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Ed Miliband: EU exit threat makes reforms harder to negotiate Ed Miliband: EU exit threat makes reforms harder to negotiate
(about 7 hours later)
Ed Miliband has warned that threatening to leave the EU would make reforming it less achievable as he launched Labour’s official election campaign.Ed Miliband has warned that threatening to leave the EU would make reforming it less achievable as he launched Labour’s official election campaign.
The party’s leader said the route to change went via building bridges, not putting the hand on the exit door, and he added that the German chancellor, Angela Merkel, cared only about resolving the internal problems of the union, not those of the Conservative party.The party’s leader said the route to change went via building bridges, not putting the hand on the exit door, and he added that the German chancellor, Angela Merkel, cared only about resolving the internal problems of the union, not those of the Conservative party.
Speaking at the launch of Labour’s business manifesto, Miliband warned of chaos if David Cameron was re-elected. He predicted the candidates to succeed him would outdo each other during the referendum campaign in playing to a Eurosceptic gallery to win the Tories’ support.Speaking at the launch of Labour’s business manifesto, Miliband warned of chaos if David Cameron was re-elected. He predicted the candidates to succeed him would outdo each other during the referendum campaign in playing to a Eurosceptic gallery to win the Tories’ support.
Miliband said: “Cameron oversees a divided Conservative party, half of whom want to leave, and he is a prime minister who doesn’t seem to know his own mind.Miliband said: “Cameron oversees a divided Conservative party, half of whom want to leave, and he is a prime minister who doesn’t seem to know his own mind.
Related: Cameron's warning on Labour's £3,000 'tax rise' is shot down by IFS
“And at the same time he promises a leadership contest in the Conservative party, with candidates vying against each other for who can be the most extreme on Europe.“And at the same time he promises a leadership contest in the Conservative party, with candidates vying against each other for who can be the most extreme on Europe.
“It is a recipe for two years of uncertainty in which inward investment will drain away – two years of uncertainty in which businesses will not be able to plan for the future.”“It is a recipe for two years of uncertainty in which inward investment will drain away – two years of uncertainty in which businesses will not be able to plan for the future.”
Europe is Labour’s chief calling card with a British business community often sceptical about the party’s plans for tax and market regulation.Europe is Labour’s chief calling card with a British business community often sceptical about the party’s plans for tax and market regulation.
But aides were forced to talk down a row over whether companies named in a Labour advert supporting UK membership of the EU, published in the Financial Times, had been consulted.But aides were forced to talk down a row over whether companies named in a Labour advert supporting UK membership of the EU, published in the Financial Times, had been consulted.
The Siemens chief executive, Jürgen Maier, said he stood by his quotes in the FT but worried that his remarks might be seen as party-political. A Siemens spokeswoman said: “We were not told it would be used in an advert. We were not given any warning. We are apolitical, we don’t endorse political parties, we wouldn’t have agreed to be in an advert for the Labour party. The feeling is that they have overstepped the line.”The Siemens chief executive, Jürgen Maier, said he stood by his quotes in the FT but worried that his remarks might be seen as party-political. A Siemens spokeswoman said: “We were not told it would be used in an advert. We were not given any warning. We are apolitical, we don’t endorse political parties, we wouldn’t have agreed to be in an advert for the Labour party. The feeling is that they have overstepped the line.”
Ed Miliband rebutted the criticism, saying Labour was merely using on-the-record quotes of senior executives about the EU and was not implying support for any party.Ed Miliband rebutted the criticism, saying Labour was merely using on-the-record quotes of senior executives about the EU and was not implying support for any party.
Meanwhile, John Mills, the Labour donor and well-known Eurosceptic, called on the party to reverse its opposition to a referendum – arguing that until the decision on British membership is taken there is going to be uncertainty.Meanwhile, John Mills, the Labour donor and well-known Eurosceptic, called on the party to reverse its opposition to a referendum – arguing that until the decision on British membership is taken there is going to be uncertainty.
Miliband’s bid to win over business left Martin Sorrell, the WPP chief executive, unimpressed. He said Miliband “had had a chance to engage with business before, but he is trying to make up for lost time”. He also warned business against a backdoor deal with the Scottish national party.Miliband’s bid to win over business left Martin Sorrell, the WPP chief executive, unimpressed. He said Miliband “had had a chance to engage with business before, but he is trying to make up for lost time”. He also warned business against a backdoor deal with the Scottish national party.
Miliband and Ed Balls also had to fend off suggestions that borrowing might be £30bn higher under Labour plans. Miliband insisted: “To go to an election saying outside two protected areas – health and education, where we are going to invest, and international development – there are actually going to be reductions in spending, I don’t think any Labour leader has set a clearer and more determined framework for getting the deficit down.”Miliband and Ed Balls also had to fend off suggestions that borrowing might be £30bn higher under Labour plans. Miliband insisted: “To go to an election saying outside two protected areas – health and education, where we are going to invest, and international development – there are actually going to be reductions in spending, I don’t think any Labour leader has set a clearer and more determined framework for getting the deficit down.”
Balls added: “We have set a clear plan to cut the deficit every year and to get the national debt falling in the long term. We are going to get the current budget not only into balance but into surplus in the next parliament.Balls added: “We have set a clear plan to cut the deficit every year and to get the national debt falling in the long term. We are going to get the current budget not only into balance but into surplus in the next parliament.
“We are going to get the national debt falling in the next parliament as soon as we can, and because we will inherit a deficit that is very large, there are no proposals in our manifesto that involve any additional spending, current or investment spending, that needs to be covered by additional borrowing.” Balls’s aides stressed that his plan meant the national debt would fall as a proportion of overall GDP.“We are going to get the national debt falling in the next parliament as soon as we can, and because we will inherit a deficit that is very large, there are no proposals in our manifesto that involve any additional spending, current or investment spending, that needs to be covered by additional borrowing.” Balls’s aides stressed that his plan meant the national debt would fall as a proportion of overall GDP.
The Institute for Fiscal Studies thinktank, meanwhile, challenged the Conservative claim that Labour spending and borrowing plans would involve a £3,000 tax rise for average families. Paul Johnson, the IFS director, said the Tories “have made quite a lot of assumptions and the number was not terribly helpful”.The Institute for Fiscal Studies thinktank, meanwhile, challenged the Conservative claim that Labour spending and borrowing plans would involve a £3,000 tax rise for average families. Paul Johnson, the IFS director, said the Tories “have made quite a lot of assumptions and the number was not terribly helpful”.