The Great Divide
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onservatives have always signal an end of Thatcherism, an end to been divided over Europe the strategic objectives which the but their differences have Thatcher government has attempted to recently become much more pursue, however inconstistently and in Cpronounced. The row over Nicholas coherently, during the past 11 years? Or Ridley's after-dinner observations in will a leadership be found to maintain the Spectator demonstrated just how broad continuity in policy direction? much Conservatives on both sides of the Attitudes to Europe are rapidly becom divide abandoned their normal reserve ing the litmus test, superseding old wet/ in front of the cameras and began dry divisions over economic manage denouncing one another with unseemly ment. As on any other complex issue, vigour. Terms like federalists and positions on Europe within the nationalists to characterise the oppos Conservative Party do not always fall ing factions have begun to be freely neatly into two camps. Nevertheless, employed. there is increasingly a divide between When Ridley resigned in July, com two approaches to the European Com mentators were quick to point out that munity - the first pragmatic and he was the third senior minister accom-modating, the second ideological Thatcher had lost because of internal and obstructive. divisions over Europe. Heseltine res These two camps are termed federal igned in 1986 as secretary of state for ists and nationalists, but labels disguise defence over the prime minister's a range of different positions and em refusal to back his plans for a European, phases within each. In the nationalist rather than American, rescue for West- camp three different strands can be land helicopters. Lawson resigned in identified: isolationists, Atlanticists and 1989 as chancellor of the exchequer market liberals. In the federalist camp because of long-standing differences there are unionists, realists and market with the prime minister and her special liberals. The picture is further con The adviser Sir Alan Walters over Britain's fused because it is quite possible to membership of the European monetary belong to different camps on different system. issues. For example, Nigel Lawson may All three resignations weakened the have been a federalist on the ERM, but Great prime minister's authority, and focused on the social charter, on political union attention on the policy divisions over and on industrial policy he was a nation Europe within the party. These policy alist. Similarly, Heseltine and Thatcher differences have become tangled up take different views on all the above, Divide with the question of her leadership and but on defence both are Atlanticists the succession. When they debate Eu rather than Europeans. rope, Conservatives are also seeking he two pure positions are iso Europe has become the the answer to another question - is lationist and unionist. Isola there life after Thatcher, and if so tionists favour withdrawal great divide in the Tory whom? from the European Commun At one level this is about personalities. Tity and support the assertion of national Party. Andrew Gamble Who will inherit the golden throne (or sovereignty in all areas of policy. explains the various poisoned chalice) which Thatcher will Unionists by contrast favour rapid pol positions and suggests leave behind. Leadership contenders itical and economic integration leading come and go, rise and fall. No-one has to the creation of a federal United that the Thatcherites yet established a secure claim to be heir States of Europe. will ultimately lose presumptive. So much will depend on There is a sizeable body of opinion in the timing and circumstances of That the party which is isolationist, but union cher's departure. ist sentiment is much smaller. The But the European issue is about much spokesman for the isolationists used to more than just the identity of That be Enoch Powell. He is resolutely na cher's successor. Because Thatcher tionalist on all questions including herself has become so involved in the defence, rejecting dependence on the issue as a partisan on one side of the United States as much or even more divisions in her party that the issue has than he rejects dependence on the Euro also become the battleground for the pean Community. For the isolationists future direction of Conservative policy. there are no issues which justify the Issues that appear technical and surrender of national sovereignty. highly complex, such as whether Bri The Thatcherite wing of the party con tain should join the exchange rate tains many isolationists, but it is not the mechanism of the European monetary dominant tendency. Thatcher's position system and if so at what parity and on national sovereignty is complex, since inflation rate, have become invested she is such a strong supporter of the with the wider hopes and fears which Atlantic alliance and American leader the different factions entertain for the ship of the West, and she has never future of the country and the party. opposed Britain's membership of the European Community. She accepts the While enthusiasts from the Thatcher Youth pooling of sovereignty which member still chant '10 more years', most ship of Nato and the European Com Conservatives and most commentators munity imply. expect that the prime minister will seek The Thatcherite position, therefore, to win one more election and then step embraces two groups - Atlanticists and down. Most people assume therefore market liberals. Atlanticists give high that the post-Thatcher era is almost est political priority to defence and here. But will Thatcher's departure security issues. The special relation- 34 MARXISM TODAY OCTOBER 1990 ship with the United States must not be compromised by merging British sov ereignty into a European union. For Atlanticists, the European Community cannot replace Nato and it is not desir able that it should. Thatcher has no confidence in European political union, and she uses every opportunity to demonstrate that the Europeans are in capable of acting together. The most recent example is her blunt criticism of other European nations for allegedly giving inadequate and lukewarm sup port to US action in the Gulf. or market liberals in the nationalist camp, less em phasis is placed on maintaining an independent defence and foreigFn policy and more on maintaining an independent economic policy. Unlike isolationists, they support the pro 'In Ridley's gramme of the single market, but they believe that moves to full economic and political monetary union, as well as implementa universe it tion of the provisions of the social is essential charter, risk bringing back many of the that anything evils which the Thatcherite revolution had banished from Britain. unpleasant The other countries of the European being done Community, particularly the original to the six members, favour forms of state in British tervention and industrial relations which Britain has rejected. Britain people must either convert her partners to should be Thatcherism, or run the risk of con done by a stantly being outvoted, and seeing government forms of central planning and collectiv- ist intervention reimposed on Britain accountable by the bureaucracy in Brussels. to them' A common European currency is op posed because it implies the creation of a European central bank and European state agencies to run a common Euro pean monetary and fiscal policy. Under such a centralised regime, countries with higher costs would suffer deflation and unemployment. Britain would be locked into an inflexible monetary and fiscal regime, and the British govern ment would no longer have the powers to decide its own policy. Thatcher makes use of both Atlanticist and free-market arguments. In her Bru ges speech in September 1988 she made it clear that while she supports the cre ation of a European free market, she is totally opposed to steps leading to any kind of European political union. The Bruges group was founded after this speech to rally opposition both within the Conservative Party and across Eu rope to progress towards political union. The Bruges group unites isola tionists, Atlanticists and market liberals in a coalition against the federalist threat. The federalists are less well orga nised. The major standard-bearers of the federalist camp are Edward Heath and Michael Heseltine, both of whom have a strategic vision of Britain's place in Europe. But they do not work to gether, and neither openly presents a unionist argument. Heseltine in parti cular prefers to align himself with the realist faction, which has a majority both in the cabinet and among MARXISM TODAY OCTOBER 1990 Conservative MPs. sovereignty. dwindle still further. This was a view Currently represented by Douglas The argument between these different Ridley himself seems to have shared. Hurd and John Major, the realists have market liberals partly turns on diffe He clearly cannot have anticipated the no great enthusiasm for political union rent attitudes to Thatcherism. That impact his interview would have. He but are pragmatic and accommodating cherite market liberals are proud of the concluded it by declaring that he was to moves to further the integration of achievements of Thatcherism and an still at the top of the political tree and the Community. They seek to extend xious that its distinctive identity might was not done yet. co-operation and build consensus. They be lost. Many pro-European market hen he returned from his tend to be much less ideological than the liberals like Sam Brittan think that ministerial trip abroad to nationalists; they are less worried about Thatcherites are too complacent. They face the clamour for his the loss of sovereignty or the imposition do not believe that Thatcherism has resignation he at first of alien policies by Brussels on London. cured all Britain's ills and brought Wtried to delay, indicating that he would They believe that if Britain is fully about an economic miracle.