UK

Australia Day is typically when prime ministers attract positive headlines by doling out honours to people promoting good causes. But Tony Abbott, the gaffe-prone holder of the office, provoked a storm of controversy on Monday by awarding the country’s highest honour – knight of the order of Australia – to Prince Philip, the Duke of Edinburgh.

“I don’t get the priority the government had in nominating him,” said Bill Shorten, Labor leader. “It’s a time warp where we’re giving knighthoods to English royalty.” Read more

  • Bahrain’s royal family has built up vast private wealth, including a $900m portfolio of UK real estate, after embarking on development projects on disputed reclaimed land in the Gulf kingdom, an FT investigation reveals
  • The prospect of Greece’s self-styled “radical left” Syriza party coming to power has sown panic among investors, but its leader has softened his rhetoric and is changing tactics to reassure the business community
  • Beneath the surface of gridlock and hyper-partisanship in US political life is a national security establishment whose influence endures administrations and constantly seems to evade constraints
  • Narendra Modi has not made many sweeping reforms since he stormed to India’s premiership in May. But he has made some reforms about sweeping – showing his feel for the issues that affect the masses outside the Delhi beltway
  • The extent of the UK’s military and political catastrophe in Afghanistan is hard to overstate. It was doomed to fail before it began, and fail it did, at a terrible cost in lives and money, writes James Meek in the London Review of Books

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Scotland has voted decisively to reject independence, meaning the country’s 307-year-old union with England and Wales remains intact. The No campaign secured over 55 per cent of votes in the referendum, though the UK will now undergo a major period of constitutional change as powers are devolved outside of Westminster.

Voting ended at 10pm, and by 8am UK time, all but one of Scotland’s 32 councils had declared final results on a record turnout of over 85 per cent.

By John Aglionby, Claer Barrett, Gavin Jackson, Martin Stabe, Mark Odell and Lindsay Whipp

 

A friend of mine in Scotland who supports the UK has just sent me an e-mail about his impressions of the campaign ahead of the vote on Scottish independence on Thursday. I think it is an evocative and alarming piece of writing, so here is the email in full: Read more

It is one of Beijing’s worst nightmares: subjects in a resource-rich semi-autonomous province hold a vote on independence.

So when Premier Li Keqiang was asked in June where he stood on Scottish independence, it came as no surprise that he backed the union. Read more

A spike in the cost of government borrowing is raising the spectre of Venezuela defaulting on its more than $80bn of sovereign debt

Italy’s anti-euro, anti-immigrant Northern League party is seizing on the Scottish referendum to relaunch calls for secession of the north of Italy

A meeting between the leaders of China and India next week underscores the slow thaw in the countries’ relations as their economic links strengthen

Isis is recruiting in Istanbul‘s impoverished suburbs, often through religious study groups, to boost its ranks of fighters and populate its self-declared caliphate. Read more

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In his 2011 book ‘Vanished Kingdoms: The History of Half-Forgotten Europe’, the historian Norman Davies writes: “That the United Kingdom will collapse is a foregone conclusion. Sooner or later, all states do collapse… Only the ‘how’ and the ‘when’ are mysteries of the future.”

A ‘Yes’ vote in Scotland’s September 18 referendum is a distinct possibility. According to Peter Kellner, one of Britain’s foremost opinion poll experts, the pro-independence forces were, by the start of this month, gaining about four votes for every one lost, whilst the unionists were losing about two supporters for every one they were winning. Read more

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The Bank of England will weigh the weakness of Britain’s wage growth against the strength of its economic recovery when it delivers fresh forecasts in its quarterly inflation report on Wednesday morning, containing signals about when a rise in interest rates is likely.

<To be delivered in tandem with the latest UK employment data, the BoE’s estimates of the amount of slack in the economy will be one of the most closely watched metrics. At the last quarterly inflation report in May, the BoE estimated the amount of spare capacity was between 1 – 1.5 per cent, judging there was room for this to narrow further before rates tightened.

By Sarah O’Connor and Claer Barrett

 

The UK decision to send ground attack aircraft to perform reconnaissance missions over Iraq has led to mounting speculation that it could soon join the US in conducting bombing missions against Islamist extremists terrorising the local population.

The British government has so far resisted calls from some politicians and former officers to join the US in launching air strikes against insurgents from the Islamic State of Iraq and the Levant (known as Isis). But the type of aircraft it has sent to the region – the Tornado GR4 – leaves the option open. Read more

In an effort to make sense of Britain’s European predicament, I decided that I needed to put some distance between myself and the inglorious events in Brussels. So I have travelled to Brazil, where there appears to be some sort of football tournament going on.

In fact, there are certain obvious parallels between what happened to David Cameron in Brussels and what happened to the England team in Brazil – ignominious defeat being the clear link. However, it seems to me that the England team at the World Cup were actually rather better prepared and more professional than the British government in Brussels and that was reflected in the margin of defeat: 2-1 rather than 26-2. Read more

Every World Cup needs a villain, and Uruguay’s Luis Suárez must have been the pre-tournament bookmakers’ favourite to fill the role. Now he has obliged, for the second World Cup running. In 2010 he did it by saving a last-minute Ghanaian shot with his hands. He was sent off, but Ghana missed the subsequent penalty, and Uruguay went on to the semifinal.

On Tuesday the apparent bite he took out of Italy’s Giorgio Chiellini provided possibly the first iconic moment of this World Cup. Fifa’s disciplinary committee has yet to give its verdict, but the vast majority of global non-Uruguayan opinion seems to believe it was a bite. Jim Boyle, head of Fifa’s refereeing committee, told British TV: “Once again, his actions have left him open to severe criticism.” Once again Suárez’s personal dysfunction is being displayed before the world, and once again he has only his compatriots to defend him. Read more

After all the UK press has written about him over the past few weeks, it is good to see Jean-Claude Juncker still has a sense of humour.

The former Luxembourg prime minister has largely kept his head down since he emerged as the front-runner for the European Commission presidency – and came under fire from UK prime minister David Cameron and the pro-Conservative battalions of the British media.

On Tuesday Mr Juncker broke cover to deliver a speech at a Berlin security conference – he had, he said, accepted the invitation before becoming embroiled in the latest battle of Brussels.

Explaining that he was between jobs – having handed over the reins in Luxembourg in December and yet to be installed in a new post – he added with a smile: “I am a transgender person, in the political sense.” Read more

When the already opaque language of diplomacy turns to allegories, you know you are on even thornier ground than usual.

In this case, it is the UK trying desperately to convince Kenya they are after all the greatest of friends – if mistrusting, sparring ones.

Addressing a crowd in a televised speech, Christian Turner, the UK High Commissioner to Kenya, likened the pair – once former colony and colonial power – to a lion and buffalo “locked in combat”.

He went on: “On stopping to gather their strength for a final assault, they saw some vultures circling up above. They at once stopped their quarrel, saying: ‘It is better for us to work together than to become a meal for vultures.’” Read more

Just when it seemed that European politics could get no harder for Angela Merkel, a new complication has emerged in the tangled world of the EU.

The German chancellor is already involved in a head-splitting row over the probable appointment of Jean Claude Juncker as the next European Commission president. This week while Ms Merkel was in Brazil watching Germany’s opening victory of the World Cup, the first big split emerged in her ruling coalition.

Sigmar Gabriel, her deputy, pounced on Ms Merkel’s absence to challenge her eurozone economic policy, in an intervention that has the potential to sour relations long after the original dispute is forgotten. Read more