Nicola Sturgeon

The EU won’t change: whatever the result of the #EUref, the left has more to fear than the right

imageThe EU referendum campaign has been the weirdest in living memory. One day, David Cameron argues that we should stay in the EU as we “just don’t know” what will happen in the years ahead; the next, George Osborne confidently makes projections 25 years into the future. Lifelong Eurosceptic Jeremy Corbyn now embraces his inner Europhile in an effort to placate his MPs. Michael Gove, Iain Duncan Smith, and Boris Johnson now, apparently, want to throw cash at public services. Meanwhile, Nicola Sturgeon is making the argument that staying in the Union is better for jobs, trade, and investment – seemingly without a hint of irony. But perhaps it’s Alex Salmond, the most famous supporter of Scottish independence since William Wallace, making the argument that we should remain in the EU because otherwise Scotland will become independent, that takes the prize for utter ridiculousness.

However, aside from the somewhat strange positions adopted by politicians, there is a bizarre ideological contradiction at the core of both the “Leave” and “Remain” campaigns. That contradiction, quite simply, is that the politicians whose views are most in-line with the ideological underpinnings of the European Union are campaigning to leave, while those whose views are totally at odds with the EU’s direction of travel are campaigning to remain.

When considering an organisation like the European Union, there are essentially two orders of complaint.

The first order complaint is fairly ideologically neutral: that the European Union deprives the citizens of Member States of any direct say over matters that would usually be the subject of political discourse and division. Invariably, the main proponents of this argument appear to be drawn from the right. Complaints about the surrender of sovereignty can frequently be heard from the Conservative benches of the House of Commons, but seldom heard from the Labour benches.

The second order complaint is distinctly partisan, and from a left-wing perspective more worrisome: that having been deprived of any direct say over matters that would usually be the subject of political discourse and division, we have had imposed upon us a free-market ideology from which we are not at liberty to depart.
Though the preference for free-market ideology has been evident, in particular in judgements of the ECJ, since the early days of the EEC, the abandonment of the façade of ideological neutrality came during the 1980s. During this period we saw the entrenchment of a consensus that arose in the 1980s, when almost every Minister in the Council was drawn from the centre right. This consensus led to both the Single European Act and the Treaty of Maastricht.

In recent years, this ideological preference has become more overt. For example, in two recent cases before the European Court of Justice (ECJ), the Court ruled on a conflict between the rights of workers to withhold their labour and companies’ rights of free movement. Normally in cases such as these where two competing rights are in conflict the Court will grant a wide margin of appreciation to the Member State. However, in Viking and Laval, the Court ruled that the rights of workers were subject to the the rights of corporations, and not balanced by them. In doing so, the Court ruled that workers are only allowed to strike where it’s not too inconvenient for their employers. And there I thought the whole point of a strike was for it to be inconvenient.

The court further ruled in Viking that it was lawful for companies to discriminate between domestic and imported labour, thereby creating an incentive for companies to import workers from other Member States in order to undercut wages.

Of course, the most high-profile recent example of the EU’s ideological preferences can be seen in the treatment meted out to Member States who found themselves in fiscal trouble during the Eurozone crisis – in particular Greece. Having knowingly created artificially low interest rates in the so-called “PIGS” states, the EU institutions turned their backs on these states, insisting that “there is no alternative” to harsh austerity measures. Of course, there was an alternative – but one which would involve unpicking the ideological preferences of the EU.

The left consoles itself with the socialist scraps thrown from the EU’s capitalist table – such as directives on working time, maternity pay, and roaming charges. However, the left ignores the fundamental entrenchment of neoliberalism that the EU mandates.

Thanks to the EU, the most basic instruments of left-wing governments have been neutralised, with the exception of tax and spending (although the Commission’s coming for that next). States are no longer at liberty to nationalise, regulate, or subsidise as they see fit. A left-wing government wouldn’t blink at rescuing Port Talbot steel works – but even if Jeremy Corbyn was Prime Minister there’s absolutely no chance his government would get Commission authorisation for supporting the steel industry. In recent years, too, we’ve seen the Commission clamp-down on airport subsidies, of crucial importance to many in Scotland.

Unlike in domestic politics, this ideological preference cannot be undone by a majority, even a relatively sizable one. A similar uniformity of ideology as was evident in the 1980s would be necessary before a reversal of this ideological choice became possible, let alone likely. Such uniformity becomes less and less likely as more and more states are represented at the Council.

It is surprising, therefore, that so many on the Conservative benches are so antagonistic towards the European Union, relative to those on the Labour benches. If Conservatives don’t like that their political autonomy over the ideological direction of the country has been stripped away, they can at least console themselves with the fact that the levers of power of which they have been deprived are nonetheless being pulled in a manner that is, for the most part, to their pleasing. For example, John Major’s government actually quite liked the EU’s deficit-limitation rules because they represented the entrenchment of “good conservative values”.

By contrast, the left is usually quite at peace with not pulling the levers of power themselves provided that they are being pulled in a manner of their pleasing (the internationalisation of human rights is a good example of this). But in EU Member States control over the levers of power has been surrendered and that power is being exercised in a decidedly right-wing manner. It is astonishing, therefore, that the Labour Party should be the strident defenders of the European Union, while it is the Conservatives who are amongst its harshest critics. The Labour Party has convinced itself that the European Union can be a vehicle for left-wing ideology when sixty years of evidence has shown that the opposite is, in fact, the case.

Normally the place for debating substantive matters should be the internal democratic processes of the organisation – that is to say, European Parliament elections. The fact that these questions have dominated the referendum debate, and not the more relevant question of what power (if any) the EU should exercise is testament to just what a democratic failure the EU really is. Despite the seismic political shifts that have taken place in Member States in the past 30 years – the fall of Thatcher and Kohl, the rise of New Labour and France’s Socialist revival, the end of sixty years of Fianna Fáil hegemony in Ireland, and the annihilation of PASOK by Syriza, to name but a few – the political direction of the EU has never changed. If anything, recent evidence has shown that despite rising disquiet amongst voters, the determination of the EU’s leaders to pursue a right-wing, neo-liberal, free-market agenda has become more trenchant, not less.

So the right should console itself with the fact that they’ll almost certainly be getting their way whatever the result. If we leave there’ll be a Tory government in Westminster unfettered by the interfering busybodies in Brussels and Luxembourg. If we remain the EU institutions will be vindicated, and the free-market ideology will become even more entrenched. For the left, it’s difficult to find a silver-lining in either scenario.

This blog is adapted from an article I wrote for Grapevine – available now. 

SNP makes the case for scrapping tax-free personal allowance and imposing a “Flat Tax”

Sturgeon ParliamentLabour (and the Liberal Democrats) have called the SNP’s bluff, by proposing a 1% tax increase in order to offset cuts to public services. Surely, the left-wing SNP warmly embraces slightly higher income taxes over austerity? It seems not, and the SNP’s spin machine has gone into overdrive, inventing new meanings for words, which hitherto had a commonly understood meaning.

In order to defend themselves against the claim that the SNP, while speaking the language of Syriza, bear a far closer resemblance to the Tories or New Labour when it comes to taxation; the SNP’s spin doctors (another trait they share in common with New Labour) have invented a new definition of “progressive”. Any tax expert will tell you that a progressive tax is one in which the effective rate increases with the value of the base. Income tax is progressive in that respect, because higher earners pay a higher proportion of their income in tax than lower earners; Council Tax, by contrast, is regressive to its base (property values) because the effective tax rate is lower for higher value properties. Simple stuff.

However, in response to Scottish Labour’s proposals to increase the Scottish Rate of Income Tax (SRIT) by 1% in every band, the SNP invented a novel definition of progressivity. The SNP described Labour’s proposals as “regressive” because the relative increase in the proportion of higher earners’ income tax is smaller than the relative increase in lower earners’ tax. In other words, the proportion of the proportion of income.

The SNP’s cyber-warriors went into overdrive, lovingly embracing this new definition of progressivity, seemingly without the slightest clue about what they were actually saying. For example, the first £11,000 of income is tax-free. A certain amount of tax-free income is a feature in almost every tax system and is, surely, progressive? Well, no longer, according to the SNP. Because we pay no tax on the first £11,000, the first penny of income tax is an infinitely higher burden than zero.


As can be seen on the above graph, the rate at which the tax burden increases (green line) is significantly higher at the lower end of income tax, because the tax-free personal allowance represents a much larger share of total income. Because of the withdrawal of the personal allowance above £100,000, the rate at which the tax burden increases in the top brackets approaches zero (the only constant being the weekly National Insurance threshold of £112). Under the SNP’s new definition of progressivity, the personal allowance is regressive, and presumably therefore, has to go.

By contrast, taxing us on every penny we earn at a single rate – a flat tax, without any personal allowance – would be much less regressive under the SNP’s conception of progressivity.

The SNP’s measure of progressivity is what’s called a derivative, and by the SNP’s new definition of progressivity, it’s not just Labour’s proposals that are regressive, but also the whole of income tax itself! In their attempts to spin Labour’s proposals as regressive (which I hope is clear by now, they are not) the SNP’s spin doctors and their online infantry have been making the case for scrapping the personal allowance and imposing a flat tax. And if you believe that’s “progressive” then you really will believe anything.

 

Sturgeon’s astonishingly risky EU intervention

SturgeonThe EU referendum was always going to be a tightrope for Nicola Sturgeon. The risks are manifold: saying something that could ultimately be used against her in future Scottish independence referendum; drawing attention to some of the more unpleasant elements of the independence cause; and appearing to stand shoulder-to-shoulder with the Prime Minister, having previously denounced (and demolished) Labour for doing the same. I always therefore assumed that come the independence referendum Sturgeon, being more risk-averse than her predecessor, would restate her position that she favours British membership of the EU and then stay out of the debate. However, on Monday she delivered a most astonishing speech on Britain’s membership of the European Union – exposing herself to risks on all three fronts identified above, and more.

She acknowledged, though did not dismiss, the inconsistencies in arguing for a “pooling of sovereignty” with other EU Member States while not applying that same logic mutatis mutandis to the United Kingdom. The submission that “there is nothing at all contradictory about independent nations recognising their interdependence” is so packed with contradiction that only a true-believer could fail to spot it.

In the independence referendum the SNP hoped that we would suspend our better judgement and vote with our hearts, rather than our heads – and dismissed the pleas of those who urged us that we do opposite as cynical and negative. The irony of now making the instrumental case for a political union while dismissing the more emotive, nationalistic case for Brexit is clearly lost on her.

Sturgeon made the case for the EU imposing certain certain social standards on the UK (purportedly) against its will:

“In 2013 the UK only increased the minimum entitlement to parental leave as a direct result of European directives. There are other cases – for example minimum annual leave, and conditions for agency workers – where the UK complies with the European minimum and no more. Which begs the question without European regulations would minimum standards be meet the regulation at all?” [sic]

In other words, it’s OK for the European Union to impose laws on the UK that the UK has not voted for, but it’s not OK for the United Kingdom to impose laws on Scotland that Scotland has not voted for. I wrote previously about how the left was generally fine with surrendering control over the levers of power provided the levers are nonetheless pulled in a manner of their pleasing (such as the internationalisation of human rights). However, pulling the levers of power is the core purpose of the SNP and the independence movement. The SNP didn’t give up its pursuit of independence when Gordon Brown was Prime Minister even though Brown clearly enjoyed overwhelming support in Scotland. The fact that the levers of power were being pulled in a manner Scotland chose mattered not one jot to the SNP – what mattered most was who was pulling the levers of power, not how they are pulled – which is where the contradiction in Sturgeon’s position lies.

She continues:

“In fact, when you consider some of the UK Government’s other policies – for example its attempt to further weaken trade union rights – we should be thankful that the European Union sets some basic social standards.”

The 2015 General Election was remarkable for a number of reasons, though one result seldom commented upon is the fact that right-leaning parties won a majority of the vote for the first time since the war (though it was close in the 1950s). For Sturgeon to claim that we Britons should be thankful to the EU for imposing policies upon us that the people of the UK voted against at the last election, while simultaneously crying foul every time the UK pursues policies which “the people of Scotland did not vote for” is bare-faced hypocrisy, and impossible to credibly sustain. The very nature of a political community is one in which individuals and groups subjugate their own desires to the will of the community. The fact that Sturgeon is apparently OK with the principle of laws being imposed against a nation’s democratic will provided those laws come from Brussels and not London, is a conflict that cannot be resolved without exposing some fairly unpleasant truths about some aspects of Scottish nationalism.

Sturgeon further claimed that

“[t]he European Union is good for the prosperity and wellbeing of individuals, families and communities across our country.”

This is a questionable assertion, but whatever the truth of it in the UK, it is most certainly not the case in Greece, Ireland, Portugal, Spain, or Italy – where the EU has imposed swingeing austerity on these nations, usually against their will, in order to protect (primarily the financial industries of) Germany and France from contagion. How can a party that claims to be “anti-austerity” be so enthusiastically supportive of political institutions that have imposed the harshest austerity Europe has seen since the war? Sturgeon’s narrow, self-interested, view of the beneficiaries of the European Union doesn’t square with her support for a social Europe. I would also ask this question of Jeremy Corbyn and John McDonnell, though their support for the EU is, at least, considerably more tepid. This is a contradiction that Sturgeon conveniently glossed over in her speech.

Sturgeon tail-ended her extraordinary foray into the EU referendum debate with an interview with Channel 4 News. Sturgeon was asked what her supporters might think about her fighting on the same side of a referendum as the Prime Minister. She replied

“[i]f he can appeal to those who agree with him, I’ll appeal to those more inclined to my progressive social democratic view of the European Union – if that maximises the vote to stay in, all the better!”

Substitute “United Kingdom” for “European Union” and that line could as easily have been uttered by Jim Murphy or Johann Lamont.

None of this is explosive, though it certainly provides the SNP’s critics (for what they’re worth) with some ammunition. What’s most remarkable is that such a risky speech is entirely out of character for cautious Nicola Sturgeon. Plenty of other political leaders who have won landslide victories became over-confident. Ultimately, it was their over-confidence that was their undoing.