Labour's European Strategy in Shambles: Britain'sEMU Ambush

Strategic Insights -

Labour's 18-month stronghold on the political agenda has been dramatically derailed by a Franco-German ambush that has jeopardized the party's masterplan for luring voters into economic and monetary union. The alleged "peace" over the EMU issue, which Labour had carefully cultivated to avoid public debate, has been shattered by the German and French insistence on tax harmonization, capital market controls, and harmonization of the European social model. This development has significantly altered the landscape, exposing Labour's inattention to the battle over tax sovereignty and its implications for the EMU strategy.

Key Takeaways:

  • Labour's 18-month confident command of the political agenda has been disrupted by a Franco-German ambush, damaging the party's EMU strategy.
  • The ambush has exposed Labour's inattention to the battle over tax sovereignty, which has significant implications for the EMU strategy.
  • The German and French insistence on tax harmonization, capital market controls, and social model harmonization has opened a new front in the battle against Britain's competitive advantage.
  • Sir Leon Brittan's attempt to limit damage was publicly slapped down by commissioner Mario Monti in the presence of Jacques Santer.
  • Finland to launch another EU inter-governmental conference, explicitly tasked with ending national vetoes over everything except EU treaty changes by 2000.
  • Tony Blair's "prepare and decide" strategy has been exposed as doomed.
  • Junior ministers like Dawn Primarolo were tasked with depicting "Europe" as yesterday's battle, while the Cabinet focused on domestic issues like education, health, and constitutional reform.
  • Gordon Brown's inattention to the battle over tax sovereignty has led to a significant crisis for the EMU strategy.

Statistics:

  • 18 months: Labour's duration in confident command of the political agenda
  • 6-20%: Difference in national social security taxes between Britain and EU countries
  • 1998: The year in which the Labour government's EMU strategy was derailed
  • 2000: The target year for ending national vetoes over everything except EU treaty changes

Sources:

  • The Times, 1998
  • Frankfurter Allgemeine Zeitung (FAZ)
  • Financial Times
  • Reuters

Note: The sources listed are based on the original text, which does not explicitly mention the publication dates, article titles, or authors.