Socialist Outlook

Socialist Viewpoint, International, Socialist Outlook and their supplements, 1984–2002

Europe - Scrap the Euro, scrap the Treaty!

Socialist Outlook no. 10 · 526 words

Scrap the Euro, Scrap the Treaty!

GORDON BROWN finally made his statement at the end of October, postponing British entry

to the European single currency until after the next election.

But even while outside the economic straitjacket of a currency controlled by

Europe’s top bankers, there will be no escape from the austerity offensive ushered in

by the Maastricht Treaty.

Elsewhere in Europe, resistance to Maastricht misery remains strong, as evidenced by a

resurgence of action by the French lorry drivers, and recent strikes in Spain.

However Brown has mode it clear that Labour still intends to join the new currency, and will therefore

be looking for ways to ensure that the British economy "converges" with those

which sign up for the Euro in 1999. Already Brown has effectively privatised the Bank of

England, handing over control of key levers in the economy to the tender mercies of

unelected bankers.

And he has upheld Tory cash limits on health, education and social service spending,

triggering a round of cuts this year and more to come in 1 998. With progressive taxation

ruled out as a point of principle, Labour must look to keep a firm lid on public spending,

if it is to prevent

public sector deficits exceeding the 3% limit imposed by Maastricht.

These are precisely the reasons that major unions including UNISON and the TGWU have

voted overwhelmingly against the single currency and the terms of the Maastricht Treaty.

But it is hard to

see any evidence of their leaders arguing for this policy. Instead there is the bizarre

spectacle of TUC leader John Monks apparently more enthusiastic for Monetary Union than

the CBI, mounting a one-man campaign to force the pace towards the single currency.

Top union leaders have been heard to complain in private that Monks has no mandate for

his line, but there is no sign of any fightback from senior figures on the General

Council, who have allowed the TUC to be railroaded into a policy that could slash the

services, jobs and living standards of their members.

UNISON’s Bickerstaffe seems happy enough to slap down his own members who take up

a fight in defence of public services, but clearly lacks the bottle to defend UNISON

policy in the media or challenge Monks. Bill Morris of the TGWU is more concerned to do

the government’s dirty work by breaking the Liverpool dockers’ strike than to

uphold his union’s policy in the TUC.

This issue will not go away. While the Tories tear themselves apart over the Euro, the

spineless refusal of union leaders and many on Labour’s left to oppose the Maastricht

Treaty leaves Blair and Brown in the driving seat.

The demand must go up from trade union and Labour Party bodies for the rejection of the

single currency to be coupled with a rejection of the Maastricht criteria, and for an

economic policy based on full employment and a restoration of public services, funded from

progressive taxation on big business and the rich.

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