Cutting Through The EU Confusion

John Ellison examines why some of the left-wing fears about Brexit aren’t as strong as they might first appear.

Brexit and Trading Outside the EU

In yesterday’s article, I assessed whether an EU referendum vote would hinder a future Corbyn-led Labour government from implementing its policies while remaining inside the European Union. My conclusion was that it would be a hindrance.

But if Britain leaves the EU and seeks trade agreements like those of the US, Japan, China, and Russia, it could continue trading on similar terms. To imagine that the EU would bar access to British exports out of pique is absurd. For more on this argument, consult John Foster’s detailed pamphlet Britain and the EU: What Next?

Left-Wing Fears About a Leave Vote

Some left-wing commentators worry that a Leave vote would hand power to the Tory right. For example, Paul Mason feared they would turn Britain into a neoliberal fantasy island, with deregulated employment and lower wages. Similarly, Socialist Resistance claims that the exit campaign is a project of the xenophobic right and will fuel racism and anti-immigrant sentiment.

Both positions view the EU as a secure unit providing guarantees against extreme anti-social behaviour. Yet they overlook the EU’s own record: dismantling Greece’s economy, damaging other members, and fueling the rise of the far right across Europe.

The EU as a Neoliberal Frankenstein

If the EU is indeed a neoliberal Frankenstein monster, then socialists should plan to stride away from it. The institution’s dysfunctional arrangements threaten to rip the eurozone apart, with Greece’s 25% unemployment and 180% debt-to-GDP ratio as stark examples. Italy’s stagnant growth and looming debt crisis only underscore the union’s fragility.

Labour Party’s Pro-EU Position

Labour’s Labour In pamphlet, authored by former shadow chancellor Alan Johnson, offers no criticism of the EU’s institutions or policies. It claims—without evidence—that our jobs depend on EU membership, citing growth and investment. Yet John Foster points out that EU rules have already cost Britain hundreds of thousands of jobs, notably in steel, and will continue to do so.

Investment banks, emboldened by over-valued sterling and EU deregulation, have prioritized short-term profits over industrial needs, shifting production abroad. Meanwhile, David Cameron expects to use a Remain vote to endorse his pro-business agenda, including special treatment for the City of London and welfare restrictions for migrants.

‘Social Europe’ and Employment Rights

Defenders of the EU argue that it protects labour rights—maternity leave, equal pay, minimum holiday—but these protections are under threat. Guardian economics editor Larry Elliott exposes the myth of Europe as a labour guardian, given high long-term unemployment.

The principle of “subsidiarity” has rendered the EU’s right to strike meaningless, allowing countries like Britain to impose severe strike restrictions. The goal of “flexicurity” amounts to flexi-insecurity. As Queen’s Counsel John Hendy notes, EU directives on employment have limited scope, ignore pensions, do not promote collective bargaining, and have increased agency work without full rights.

Conclusion

Increased xenophobia must be fought regardless of a Remain or Leave outcome. To disguise its anti-socialist agenda, the EU presents a friendly face while sinking its teeth into European peoples. A vote to Remain is self-harming and will not help those already suffering inside or outside the union.

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