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Tuesday, December 13, 2011

Welsh Government off track again

The more I think about it, the more bizarre Carwyn Jones' intervention in the Eurozone crisis seems. In this morning's Western Mail considerable space is devoted to the view of the First Minister that David Cameron’s decision to exclude Britain from a new European treaty has damaged the interests of Wales by ignoring the potential impact of his stance on manufacturing industry. What is less clear is where Carwyn's evidence for this assertion is.

Putting aside the fact that Ed Miliband has also said that he would not have signed the treaty, a fact that leaves Carwyn Jones at odds with his own leader, it is the case that Britain remains inside the single market, with all the benefits that brings to Wales.

There is no threat to convergence funding, nor does it seem that Welsh Ministers will be prevented from engaging with European officials on matters affecting Wales. In fact the WLGA spokeperson on Europe is in Brussels as I write doing precisely that.

Britain has been in the outside lane of a two speed Europe ever since Gordon Brown (quite rightly as it turns out) blocked Britain from joining the Euro. If David Cameron had signed up to the new treaty last week then he would have given Europe the right to dictate to Britain on our budget, impose restrictions on a key part of the British economy and insist on even stricter austerity measures here than even George Osborne envisages.

It seems strange that a First Minister who argues that the UK Government is cutting too hard and too fast, now wants Britain to sign up to a deal that would lead to even greater cuts in the Welsh Government's budget.
From the BBC

Welsh Lib Dems leader Mrs Williams said: "Walking away from the European table with nothing now leaves Wales and the UK on the fringes of the biggest single market trading area in the world.

"This means that we will not be able to exert the kind of influence in Europe that could benefit Welsh jobs and businesses."

Whats the difference?
More Hypocrisy Peter?
You should look up the definition of hypocrisy sometime. There is little difference it seems between what Kirsty, Nick Clegg and other Lib Dems are saying. Carwyn Jones is saying something similar but not quite the same. I happen to disagree with all of them and have now said say in two blogposts. So I am being perfectly consistent in my own views on this.
Unfortunately no British government has succeeded in 'rebalancing the economy' since 1918.

In fact there has been ever greater reliance on 'financial services' - basically manipulating, even gambling, with money, but not creating any material wealth.

It's a form of building castles in the air - which got a pretty big shaking in 2008. Sooner or later it will come tumbling down.

As far as I can see, the ConDem Government isn't rebalancing the economy at all - despite its stated aim. Half a century of failure to invest in infrastructure has resulted in a UK that is backward in most respects.

Cameron acted to protect the financial services of the City of London, desperate lest tax revenue is lost and to protect the well-heeled supporters of the Tory Party.

It's a short-term strategy. Apart from the shareholders and executives of the banks and the other major financial institutions, we are all going to suffer in the long run.

This is especially true of Wales, which historically is at the bottom of the pile when it comes to investment and development.

It was, with hindsight, the right decision to keep the UK out of the Eurozone, but only because its economy is ailing, and is in decline.

The causes are deep, and largely constitutional - a closed loop of political and administrative elites which have been acting in their own interests for the best part of a century or more.

It has served us very badly indeed. Wales (and Scotland) are best out of it. What's worse, there are no prospects for improvement for Wales. The UK has made Wales into a dependent basket case.

Your party has no solution to the problem (if you have let's hear it) and neither have the other unionists. More of the same it will be.
My accusation of Hypocrisy was not about your position .But on your attack on Carwyn Jones who in your own words was saying something similar but not quite the same as your party leaders.

I thought I was bding obvious.
Maybe you should read my response to your comment again. I disagree with Kirsty and Carwyn on this. I am being perfectly consistent. There is no hypocrisy involved.
I happen to think Peter Black's analysis is spot on, and he's been pretty consistent here on this issue. While others play politics, Peter has concentrated on substance.

I would just like to add that it is very clear that the business model created by the EU is simply not competitive. More specifically renders the EU member states uncompetitive with nations such as China. EU labour costs are too high, government regulation too much, government spending too much, government worker pensions too costly, energy costs too high, etc.

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