Why is the Tory leadership arguing for more European integration?

Conservative prospects at the next election depend to a considerable extent on the condition of the economy. George Osborne, writing in The Sunday Telegraph, is already moving to blame Britain’s flat-lining economy on the impact of the uncertainty which stems from the eurocrisis. If there is no resolution and Britain is hit even more severely in a continent-wide downturn, David Cameron and Mr Osborne know that they will find it difficult to beat Labour. They are desperate for the eurozone countries to come up with a solution which restores stability and avoids a re-run of the depression of the 1930s. The Prime Minister and the Chancellor have alighted on demands for members of the eurozone to integrate themselves so that they are run in effect by a single government, with Germany and the richer economies guaranteeing the debts of the weaker countries. That way, runs the argument, the euro and the European economy might be saved from a looming collapse which would damage the UK’s trade. Mr Cameron has been particularly vociferous, last week urging the members of the stricken eurozone to get on with integration. Being outside the euro, Britain would not take part in any new arrangements.

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