
It was no great surprise that many Liberal Democrat politicians were unhappy with David Cameron’s recent refusal to sign a new EU treaty which would have established a ‘fiscal compact’ for the Eurozone within EU structures.
Lord Oakeshott rather dramatically described it as "a black day for Britain and Europe”. Paddy Ashdown said “We have tipped 38 years of British foreign policy down the drain.” Sharon Bowles, the Lib Dem MEP who chairs European Parliament's Economic and Monetary Affairs Committee
said “The City will suffer. Maybe serves them right."
What was perhaps slightly more surprising was the Deputy Prime Minister’s open disagreement with the Prime Minister’s actions in Brussels. Nick Clegg told Andrew Marr that he was “bitterly disappointed” by the outcome of the summit and that “there was a danger that this could lead to Britain being isolated”. Clegg lashed out at those who backed the Prime Minister's stance, saying: “I hear this talk about the bulldog spirit - there's nothing bulldog about Britain hovering somewhere in the mid-Atlantic - not standing tall in Europe, not being taken seriously in Washington". This was followed by Clegg telling the BBC that he “could not welcome” the outcome of the summit, that he and the Prime Minister "clearly do not agree" and that the outcome was "bad for Britain".
In a bizarre piece of bad PR, Clegg decided to absent himself from the Commons during the Prime Minister’s statement on the summit. This was followed by the refusal of Liberal Democrat MPs to vote for the rarity of an opposition motion (put forward by the Democratic Unionist Party) which praised the Prime Minister’s action in Brussels.
What Nick Clegg was disagreeing with was less clear. The UK’s negotiating position was agreed by the Coalition Government before the summit. Clegg repeated afterwards that the UK’s demands were “perfectly reasonable and perfectly measured” and “rightly sought”.
So the Lib Dems agreed that the UK’s position was reasonable. That was not the objection. Instead, what the Lib Dems seemed to object to was that the Government stuck to it. The UK’s demands were reasonable, but the Lib Dems object that the Prime Minister insisted on making them. What they evidently wanted and expected was that the Government would simply cave in, abandon its demands and agree to a new treaty without anything in return for the UK. Allowing Eurozone leaders to pursue even closer integration and fiscal union unobstructed is evidently their priority.
Chris Huhne challenged the Prime Minister in Cabinet, arguing that he had no authority from the coalition to veto a revision of the Lisbon treaty. So according to Lib Dem logic, the Prime Minister can make demands, but is not allowed to stick to his guns. Instead he has to always say yes to the EU. The Lib Dem over-reaction would almost suggest that David Cameron had announced that the UK was about to leave the EU. Yet this was simply an instance of the UK refusing to sign a new treaty without being given even the most modest of safeguards or assurances. Whatever Lib Dems might imagine, there is nothing in the Coalition Agreement which says that the Government has to agree to every new treaty change.
What this incident has shown very clearly is that the Lib Dems’ recent rhetoric about not being ‘slavish apologists’ for the EU, and instead seeking the reform of the EU in the British national interest, was – surprise, surprise – just rhetoric after all. Nick Clegg told the BBC: "I am not here to defend the European Union in and of itself, I am here to defend the jobs and livelihoods of millions of people in this country." Yet when the Prime Minister refused to agree a new treaty without modest safeguards and a level playing field for the UK’s financial sector, the Deputy Prime Minister refused to back him. When it came to the first real test of the Lib Dem attitude to the UK’s position in the EU, the Lib Dems made it clear where their loyalties lie.
Once the prospect of closer integration comes up, the instinctive Lib Dem reaction is that the UK should agree to it regardless of whether or not it gets anything in return. Agreeing to anything and everything that comes out of Brussels is apparently a more attractive prospect than ‘isolation’ – even if, as it turns out, the UK is actually voicing objections that are shared across the EU, where the latest agreement is far from a done deal. Paddy Ashdown even claimed that we had "diminished ourselves in Washington", an argument that was quickly contradicted by US secretary of state Hillary Clinton.
What is most concerning about Nick Clegg’s stance is what happens next: not in terms of the Coalition, but in terms of the UK’s relationship with the EU. He sees the ‘repairing’ of this as a personal mission, even if he has to bypass the rest of the Government, saying: "On Europe, what I'm going to do is build bridges, re-engage and make sure that the British voice is heard at the top table in Europe." As well as openly criticising the use of the UK’s veto, Nick Clegg publicly stated that "it would be ludicrous" for the Eurozone and other countries which ratified the new agreement not to be able to use the existing EU institutions to enforce it because of "the exception of only one member state". Yet stopping the whole EU structure being used for the new arrangements - without safeguards for the UK - was the whole point of the UK's veto. And the UK having a veto at all is based on the principle that changes to the EU treaties must be unanimous. The Deputy Prime Minister is not just publicly disagreeing with the Prime Minister, but seeking to publicly undermine the UK's negotiating position.
The new intergovernmental treaty which has been proposed, instead of the rejected EU treaty, envisions the use of the European Commission and the European Court of Justice. Worryingly, it is reported that the Government is considering accepting this development, which would undermine the whole point of the veto, as an ‘olive branch to Nick Clegg’. Rather than an EU treaty using EU institutions to enforce a fiscal compact, there would be an intergovernmental treaty using EU institutions to enforce a fiscal compact – and still with nothing in defence of the UK’s national interests. The Government must not accept this without concessions to the UK in return. It certainly should not accept this for the sake of Nick Clegg.