The merger of conventional neo-liberal doctrines with nationalist agendas and anti-European hate speech: the case of the UK
On Wednesday 8 December, the British Prime minister backed by his cabinet exploited the current economic crisis of the EU to veto changes to EU treaties. Notably, he vetoed fiscal control, financial regulations and taxation of financial activities (‘Tobin tax’), which aimed at stabilising the Eurozone, thus the EU economy and subsequently the EU as such but also at addressing some of the shortcomings of the current global financial system. This followed an earlier decision not to contribute to bailing out other member states in crisis, like Greece or Portugal. The two main arguments made were that this is to protect the economic interest of the financial centre of London, ‘the city’ is it is labelled, and that it is in the national interest of the UK. In other words it is in the national interest of the UK to protect ‘the city’. Five points I would like to make here.
First, the UK, during the Thatcher, Major and Blair years pursued another policy than Germany or Italy; it went down the road of deindustrialisation and instead favoured international and domestic services and trade. As a consequence, manufacturing shrank from 22 percent of the GDP in 1990 to only 11 percent in 2009 (Germany: 25 percent, Italy: 20 percent, France: 12.3 percent) and was overtaken by the financial centre of London long ago (BIS 2010). ‘The City’ not only is ‘the largest international banking centre in the world, with banks in the UK accounting for over 20% of global cross-border banking business’ (City of London 2011a). As such it 'has become vital to the UK economy and contributes $565 billion or around 20 percent to the total UK GDP (in 2007) (City of London 2007). The finance sector is not only central to the UK economy; the UK is also only competitive as a location under the current unregulated conditions it offers.
Second, in the present discussion in the UK, it is widely ignored that it was the politics of the British, and other governments of course, to deregulate financial services, and allow enormous borrowing, lending to private households and states and thus facilitated an economy that is based on dept. The idea was that this would function almost as a perpetuum mobile of never-ending economic growth. In effect, however, the ‘western’ lower and middle classes became entrapped in dept, the ‘southern’ lower classes are starving to their millions whilst the upper classes got ever more affluent and the gap between the haves and have-nots got ever wider. Thus, this system de facto redistributed the global wealth from the bottom to the top. Finally, however, all this collapsed. The mess we are in is thus in part the very responsibility of 'the city' that the UK - Cameron and his liberal deputy Clegg - are now so fiercely protecting. In other words, the British 'national interest' seems to be to continue for very selfish reasons with an economic model that proved disastrous and ruinous for the lives of billions of people!
Third, it has been explained by the British Prime Minister that the decision to object a joint European approach is based on the perceived national interest of the UK (Number 10 2011). This demonstrates that the UK’s politics is now inspired by protectionist and nationalist agendas. It is based on the believe that what is good for the people living on that island can only be achieved by a separate British way and even against the way of the people living in other countries. This nationalist doctrine is complemented by a surge of anti-immigration sentiments. These date back to the mid-2000s and were triggered by the arrival of Polish and other EU nationals coming to work in the UK. This first culminated in 2007, when some sections of the working class launched demonstrations against immigrant workers taking what they perceived were their jobs. The then labour Prime Minister Gordon Brown (2007) in response suggested ‘British jobs for British workers' and thus sanctioned the rise of a hugely nationalist and anti-immigrant agenda. The current conservative government, pushed by some right-wing media attacked the labour government for letting in too many migrants and one of its main policy aims is to diminish immigration. It is thus maybe less of a surprise that only one other country rejected the EU proposal on financial stability and that is Hungary, a country with a proto-fascist government on the brink of insolvency. Already in the European parliament, the British conservative parliamentarians had left the more centre right (Christian democrat pro-Europeans) faction to join the Euro-skeptic far right. Thus the UK is now allied with the most right-wing parties and governments in the EU.
Fourth, over the years, the anti-European and anti-EU rhetoric has successively begun dominating the public policy discourse in the UK. The last years were a period of constantly dripping poison from all parties, Labour, the Conservatives and the right-wing media. In recent month, commentators were almost enjoying the trouble the Euro-zone is in and it seemed they could not wait for it to collapse. Meanwhile, the anti-European rhetoric in the UK – anger over Brussels bureaucracy, regulatory politics or even the EU’s human rights legislation - has almost reached the level of hate-speech (see appendix below). Also the way the French and German leaders are depicted almost reactivates anachronistic images of the eternal arch enemies. Some of this is simply to distract attention from the problems of the UK by focusing on the problems of other countries or even to scapegoat others for the current troubles. For instance, the UK economy is doing much worse than that of several other EU countries; also national bureaucracy is at least as bad, if not worse than what is coming from the EU. These UK responses may in part also be due to the fierce competition from other European countries over technologies, manufacturing, transportation, global services or indeed international power.
Fifth, after WW I the UK has lost its global economic leadership to the US and the dollar, after WW II it lost its colonies to the independence movements and ever since the 1970s, when it joined the then EC, it nevertheless missed its opportunity to instead become a leading player in Europe. On the one hand, the UK likes to present itself as a political, cultural and technological leader on a global scale (see Brown 2007). On the other hand, many seem to envy Germany for its technological and economic success, the French for their ‘savoir vivre’ and the Spanish for their climate whilst still assuming some cultural superiority of Englishness. In any case, the UK seems to never coming to terms with the loss of their empire whilst they also cannot accept the transformation of the Westphalian state order, the idea of sovereign and separate nation states. It may be that it is the literal insular geography of the UK and a deep conservatism rooted in rural England that facilitates such an inflexible mentality of statelessness. Or it may be that the UK perceives its combined military power (it engages in any possible conflict that emerges, e.g. Afghanistan, Iraq, Libya) and economic power (through London it manages large parts of global capital flows) as strong enough to be able to sustain even a small nation state against the likes of the US, EU, Russia, China, India and other emerging powers.
To sum up, in response to the current economic and political crises the UK opted for a combination of anti-immigration, protectionist, anti-European and nationalist but also occasionally militarist and simultaneously ruthlessly selfish and callous neo-liberal agendas. The UK has alienated most other member states and is now de facto allied with the far-right, sometimes almost proto-fascist parties and governments in Europe. In the statements ensuing from the British veto it became clear, not for the first time though, that the UK is mainly interested in free trade and in the EU as a single market and not as a political project. Thus, the UK looks at Europe from a purely neo-liberal perspective. The main reason why the UK does not yet leave the EU, as many conservatives would probably hope, seems to be this economic deliberation.
References
Department for Business, Innovation and Skills (BILS (2010), Manufacturing in the UK, Economic paper 10b, London: BIS, www.bis.gov.uk/assets/biscore/business-sectors/docs/m/10-1334-manufacturing-in-the-uk-supplementary-analysis.pdf
Brown, Gordon (2007), Labour party conference speech,
City of London (2007), A capital contribution - London’s Place in the UK Economy, 2007-08, news release, http://www.cityoflondon.gov.uk/Corporation/media_centre/files2007/A+capital+contribution+-+Londons+Place+in+the+UK+Economy+2007-08.htm
City of London (2011a), Research and statistics, http://www.cityoflondon.gov.uk/Corporation/LGNL_Services/Business/Business_support_and_advice/Economic_information_and_analysis/Research+and+statistics+FAQ.htm
Number 10 (2011), Eurozone: 'I will protect the national interest’ PM says, http://www.number10.gov.uk/news/eurozone-i-will-protect-national-interest-says-pm/
Appendix
The following quotes only give a flavour of the current discourse on the EU and only refer to some comments made during debates in parliament.
‘The British national interest: safeguarding the single market and the financial services’, Prime Minister Cameron; (see Parliament UK 2011, House of Commons, Oral answers to questions, www.publications.parliament.uk/pa.cam201011/cmhansrd/cm111207/debtext/111207-0001.htm#11120739000033). ‘EU institutions operate against our interests’, MP Jenkin; ‘truly frightening conglomeration of power on the continent’ MP Leigh; [relocating a the currency clearing house] is ‘daylight robbery and stealing our business’, MP Leadsom; ‘the creation of a de facto country perhaps called Greater Germany’ MP Jackson; ‘people are fed up with mindless interference from the EU’, MP Baron; ‘the fantasy world ...of trying to create economic and political union’, ’other countries ...are in effect economic satellites of Germany’, MP Cash; ‘we want control over our borders back because [my constituents] are fed up with mass immigration from the European Union’, MP Hollobone; all quotes from Parliament UK (2011), European Council, 8/12/2011, www.publications.parliament.uk/pa/cm/cmtoday/cmwhall/01.htm. Reference is also made to discursive frames on centuries of fighting for independence from continental domination and defending global trade of the UK.