Sunday, April 3, 2016

The EU debate: for a yes vote and internationalism - written November 2015

The EU debate: for a yes vote and internationalism

Len Arthur – LU South Wales branch

The Left Unity conference will be discussing the position to take in the European referendum. This is a contribution to that debate, arguing that we should support a yes vote. It builds upon the points made by Felicity Dowling and Luke Cooper on this website a few months ago.

A considerable discussion has started across the left on this issue and two of the better contributions have been made in the International Socialism Journal issue 148 as a debate between John Palmer the European editor of the Guardian and Alex Callinicos editor of ISJ.

Both articles provide a detailed historical background on the evolution of the EU and are worth consulting for this alone. The article by Callinicos has the following key statement, making the proposal that the struggle at the national level should be prioritised, it is that position this contribution seeks to challenge:

“Strategically the problem is that since the 1980s, but more especially as a result of the eurozone crisis, a Europe-wide neoliberal regime is being constructed. Breaking that is most likely to happen at national level. To make successful resistance dependent on a coordinated movement at the EU level is to postpone that resistance indefinitely. The process of uneven and combined development implies that struggles are most likely to succeed at national level but can then be generalised.

Dialectically, then, for internationalism to advance there have to be breakthroughs at the national level.”

There is a general level of agreement among socialists that the problems posed by capitalism require an international level solution, the debate, it seems is how best to get to the position to make that challenge and carrying through transformation.

The EU terrain of struggle

Historically the EU has been a post 1945 project primarily for the interests of capital. In the previous 60 or 70 years before that date capital, faced with increasing international competition, often sought to ally with nation states to secure its competitive interests: securing home markets and worker compliance, whilst supporting imperial policies to secure markets beyond the reach of the particular nation state. State capitalism remains a useful way of describing this process and period.

The Second World War confirmed the emergence of world domination by the US economy, ?a trend which was strengthened by the outcome of the First World War. Faced with state capitalist regimes in Eastern Europe - with a different historical root to those in the west - and US domination, European capital realised that the size of western European states, weakened economies and blocked imperial expansion required a different form of state capitalism: one based on a closer cooperation across state boundaries. Surprisingly, given their political backgrounds John Palmer and Alex Callinicos in their different ways, describe this history by avoiding using the idea of state capitalism.

As all of us on the left seem to agree, the EU is a capitalist and even imperial project. However, as with all expansions of capital, which still does require the cooperation of workers who produce the wealth, there is a unifying social flipside which potentially provides the source of an internationally challenging contradiction. It is this feature which is widely ignored by many socialist commentaries.

First, possibly due to the need to have social and Christian democrat cooperation in the European parliament and at the council of ministers to make the EU work, a range of measures and reforms have been adopted that seek to ameliorate the social consequences of some market forces. The Charter of the Fundamental Rights of the EU, its incorporation of the European convention of human rights and legal back up through the work of the court of justice of the European union as well as development through the European parliament, is one outcome, as are the various financial support programmes for regions, areas of deprivation, support for certain economic sectors and the huge £77 billion research fund. These measures have specific benefits at workplace and local level such as on working hours, agency workers and freedom of movement; on basic investment in places such as Wales and in over £7 billion that comes to UK higher education.

Of course these measures are under pressure from the dominant neo liberal pressure of EU policy but, nevertheless, they are international reforms socialists should defend as we defend other reforms on a national basis. They provide a basis for mobilisation.

Second, as socialists, we recognise that the problems of capitalism are international and can only have international solutions. The existence of the EU means that as its policies operate across national boundaries so the challenges faced by the working class constantly have international dimensions which provide opportunities for solidarity and action on this basis. The fight against austerity in Greece, and now Portugal, is much more obviously our fight as being part of the EU than if we were outside. Similarly the politics of right wing governments in Hungary and Poland require to be challenged as much as our own UK government for the same reason.

The European Left: the socialist organisation that no one mentions

Left Article after left article on the EU makes reference to the need for an international struggle, often with vague reference to possibilities such as in the recent Red Pepper article by Leigh Phillips.

Hello, smell the coffee! A socialist organisation that is linking campaigning and politics across the EU and wider, does actually exist: the European Left (EL). Here is a policy statement agreed at the EL conference last year stating why it is central for there to be an international opposition to neo liberalism and austerity, together with a programme of campaigning demands and including alternatives.

The EL is composed of 21 European parties and through the European United Left / Nordic Green Left (GUE/NGL) has 51 MEPs. With the Green MEPs with whom they regularly cooperate, they are the third largest section in the European Parliament. Left Unity now has observed membership of the EL.

The last EL congress policy statement, referred to above, covers the ground that most socialists could support. This is not so much the case with some specific decisions such as the lack of criticism of the final deal reached by Syriza. However, centrally it argues that another radical and democratic Europe is possible and thus provides an international basis for socialists to debate and agree what this means and how we can act to make it happen.

The existence of the EL adds an absolutely key dimension to the referendum debate, particularly in challenge the right. UKIP, and the like, attempt to frame the debate in terms of the UK and people taking back power almost as a form of liberation. This becomes the peg on which to hang populist policies such as scapegoating migrants and refugees for causing all the problems experienced by workers: low wages, housing, NHS queues, unemployment - even motorway traffic jams.

Of course, as with all populist arguments they are opportunist and hypocritical, as the taking back of power the UK right are really after is the freedom to dump all the social charter and introduce even more attacks on workers, exacerbating all the problems they seek to champion.

Having an internationalist alternative programme and strategy which addresses how these problems are related to the failures of capitalism and their neo liberal policies, backed up with a real international political organisation, provides a direct and internationally based challenge to the right and their nationalistic populism. Ignoring this possibility, as many on the left are doing, at best weakens the internationalist case and, at worst, plays into the hands of nationalist populism.

And at the very worse, if Brexit happened and the neo liberal right have the free reign they are after, socialist who argued the exit case will be saddled with that responsibility. Hair splitting over nuances of difference and meaning will be a very poor fig leaf.

Personal plea

The history of the UK is inextricably linked to world history and in particular, Europe. The development of capitalism and the various forms of imperialism over the last 400 years have accelerated this process. The last 100 years have seen two European wars of utter annihilation, which are of also part of a world conflict. Like nearly every other family I know, mine and that of my partner’s have been scarred by the deaths and experiences of these conflicts. The consequential wars have continued since 1945. Working class support for these wars was justified and won in nationalist terms, weakening the solidarity and international links that may have prevented them and challenged capitalism at the same time. This was, let us not forget, the key failure of the second international. That nationalism continues to undermine us, with potential fatal co consequences.

Conclusion

It is not dealing with this reality to argue that a UK or perhaps just an English answer to the problems posed by capitalism and imperialism exists. Just as states cannot abstract themselves from the world, neither can we as socialists and as a working class: we have to engage on an international basis within the terrain of struggle we find ourselves: unlike Callinicos, as socialist we need to organise and fight on both national and international fronts, not prioritise one against the other.

Not to do so when the chance actually exists could set back the socialist case in the UK for a generation. We have to argue for a yes vote to continue with the internationalist struggle; to argue that another Europe is indeed possible and to point to the programme and existence of the EL to show how it could happen.


Friday, April 1, 2016

Pontyclun Hub - a review of the EU debate so far.

EU referendum briefing for the Pontyclun Facebook Hub

Len Arthur

Recently there was a long string on the Pontyclun Hub about voting in the EU referendum. It was started by a post that was rightly pointed out, by others, not to be correct, however a huge range of points were raised. As part of the discussion I volunteered to produce some background information and references to help the debate running up to the referendum on 23 June. This will be posted on my personal blog and can be updated in response to comments and questions during that time.

It is a personal work and cannot avoid being influenced by my academic background and personal commitment to internationalism and a yes vote. I’ve tried to be rounded in the comments but clearly it is not possible to be totally impartial. This should be countered by the document being in the public forum and can be added to as the debate progresses.

I’ve been through all the comments and pulled out what seem to be the key issues raised by people so far:

1. Migration

Hub comments

Concerns: asylum seekers; Turkey; pressure on services; pressure on our ‘civilization’ ‘culture’ ‘society’ ‘being overrun’; undermines conditions, jobs, benefits; security.

Benefits: free movement good for all; freedom to travel; existing agreements lost; migrants benefit economy; what is the future for of British people living in other EU countries?; Turkey not being fast tracked; talk of subjective factors racist.

Numbers

Net migration – is the difference between people who leave the UK for more than a year against those who come in for more than for a year. The latest confirmed figures are for 2014 and these show a 641,000 inflow against a 323,000 outflow so a net migration of 318,000.
Putting these figures in proportion - the population of the UK in 2015 was 64,680m so 318,000 represents an increase of 0.5%.
The net figure for 2014 is the highest for 10 years but during that time has been as low as 163,000.
In 2014 193,000 came for study purposes and 284,000 for work and 83,000 were UK citizens returning. So of the 641,000 inflow 276,000 were students or returning UK citizens.
50% of migrants only intend to stay for 1-2 years.
Migration from the EU accounts for 42% of the inflow. 46% of non EU migrants were for study.

24,914 claimed asylum in 2014.

The latest information shows that the UK population is composed of 13.1% foreign born and 8.5% non British citizens.
By contrast in New Zealand 25.2% of the population are foreign born and is one of the most ethnically diverse countries in the world.

In contrast about 5.5 million British citizens live abroad, around 10% of the current UK population, many taking advantage of the freedoms to live in Europe with over 750,000 in Spain alone.

It seems in terms of the numbers it is important to see the issue in proportion and that if students and returning British citizens are taken into account there is a smaller net inflow of migrants. Most come to work or study and there is a high turnover with around half leaving again after two years. The freedom to migrate cuts both ways with the equivalent of 10% of the UK population choosing to live and work in another country.


Migration Economic costs and benefits

It is very difficult to come to any definitive short conclusions but most evidence points to a plus benefit of just under 1%.

A more HMRC report shows that EU migrants more than pay their way. Those who arrived in Britain in the last four years paid £2.54bn more in income tax and national insurance than they received in tax credits or child benefit in 2013-14. 
https://www.gov.uk/government/statistics/tax-contribution-of-recently-arrived-eea-nationals-for-2013-to-2014

However, in the longer term the Office of Budget Responsibility in its most recent estimates, proposes that higher migration will make a large contribution to the reduction of the public sector deficit.

Pressure on services

Public services are under pressure across the UK due to Government austerity policies. These cuts are affecting all areas of the UK and are the main source of the problems of provision.

0.5% of NHS spending is on overseas visitors – those from the EU balanced by reciprocal payments arrangements. As argued by the King’s Fund the contribution of trained medical staff from overseas more than outweighs any costs.

Housing provision is in crisis due to the way the private sector fails to provide sufficient homes to meet the demand and social housing to fill the gap is discouraged by government policy.  Migrants’ experience of housing is the same as UK citizens in the long run. In the short term they rely on rented accommodation.

Benefits - foreign born migrants as a proportion of the UK workforce receive less out of work benefits but more in tax credits - but see next section. This largely relates to EU residents as stronger restrictions apply to people from outside the EU.


It also cuts both ways - with UK workers receiving benefits in the EU

Jobs, pay and conditions

Foreign national workers make up 10.5% of the workforce in 2014.
Most are in low skill occupations and live in areas with the lowest levels of unemployment.
A new report from the LSE shows that migration had little affect on wage levels compared to other factors: http://www.theguardian.com/money/2016/may/11/eu-migrants-had-no-negative-effect-on-uk-wages-says-lse
http://www.theguardian.com/politics/2016/may/20/reality-check-are-eu-migrants-really-taking-british-jobs
Employer pressures to cut costs through wages, conditions and job opportunities exist all the time. The most pressing issue is thus ensuring all workers have protection not blaming migrants.
A real living wage - not a re-named minimum wage - should be made a legal requirement; trade unions should be given back the protection to strike and organise; and enforcement of this actually take place.
Legal protection at work supported and aided by EU law and regulation significant employment rights gains that continue to accrue to UK workers as a result of our EU membership. These are wide ranging in scope, including access to paid annual holidays, improved health and safety protection, rights to unpaid parental leave, rights to time off work for urgent family reasons, equal treatment rights for part-time, fixed-term and agency workers, rights for outsourced workers, and rights for workers’ representatives to receive information and be consulted, particularly in the context of restructuring: https://www.tuc.org.uk/sites/default/files/UK%20employment%20rights%20and%20the%20EU.pdf
This is what is happening now:
And

Turkey

Talks have been re-opened for Turkey to join the EU and have a long way to go.
Easier visa restriction talks have also started and could take some time.
Visa arrangements already operate of course - check for yourself:

Security

The UK is not part of the Schengen agreement on open borders for EU citizens. The argument that our border controls and security are weak was countered in the article below, pointing out that the UK carries out security checks on all people entering the UK and has turned 6000 away since 2010. As ever the issue of why terrorism takes place and what can be done cannot be reduced to issues around border controls.

Subjective issues

Concepts of ‘civilisation’ ‘culture’ ‘society’ are subjective and difficult to define in an agreed way. They overlap with people’s understanding of their personal identity which is subject to change and can be contradictory. We should be careful therefore, of ascribing fixed attributes to other individuals and groups of people. When associated with terms such as being ‘overrun’ by others to whom these concepts have been ascribed in this way it opens the door to being racist:
We should be very careful in using these terms and clearly define what we mean when we do so.

2. Costs and benefits of EU membership

HUB comments
Concerns: it costs us too much; money get back is ours; not spending on EU will mean less cuts; protect steel; big enough economy go by ourselves
Benefits: general economic growth; Wales has benefitted; no evidence Government  will spend instead of cut; economic dangers in leaving.


UK EU payments and returns

Our current 2016/17 gross contribution to the EU is £18.4bn. However our current net contribution following rebates and redistribution of funds to the public sector - like Welsh Government - leaves a figure of £9.4bn or around 0.5% of the UKs annual gross domestic product (GDP).

In Wales we receive around an additional £700m per year from the EU over and above the budget allocated by the UK government.

There are also other returns which may not be included in the public sector payments. For example one of the largest spending items of the EU is on research. Horizon 2020 is the EU research and innovation budget of E79bn.
British Universities pulled down £687m for research and innovation in 2013, a figure that is growing and other sums are pulled down to fund their international work. This is vital as all knowledge is now global.
The employers organisation the CBI, also points to other benefits and additional economic growth that are not so obvious.
There are different views on the extent of these wider benefits
http://blogs.channel4.com/factcheck/factcheck-britain-sending-350m-week-brussels/21733
The House of Commons Treasury Select Committee is currently reviewing all the evidence so currently we have to make our own judgements.
Perhaps we should take into account the reports that the referendum is already adversely affecting investment and the exchange value of the pound as an indicator of what might follow during the two years of negotiations that would follow a no vote?

Big enough economy to go by ourselves?
 ‘Ours’ is an interesting term as over 50% of the shares in Britain’s biggest companies are foreign owned - giving huge control over the distribution of profits and future investment. That situation will remain whether we were in or out of the EU and will have a key effect on future investment decisions, flows of finance in our import and export balance of payments.

The only way this could become ‘ours’ is through nationalisation and democratic control.

Our dangerously wide deficit on imports and exports raises questions about how successful our economy really is.

Return of the EU payments would also mean a loss of the money flowing back - so the net figure of around £9.4bn is what is at stake and we probably see back some of that as well. This is 0.5% of GDP and about 13% of the current UK deficit of spending between tax income and public spending. With a Government determined to ‘roll back’ the state and having problems of their own making in covering the deficit, they are very unlikely to use any additional money on public spending. That would need a change of government.


3. Democracy and power

HUB comments
Concerns: rule by Brussels not UK - % of EU laws; elected governments overruled e.g. Greece; too much bureaucracy; MEP gravy train; voted for trade agreement not EU; we obey, they don’t;

Benefits: Human rights legislation e.g. privacy battle; redistribution to less rich areas; % of EU laws small. Elected MEPs.

EU democracy - basics

The Treaty of Lisbon is the fundamental document of the EU, virtually the constitution.

Council of EU - composed of the elected ministers from each EU country ‘Voice of EU member governments, adopting EU laws and coordinating EU policies’. Together with the European Parliament the main decision making body.
Presidency of the Council - is held by each EU country on a 6 month rotating basis.

European Parliament - composed of 751 directly elected MEPs. Wales has four. Elections are held every five years - the last ones were in 2014. It passes laws together with the Council of Ministers on proposals from the European Commission. It cannot initiate its own legislation. President of the Parliament is elected by the MEPs. It elects the President of the Commission and approves the Commission as a body.

The European Commission is the politically independent executive of the EU - it proposes and enforces legislation and policies. Run by a President elected by MEPs - currently Jean-Claude Juncker - together with 28 Commissioners from each of the member states with specific areas of responsibility.

Court of Justice of the European Union - ensures EU law is interpreted and applied the same way in all EU countries and ensures EU countries and institutions abide by EU law. It applies only to the 28 members countries and is composed of judges from each EU country. http://europa.eu/about-eu/institutions-bodies/court-justice/index_en.htm

The Court of Justice is the last resort court for cases brought under the European Charter of Fundamental Rights.

European Court of Human Rights is quite separate from the above, covering 47 countries, has a longer history and is responsible for enforcing the European Convention of Human Rights.

The EU is directly accountable to elected representatives from each of the 28 countries both in terms of ministers and MEPs. Civil servants and Commissioners are employed proportionately to member countries. Both courts above involve judges from all member countries. Accountability and democracy does exist but could be much improved, for example MEPs could have the right to initiate legislation; there could be much more openness in decision making and the Treaty of Lisbon will need changing to allow more bottom up democracy and social as opposed to economic legislation.

UK democracy and the EU

Estimates of the proportions of UK law affected by the EU vary between 6.3% - 84% it all depends on what kind of laws you are talking about. Completely new Acts of of the UK Parliament include the lowest proportion of direct effect of EU legislation.

Democracy and accountability works both ways, with the UK having democratic representation in Europe as can be seen above.

For many the European Convention of Human Rights and the European Charter of Fundamental Rights are seen as a beneficial outcome of the experiences of the first and second world wars. Some of the basic rights such as a ban on capital punishment and the rights to free speech, privacy and association, including the specific right to join and be involved in a trade union come from these organisations. See the reference above.

It is difficult to estimate what is too much regulation or bureaucracy. It often depends on what you wish to see happen. The EU limitation on mobile phone roaming charges in the EU would probably be widely supported whereas the working time directive might not be. Animal welfare and public health requirements again would generally be supported but require considerable enforcement and inspection.

Trade agreements all involve restrictions and limitation on the UK government; see the debate over the TTIP (Transatlantic Trade and Investment Partnership).
Norway and Switzerland are not part of the EU but have to abide by the trade agreement restrictions without any democratic recourse through elected or ministerial representation.

It is difficult to be definitive about the UK abiding by EU rules and others not. The rebate of the UK payment to the EU would probably be seen by other countries as us not playing the game. It is probably the case that Britain could make a stronger case and push harder in the EU but that depends on commitment for it to work.

It is generally acknowledged that MEPs and employees of the Commission are well rewarded. Personally this has never bothered me as it provides a benchmark for all of us to argue for.

Finally of Greece, as well as Italy, Portugal, Spain and Ireland where democratically elected governments were forced to accept austerity cuts, hitting workers hard in order to save the Euro and the banking system. The inability of the EU to deal with the human refugee crisis is another example of the humane treatment of people not being put first.

Both these situations go to the heart of the dynamic tensions that exist within the EU and the Treaty of Lisbon: an organisation established to support private business and come to terms with international competition whilst at the same time try to bring along the population with democracy and social benefits. At times of crisis banks and business comes first and nations retreat into nationalism.

Personally I would argue that we should work with people across the EU to put people first and argue to improve democracy as an antidote to nationalism. The vote on the EU is not really something that is either this or that but what is the best way of achieving the changes we all think are required. For me it is about pushing back the market and the rich and increasing our power through democracy and not nationalism.

Finally a personal plea that relates to points made about the first and second world wars:

"The history of the UK is inextricably linked to world history and in particular, Europe. The development of capitalism and the various forms of imperialism over the last 400 years have accelerated this process. The last 100 years have seen two European wars of utter annihilation, which are of also part of a world conflict. Like nearly every other family I know, mine and that of my partner’s have been scarred by the deaths and experiences of these conflicts. The consequential wars have continued since 1945. Working class support for these wars was justified and won in nationalist terms, weakening the solidarity and international links that may have prevented them and challenged capitalism at the same time. This was, let us not forget, the key failure of the second international. That nationalism continues to undermine us, with potential fatal co consequences."


This is taken from a longer article I wrote giving my position last November:

An internationalist argument to vote yes.