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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.
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