Last night the British Prime Minister David Cameron held a celebratory dinner party with right-wing MPs after he used his veto against closer European political cooperation to stabilize the euro which has left Britain more isolated within Europe than at any time in the post-war era. It seems that the upsurge of “Europhobia” fostered by the current government and their media allies has led to a situation where foreign policy is being driven by a few dozen MPs agitating to take Britain out of the European Union along with the lobbying of the financial services sector to prevent the possibility of tighter regulation or the imposition of a transaction tax. Meanwhile, pro-European voices across Britain have been muted and scattered as the longer-term implications of this debacle have yet to be widely recognized. For many in the Conservative Party these events mark the first steps towards a national referendum and the longed for exit from the EU altogether. Isolationist fantasies are gathering momentum as if Britain might be transformed into a larger version of Switzerland.
Britain’s antipathy towards Europe can be read as a kind of neo-colonial fantasy of imagined grandeur: it is interesting to contrast Ireland’s embrace of Europe with that of the UK. Indeed, an independent Scotland, as Alex Salmond points out, would seek closer ties with Europe. Although Cameron’s move appears superficially to safeguard the financial services sector of the UK economy the rationale for London’s economic role within Europe looks set to change as the relative importance of Frankfurt, Paris and other cites begins to grow. The apparent strength of Britain’s separate currency is built on shaky foundations and as the strengthened eurozone pulls away in coming years the economic and political marginalization of the UK looks set to intensify. My political antennae tell me that the eurozone will not break up: one or two countries may partially or even completely default but the overall project has too much political capital invested in it to fail. More broadly, however, we need to rebuild political legitimacy for a progressive European project that can demonstrate real benefits for its people. The underlying tensions between technocratic austerity and neo-Keynesian strategies for growth have not been resolved.