LEFT COLUMN: 22.08.2000

What we think

Debating Europe

Euro or no euro, we need workers' unity

Will Britain joining the euro help or hurt working-class people? It's impossible to tell. What's certain is that we should avoid being hitched to either the pro-euro or the "save the pound" bandwagon.

What is vital, euro or no euro is to build cross-Europe workers' unity as our answer to the European integration of capital. Whether Britain joins the euro sooner, later, or never, the bosses increasingly organise across frontiers. There should be multinational shop stewards' committees, and even multinational unions, to match up to them.

In fact, co-ordination by trade unionists is still very weak. Despite some good efforts like the Euro-March for Jobs and the Campaign for Free Education's moves to coordinate battles against student fees across Europe, on the whole the same goes for unemployed groups, campaigns to save public services, and student movements.

Cross-Europe organising, and unifying cross-Europe demands - like levelling-up of social provision, union rights, and minimum wages - must be our priorities, euro or no euro.

As regards fundamentals, the debate in mainstream politics is a very narrow one. "Save the pound" is all very well for those who have lots of pounds to save, and euro-enthusiasm may make sense for people who envisage spending lots of money all across Europe, but for most of us it's enough of a problem to get enough money to live on without worrying about what picture is on the notes.

The anti-euro lobby, "Business for Sterling", firmly supports British membership of the European Union and the "single market". Almost all the pro-euro voices in big business and the New Labour leadership concede that Britain can't join immediately without further adjustments.

Narrow though the debate is on that level, it could also be highly explosive for mainstream politics in Britain. There is a real division in the ruling class. The biggest bosses' alliance, the Confederation of British Industry, is pro-euro, "at least in principle". When they surveyed leading business people, they found 50% broadly pro-euro, 22% broadly anti, and 28% in the middle. A broader survey, including more small businesses, had 30% pro-euro, 46% anti, and 22% others (the percentages not totalling to 100 because of rounding).

Bosses from Nissan, Mitsubishi, and Ford have come out hot and strong for the euro, because they produce in Britain mainly in order to export more conveniently to Europe. According to Bob Dover, the new boss of Land Rover under Ford ownership, "The UK is a lousy place to make products right now. We need to get into the euro. It's extremely important to UK manufacturing that we are allowed a level playing field."

The Engineering Employers' Federation is pro-euro, and so are most finance capitalists. But Business for Sterling can show an impressive list of supporters, with top people from Dixons, Forte, Lazard Brothers, Hambros, Somerfield, Sainsburys, Marks and Spencer, GEC, GKN, Tate and Lyle, Mathesons, Lonrho and J C Bamford. Their statement outlines the issues crisply. Britain has much closer ties with the USA than other EU countries, so the pound tends to move more in tune with the dollar, and US-oriented capitalists have an interest in keeping it that way. Also, the Tories established Britain as a low-cost offshore production site for Europe - low-tax, deregulated, strong anti-union laws - and the "save the pound" bosses fear pressure to increase social provision and improve workers' rights if Britain is more integrated into Europe.

Business for Sterling say: "There are fundamental disparities between the British and Continental economies. Britain does more trade outside the EU than any of our European partners. We also invest more overseas and attract more inward investment. Our economic model is based on deregulation, low taxes and free markets - in contrast to the Continental 'social market' model, with its high employment costs and extensive state participation..."

The pro-euro New Labour leaders have been reassuring the anti-euro bosses by their opposition, for example, to ideas of a European Bill of Rights. Don't worry, they say, euro or no euro, we'll keep the working class screwed down! Unfortunately, this is one promise they will probably keep, unless working-class resistance rises strongly enough to disrupt their plans.

The Tory party leadership has nailed its colours to the anti-euro mast, hoping to tune in to the flag-waving nationalism still widespread among voters of all classes. Some leading Tories like Kenneth Clarke and Michael Heseltine are furious. For the present Hague can deal with that, because the big majority even of pro-euro capitalist opinion does not see joining the euro as an immediate prospect. He can even put pressure on Blair, who is plainly pro-euro but prefers to occupy the middle ground ("let's wait and see").

Before many years, however, Britain may be faced with a sharp choice between being part of a European Union "inner core", organised round the euro, or being relegated to the edges along with Slovakia and Slovenia. And then the squeeze will be put on the Tories. Their party could even split, as it did in 1846 over the Corn Laws and nearly did in the early years of this century over protectionism and free trade.

The euro will thus remain a big issue in mainstream politics in coming years. The pressures pushing the labour movement to line up behind one or another of the capitalist factions are already strong, and will increase. But we should resist! Euro or pound, the issue is workers' unity!