendum result, Britain has not suffered the economic disaster George Osborne, Mark Carney, Peter Mandelson and co predicted. No yanking recession. No flight of capital. This has allowed little UK Europhobes right and left – from the Daily Mail to the Morning Star – to claim vindication. But a Brexit referendum result hardly amounts to Brexit. True, statisticians report that the British economy has been growing slower than the euro zone. It is, though, a case of anaemic growth compared with anaemic growth. Projected long-term, that heralds Britain’s continued relative decline.

Nonetheless, a negotiated hard Brexit deal – let alone a hard Brexit non-deal – could quite possibly result in absolute decline. Such a prospect deeply worries big capital. Unless control over the Conservative Party can be reasserted, the choices it faces are all unpalatable: tariffs on goods going to the EU, reduced supplies of cheap labour, running down investment in Britain, decamping abroad, sponsorship of a national government, etc.

Meanwhile, Keir Starmer has succeeded in getting the shadow cabinet to come out in favour of staying in the single market. Hence the striking paradox. On Europe Labour is articulating the interests of big capital. Not that big capital will reciprocate and back the Labour Party. It is, after all, led by Jeremy Corbyn: pro-trade union, pacifistic and a friend of all manner of unacceptable leftists.

For the sake of appearances, Kier Starmer pays lip service to the 2016 referendum result. There is no wish to alienate the minority of Labour voters who backed ‘leave’. More through luck than judgement, ambiguity served the party well during the general election campaign. The contradiction between Corbyn’s historical hostility towards the EU – now represented in the Commons by the Dennis Skinner-Kelvin Hopkins rump – and the mass of Labour’s pro-‘remain’ members and voters resulted in a fudge.

However, instead of getting embroiled in the argument about what is and what is not in the ‘national interest’ – eg, staying in the single market versus leaving the single market – Labour needs a class perspective. Marxists have no illusions in the European Union. It is a bosses’ club, it is by treaty committed to neoliberalism and it is by law anti-working class (note the European Court of Justice and its Viking, Laval and Rüffert judgements). But nor should we have any illusions in a so-called Lexit perspective.

On the contrary the EU should be seen as a site of struggle. Our task is to unite the working class in the EU in order to end the rule of capital and establish socialism on a continental scale. That would be the biggest contribution we can make to the global struggle for human liberation l

References

1 Financial Times September 12 2017
2 https://uk.finance.yahoo.com/news/businesss-government-lobbying-brexit-isnt-working-heres-143415309.html
3 House of Commons Library Debate pack Number CDP 2017/0159, September 8 2017
4 The Guardian April 1 2015
5 www.cityam.com/264987/party-donors-biggest-names-bank-rolling-conservative
6 B Jones (ed) Political issues in Britain today Manchester 1999, p313