Cameron's EU "reform": attacking workers, promoting capitalist profits

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Workers' Fight workplace bulletin editorials
17 February 2016

This Thursday's summit in Brussels is meant to be the high point of Cameron's campaign to "reform" the European Union - and the last stage of negotiations before his "in/out" referendum over the EU.

Ironically though, neither the past months of shenanigans, nor even Cameron's referendum, have much to do with the EU issue itself. If it were not for Tory MPs' fears of losing their cosy seats following the rise of UKIP, Cameron would never have embarked on this European crusade. And if it were not for the widespread disgust caused by the main parties' pro-business policies since the beginning of the crisis, UKIP would never have risen out of the black hole where it belongs.

However, neither the politicians' posturing over Europe, nor the hysterical headlines of the anti-EU media are innocuous. They conceal a concerted attempt to promote the profits of British capital while attacking workers' rights.

Championing British fat cats' interests

Earlier this month, Cameron made a lot of noise about the "draft deal" he had reached with EU leaders.

Never mind that there was not much to write home about. The deal was mainly a reiteration of Britain's EU status and a statement of facts. For instance, it said that Britain was not expected to help to shore up members of the euro-zone - which it has never done, anyway. It also said that Britain did not favour further political integration in the EU - something that no British government has ever supported!

Less publicity was given to one real concession in this deal, though: the fact that Britain, like all EU member states, was to remain in control of its own "financial stability". But of course, behind this vague formulation, is the more revealing small print.

For instance, the vexed question of bankers' bonuses is said to come under the heading of "financial stability". Last year, Osborne lost a court case against an EU regulation imposing a very modest cap on bank directors' bonuses. So under Cameron's new EU deal, this regulation would no longer apply to Britain. This may explain why British banks plan to dish out an estimated £5bn worth of bonuses this year! Yet bank bonuses are known to have been a factor in the speculation which led to the 2008 banking crash. If anything, they are a threat to "financial stability"!

But then of course, this government is not in the business of ensuring "financial stability", but of promoting the capitalists' profits. Take, for instance, what happened to Cameron's manifesto pledge to make the very modest 0.21% levy on the banks' balance sheets permanent. This pledge was quickly broken. Osborne decided to halve the rate of the levy and apply it only to banking income from Britain, not overseas. For HSBC and Standard Chartered, this amounts to a £1bn handout each, thanks very much! As if giving these financial pirates more cash to play with could improve "financial stability"!

Targeting workers' rights

The main thrust of Cameron's "crusade" is ostensibly aimed at attacking the rights of EU workers in Britain.

On the one hand, Cameron wants to deprive these workers of in-work benefits and access to social housing for up to 4 years after their arrival in Britain. On the other, he wants to reduce the child benefits they get in proportion to the cost of living in their home country.

His justification for such discrimination is that Britain's welfare system is a "magnet" for EU workers. And so what? Even if this was true, what would be wrong with that, since after all, these workers do contribute to the economy with their labour and taxes.

Besides, there is no actual "magnet". What is so "generous" about a welfare system, which leaves so many people, both in work and retired, living in real poverty? The total figure is 14.5 million people below the poverty line - 23% of the population, including 16% of all pensioners!

Cameron's real agenda may have been revealed by a Downing Street spokesman: he admitted to the media that, in order to get around the accusation of discriminating against EU workers, Cameron was considering applying the same 4-year qualifying period to British-born workers entering the labour market. In other words, Cameron could use the pretext of his EU "reform" to reduce the rights of all workers to welfare provisions.

In reality, Cameron is using the cover of the EU issue to launch an attack on the working class as a whole. By creating a 2-tier working class in which some workers enjoy rights, while others don't, Cameron would be splitting our ranks. This we cannot - and should not - accept! The interest of the working class as whole is to join ranks, across nationalities, to oppose these attacks.