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Multilateral Foreign Policy > Published by Ben Fox, December 12th 2011 at 12:00 am

How Cameron traded influence for isolation

David Cameron is already reaping the results of his spectacular misjudgement at Thursday’s EU summit. The Liberal Democrats are furious, while Conservative Eurosceptics will soon realise Cameron has isolated Britain without winning any safeguards for the City of London.

Left Foot Forward understands that Cameron’s team arrived at the summit with a draft protocol on financial policy. The problem was that, unlike President Sarkozy and Chancellor Merkel – who publicly agreed their position and circulated it to all governments - Cameron gave no warning of his demands.

For a legally binding protocol to have had any chance to be agreed, it would have to have been formally discussed before the summit.

David-Cameron Another oddity was that Cameron’s proposal involved shifting financial regulation from majority voting to unanimity. This would have involved unpicking the Single European Act agreed by Margaret Thatcher.

For example, if unanimity existed, legislation on bankers’ bonuses, capital requirements, hedge funds and speculative short selling would all have been blocked by Britain or other countries.

Cameron’s demand for a right of veto on all financial sector legislation was opposed by all other EU countries on the grounds it was nothing to do with the eurozone crisis (which was the purpose of the summit) and because, in any case, it was unjustifiable.

At it was, Cameron’s position was so extreme he found no allies. With no back-up strategy Cameron threatened to veto the deal. The other 26 countries called his bluff and then proceeded without him.

A month ago, the main priority of Cameron and his ministers was for was the eurozone to get its act together. Through arrogance and cack-handed negotiation it ended up trying - and failing - to block the eurozone from doing so.

The irony is that Cameron extremism and failure to negotiate has delivered the one thing he feared, namely that the eurozone 17 would become an integrated group that caucuses and predetermines subjects that properly belong to the EU-27. This fear was shared by many of the other nine countries not in the euro - yet, at the end of the day, it has driven almost all of them to join with the 17 leaving the UK in a minority of one.

But Cameron has actually done his party no good. Although dramatically wielding the veto guaranteed 24 hours of positive coverage from Eurosceptics, the reality is Cameron didn’t win any of the safeguards for the City that he promised. In fact, City institutions (including many Tory donors) will almost certainly pay a large price. The EU-26 will now press forward with proposals on corporate tax and a financial transactions tax with or without Britain.

Moreover, as Tory Eurosceptics realise they have less influence but are still bound by EU legislation, more and more will shift to more extreme parties like UKIP and the BNP. It is now almost inevitable separate structures will be set up for the 26 countries who either agreed the deal or are awaiting approval from their national parliament, with Britain on the outside.

That will be bad for Britain and for the EU, with a whole new panoply of bodies, some with their own separate presidents.

But Britain has suffered the worst of all worlds. On policies for the EU-27 our MEPs will have fewer allies and we will have less negotiating clout in the Council of Ministers. On economic policy, and anything the EU-26 want to talk about, we will be shut out completely. Cameron has achieved splendid isolation – with nothing in return. Nice work, Dave.

See also:

• Look Left – Europe 26-1 Cameron: Britain isolated like never before – Shamik Das, December 9th 2011

• The view from abroad: The day Britain locked itself out – Alex Hern, December 9th 2011

• Cameron didn’t sign EU deal because it’s not in the interests of the one per cent – Shamik Das, December 9th 2011

• Farage should check his own funds before accusing others of being in it for the money – Alex Hern, October 24th 2011

• Tory dependence on City money should come as no surprise – Shamik Das, February 9th 2011

http://twitter.com/spsot/status/146067785942966272 Spir.Sotiropoulou

RT @leftfootfwd: How Cameron traded influence for isolation http://t.co/T9LV5BUw
http://twitter.com/drkmj/status/146089403071205379 DrKMJ

RT @leftfootfwd: How Cameron traded influence for isolation: http://t.co/gbhe3RUj – Ben Fox with the latest from Brussels #EU #NewsClub
http://twitter.com/leadeshipdialog/status/146091416848842753 Ellen Moran

How Cameron traded influence for isolation | Left Foot Forward http://t.co/3HwQRaci
http://twitter.com/nhsspy/status/146094048661344256 Watching You

RT @leftfootfwd: How Cameron traded influence for isolation: http://t.co/8c0Pimas – Ben Fox with the latest from Brussels #EU #NewsClub
http://twitter.com/therightarticle/status/146128845320359936 Michael

How Cameron traded influence for isolation l Left Foot Forward – http://t.co/d7sB09aT
http://twitter.com/yrotitna/status/146129583719194625 Juan Voet

How Cameron traded influence for isolation: http://t.co/VZGk4JE6 – Ben Fox with the latest from Brussels #EU
http://twitter.com/nellbridges/status/146130948575084544 Nell Epona Bridges

Another good take on this: How Cameron traded influence for isolation via @leftfootfwd http://t.co/eLtYSMJM
http://twitter.com/whistlingfroggy/status/146133725707640832 Pete Drummond

How Cameron traded influence for isolation: http://t.co/VZGk4JE6 – Ben Fox with the latest from Brussels #EU
http://twitter.com/michaelje67/status/146136414650761216 michael emonds

RT @leftfootfwd: How Cameron traded influence for isolation http://t.co/XI6Kf6MU
http://twitter.com/tonyburke2010/status/146137859802415104 Tony Burke

More today on how the EU deal is bad for manufacturing. RT @leftfootfwd: How Cameron traded influence for isolation http://t.co/7Ljllmmw
Anonymous

Oh come on I agree with most of what you say but labour has this idea that some how the BNP will grow because of one thing or another Brown was scared that labour working class would change to the BNP as if we are racist, then again it was him that saw Bigots and non working British people joining the BNP, when the vote was counted both labour and the BNP lost a lot of voters.

The BNP are dead will stay dead and will not rise, as for Cameron plans we will see.
Selohesra

We all know Labour are as split on Europe as the Tories – but I think what has really annoyed Labour is that Cameron has taken this populist measure and they can see public opinion heamoridging away from them as they are being forced to oppose Cameron by taking ridiculous pro-EU positions>
http://www.leftfootforward.org/2011/12/scotland-wales-northern-ireland-savage-david-cameron-eu-strategy/ Scotland, Wales and Northern Ireland savage Cameron’s anti-EU strategy | Left Foot Forward

[...] also: • How Cameron traded influence for isolation – Ben Fox, December 12th [...]
http://twitter.com/Newsbot9 Newsbot9

Being soundly defeated is “populist”? Who knew!
Selohesra

I tend to think of “populist” as something that is popular with public opinion – last servey I saw showed 55% thought he was right to stand up for UK interests by refusing further treaty and less than 18% thought he should have sold us out like previous PMs since Thatcher. Approx 3:1 in favour seems pretty populst to me
http://twitter.com/nicola_prigg/status/146177296594763776 Nic Prigg

RT @leftfootfwd: How Cameron traded influence for isolation http://t.co/B3NzgtB1
http://twitter.com/tooldtoroknroll/status/146178650457382913 David Irvine

RT for those in bed by midnight: Ben Fox in Brussels reports on how Cameron traded influence for isolation: http://t.co/aUDofjwa #EU
http://twitter.com/kellly33/status/146179510163865600 Kelly Barclay

RT for those in bed by midnight: Ben Fox in Brussels reports on how Cameron traded influence for isolation: http://t.co/aUDofjwa #EU
http://twitter.com/trakgalvis/status/146180135572340737 Trakgalvis

RT for those in bed by midnight: Ben Fox in Brussels reports on how Cameron traded influence for isolation: http://t.co/aUDofjwa #EU
http://twitter.com/altgovuk/status/146181772386893824 AltGovUK

RT for those in bed by midnight: Ben Fox in Brussels reports on how Cameron traded influence for isolation: http://t.co/aUDofjwa #EU
http://twitter.com/snowleopardess/status/146183213918863360 Anne Greensmith

How Cameron traded influence for isolation http://t.co/3IKsM8Ay
Anonymous

Basically, so what. A British right-winger is involved in a spat with European right wingers over the best way to screw ordinary people. Why are people allegedly on the left of british politics rushing headlong to support Merkel and Sarkozy? What have thery ever done for the people of Greece, Ireland, Spain or Italy? This is a pantomime to convince us all that political differences actually exist in Europe. So what if one free market corporate stooge is isolated from the other free market corporate stooges?
http://www.leftfootforward.org/2011/12/cameron-sells-out-uk-manufacturing-for-his-loony-backbenchers/ Cameron sells out UK manufacturing for his loony backbenchers | Left Foot Forward

[...] How Cameron traded influence for isolation – Ben Fox, December 12th [...]
http://twitter.com/sbrady82/status/146188450834550785 Stuart Brady

RT for those in bed by midnight: Ben Fox in Brussels reports on how Cameron traded influence for isolation: http://t.co/aUDofjwa #EU
http://twitter.com/mcmlxxvi_ad/status/146223112659288064 Jamie

How Cameron traded influence for isolation http://t.co/h2Bee1DU #EU
http://twitter.com/lea_renoux/status/146254162903048192 Lea Renoux

RT @leftfootfwd: How Cameron traded influence for Isolation http://t.co/oFR2irjb #EU #Cameron #Eurosceptics
http://twitter.com/ladyditax/status/146258996037292032 D.

How #Cameron traded influence for isolation http://t.co/HcyzPzH5 #Toryfail #EU
http://twitter.com/robertcp/status/146264940565630977 Robert CP

Form earlier today, Ben Fox in Brussels reports on how Cameron traded influence for isolation: http://t.co/aUDofjwa #EU
http://twitter.com/Newsbot9 Newsbot9

That’s right, surveys. Which can only provide trends, not numbers.

Where are the studies?

Also, there are these things called “principles”, you probably haven’t heard of them, but…
http://www.leftfootforward.org/2011/12/look-left-17-12-11/ Look Left – Labour hold Feltham but deeper problems remain | Left Foot Forward

[...] Ben Fox says, all Cameron has ended up doing is trading influence for isolation: “Cameron has actually done [...]