Cameron’s weakness on Europe is bad news for jobs and growth

Bank of England Governor Mark Carney’s comments that David Cameron’s EU referendum policy will be “bad for the economy” and create “uncertainty” for business are the latest reminder of the cost of the prime minister’s ill thought out referendum pledge, made not in the national interest but in the interests of the Tory Party.

Carney’s remarks follow the publication last week of the second round of the government’s Balance of Competences review, a series of major evidence-based reports looking at the impact of UK membership of the EU. In the fields of free movement of goods; trade and investment; environment; transport; research and development; tourism; civil justice; and asylum and extra-EU immigration, the reports highlight the overwhelming benefits of British membership of the European Union.

Big news, highlighting the advantages of our EU membership at a time when Europhobia, fuelled by blinkered politicians and a right-wing press, is on the rise. Yet there is no big announcement from the Prime Minister or foreign secretary, no press conference or statement to the House. No, we get the news sneaked out in a Parliamentary Written Answer at the end of last week on the day the Commons broke up for the half-term recess.

Once again we see that David Cameron’s Europe policy is not determined by what is in the national interest, but about Tory Party management, dancing to the whims of his ever more extreme and Eurosceptic backbenchers, who will seemingly never be sated, his appeasement merely serving to embolden them.

Instead of using the findings to shout out loud the benefits of Britain in the EU he has hidden the news, playing a dangerous game by not challenging the anti-European sentiment within the Conservative Party and calling into doubt our membership. By contrast, Ed Miliband has always said decisions on Britain’s role in Europe should be made in the national interest – not what’s in the interests of David Cameron as he seeks to unite the ununitable Parliamentary Tory Party.

The lack of certainty caused by Cameron’s weakness on Europe is bad news for jobs and growth, bringing uncertainty at a tune when we want companies to be investing in Britain as a gateway to Europe. The Balance of Competencies review shows the EU matters to business in Britain. Take a look at what EasyJet have said. Were it not for the Single Market for air transport brought about by deregulation of Europe’s aviation market, without standardised rules across all 28 EU Member States, the company simply would not exist.

As the Balance of Competences review shows, and Mr Carney’s comments have highlighted, only by being in Europe, and engaged in Europe, can our economy grow and our citizens prosper. Our membership is better for workers, better for business, better for Britain.