As Westminster waits for the publication of Sir Gus O’Donnell’s report into whether Liam Fox broke the ministerial code as a result of his friendship with Adam Werritty, Number 10 is drip-feeding new revelations into the public domain.
The latest is that Werritty met other defence ministers: specifically Gerald Howarth and Lord Astor. We don’t know when, where or how often though. Read more
Hank Paulson had his bazooka plan, now David Cameron has gone one step further, calling for a “big bazooka” approach to tackling the eurozone crisis.
Cameron calls for five things:
- Recapitalisation of eurozone banks
- More money for the eurozone bailout fund
- Greece’s economic future to be clarified
- The IMF to pressurise countries to do more to tackle the crisis
- The deepening of the single market and improved eurozone governance
Last night the government lost a crucial amendment to their Europe bill in the Lords by a handful of votes.
Peers voted to introduce a “sunset clause” on the entire bill (actually, the entire bill apart from one technical point), which would limit it to only five years. Importantly, this means that the so-called “referendum lock” – whereby any transfer of sovereignty from London to Brussels could only be allowed after a Yes vote in a referendum – would have to be voted on again in five years’ time. Read more
How does the world look from Westminster? Foreign policy is woefully under-scrutinised in the UK, where governments can wage war and sign treaties without reference to parliament, and the limited attention it does receive could arguably be better directed. Read more
As it’s prediction season, here goes… My crystal ball, for what it is worth, foretells political and economic union between France and Germany, perhaps within the next 12-24 months. Europe needs a gamechanger, one that creates an insurmountable firebreak against the speculators. Crises have historically been the motor of European integration and a full union, much like the panicky one Britain offered France in June 1940, might look tempting. It would provide for joint organs of defence, foreign, financial and economic policies, finally fulfilling the founding fathers’ dream of “ever closer union”. Read more
Here is a fine example of the dangers of politicians writing seemingly innocuous op-eds for newspapers.
Ahead of a trip to Dublin in 2006, George Osborne used an article in The Times to pay homage to the Irish boom. The opening paragraph about Ireland’s “shining example” to economic policymakers is a classic:
A generation ago, the very idea that a British politician would go to Ireland to see how to run an economy would have been laughable. The Irish Republic was seen as Britain’s poor and troubled country cousin, a rural backwater on the edge of Europe. Today things are different. Ireland stands as a shining example of the art of the possible in long-term economic policymaking, and that is why I am in Dublin: to listen and to learn.
The conclusion is almost as cringeworthy:
The new global economy poses real long-term challenges to Britain, but also real opportunities for us to prosper and succeed. In Ireland they understand this.
They have freed their markets, developed the skills of their workforce, encouraged enterprise and innovation and created a dynamic economy. They have much to teach us, if only we are willing to learn.
To be fair to Osborne, many of his arguments are still valid even after the crash.
A well educated workforce, top notch R&D investment, and competitive tax rates to encourage investment are all as important now as they were during the boom years.
But there is not a word of caution about potential imbalanaces in the economy. No mention of the racy property market, reckless lending, or his views on the dangers to Ireland from having joined the Euro. Read more
The clash over next year’s EU budget has widely been viewed as a contest between the austere and the profligate. The end result, after a final round of negotiations collapsed in the wee hours of the night, is that the forces of austerity, led by UK prime minister David Cameron and his Dutch and Danish allies, prevailed over a spendthrift European parliament.
But there is another – often overlooked – element to the debate that animated the member states’ unexpectedly stubborn stance: a desire to punish a Parliament that has grown increasingly assertive – some say grasping – since the Lisbon treaty came into force in December. Read more
It is hard to imagine David Cameron delivering a more flattering speech in Ankara. His paean to Turkey’s place in Europe even included a smattering of Turkish phrases, which will have greatly impressed my Turkish grandmother watching at home. (It was a decent try, if lacking a bit of practice.)
On the political front, he tackled all the increasing number of areas where Britain is at odds with Turkey as gently as possible. He even included the extraordinary line that Turkey was the European country with “the greatest chance of persuading Iran to change course on nuclear policy”. Given they voted against toughening up UN sanctions on Iran earlier this month – which is Britain’s attempt to at persuasion – that is quite a claim.
Even so, the lovebombing will only go so far in Ankara. Read more
Nick Clegg has an uncanny knack of finding agonising dilemmas to solve.
Before Sunday’s World Cup final, he will have to chose between upsetting his mother or his wife.
His formidable wife Miriam González Durántez and the Clegg boys will be backing Spain all the way.
But Clegg of course speaks Dutch, the native tongue of his mother Hermance van den Wall Bake. Read more
From Gideon Rachman’s blog
By Gideon Rachman
If the answer is Herman Van Rompuy and Cathy Ashton, what the hell was the question? Europe’s choices for its new “president” and “foreign minister” are like the result of some sort of computer-dating programme that has gone badly wrong. If you fed in all the criteria for the jobs into your computer and it spat out the names – “Van Rompuy” and “Ashton”, you would ring the systems department and tell them that there had been some sort of catastrophic breakdown.
Lady Ashton is not the best candidate in Europe for the job – she is not even close to the best candidate in Britain. If the EU leaders were determined to have a Brit there were plenty of other much better qualified people: Chris Patten, Mark Malloch Brown, Paddy Ashdown, Peter Mandelson, Geoff Hoon, Chris Huhne, Kenny Dalglish. It might be objected that none of these men are women. But that need not be an inusperable problem. Read more