Summit rows intensify EU crisis

What we think

Summit rows intensify EU crisis

THE FAILURE of the EU summit marked a deepening of the crises of the
European ruling classes. It followed on from the ‘no’ vote in France and
the Netherlands against the EU constitution.

These were primarily votes of the working class against the brutal
neo-liberal policies of capitalism. The determination of the French
working class in particular, to defy their media, politicians and ruling
classes has plunged Europe into turmoil.

Politicians fighting for a ‘yes’ vote attacked the ‘no’ camp as
‘little Francers’ and ‘little Netherlanders’. Now these same politicians
are trying to restore their popularity by playing the nationalist card.
This was the immediate cause of the Summit spat. But they have failed.

Blair received more ‘yah, yahs’ than normal from the Tory back
benches but remains a fundamentally damaged prime minister. Meanwhile,
French President Chirac has plunged in the polls to a 70% disapproval
rating! Schroeder, the German Chancellor, is still languishing in the
polls, facing the prospect of decisive election defeat in September.

Underlying causes

However, the underlying causes of the Summit disagreement run far
deeper than the desire of individual politicians to restore their
popularity. They are three-fold and interconnected.

First is capitalism’s inability to take Europe forward. The economy
as a whole is stagnating and a number of countries – Italy and Portugal
in particular – are suffering serious economic crises.

Second is the EU’s enormous difficulties in holding together a body
of countries with conflicting and diverging economic, social and
political interests.

In the past, huge subsidies – including the CAP and the British EU
budget rebate – were used to paper over national conflicts of interest.
Now economic difficulties, and particularly the expansion of the EU,
mean that there is major objective pressure to cut the EU budget,
exposing underlying tensions.

When the Euro was launched there was euphoria amongst the European
ruling classes and widespread illusions that this was a step towards a
politically unified Europe. At the time the socialist argued that, on a
capitalist basis, the barriers created by the different nation states
would never be fully overcome and that, at a certain stage, the process
towards integration would be pushed into reverse.

Pushed into reverse

The need to compete with the US, and increasingly China, means that
the pressure for further integration will remain. Nonetheless, the
European ruling classes are now beginning to face the prospect that one
day their dream could unravel.

The Financial Times accurately explained that: "All
large-country monetary unions that did not turn into political unions
eventually collapsed." (8 June). While this is unlikely to be posed
immediately, national tensions will continue to develop and,
particularly during a world recession, could intensify dramatically.

Thirdly, the European ruling classes face ongoing resistance from the
working class to the continual drive to increase profits through lower
wages, increased hours and cuts in social spending. This is despite the
current lack of mass workers’ parties and the supine nature of the
majority of their union leaders.

Chirac is no less ‘neo-liberal’ than the Anglo-Saxon leaders. The
only real difference is the determined opposition he is facing from the
French working class.

The ‘no’ votes marked a qualitative change in the situation. They
demonstrated the working classes’ will to resist. They have profoundly
shaken the confidence of the European ruling classes and significantly
increased the confidence of the working class, particularly in France
and the Netherlands, to struggle.

And they have also shown where workers and their trade unions should
stand in the debates in Britain on the EU. No to the bosses’ European
Union and the euro. For solidarity with the European working class in
our joint struggle against privatisation, cuts and worsening working and
living conditions. For a socialist Europe.