The EU and the UK in 2011: A tale of two interwoven contradictions?
The EU entered 2011 in a state of both political and economic turbulence. What began as the fiscal deficit of Greece in 2009 had become by the end of 2010 a fully-fledged crisis of the eurozone. Moreover, renewed concerns over another banking crisis have caused further alarm at the very real potential of a sovereign debt crisis unfolding across Europe.
What does this mean for the EU, and in particular for the eurozone? In essence Europe's leaders have had to take a hard self-reflecting look at the structures of eurozone governance, including the shortcomings of the Stability and Growth Pacts. Moreover, 2011 has seen big developments in the future governance architecture of the eurozone, such as a permanent eurozone rescue fund, the European Stability Mechanism (ESM) and a pact to strengthen economic co-ordination in the eurozone. We should not underestimate that these developments mark a critical juncture in the history of the EU, and perhaps signal a move to greater political union.
This then brings us to the UK and its relationship with the EU. Since the Conservative-LibDem government took office last May, it is fair to say that the British approach to the EU as been a rather mixed bag.
In the run up to the general election there was concern that the de Larosière report, agreed by the European Council in early 2010, could have led to an early clash between a Conservative government and other EU partners. However, it appears the Conservative-LibDem Coalition has taken a more pragmatic approach to European financial regulation than was widely anticipated.
However, with regard to the European Budget Cameron can be perceived to have taken a more confrontational approach, in seeking to restrict the increase of payment appropriations in 2011. Nonetheless, given the history of previous Conservative administrations seeking budget rebates, it would have been hard for Cameron not to have sought to use tough rhetoric on this issue.
On the other hand, pessimists will argue that British influence in shaping the future of the EU and eurozone is still incredibly limited while Britain remains outside the Euro. Furthermore, Europhiles are likely to be concerned by a taste of Tory Euro-scepticism with the European Union Bill, which calls for a UK referendum on increased transfer of powers to the EU.
The British Approach to the EU has been debated in a seminar series, "A New British Government - A New British Role in Europe?", organised by the Federal Trust: www.fedtrust.co.uk/
For further analysis of the debate, see the report at: www.fedtrust.co.uk/admin/uploads/Coalition_and_Europe.pdf
Julia Osborn
4 Comments
Reader Comments (4)
This is so true but not enough people are aware of it. How can we get the message out to a wider audience?
I think the way the Euro crisis is unfolding, there is no realistic propsect of the UK joining the Euro. It seems more likely that the Euro will break up. There could then be a possibility,of the UK taking a more central role in the organisation that emerges from the crisis, but that would first require a non Conservative government in the UK.
I really welcome your endeavor behind this blog. You have successfully generalized the topic. It has made it easy for me to comprehend. I scroll through it almost every day. And thanks for updating regularly.
The article is definitely a good reality check. Things don’t always work out for those who take the leap. But there are many examples of those who DO make it work – though my hunch is that there are many more failures than successes.