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1/7 I voted Remain in 2016 on the basis that some reform of the EU's pro-market rules was possible, working with socialists across Europe. But if we're going to sail under the R&R banner again, I think we need a reality check. Things have changed.
2/7 At the heart of the R&R debate are the EU's rules on state aid, which preclude anything that distorts competition. These rules are rooted in the 1957 Treaty of Rome and would require a new treaty supported by all member states to be changed. So do they give any wiggle room?
3/7 Advocates of R&R point out the EU does allow some state aid exemptions and the UK (at 0.36% of GDP) uses them less than Germany (1.31%). But those percentages are low, so how much wiggle room is there for the ambitious plans in Labour's 2017 manifesto? (References at end)
4/7 Pro-EU academics say that the two manifesto policies likely to require permission from the EU Commission are the national/regional investment banks and state funding for regional energy suppliers - both of which are critical for investing in jobs and tackling climate change.
5/7 Labour could be barred from implementing those policies or told they can only go ahead as long as they don't compete with the private sector (as is the case now with the Dev Bank for Wales). Even if they are allowed, any bank or energy company could mount a legal challenge.
6/7 R&Rs 'transforming Europe with socialist policies' sounds good, but we're up against powerful interests with deep pockets in a Europe where socialism is at its weakest for decades. Of course we must fight the right internationally but we don't have to stay in the EU to do it.
7/7 R&R sounds appealing, but in trying to reverse the 2016 decision we risk fracturing the forces for change here.
Why do it when a radical Labour govt could both protect trade & rights through a new relationship with the EU and inspire change in Europe? theguardian.com/commentisfree/…
Why do it when a radical Labour govt could both protect trade & rights through a new relationship with the EU and inspire change in Europe? theguardian.com/commentisfree/…
Postscript
As if to underline my R&R scepticism, Brussels has started disciplinary action against Italy for breaching the fiscal conservatism of the EU's 'Stability Pact'.
My Guardian article has links to the sources supporting points in this thread.
As if to underline my R&R scepticism, Brussels has started disciplinary action against Italy for breaching the fiscal conservatism of the EU's 'Stability Pact'.
My Guardian article has links to the sources supporting points in this thread.
