Jim Murphy: Britain’s Evolving Role in Europe

Anglo German Agenda Conference on Global Europe, Berlin, 30 June 2008

(Introductory remarks)

It’s a pleasure to be back in Berlin and to see my friend and colleague, Günter Gloser. Günter has been a hugely successful Europe Minister – he can take much credit for shaping a successful German Presidency in 2007 - and we’ve enjoyed an excellent working relationship. I was struck this afternoon by how much we and Germany have in common - our agenda tracks precisely those issues you have been tackling here today. And it has been particularly useful to exchange views on the eve of the French Presidency, not least because of the particular responsibility I know he has for the Franco/German relationship.

Back in the early 1970s the British approached Europe as unassuming, underconfident applicants, eager to enter the fold. Now, 35 years later, Britain’s priority is to act as a leading force, shaping Europe’s agenda. I’d like to argue that Britain’s role in Europe and agenda for Europe have evolved as a result of both, of course, relentless pragmatism and principle.

Britain’s attitude to Europe is often seen as pragmatic. And it’s true to say that Britain’s priority for Europe has been to ensure that it delivers for its citizens. We will always ask whether EU activity and legislation adds value and presents a clear benefit to the people of Europe.

But that does not mean that Britain should be regarded as a reluctant partner or a critical voice heckling from the sidelines. On the contrary, the UK is passionate about getting Europe right and has made a significant contribution to Europe's evolution.

Britain, I would argue, was one of the main architects of the Single Market – one of Europe’s greatest and most complex achievements. Hundreds of laws adopted over a seven year period designed to sweep away barriers to free trade and pave the way for the creation of millions of jobs and of billions of euros of extra wealth.

I note here that even the German press give the UK some credit for its attitude to Europe. A recent article in the Süddeutsche Zeitung suggested that continental Europeans increasingly acknowledge that Britain has contributed a lot to the fact that their EU is comparatively liberal, competition-friendly and open to the world. The article goes on to conclude that Britain has always felt part of Europe – albeit in its own, unmistakable way, and that the issue for Britain now is not about more or less Europe but about a different kind of Europe.

Britain may recoil from federalist ambitions but our relationship with Europe should not be defined as one-dimensional pragmatism.

Like Germany, Britain is committed to an ambitious and principled agenda for Europe. An agenda that continues to evolve - as it must - as Europe extends its boundaries and as the world grows increasingly interdependent.

For many years, Europe was focussed on keeping the peace between its members and securing prosperity for its citizens. This was the right priority for Europe in the early years of what has become today’s EU.

But Europe has changed its shape and, such has been the success of the original vision for Europe, the threat of conflict between its members has faded away.

But we can’t take our security and prosperity for granted. The new threats to Europe cannot be contained by closing down our borders and retreating from the rest of the world. And faced with globalisation we face a stark choice – either we seize the economic opportunities, or Europe gets left behind.

That is why Britain is leading the push for the EU to look outwards and grasp the opportunity we have now to make a genuine global player of the EU.

This means spreading and securing our values of human rights, democracy and respect for the rule of law through the enlargement of the EU;

it means using our combined resources to address the most pressing global challenges such as climate change and energy security, rising food and oil prices; combating terrorism; migration; conflict; and international development;

and it means rising to the social and economic challenges of globalisation, in particular keeping the EU competitive in the face of emerging markets.

The title of this conference suggests that Germany and Britain are broadly in agreement with this agenda and there are certainly many areas within it where Germany and Britain take a very similar position, indeed.

On conflict for example - where the UK and Germany are strong contributors to the EU's expeditionary civilian missions. Germany hosted a conference last week to support Palestinian civil security and the rule of law, including through the EU policing mission. And the EU is deploying its largest ever rule of law mission, to Kosovo with over 2,000 personnel.

And on climate change, where Germany has made huge contributions towards getting the EU’s ambitious climate change package agreed.

And according to Eurobarometer polls, climate change is at the top of the list of issues where the Europeans believe the EU can add value. Europe is already showing global leadership and the way we respond to the challenge of climate change can define this continent in the 21st century. Last year’s Spring Council package gave us the political foundation for the EU’s climate strategy. But to maintain our credibility we must rise to the ambitious challenge we’ve set ourselves and deliver on our commitments on climate change. Work must continue on incentivising carbon storage technology, which will help us to continue to use coal without harmful Co2 emissions, while increasing energy efficiency.

Germany has long recognised that investment in environmental technology is a platform for our future prosperity. In Britain we recognise Germany’s leading role in environmentalism and wish to emulate what has happened here. By 2010 it is estimated that the renewable energy sector, waste management and water treatment industries will be worth $700 billion globally. Germany, Britain and the rest of the EU must make sure we lead the green-collar job revolution.

Here in Germany, you are already investing heavily in green technology. German industry is renowned for its cars - BMWs, Mercedes and VWs - but by 2020 more people in Germany are likely to be employed in the field of environmental technology than in manufacturing cars. In Britain, we currently have an estimated 400,000 UK workers in low-carbon industries but within the next two decades we’d like to see that number rise from 400,000 to a million jobs in green technologies. And I’d like to see our European partners adopt a similarly ambitious approach as Germany before and the UK today.

But if Europe wants to grasp the opportunities of the green revolution, we must ensure that the right conditions are in place. Our regulatory framework must support innovation, investment and job creation.

If we look back to the end of the last century and the massive growth of the IT industry, the Americans were best placed to take advantage of the IT revolution because it was easy to set up business there.

Getting it right in Europe is partly about our credibility. Bad news stories about EU regulatory burdens feed anxiety about the intrusive role of Europe in people’s lives and act as a disincentive to potential investors.

But there’s also a very real issue about competitiveness. We very strongly believe that every unnecessary burden on business costs us in terms of jobs and growth; and disproportionate or badly targeted legislation is particularly burdensome for small and medium businesses. We must support these businesses - many of the millions of green collar jobs will be created by small and medium enterprises. And the best way we can support them is to create a culture of enterprise and innovation in Europe. The European Institute of Innovation and Technology (EIT) will play a key part in the effort to drive forward innovation.

Better regulation is an area where Germany and Britain have had and continue to have a similar vision. I hope we can work together to move faster towards getting an effective regulatory framework in place. Not just in environmental technology, but also beyond. Europe needs flexible dynamic economies to succeed, particularly in the face of global economic challenges.

We are making progress. The Small Business Act proposal, to be taken forward under the French Presidency, is an important step forward and a strong example of a focussed package that will deliver real benefits for small and medium enterprises.

There are areas of course where we choose to take different approaches. There is no unanimity of approaches. (…)

On energy for example. The UK still believes further liberalisation is vital to deliver the best results for EU consumers in terms of price, choice and energy security, and to support the transition to a low-carbon economy by enabling better access to European energy networks for renewables.

Yet even where there are differences, and they are small in number, we can identify a common goal – a secure sustainable energy market that helps maintain growth but tackles the severe challenge of climate change.

We also share a common goal when it comes to enlargement, to further expansion. Some people are sceptical, but Britain has always been vociferous in our support of enlargement and continue to be so. We’ve had our own experience of reaping the benefits when we were part of the first enlargement of the European Community in 1973 – bringing the total number of member states to nine.

Since then, each successive enlargement has been a reinvigorating force for the economies of Europe – old and new. Between 2004 and 2007, enlargement added over 100 million consumers to the single market. And when the UK, Ireland and Sweden opened their labour markets to the 2004 accession states, we were among the top performers in employment rate growth amongst the EU 15 for the following two years.

Britain would argue that we need to extend our boundaries further.

Not just to increase our consumer base and remain competitive but also in support of our vision of increased stability and justice in our immediate neighbourhood. The prospect of EU membership is both a force for stability, as we’re seeing in the Balkans, and a catalyst for the development of democratic institutions and respect for minorities, human rights and the rule of law.

That is why Britain regards starting accession talks with Turkey as one of the key achievements of our last Presidency.

I know many of you also see the benefits. But I know some of you will be sceptical. To those of you who are sceptical I say: yes, there will be tensions - tensions will always exist between 27 member states, each with their own unique histories and perspectives and their own national interests. But Europe decided long ago whether it would choose to be a small and exclusive club of a few well-to-do States, protecting their interests or if it was going to be a visionary and ambitious project to unite the continent and spread peace and prosperity.

I believe that Europe chose the right path then. Having chosen that path, we need to respect and work with the diversity of voices within the Union and continue along that path, respecting national interests.

And at the same time we need to listen and communicate better with the European people and make sure we take all of our citizens with us. The results of the Irish referendum on the Lisbon Treaty show that we fail to connect with our citizens at our peril. The EU is mostly about talking, and not often about listening.

The referendum result is a challenge for the EU. But I don’t believe that it signifies a rejection of the European Union by the Irish people but rather a frustration with it. A signal that the EU needs to demonstrate more clearly what it is that it can offer.

So while we consider next steps for the future of the Treaty, we also need to get on with addressing the big policy issues. We simply cannot wait for the institutional debate to be laid to rest before we move on to tackle those issues. For one thing, issues like energy security and changes to the global economy cannot be put on hold. For another, it is only by delivering solutions to the things that matter to our citizens that the EU can continue to show its relevance and count on the consent from its people. One thing that people from all over Europe have in common is that they want to see the EU move its focus away from redesigning its institutions - what you call a “Nabelschau”, towards delivering on the things that matter to them in a tangible and meaningful way.

One issue that resonates with all our citizens is this global financial turmoil that we are currently experiencing. The Commission is working on proposals that it will present in the Autumn alongside international level work in fora such as the Financial Stability Forum. The UK believes that EU action must be and will be carefully targeted at areas where the EU can really make a difference: increasing market transparency and co-operation across the single market; encouraging inward investment; and ensuring existing regulation is both robust and effective.

I have spoken about the choice Europe faces between retreating behind our borders or opening up further to the world. Europe has made some good choices so far and we need to continue to make the right choice – which I believe is to look outwards.

And we need to make sure we take our citizens with us.

Because if we fail to show that the EU can deliver prosperity and security, some people will demand a retreat into the short term comfort of protectionism and their calls will, unfortunately, be hard for many to resist. This would spell disaster for Europe in the medium to long term.

You can call us pragmatic for championing an agenda that will deliver results for our citizens. But our approach is also one of great principle. But we are passionate about creating a “model Europe” - a force for good in the world, leading by example on global issues and demonstrating the benefits of regional and international cooperation.

I believe that if the EU can demonstrate this combination of effective action underpinned by solid values, we will convince the people that the EU can change their lives, and change their lives for the better.

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