PSIM: Public Administration in Britain 3: The European Dimension

PSIM: Public Administration in Britain 3: The European Dimension Note the basic ‘anatomy’ of the EU: Council of Ministers European Commission European Parliament Court of Justice Court of Auditors

PSIM: Public Administration in Britain 3: The European Dimension The three stages towards monetary union: By the end of 1993, Governments to exercise strict monetary disciplines Governments enact programmes to secure convergence e.g. over deficits Irrevocable fixing of exchange rates

PSIM: Public Administration in Britain 3: The European Dimension Case for the Euro: Facilitates a single market by making costs and prices transparent Removes competitive devaluations Increases competition, reduces inflation Reduces possibility of speculation Greater weight in world affairs if a reserve currency

PSIM: Public Administration in Britain 3: The European Dimension And in its favour: Foreign Office (seeking membership of international clubs) Treasury ( no threat to collection of taxes) The Trade unions (aspiring for a social Europe) CBI The City The Celtic fringes

PSIM: Public Administration in Britain 3: The European Dimension Case against the Euro: States sacrifice some autonomy to achieve the common good (e.g. low inflation) Bank of England loses control of interest rates Control may pass to a ‘leader economy’ e.g. Germany with costs borne by weaker states Will economic convergence lead to social convergence ?

PSIM: Public Administration in Britain 3: The European Dimension And those opposed: Conservative Euro-sceptics, now in the ascendancy Bank of England (losing influence) Global media (Murdock) because of pan-European regulatory regime with a desire to limit cross-media ownership Public opinion as a whole

PSIM: Public Administration in Britain 3: The European Dimension The five economic tests to be applied… Are business and economic cycles compatible Is there flexibility to deal with problems Would joining EMU create better conditions for firms to invest long term in the UK What impact on UK financial services Higher growth, stability and increase in jobs?

PSIM: Public Administration in Britain 3: The European Dimension The social dimension Does not ‘run’ social services, health etc. as would a national government but IS concerned with protecting workers within a largely capitalist economy e.g. rights at work,equal pay, discrimination etc. A European Social Fund promoted worker mobility, retraining etc.

PSIM: Public Administration in Britain 3: The European Dimension The ‘labour market’ dilemma ‘European model’ is to protect workers’ rights in work - but does this push up unemployment Anglo-Saxon model (‘liberalisation’) is to lesson workers’ rights (but does this create more employment) Which model is the better to follow ?

PSIM: Public Administration in Britain 3: The European Dimension The constitutional arguments… Does the EU imply ‘losing our sovereignty and identity’ Or does it imply a pooling of sovereignty for the common good Debates in Britain are at an emotive rather than intellectual level.