Europe and the Lib Dems

GIVEN that Europe and electoral reform are the two issues that matter most of all to the Liberal Democrats, it is understandable that Nick Clegg finds himself bruised, politically, after taking his party into a historic coalition with the Conservatives 18 months ago.

He finds his pro-Europe party at odds with mainstream Tory opinion which is extremely Eurosceptic, hence David Cameron using Britain’s veto at last week’s eurozone crisis summit, and the Lib Dems also saw their dream of a PR voting system heavily defeated in a referendum earlier this year.

That said, the onus should be on Mr Clegg to sort out his differences with the PM from within the government rather than in a media interview that did himself, or his party, few favours. After all, why are the Lib Dems speaking out now when they, evidently, endorsed Mr Cameron’s approach at Cabinet level before he travelled to Brussels?

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Furthermore, if Europe does become a coalition-breaker, the biggest losers will not be the Eurosceptics – but the Liberal Democrats who, on this issue, appear to be increasingly out of sync with public opinion. That is why Mr Clegg would be advised to use his influence to strike a balance between Britain’s antipathy towards Europe – and this country’s need to maximise trade and business opportunities across the EU.

Given these domestic sensitivities, Mr Cameron should resist any temptation to be triumphant when he updates MPs today. He still needs to remember that the euro is not out of financial danger, and Britain has earned the right to be a key player in the shaping of EU policy. Yet, rather than relying upon one gesture, he needs to show how the City of London’s status will still be protected – and how Britain will prosper from new global markets.

Having seen the last three Prime Ministers from his party brought down by Europe to varying degrees, Mr Cameron could become the latest such casualty unless he can convince the Lib Dems that his unprecedented use of the veto last week was in the national interest. In short, both coalition parties perhaps need to coalesce around the phrase that John Major coined in the 1990s to sum up Britain’s approach: “In Europe, but not run by Europe”. That mantra is as relevant today as it was 20 years ago.