As the Tories totter on the edge Labour must support a second referendum

The idea that British capitalism is superior to European capitalism is a delusion born of imperial grandeur

Many on the Left who support leaving the EU (Lexit) somehow believe that an independent British capitalist state is preferable to European capitalism. It is difficult to understand why given the support for Brexit of people like William Rees-Mogg, Boris Johnson and others on the Tory Right, to say nothing of UKIP. Indeed the original apostle of Brexit was none other than the original monetarist and free marketer Enoch Powell.

That the European Union is based on free-market capitalism is undeniable.  However that is a problem that needs to be opposed by the labour movement on a European wide basis. The idea of a British state going it alone with a low tax regime and further anti-union laws hardly seems to be a progressive let alone a socialist position.

It is clear that Theresa May’s agreement is a humiliating one in that Britain will remain in the customs union and Northern Ireland within the single market with a backstop guaranteeing that this is subject to an EU veto.  The alternative, no deal, is one which is horrific to contemplate.

The break-up of the European Union is something which unites the Far-Right throughout Europe. Brexit is seen as a something to aim at by those who would clearly love to see the break of the European Union.  It is not too much to suggest that if the EU were to break up we could eventually see the return of military conflicts between different states.  This was, after all, the original reason for the setting up of the Iron and Steel Confederation which later became the Common Market.

It is no coincidence that Donald Trump, a self-declared nationalist and in reality a White Supremacist welcomes Brexit.  It means imposing trade terms on Britain, for example the dropping of existing food standards, that are inherent in the Single Market. It is welcomed by Steve Bannon and the alt-Right who see Brexit as bolstering nationalism, racism and the demonistation of Muslims.

Theresa May’s deal is unacceptable not least for its hostility to State aid to industry. We stay half-in and half-out of the EU. A Brexit without a deal is equally unacceptable. This means inevitably that the only real option is a second referendum.

Of course there will be squeals and howls from those who cry that it is ‘undemocratic’.  Why?  It is simply giving people a right to make an informed decision, based on what they have seen for the past two years. Of course it is possible that a majority will still vote for Brexit but I somehow suspect that after having been lied to in the first referendum (the £300m+ promised to the NHS) that many people will not have the wool pulled over their eyes for a second time.

The position of Corbyn has been described by some as masterly.  I disagree.  Doing nothing is not a brilliant strategy and it is clear from Corbyn’s comments today and those of McDonnell yesterday that Labour is moving towards a second referendum .  The opposition to the EU based on opposition to free movement of workers is reactionary.  Low wages are not caused by immigration but by weak trade unions. It is the lack of a fight by the British working class which has led to Britain being a low waged economy.

People seem to forget that it wasn’t the EU who closed the mines, shipbuilding yards and much else but Thatcher and free market economics. Those in the North voting Brexit do it from a position of weakness and despair.  The EU is a handy scapegoat but it is hardly responsible for what the Tories have done.

The idea of an independent British capitalism is a belief that Britain is strong enough to form its own trade treaties and on its own terms.  The USA and other countries are likely to disillusion them.  This is a left-over from the British Empire.  It is Suez repeated all over again but as farce. Deliberately destroying your own trading relationships hardly seems to me to be a socialist strategy.

I believe Labour should throw its weight behind staying in the European Union and give its support for a second referendum. I have no doubt that this will create its own momentum towards a Labour victory at the General Election.

Tony Greenstein

6 Months after the Election & 3 Resignations Later Labour Has Still Not Found an Effective Message

Theresa May Should Have Gone by NowLabour’s Incoherence Over Brexit is Hurting 

Corbyn should not be afraid to call for a Second Referendum

It is said that Oppositions don’t win elections, governments lose them.  However that is not altogether true.  How an Opposition plays its cards can have a decisive effect on the fortunes of a Government.  At the moment Labour gives every impression of sitting back and hoping that the Tories will simply collapse of their own accord.  The problem is that the Tories can survive if the price they make us pay is high enough.

Brexit is a key political issue and it also has an impact on every other area.  There is not only a lack of clarity over the Brexit but on the NHS, Housing, Student Fees and much else besides.  All of these issues are tied to Brexit, for example the opening up of the NHS to US multinationals in any new trade agreement will increase the rate of privatisation.

As the only blog to predict a hung parliament from the start of the General Election in April and again in June it is clear to me that the failure to oppose Brexit is hurting Labour.  Having a lack of clarity is not a bonus in politics where people expect you to provide them with answers to problems not offer a half way house.  Labour is not leading on Europe it is following.

We have had 3 cabinet resignations in a fortnight, Theresa May lost a crucial amendment on the European Union Withdrawal Bill last week and yet, Labour is still treading water.  Far from being on the political ropes, Theresa May’s position has stabilised. Labour is not offering an alternative to Brexit other than some vague notion of a soft as opposed to a hard Brexit.

It is, or should be clear that Brexit is already affecting the economy negatively.  Not only is there a rise in inflation but the economy is suffering from reduced growth.  If Britain loses access to European markets, in particular financial markets the economy and production will take a severe hit and with it working class living standards.

Nobody seriously believes that Brexit will have a positive economic effect other than the lunatic fringe of the Tory party.  Yet Labour’s position of remaining in the Single Market and Customs Union whilst remaining outside the EU is incoherent.  If you are going to pay, as you must, to remain in both then what is the purpose or point of leaving Europe?  

The only argument I have heard from Emily Thornberry, who is proving disastrous as shadow Foreign Secretary, is that we must ‘respect’ the vote to leave?  Why?  It’s one thing to recognise it for what it is, a disastrous mistake, it is quite another to respect it as if it were some ancient god.

It is clear the negotiating strategy, if you can call it that, of Theresa May and David Davies, is based on a wing and a prayer.  Davies admits there hasn’t even been an impact study in the different economic sectors.  May’s request or was it a plea, that the transition period be at least 2 years was contemptuously rejected.  21 months it is.  Jeremy Corbyn needs to grab the reigns of power not smile at them.  This government could be put on the ropes by a determined opposition.

The reality is that although people voted narrowly for Brexit they did it for a number of incoherent reasons – such as a protest against the effects of austerity and in the mistaken belief that immigration was the cause of the decline in living standards.  As is becoming blindingly clear, immigration has a positive not a negative effect on the economy and services - e.g. the NHS.

What  people didn’t do was to deliberately vote for a reduction in their standard of living and the services they expect.  It was an act of protest mainly by those in the North of England against deindustrialisation and the transfer of wealth from poor to rich.

People did not vote to make themselves poorer yet that is what the result of Brexit will be.  Crashing the economy is not a socialist strategy.  It is also clear that Brexit will mean a new assault on workers’ rights such as the Working Time Directive.  Free of the Brussell’s bureaucracy there will be no ‘red tape’ inhibiting the ‘setting free’ of the Labour market.

Those on the Left who supported Lexit swallowed the nonsense of economic nationalism in one country.  Tony Benn always argued that we would regain our economic sovereignty but this always begged the question, did Britain ever have it, at least since the early part of the 20^th Century?  And even more pertinently what we are talking about is the sovereignty of the wealth and the rich.  Working class people have never had control over their destiny or the political economy.

The reality will be that Britain’s economy outside Europe will be in hock to the United States and Donald Trump.  The idea that Trump is going to cut Britain a quick and easy deal flies in the face of his American First policy.   The Tories in the shape of Liam Fox are going a begging to the court of Donald.

What then should Labour do?  If Labour believes that the Brexit vote was a mistake, and most Labour voters and most Labour Party members do, then there is only one conclusion.  That people should have the right to change their mind.  There is nothing undemocratic about having a second vote given the lies about £300m a week going to the NHS.

Of course Nigel Farage and Rees Mogg and co. will kick and scream ‘betrayal’ but the truth is that a second vote will be more not less democratic than the first vote.  People will now have seen something of what Brexit is likely to look like.  How can anyone object to another vote on democratic grounds?

Of course this doesn’t mean that in an increasingly right-wing Europe that socialists should be content with things as they are.  We should be firmly opposed to a bankers Europe, neo-liberalism and the growth of the far-Right as in Austria where a far-Right government has been elected.  In or out the politics of Europe are shifting in a nationalist and racist direction.  Labour should make it clear that Britain retains the right to for example nationalise the major infrastructure areas of economic activity such as rail, the utilities and post office.  However anyone who believes that there is anything ‘socialist’ in leaving Europe for Trump’s warm embrace really does need their head examining.

I also suspect that a clear policy difference on Europe will help splinter the Tories and hasten the demise of Strong & Stable.  Instead of treading water we will be treading Tories!

Tony Greenstein