BBC On The Record - Broadcast: 25.03.01

Film: FILM ON LABOUR AND EUROPE. Paola Buonadonna looks at why the Labour Party wants to avoid talking about Europe during the General Election.



PAOLA BUONADONNA: Europe is on the move once again - EU ministers head off to Stockholm for a summit which could be the last before the British general election. The Belgian delegation is getting ready - not just for this summit but for its own presidency of the EU which begins in July, when they'll push for further integration. The Swedes, who currently hold the presidency have been careful not to embarrass Tony Blair in the run-up to the election campaign. But Labour can't deny that difficult decisions on Europe are looming in the next parliament. In a few minutes the Belgian ministerial plane will take off for Stockholm - the theme of the meeting is economic reform and job creation, music to the ears of Tony Blair. When he addresses the House of Commons on Monday, he'll present the summit as a success, showing that Europe is going Britain's way. But Mr. Blair is determined to keep both Europe and the Euro off the agenda of the election campaign - even though the next Parliament will have to tackle two fundamental issues - whether or not to hold a referendum to join the single currency, and whether the EU should move further towards deeper integration and possibly political union. FRANK FIELD MP: The government knows full well that it can't raise the issue that it will fight the centralising tendencies in Europe and convince the British people. And the last thing it will want to try and begin that task, is during a General Election. CLAUDE MORAES MEP: I think that we can present a very positive image of Europe. It is very difficult in the current climate, but it's important for me as an MEP seeing many of the positive things about Europe, what that offers for the people of this country. BUONADONNA: The Belgian finance minister, Didier Reynders, is running late. He leads the finance ministers of the Euro-zone, the so-called Euro-group. He has a key role in presenting a positive image of the single currency. He shares Tony Blair's belief that Europe's economy should be more competitive and flexible and supports the process of liberalisation which began at the Lisbon summit last year and has been reviewed at Stockholm. DIDIER REYNDERS: It's a most important task for, for the moment. We must go further in structural reforms, liberalisation and a more efficient organisation for the markets for example. FRANCIS MAUDE MP: There has been no progress since Lisbon a year ago, in deregulating and liberalising, it just hasn't happened. There may be some comforting words at Stockholm, as there were at Lisbon, words with which we have no difficulty agreeing. What we want is action, what employers want who are facing constant intervention, constant interference, constant new red tape from Brussels, they want action, not just words. BUONADONNA: Mr Reynders supports the efforts the Swedes have made to create a single market for financial services. But unlike Britain and Sweden Belgium wants further and faster integration. Even pro-European Opposition MPs warn that Labour won't be able to get away with telling just part of the story. MENZIES CAMPBELL MP: Economic Liberalisation is very important. It's very important to the success of the single market, but it is not to be seen on its own. It doesn't stand discreetly apart from the rest of Europe. It's part of the completion of the single market, but it's also part of the greater degree of political integration in Europe. BUONADONNA: Things may have slowed down in Europe over the last few months but as the Belgians take over the presidency in the summer, integration will gather speed once more. They want to push ahead with the social agenda, for instance with new rules to compel employers to consult their workforce. But as Labour approaches the general election, it's determined to avoid talking about these issues. MAUDE: There is a spectacularly dirty deal done between British government and the German government that this will be sort of, put off until after the election, so that this difficult issue for the government won't be addressed until after the election. Well, we're going to make sure that these issues are properly debated and are properly understood. JOHN MONKS: I would like the government to celebrate what Europe has done for British workers. It's not one that it puts in the shop window, it's signed the Social Chapter which has facilitated these things coming on track in Britain. But it doesn't shout too loud about that because some of the business community don't like it. But actually it's been a very useful measure. We're proud of what it's done and I hope Tony Blair would be proud of it too. BUONADONNA: The British Government was sympathetic to the plight of the Corus steel workers who last month learnt about losing their jobs from the media, not the management. But ahead of the election, it's determined to show business they're resisting attempts to impose new rules about informing and consulting workers. And Labour claims that there's now less regulation on business. FIELD: If the government maintains in the election or afterwards there's going to be less regulation, they may believe it but I don't think anybody else in the country will believe it. RUTH LEA: I feel very much, when I hear the social and labour market agenda being discussed in Europe, that, that our government is either being disingenuous or dishonest, or, there's some irony about it, because it is quite clear to me that what is happening with the social agenda in Europe, that we're talking about more, and more, regulation, you cannot get away from that. BUONADONNA: But the Belgian vision is not simply about more social regulation. Together with other continental countries they have an ambitious blueprint for a European Union where further political and economic developments go hand in hand. REYNDERS: I'm sure that it will be necessary to have a taxation power on the European level, because of the more, more deeper integration political integration. If, for example if we are going to directly elect a president of the European Commission, if we are going to an enlargement of the European Union, if we are going to more economical co-ordination, it's normal that we have also, for such a political power, a taxation power. BUONADONNA: Tony Blair has come to many summits like this one in Stockholm and has forged good relations with his European colleagues. But there's a club he still doesn't belong to - the Euro. And in the next general election he's determined to avoid the issue as much as he can. The government says that in principle it favours joining the single currency, and that it will review the economic tests for joining within two years of re-election, but that's all it wants to say. Many feel this is unrealistic given the pressure the Opposition will exert and even hypocritical, as a decision to go for a referendum might be taken very shortly after the General Election. MAUDE: It's completely dishonest and this is a major issue, this is one of the great issues of our era, political decisions to be made. And the public I think will feel really offended if Labour try and brush it under the carpet, say, you know, don't worry about this, it'll all be sorted out later. GILES RADICE MP: The government strategy is very clear that it's not going to discuss the Euro in detail at all, if it can possibly get away with it during the general election. And it's going to be able to decide in the next Parliament, within two years, whether or not we should join. It may not be the position that all pro-Europeans would like. We would probably like to be fighting hard on the issue, but I don't think that they can be accused of being dishonest. BUONADONNA: The Euro will reach people's pockets in just nine months' time but across Europe notes and coins are being produced right now, not least by the Royal Mint, which is helping to manufacture coins for nine out of the twelve Euro-zone countries. Some Labour politicians say the government needs to be forceful about the Euro during the election to avoid problems later, if it really wants to have a referendum early in the next Parliament. MORAES: I can understand why Labour wouldn't want to raise this issue proactively because it can be misrepresented and exaggerated by the Opposition. But it is going to be raised by the Opposition at some point in the election, it will be a campaign issue. Therefore we should be in a position to talk about it, and to talk about it positively and present our side of the case. To just leave it after the election, in a sense, will not give all the positive arguments to combat the negative mythologies about the Euro that may be propagated by the Opposition. RADICE: The trouble is, if the government spends the election being totally defensive on the Euro, and not explaining in principle why it might be a good thing for the consumer and business, and so on, I think it will give the Conservatives and anti-Europeans a kind of - a big advantage - after the general election, so that in the phase where the government will want to be immediately campaigning on the issue, they may be somewhat on the back foot. BUONADONNA: Tony Blair is confident that he can turn public opinion around quickly after the election. But pro-European observers are nervous that if the momentum doesn't pick up now, the timetable might be too narrow to allow Britain to enter within the next parliament. And Euro-group members warn that with economic integration gathering pace in the Euro-zone, within a few years it will become much more difficult for Britain to join. REYNDERS: I have repeated meeting after meeting, that it will be possible to have perhaps Mr. or Mrs. Euro in two or three years. It's not the problem for this time, at the moment. But after two or three years, we must have a more formal organisation so if you are waiting more than two or three years it will be perhaps a problem to be member after, of such an organisation with such a deeper economical co-ordination. CAMPBELL: If you're in favour of something in principle, then surely you should be willing to discuss it in public? If it's the government's view that it's in Britain's best interests that we should join the single European currency once convergence has taken place, then the time to start the argument for the referendum is now, not in six months time, after the General Election. BUONADONNA: Tony Blair is hoping that this may be the last time Europe will take centre stage before the election. His instincts are to stick to his core issues of the economy, health and education, rather than play on the ground the Conservatives feel stronger on. But he might end up looking too defensive on Europe and the Euro, which could cost him not only votes but also the goal he says he wants to achieve.
NB. This transcript was typed from a transcription unit recording and not copied from an original script. Because of the possibility of mis-hearing and the difficulty, in some cases, of identifying individual speakers, the BBC cannot vouch for its accuracy.