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Labour party (new Labour) are Euro-positive. This refers to people who are in favour of the European integration and they still see Britain at the centre of Europe however, they do not want to support further transfer of function to the union. For example, it believes that tax, social welfare and law and order policies should remain under the control of the national government. In contrast, the Conservatives are Euro-sceptics. This means that they are doubtful of any further political integration but realise the economic advantages. They want to see European decision making kept at an intergovernmental level. Intergovernmental refers to decisions that are made in the interests of the individual countries. However recently, Labour and Conservatives policy regarding the EU have become increasingly similar. One way in which the parties’ views have become similar is that both parties do not want the European Union to become a federal state. A federal sate is where power is dispersed between federal and state authorities. For example, the USA is a federal state. The two leading parties oppose a federal state because it threatens national sovereignty. This refers to the ultimate power and the source of political power within a state. A European Union federal state would mean the UK would have to give up further national sovereignty. This in return would give European Union considerable power to make decisions at supranational level rather than intergovernmental. Supranational means the national interests are set aside and are replaced by the interests of the European Union as a whole. For example the Common Agricultural Policy as supranational. Supranational decisions are perceived to be negative because although it can benefit countries, it does so at the expense of the other the other countries. . An example of this was when Ireland in the mid 2000’s began to grow at a vast rate, however this lead to high rate inflation in Ireland. Inflation is when there is too much money chasing too few good, so in order to lower inflation Ireland requested the European Central Bank (ECB) to increase interest rate so that people would spend less and save more. However because Ireland is a part of the Euro zone and lowering interest rates in Ireland would mean lowering interest rates in other countries, countries like France and Germany were in disagreement as their economy was sluggish and they needed interest rates to stay down. Because of the supranational style of decision making interest rates stayed low, so when the credit crunch happened Ireland’s economy crashed leaving Ireland bankrupt. This is the kind of situation both labour and Conservative fear hence the opposition to a federal state as it would mean that the decision making process is taken further away form the people, resulting in decisions being made for at more of a supranational level. In relation both parties have similar views in the sense that they are both in favour of enlargement, as this would discourage a federal state of Europe. Enlargement refers to making something bigger, for example when Labour joined the EU the membership of the EU rose significantly form fifteen to twenty seven countries. Cameron in a recent speech has said he is very much in favour of an enlarged EU. Both parties are in favour of this enlargement is because they are both in favour of an anti-federal Europe and enlargement will make federalism harder to happen as not all countries will agree to it. Also Conservatives believe that if EU membership is widened this would stop further integration, and they are against this because further integration means giving up more sovereignty. Another reason why parties are in favour of enlargement is because they can recognise the economic benefit of the expansion. For example the European single market which would increase the free trade exchange, and customers between the countries. Another way in which the parties’ views have become increasingly similar is that both Labour and conservatives want reform of the common fisheries (CFP) policy and the Common Agricultural policy (CAP). The CFP gives countries a quota of how much fish they can catch. The CAP is aimed at agricultural farmers providing a plentiful and stable food supply and the maintenance of food productivity in the countryside. In particular, the CAP has proved to be the most unpopular aspect of the European Union’s budget, because countries that do not have large agricultural sectors, the UK being the key example, tend to suffer as a result. For example roughly 45% to 50% of the European Union’s budget goes to the CAP. In 2007, the proportion of CAP expenditure in France was 20%, with the UK and 9% and others lower. This shows that France and Germany benefit most out of the CAP because a larger agricultural sector, but countries which have larger manufacturing and service sector, do not receive as much support. The CAP is most expensive because the farmers are the ones who produce goods for us. Another reason why the CAP is unpopular id the fact that farmers get a large amount of support, which provides few incentives for them to make themselves more efficient thus, creating no competition between farmers. Another way in which both parties are similar is that both parties are prepared to pool or give up sovereignty if they believe it is beneficial to the UK, therefore both party’s approach towards Europe is ‘pragmatic’, William Hague the current foreign secretary has called himself and David Cameron ‘pragmatic.’ This means that neither party have any long term views on how Europe should be developed nor what they believe will be good for Britain. They react according to what they feel is in the best interest of the country at that moment in time, therefore neither of them have a long term strategy on how the country should be run in relation to the EU. The Single European Act for example signed in 1986 by Margaret Thatcher and she signed because of the economic benefits she did not particularly have any long term impact of this. However although some of Labour and Conservatives policies have become very similar there are still some great differences in their policies concerning the European Union. For example, they still have differing stances on Europe, the majority of the Conservative party are Euro-sceptics and that think the European Union is a threat to the British way of life and to their national sovereignty. They want to gain back some sovereignty and discourage further political integration. In contrast the Labour party are Euro-positive and find Britain is ‘at the heart of Europe’, in other words they believe that Britain would be a key play in Europe and thus, they still have differing policies to the conservatives on the European Union. Another way in which the parties’ views on the European Union are different is their opinion in relation to The Lisbon Treaty 2007. This treaty increased the use of quality majority voting of the council of ministers, increased the involvement of the European Parliament, and created a European Council President and Foreign Minister. Labour Described the Lisbon Treaty as just clarifying what powers the European institutions have. In contrast, the Conservatives never signed the treaty because they never approved of some of the regulations it involved. For example within the treaty there was to be a fundamental charter of human rights to be applicable to all member states. The conservatives thought this was unfair as countries should be left to decide their own human rights according to the culture of the country. It also meant that they would have to give up further national sovereignty, which they already oppose. Although there are fundamental differences between the two parties in regards to the EU, the similarities seem to out weigh the differences. Both parties agree on points that have the potential to change the complete structure of the UK, like the idea of a federal Europe. It is essential that both parties are able to agree on these larger and more vital points as an united front is likely to be a lot more effective on an EU level and is perhaps likely to have a greater impact when it comes to making the decisions. Also both parties agree with working with the country’s best interest in mind which is an essential element in a democracy, due to the fact that the government is directly accountable to the public therefore the decisions they make should reflect public’s opinion. .