1. PSIM: Public Administration in Britain
3: The European Dimension

2. 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

3. 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

4. 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

5. 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

6. 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 ?

7. 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

8. 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?

9. 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.

10. 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 ?

11. 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.