Blair warns of 'risk' to business with Tories' European policy

Tony Blair has warned that David Cameron's European policy risks throwing British business into its most anxious and unstable period since the second world war.

The former prime minister used a keynote speech on Tuesday to sketch out the danger of a British exit from the EU under a second Conservative term, warning of the risk to jobs and investment should the UK enter a period of protracted uncertainty over Europe.

"The Tory campaign talks of chaos should Labour win. Think of the chaos produced by the possibility, never mind the reality, of Britain quitting Europe," Mr Blair said in a speech in his former constituency of Sedgefield.

"There would be significant business uncertainty in the run-up to the vote but should the vote go the way of exit then there would be the most intense period of business anxiety . . . and instability since the war."

George Osborne, chancellor, sought to play down Mr Blair's intervention on and said his decision to deliver the speech at the other end of the country to Ed Miliband - who was campaigning in Bristol - showed he believed the current Labour leader was "weak".

"I suspect he's going to do the absolute minimum required not to be blamed for Labour's defeat when it comes," said Mr Osborne at a Westminster briefing. "By refusing to appear alongside the Labour leader and indeed putting himself on the other end of the country, advertising the fact that he thinks the Labour leader is weak."

But Mr Blair insisted on Tuesday he supported Mr Miliband "100 per cent", praising his "strong leadership" over Europe. The endorsement comes just weeks after Mr Blair warned of the danger of Labour abandoning the centre ground and fighting as a "traditional leftwing party".

While the two leaders come from different wings of the Labour party, both are united over their commitment to Europe.

Mr Miliband has put continued membership of the EU at the heart of his proposals to British business, while Mr Blair is a committed europhile; last summer he urged European leaders to set out a "manifesto for change" to address disillusionment with Brussels after a surge in support for anti-EU parties in last year's European elections.

Mr Blair, who won three general elections under his New Labour banner, criticised Mr Cameron for being prepared to put Britain's best interests "at risk" for "political advantage".

"This was a concession to [his] party, a manoeuvre to access some of the Ukip voters, a sop to the rampant anti-Europe feeling in parts of the media. This issue, touching as it does the country's future, is too important to be traded like this."

Mr Cameron announced plans for an in-out EU referendum if he wins the next election in a speech at Bloomberg in January 2013 in an attempt to assuage his own backbenchers and stem the flow of Conservative supporters to Nigel Farage's Ukip party.

On Monday, the prime minister urged Conservatives who have defected to Ukip to "come home" as he appealed to them not to use their vote as a "protest". Addressing a rally in Bristol, Mr Cameron told Ukip defectors he understood why they had turned away from his party as he appealed for their support in May.

"Come with us, come back home to us rather than risk all of this good work being undone by Labour," he said. "We have heard the message loud and clear about the things you want to see changed."

Amid continuing tensions between Mr Miliband and the business community, Mr Blair also urged executives - and their employees - to give Mr Miliband a hearing.

"If I was a leading business dependent on access to the single market or more important employed in such a business, then the issue of Europe and the risks of this would be a big decider in my vote.

"Labour and its leader took a brave decision when they decided not to yield to pressure but instead make a principled and intelligent case for Britain in Europe."

Mr Miliband's backers welcomed the intervention. "When somebody like Tony Blair says this, I think all people in all parties will sit up and think," said one Labour figure.

Relations between the two Labour leaders have been strained at times. Mr Miliband sought to distance himself from New Labour when he was running for the leadership in 2010 and was also critical of his predecessor's handling of the Iraq war.

The two men also disagree on some of Mr Miliband's business policies, such as his approach to banking regulation, according to a party figure.

Tensions surfaced in January when Mr Blair insisted he "fully supported" Mr Miliband after appearing to cast doubt on the likelihood of the party winning the next election.

Mr Blair tweeted that his remarks had been "misinterpreted" and said he expected a Labour victory in May after an interview with the Economist seemed to suggest that Mr Miliband risked being too leftwing to win.

© The Financial Times Limited 2015. All rights reserved.
FT and Financial Times are trademarks of the Financial Times Ltd.
Not to be redistributed, copied or modified in any way.
Euro2day.gr is solely responsible for providing this translation and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation