Pro-Europeans of the Right hope the Prime Minister will answer four questions in his speech tomorrow.
First, why is he ruling out British euro entry forever? What is so un-Conservative about believing that devaluations offer only capital-destroying fools’ gold; encouraging evading — rather than addressing directly — the causes of uncompetitiveness in the economy? That currency movements constitute an effective tariff and that a single money is a most, if not the most, powerful instrument for forcing an ever deeper single market? Or that the Central Bank should be truly independent? Or that there should be rigid limits set on the levels of government borrowing and accumulated debt? That, in short, the disciplines now being applied in the Eurozone periphery mirror the monetarist renewal pioneered (but not completed) here by Margaret Thatcher in the 1980s and that there is no serious alternative if the Continental economy is going to sustain wealth creation and welfare provision over the long term.