Margaret Thatcher's intervention in last week's parliamentary debate on turope showed the Tories' issue are getting Thatcher has not solved the divisions in Tory ranks. further integration of capitalist Europe never stemmed from Thatcher's personal hostility to all things European: it is based on the dilemma which British capitalism faces over its fundamental orientation in foreign policy.
Talk of a 'federal' Europe scares the pants off Major and big sections of the capitalist class, because it involves moves towards not just a common currency, but a common defence and foreign policy as well. This is a dagger at the heart of the priority which British capitalism has accorded for decades to 'Atlanticism' - the alliance with the United States.
The dilemma facing British capitalism is this. The capitalist world is moving towards a three bloc system - a North American bloc, a Japanese-dominated Asian bloc and a European bloc. But British capitalism's role doesn't fit easily into any of these blocs. An increasing proportion of Britain's manufactured goods are exported to Europe. But Britain's world role, which underpins its substantial overseas investments, depends on its relationship with the United States.
Britain has access to many forums, and much divisions on this worse. Ditching Britain's isolation over the those of Britain. ing to maintain the jury system. world influence, on the basis of being a nuclear power. But that is solely because of the good will of the US; it is the Americans who supply Britain's nuclear hardware.
The foreign policy concerns of Britain differ from those of most of the rest of Europe because of the world outreach of British capital. Between 20 and 25 per cent of profits of major British corporations come from investment abroad - way out of proportion to every other European economy. The strongest European nation, Germany, has its defence and foreign policy concerns concentrated on central and eastern Europe, at complete variance with The proposal for a common European defence policy is absolute dynamite for the USA. Since the second world war NATO been a central channel for US influence and political domination in Europe. A European defence network would render NATO redundant, something the Americans would fight against with all possible means.
A further conflict between Britain and the Franco-German axis in Europe is over the role of sterling. The role of the City of London as Europe's major financial centre is based on sterling being an international trading currency. A common European currency would undermine the standing of the City. The financial centre of Europe would shift to Germany.
The dilemma for British capitalism is chronic and insoluble. Trying to straddle Europe and Justice involved in both the would like. tion process. decline for British capitalism. labour movement either. MUST STAY DEPORTATION Prakash Chavrimootoo and her 8 year old son Prem are fighting against deportation. Prakash married a British citizen and came to Britain with her husband in February 1989. Having suffered domestic violence, Prakash sought safety with her brother in Birmingham. But the Home Office turned down her application for permanent stay on compassionate grounds, despite the fact that she had employment as a home care worker. A picket of the immigration Appeal Hearing on 18th June was organised by the West Midlands Anti Deportation Campaign. the north American axis is ultimately an impossible balancing act - if the Europeans succeed in forging the kind of united economy and politics which the Germans and French The problem facing the Europeans in their long-term economic battle with America and Japan is that Europe is a collection of imperialist nations with partially conflicting interests. Japan is absolutely dominant in the Asian capitalist economies, and the USA towers over the North and Latin American economies. The role of European leader falls naturally to Germany, by far the biggest European economy. But Germany's capital resources are bogged down in the re-unificaCapitalist integration in Europe is vital to fight off the US and Japan. But it will be a long and difficult process to achieve it. The Tories will remain crisis-racked on the issue, because there is no easy solution which will serve all the needs of British bosses. Europeanism and Atlanticism both offer a future of further The myth which needs to be fought in the is that capitalist Europeanism is in some way more progressive than capitalist Atlanticism. Fortress Europe under German domination would be just as reactionary as the 'special relationship' with the US. Workers have no interest in supporting • Conway Hall, Red Lion Square
HOTO: Mark Salmon *The 'Write it off' event»