THE DECISION to allow the European Exchange Rate currencies to operate in new 30 per cent margins means the temporary abandonment of the drive to a single European currency. goes to the heart of the vision of the European capitalist unity. To compete with Japan and the United States, leaders of capitalIst Kurope want to see Huron: eventually become a single cconomy. A single economy means common laws. And common laws eventually point the way toa commis sard The plan for a single currency has been put back for years. it reveals "fault lines" not just in the ERM, but in the whole Maastricht process itself.
The fatal flaw in Maastricht has always been that although the European capitalists sec the fight Japan and the US, the immediate needs of the different European states vary widely. Thus the question has always occa on whose terrs will unis be achieved?
Because Germany is the cconomically most powerful European state it has always been likely that German views would prevail. That means a strong deline, restricting growth.
Germany needs high interest ves a sack is evern complete reumticaton with tne cast and combat inflation. The ERM could only survive if the rest of Europe accepted high interest rates, further pushing their own coonomies into recession.
There have always been huge obstacles on the Maastricht road, but writing off the drive to European capitalist integration is premature There are huge stakes for the European capitalists. Not only do they have to face bitter competition from Japan and the US, but there is the prospect of China emerging as a major world economic power. The only state wilch nas oter poschual oo tions is Germany.
Debate
Indeed there is a fierce debate in the German political establishment on just this point. The alternative to coonomic and political European union is the option of trying to dominate central and eastern Europe.
This however is fraught with political dangers. France would react voicnuy oy any aacmpt by Germany to go it alone.
It would mean an attempt by Uertany to hold its own as a major imperialist power at the a course which resurrects unfortune miserical memones Tor the European capitalist classes.
Two weeks ago France cut its interest rates. Effective de-linking of the currencies opens the possibility of renewed growth porcies mn some buropcan It means that there is a chance, but only a chance, of avoiding some of the worst exworking class wasch Maastricht monclary tankets would have imposed.
But without a working class fightback we shall see one form of capitalist attack, the Maastricht road, only replaced by anenormous as in the short term the grip of the bureaucracy is strengthened.
In UNISON the previously strong NALGO left can find itseif marginalised as the NUPE leadership increasingly takes politiCol CiUr The conflicts between leaders the Labour leadership over the link demonstrate that British trade unionism is some way off collapsing into American-style business unionism.
But it would be foolish not to understano une treno. ine new realist right has made all the running over the past decade. The NUM is all but destroyed; the left is very weak.
In Brighton at the beginning of September the assembled bureaucrats will go through the pan omime mual of porentous resolutions and amendments the basement of Congress House.
The sleep-walking will only start to be broken by a fight from below and the organisation of