Main events 4 - 10 June 2005 ( Part 2 )
There has been speculation over the future of the single currency following
the rejection of the EU Constitution by France and the Netherlands. Some of
Europe's leaders have openly criticised the euro, while senior Italian ministers
have called for a return to the lira.
German newspapers have reported that finance minister Hans Eichel held a meeting
with officials to discuss the mechanism by which Germany would leave the euro.
The meeting, which was reported by respected weekly magazine Stern, was attended
by Joachim Fels, Morgan Stanley's eurozone economist. Fels published a note last
year entitled "Euro wreckage?", in which he argued that political instability
could cause the euro to break up. However, German government officials have
moved to dismiss the speculation.
In Italy, anger over the euro's impact on prices and economic stability have led
to calls from Government ministers for the country to leave the euro. Two
Italian government ministers, both members of junior coalition partner Liga Nord,
have called for the return of the Lira. Roberto Calderoli, the Government's
Reform Minister, said that the euro had "failed". He now says that the Liga Nord
will campaign on a platform of reintroducing the Lira at the next elections.
Senior EU figures have also called the euro's future into question. Paul de
Grauwe, a member of the European Commission's group of economic policy advisors
said, "The eurozone is a fine construction but it is an unfinished construction
and its development will depend on the dynamic for more political union. The
'no' vote is a signal that maybe we don't want this political union and in the
long run this may mean we cannot maintain the economic union" (European Voice, 9
June).
The euro is sure to survive its current problems because political
considerations make failure too costly. However, EMU will experience severe
strains in the coming decades due to the demographic and pensions crisis many
euro members are facing. Latest
news on the UK rebate added 18 Dec 2005.
According to a leaked memo from the British government to the heads of the
political groups in the European Parliament, the British government wants to
make reintroducing the controversial Services Directive a centre-piece of the UK
presidency of the EU. The Services Directive is controversial because trade
unions fear it will make increased private sector involvement in public service
delivery compulsory. It also enshrines the 'country of origin' principle,
whereby a company providing a service could set up in one country and operate in
every other EU country under the laws of the country in which they are legally
based. Trade unions, and countries like Sweden fear that this could lead to
health and safety standards being undermined in the service sector.
Speaking in the House of Commons this week Barry Gardiner, one of the
Government's trade ministers, said, "During our presidency, we will work to
build Europe's competitiveness ... We will press ahead with the services
directive". He added that "We will also aim to catalyse the debate about the key
issue of the country of origin-the principle that allows providers to deliver
services in other countries in accordance with the regulatory and supervisory
frameworks of their home countries. We believe that a fully functioning internal
market in services can be achieved without undermining high standards of worker
and consumer protection-the two are not mutually exclusive" (Hansard, 8 June).
Another trade union has voted to reject the EU Constitution. The Public and
Commercial Services Union, the 300,000 strong civil service union, decided at
its Brighton conference this week to oppose the Constitution if a referendum is
held in the UK. The policy, backed by the Union's executive, was overwhelmingly
supported by delegates and said that the union would "call for a no vote in the
UK referendum". It added that "conference is opposed to the promotion of the
free market, neo-liberal doctrines within the Constitution".
The PCS joins a number of other unions in opposing the Constitution. Unison -
Britain's largest trade union is expected to vote to oppose the Constitution at
its annual conference in Glasgow in two weeks. Other previously pro-euro unions
have decided to withhold support for the EU Constitution, including the largest
private sector union, Amicus.
Polls this week have shown that opposition to the EU Constitution in Britain
and across the EU is dramatically on the up.
A Populus poll reported in the Times (7 June) found that the number of voters in
the UK saying they are opposed to the EU Constitution has doubled to 50 percent,
since the last Populus poll six weeks ago. Only 18 percent said they would vote
yes. 54 percent believed that there should be a referendum on the Constitution
regardless of the French result. Newsnight also ran a poll which found voters
opposed by 64-20 percent, up from 57-20 in May and 54-30 in March using the same
question.
A new poll in Poland has shown that support for the EU Constitution has dropped
by around 20 percent since the French and Dutch no votes. The poll showed that
only 40 percent of Poles are now in favour of the EU Constitution, compared with
60 percent before the French and Dutch referendums (EUObserver, 9 June).
Another poll this week showed that the majority of Czechs are now against the
Constitution. The poll showed that 33.7 percent are against, 31.5 percent are in
favour and 34.8 percent said they had "no clear view" (Xinhua, 4 June).
A phone-in poll conducted by Germany daily Bild found that 96.9 percent of
respondents were opposed to the EU Constitution. Nearly 400,000 voted against
the Constitution (5 June). A poll for German magazine Stern magazine also showed
that 83% of Germans agreed that "too many decisions in Brussels are taken over
their heads".
The pro-euro Britain in Europe campaign has suggested that it may wind up
operations following the Government's decision to postpone a UK referendum.
Campaign Director Lucy Powell told the Times this week that said she expected to
begin a "radical scaling-back or winding-up" after the EU summit next week
(Times, 9 June 2005). Britain in Europe currently has 15 members of staff but
has consistently failed to make an impact in the debate on Europe, suffering
from the impression that they have been a front organisation for the Government.
Recriminations over BiE's failure to achieve anything have already begun. Former
director Simon Buckby told the Times that, "I feel the Government has let down a
lot of people who really thought there was a great, historic opportunity to take
on the anti-Europeans in this country. In the end they failed even to make the
argument". A Downing Street source dismissed the criticism, saying, "BiE always
had an inflated idea about its own importance."The Downing St spokesman added
that "Tony wanted an outrider organisation to keep things ticking over in case
we needed to build a campaign and put our foot on the gas. That is no longer
necessary. The people in Britain in Europe were all over 21. They should have
known the facts of life."
Now we have charismatic leaders who say they know what is best for us but all they want is to have absolute rule over us ,so we can be arrested or put in jail just because a politician dislikes us and without any judge and jury determining if any law has been broken.
Links: EU Referendum - be euro-sceptic - everyone please just say NO to non-democratic foreign dictators
Page started 11 June 2005, amended 15 June 2008