Opinion – David Walker, the corridors of power …

Opinion - David Walker, the corridors of power ...

Astute Tories have already written off the forthcoming general election in order to prepare for a contest they believe they can win and use as a spring board for winning the election after – and that’s a referendum on UK membership of the euro.

And in Labour backrooms, too, battle lines are being drawn, except some run less between the parties than between numbers 10 and 11 Downing Street.

The fate of sterling is a subject as close to chancellor Gordon Brown’s heart as his own political destiny.

During the past few months economic circumstances have shifted spectacularly.

The euro has started to appreciate against both sterling and the dollar and talk of its collapse has ceased. According to research by PwC, the UK economic cycle has moved into sync with the euro-zone. Trends in Europe – unemployment falling still in France and Germany, growth expectations – suggest economies are converging.

If the American economy goes into recession while France and Germany remain buoyant one of the staples of euroscepticism will disappear.

But the question, as always, is how to translate economic abstractions into political opportunity. Or rather who. Blair, according to acolytes, has gone into election mode, thinking mostly of tactics and winning a second term. How much political capital he is prepared to expend on Europe remains moot.

But Blair is not going to let another five years go by without trying to resolve the question of UK membership.

If he wins big, he will be tempted to go for a quick decision, hitting the Tories while they are down.

If Labour’s margin of victory is smaller the timing question becomes more difficult. It is not just a battle with the eurosceptics in the Tory party and the press. Gordon Brown’s aspiration to the Labour leadership is as keen as it ever was and both he and Blair know Europe could be Brown’s turnkey issue.

– David Walker writes for The Guardian.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource