EU Referendum


EU Referendum: it's all about reassurance


21/07/2015



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Enthusiastically retweeted by the eurosceptic "community" over the weekend was a report by the Telegraph claiming that "EU diplomats" were planning to spend £2 million on a "dinner service", said to be "fit for an emperor".

The truth, of course, was a little more prosaic. The EU had issued a tender document for a four-year framework contract to supply the Brussels EEAS operation and 140 sites, worldwide, with "china tableware, fine glassware, sets of cutlery and silverware" for the diplomatic banqueting suites over the period, with an estimated contract value of between £1-2 million.

Given that fine china can retail for as much as £120 per plate, the actual spend is relatively modest, and represents no more than a three-star hotel chain might invest for similar goods. And if the EU is to have a diplomatic service, then diplomats wine and dine the great and the good – that is what they do, and it carries a price tag.

The point, of course, is whether the EU should have a diplomatic service – but that question has been answered by the 28 Member States who permitted its establishment by agreeing the Lisbon Treaty. The greater question, therefore, is whether we should be part of it, which is precisely the question which will be put during the referendum when it arrives.

Then to carp over what in fact a relatively modest costs (for a grouping with a collective annual GDP of €14 Trillion) strikes me as petty. It makes us look small-minded and trivial, unable to accept that, if the EU is to do its job properly – as its members have defined – then this sort of money has to be spent.

But that does define a major strand of British euroscepticism – petty, small-minded and trivial. Its followers are gullible, easily distracted and unconcerned with the bigger picture.

We see this again with today's story about EU waste on foreign aid. This is classic Taxpayers's Alliance stuff, always good for a Daily Mail "shock-horror" headline which this time storms about the EU funding "a study on COCONUT development!" A quick check, though, reveals that this study:
… is an ambitious and forward-looking development initiative which takes coconut-based manufacturing to a higher level by incorporating value-adding processes into the production chain. It supports Pacific economies to export value-added coconut-based products (e.g. soft vegetarian cheese, coconut yoghurt, high quality oil, protein, flour, chips, cream, milk powder) and help reduce high fuel import bills by using coconut oil-fuelled power generators in rural areas (supporting rural electrification/rural development objectives).
Another complaint is that money has been spent on developing wildlife tourism in Swaziland, yet as this paper shows, this is probably one of the best ways of containing the scourge of poaching, and protecting vulnerable species – and that is apart from the development potential.

Of course there is grave concern about the way foreign aid is used, and about how it should be spent – and supervised. But this is not what such pieces are about. The TPA wants cheap, headline-grabbing points and anything is grist to the mill. What better than a "tee-hee" smirk about coconuts or wildlife tourism? But it is the retweets which illustrate precisely why the newspapers go for this low-grade material – this is what sells.

Then, of course, there is Greece. Such is the detestation of the EU that anything done in its name has to be bad – by definition. When the kleptocracy which is the Greek state threatens to do untold damage to the single currency, and moves are made to restore discipline and a sense of responsibility, Greece is immediately accorded the victim status, with vile slurs – of a most offensive nature – openly applauded.

I am not going to revisit the heavily researched pieces I published here and here, other than remark that they attracted so much venom that I was banning commenters wholesale. To attack the "victim" is clearly unacceptable.

Yesterday, though, was the day when the Greek banks reopened, to coincide with a hike in the VAT rate – from 13 to 23 percent, a move regarded as "madness" by some. Yet, the increased rate is simply an attempt (and not necessarily a good one) to reduce evasion which is so extensive as to be estimated at €9 billion or 4.7 percent of the country's GDP, as against the EU-wide rate of 1.5 percent.

On top of that, tax arrears increased from €44.9 billion at the end of 2011 to €55.1 billion at the end of 2012, and have further increased to about €62.1 billion, or 34.0 percent of GDP at the end of 2013 and now stood at above €70.0 billion (or about 38.9 percent of the 2013 GDP) at the end of October 2014. This is close to the bailout amount, making tax evasion a problem so serious that even the house magazine for Ukip, Breitbart, believes that it is the problem..

The overwhelming evidence, therefore, is that the Greek state and its peoples have made major contributions to their own misfortunes and, since EU member states are being compelled to come to their rescue, it is only reasonable that they should be afforded some say in sorting out the mess.

Automatically opposing the EU on this does not make sense and, in that the majority of voters are critical of Greece, it is not even good politics. Furthermore, as Complete Bastard points out, it is not in the interest of the UK to have a weakened EU or one which is incapable of dealing with its problems. To be anti-EU membership does not require us to be opposed to its very existence.

Herein lies something that has been troubling me for some time – and increasingly so. Should we ever win this referendum and find ourselves sitting across a table with the other 27 Member States, then we can hardly expect amicable negotiations if we have spent years being uncooperative and objectionable.

Further, as we explore the consequences of leaving the EU, it becomes more and more apparent how much we will remain reliant on it for multiple services and joint ventures. We simply cannot afford an acrimonious break, or to have poor relations with what will still be a massive trading bloc.

The reason we want to leave the EU is that our desire to revert to the status of an independent nation is entirely incompatible with membership of a supranational treaty organisation which has ambitions to become a federal state. But that does not mean that we want to go to war.

We do, of course, have every right to confront the EU, to disagree with it, and to challenge its many missteps. But we do not have any right to seek its termination. And, recognising that, we need a lot more maturity in this debate.

The key to that maturity is to understand the nature of the campaign we are fighting. And if it takes Peter Kellner to articulate it, no matter. In general, he says, victory goes to those who are perceived to offer reassurance rather than risk. The best way to obtain a majority for change is to persuade voters that it is safer than the status quo.

The UK's future relationship with the rest of Europe will depend mainly on which future looks safer and less hazardous to most voters: remaining a member of the EU, or the prospect of life outside it. The campaign is not about hate. It's about reassurance – it always has been.