How easy it is to jump onto the bandwagon
of popular opinion.
For years, UKIP have been labelled
everything from fanatically anti-European to xenophobic for holding the view
that the European Union was bad for Britain. As recently as a couple of
years ago, throughout the early months of my tenure as an MEP, I received
accusations of scaremongering if ever I suggested the Eurozone was doomed.
Those critics have fallen strangely silent of late.
Now politicians from across the political
spectrum are championing a British exit from the EU, warning of the dire
economic consequences of prolonging the single currency without fiscal
unanimity and bandying about suggestions of an in-out referendum. All of a
sudden our party line is trendy.
One thing is for certain. For the single
currency to survive member states must forge closer economic bonds, to the
extent of becoming a single federal entity (the argument is that the EU has
borders, a flag, an anthem, a Parliament, an army, foreign policy, a currency and
laws, so the only thing separating it from a federal state is the lack of tax
raising powers). If this does not happen, the Eurozone will, eventually, implode,
and in doing so, force the UK
into a decade of depression.
Of course, the UK would resolutely not wish to be
part of a federalised super-state. It raises the question of what sort of
relationship we could have with a new Europe. UKIP
has always championed a relationship akin to the current Swiss model, where
free trade and continental cooperation remain priorities, despite not being a
member. This is now being mooted by politicians who but a few months ago
championed a more integrated European Union, only to find their subject today
ridiculed by fate.
Either way the tapestry that has been
woven by Brussels
over the last five decades is unravelling at an alarming rate. Spain requires
a £100 billion bank bail out to save her finances. The incomprehensible nexus
that has formed between the Spanish state and the banking sector means the
Government can no longer sensibly bail out the very banks that have been bailing
out the Government. The Spanish Finance Minister has resolutely denied needing
a bail out, but we’ve heard this before. Greece,
Portugal and Ireland all
said the same thing. In the UK,
the Government recapitalised British banks to the tune of £1 trillion, a
measure that was widely criticised on the continent as too closely bound to
Anglo-Saxon capitalism. But it saved us from the economic disaster we are now
seeing affect banks in the Eurozone’s largest economies – even in Germany. It’s
estimated at least £200 billion must be injected into Eurozone banks to
stimulate borrowing capacity, but in order for this to happen Germany must
essentially underwrite all single currency loans.
It’s understandable that Germany doesn’t
like the idea of so-called “Eurobonds”. Why would they? Holding them culpable
of the debts of their neighbouring countries is hardly going to seem fair to
the majority of Germans. Meanwhile Spain wants a bail out with no
strings attached. Of course they would. They can see what has happened in Greece, where
desperately ill people are queuing outside pharmacies for life saving medicines
as stocks run dangerously low. Germany
does not want Spain
to get a free handout without agreeing to fairly stringent conditions. And thus
we are left trapped in an ever revolving circle of national self-interest that
is leading critics to cry out for the greatest seismic shift in political power
ever seen by Europe – the move to federalise
the Eurozone before the clock ticks down, despite such a schismatic resolution
flying in the face of democracy.
What about the UK? What do we want? We need Eurozone
banks to be protected. Barclays is exposed to Spanish banks to the tune of
£26.5 billion. RBS is liable to £14.6 billion if they do collapse, while Santander,
one of the high street’s biggest financial retailers, is actually Spanish
owned. Then there’s our economy. In many respects inextricably intertwined with
European markets, not just through EU membership but as the result of simple
geographic positioning.
The most sensible answer would be the
UKIP option. Leave the EU, enhance trade with traditional partners in the
Commonwealth and demonstrate neighbourly cooperation and free trade with Europe
as is the modus operandi of Switzerland
and Norway.
As part of the Queen’s Diamond Jubilee
celebrations, a lunch with Commonwealth leaders was hosted at Buckingham Palace.
We were reminded that our Queen is not just the head of state in the UK. She is
Queen of Antigua, Barbados, Bahamas and Belize, Canada, Grenada, Jamaica and
New Zealand, Papua New Guinea, St Kitts, St Lucia, The Grenadines, the Solomon
Islands, Tuvalu and Australia, as well as being head of the 54 countries that
make up the Commonwealth of Nations, including India, Nigeria, Pakistan,
Singapore, South Africa and Kenya. These are long established natural allies of
Britain,
countries with a diverse diaspora, different geographical landscapes and as a
result, present true international trade opportunities.
This year Commonwealth GDP will soar past
the Eurozone’s. While the Eurozone will grow by only 2.7% if it manages to avert
fiscal disaster, the Commonwealth will be boosted by 7.3% growth.
I’m not bitter that my views are now
being championed when for so long they have been slated. I would be a poor
politician were my pride more important than my conviction. I just hope the
newest recruits to Eurosceptic ideology have strength enough to hold as
steadfast to their beliefs. For what Britain
and Europe needs more than anything right now
is a steady hand on the tiller.