World

Ross Clark

The price of gold

On 27 July millions will drown in syrup as Jacques Rogge, President of the International Olympic Committee, delivers his usual platitudes about international togetherness and sport without boundaries. He might, for example, do something close to reciting the mission statement of the IOC’s world conference on Sport for All, held in Beijing last September: ‘to build a better world by encouraging the practice of sport for all, particularly in the developing world’. Then, once the last firework has been discharged and the stands are cleared away, we can get on with the business of the Olympics: rich countries hauling in the medals which they bought with mountains of public and

Martin Vander Weyer

Any other business: It rained on President Hollande’s first parade, but not on mine

While François Hollande was being shoulder-barged by Angela Merkel as they inspected a rained-on guard of honour during the French president’s tense first visit to Berlin, I was enjoying a parallel encounter with military formality in the spring sunshine of Rome. In town to lecture at the Nato Defence College, I shared a staff car with a Luftwaffe general. A former fighter pilot who did his training with the RAF, he’s now part of Nato’s ‘smart defence’ command structure, which seeks efficiencies by combining national resources where it makes sense without compromising the kit that individual nations might one day need for themselves — such as, in Britain’s case, for

Travel special – Scottish borders: On the edge

It’s odd, but most of the English faces we see in our wee corner of the Scottish Borders are merely ‘stopping’ for a night or two on their way north. What is the point, they wonder, in driving all this way only to settle a hair’s breadth past that gaudy ‘Welcome to Scotland’ sign? If they must visit Scotland, they think, they might as well do the thing properly. The Borders aren’t really Scotland, after all — just that last tedious leg of the A68 on the way into Edinburgh. They are, of course, gravely mistaken. You will find as strong a sense of Scotland here as in the grimmest

Alex Massie

Villains of the Financial Crisis? Neoconservatives, of course…

Fulminating against the government’s economic policies, the Observer complained recently that: For a generation, business and finance, cheered on by US neoconservatives and free market fundamentalists, have argued that the less capitalism is governed, regulated and shaped by the state, the better it works. Markets do everything best – managing business and systemic risk, innovating, investing, organising executive reward – without the intervention of the supposed dead hand of the state and without any acknowledgement of wider social obligations. Gosh, is there nothing that can’t be blamed on those dastardly neoconservatives? I suppose the term has now been detached from its original meaning and is instead a catch-all label for

Alex Massie

Will Obama Dump Biden for Hillary?

Mike Tomasky enters the Veepstakes with a variation on a well-worn theme: Will Barack Obama replace Joe Biden with Hillary Clinton? This is a Question To Which The Answer Is No. To be fair Tomasky, whose piece is supported by a single shoogly opinion poll showing Romney leading Obama amongst women voters, all but admits it’s a close-to-garbage notion: The one question is this: How is it justified publicly? This is one of those situations when you just obviously can’t tell the truth. The truth is: With Clinton, we win in a near-landslide, and with Biden, it’s iffy, and we want to win. What you say is something like: This

Bondholders are sheep — and they’re flocking out of the euro pen

Sweden’s Anders Borg (Fraser’s favourite finance minister) is wrong, says Citigroup. Bondholders and deposit holders are not like wolves, as Borg has made them out to be. They’re more like sheep — and currently they’re baa-a-a-cking out of the eurozone pretty quickly. We all know that money’s leaving the Continent — but how much and how rapidly? Citi’s credit strategist Matt King, basing his analysis on imbalances in TARGET2 (the euro area’s main payment settlement system) relative to eurozone countries’ current accounts, has come up with a few interesting observations. — Since mid-2011, Spain has suffered private-sector outflows of €100 billion, and Italy €160 billion (or a tenth of their

Europe is set to exacerbate the coalition’s internal tensions

As James suggested yesterday, the publication of the Beecroft proposals this week could be a significant moment. If the coalition can carve a constructive agenda from them, then we might have a set of growth policies worthy of the name. But if it degrades into yet another internal squabble, then that chance may be missed. So, what’s it to be? It must be said, the tea leaves aren’t terribly encouraging this morning. Yesterday, we were told that David Cameron and George Osborne are minded to unravel the red tape that surrounds businesses when it comes to hiring and firing. But, today, one of their fellow ministers has spoken out against

The week that was | 18 May 2012

Here is a selection of articles and discussions from this week on Spectator.co.uk… Fraser Nelson writes why choice matters more than tuck shops and says this is no time to tinker. James Forsyth says Boris is continuing to charm his party, reports on the battle for the 1922 committee and thinks Miliband’s shuffle might not neccessarily be to the left. Peter Hoskin says Greece is still the word and reveals the union’s lazy opposition to schools reform. Jonathan Jones says Romney is looking for an average white guy for vice president and reports the public don’t want the government to drop Lords reform or gay marriage. Sebastian Payne looks at the worsening situation in

Fraser Nelson

No time to tinker

Next week, the Institute of Directors and the Taxpayers’ Alliance will release what I humbly suggest will be the most powerful summary of the case for radical supply-side reform in a generation. The report of the 2020 Tax Commission runs to 417 pages, choc full of academic literature showing how big government chokes growth, and looking at what the optimal size of the state is. Broadly speaking, government spending is about half the size of economic output now and the optimal size is about a third. The recommendations are not being released until Monday, but it opens a very timely debate, which I preview in my Telegraph column. Here are

Romney seeks ‘incredibly boring white guy’

With just over three months to go to the Republican convention, what sort of vice presidential nominee is Mitt Romney looking for? Well, a Republican official ‘familiar with the campaign’s thinking’ tells Politico that what they want is an ‘incredibly boring white guy’. You see, the Romney campaign is determined not to repeat the mistakes of the 2008 McCain campaign — including his choice of Sarah Palin as his candidate for the vice presidency. So they’re looking for a much safer — and more conventional — pick who won’t do any damage to Romney’s chances. This approach would rule out Florida Senator Marco Rubio (not boring or white enough), who

Greece is still the word

Remember when Europe’s leaders were basically saying, ‘Don’t worry, it’s all sorted’? Remember when they were putting out communiqués that started ‘The euro continues to rest on solid fundamentals’? No doubt they’ll do so again, but those past shows of certainty still look kinda funny this morning. Despite some last-minute concessionary efforts by Europe’s beancounters, it still appears that Greece’s main parties will be unable to form a coalition, and are heading for another election. And we know what that could mean: victory for the left-wing Syriza coalition, a severe swing against austerity, Greece’s exit from the euro, etc. etc. Were Greece to leave the currency, two questions would present

Martin Vander Weyer

Any other business: France’s Mr Normal isn’t the big story: keep your eyes on Greece and Spain

An auction of French government ten-year bonds three days before the triumph of François Hollande met strong demand from investors and produced a borrowing cost of 2.96 per cent, a fraction cheaper than a similar issue in April. This fact told those who noticed it that France was not the story to watch last weekend. Markets had already assessed Hollande as a closet moderate who would rapidly be forced to back-pedal on his socialist rhetoric and embrace Angela Merkel. Flag-waving Bastille crowds made good television, but it was the Greek election and the rumblings from Spain — where Bankia, a conglomerate of savings banks, is heading for a multibillion bailout

The US has taken a stance against Argentina’s brinkmanship — it’s time we joined them

The 30th anniversary of the Falklands War – and the bellicose rhetoric (and videos) currently emerging from Buenos Aires — has once more shone a spotlight on the UK’s relationship with Argentina. Were it not for the Falklands, it’s unlikely that Argentina would occupy much discussion in this country. The truth, for those of us who have followed the country’s recent history, is that Argentina, most notably under the current Government, is truly remarkable. But for all the wrong reasons. In Britain, of course, our chief concern is the ongoing nationalist rhetoric that President Cristina Kirchner is whipping up around the sovereignty of the Falkland Islands. But if you were

Can Merkel and Hollande meet in the middle?

This afternoon, it’s even clearer that the French and Greek elections are a significant moment in the life of the Eurozone. It’s not just the nervous market reaction to yesterday’s results, but also the way how the supranational debate has now changed. More so than ever, there are now two clear oppositional fronts. On one side, broadly speaking, are those who say that austerity is a prerequisite for growth. On the other, those who say that austerity must be relaxed for growth to arrive. It’s a situation dripping with black humour. When David Cameron kept Britain out of Europe’s fiscal pact a few months ago, it was portrayed as a

James Forsyth

What Hollande’s victory means

Tonight’s election results mark the next challenge to the euro. In France, the Socialist candidate François Hollande has won. Having campaigned on changes to the fiscal compact, Hollande will have to deliver something on this front. But Angela Merkel, with her own elections next year, will not want to agree to anything that appears to be a watering down of the pact. I doubt, though, that there’ll be that much market reaction to Hollande’s victory. City sources say that it has been priced in for while and that there is an expectation that Hollande will merely accept some window-dressing about growth being added to the agreement. But what could set

Science or starvation | 6 May 2012

Here, for CoffeeHousers, is an extended version of the leader column in this week’s magazine. It takes on the green fundamentalism which stupidly aims to put a stop to genetically modified foods: At the end of the month, a group of shrieking protestors are planning to descend upon a field in Hertfordshire and, in their words, ‘decontaminate’ (i.e. destroy) a field of genetically modified wheat. The activists, from an organisation called Take the Flour Back, claim to be saving Britain from a deadly environmental menace. But in reality, these self-appointed guardians of Gaia are threatening not only to undo hundreds of man-years of publicly-funded research but also helping to destroy

Barometer | 3 May 2012

Place names If François Hollande is elected French president this week, he will join a very small group: world leaders whose surnames match the names of foreign countries (although Holland is strictly only a region of the Netherlands).       — The closest world leader currently to bear this distinction is Co-Prince Joan Enric Vives Sicilia, the head of state of Andorra, whose surname matches the name of a former kingdom. Nahas Angula, prime minister of Namibia, nearly bears the name of a neighbouring country. — France has, however, had a prime minister called France: Pierre Mendes France, leader of the Radical Socialists and PM between 1954 and 55. Going with

Alex Massie

Did Cameron Text Rebekah Brooks 12 Times A Day?

The Prime Minister’s supporters will hope that this detail in Peter Oborne’s column today is not true: A fresh embarrassment concerns Rebekah Brooks, who providentially retained the text messages she received from the Prime Minister, which I’m told could exceed a dozen a day. These may now be published, a horrible thought. Now “I’m told” and “could” allow for some doubt. But the quantity of texts zipping between Ms Brooks and Mr Cameron is not the only problem, so too is their frequency. I cannot think the Prime Minister’s reputation will be enhanced by the disclosure that he was in contact with Ms Brooks almost every day. Indeed, if what

Alex Massie

Washington’s Favourite Unimportant Parlour Game: The Veepstakes

The American presidential campaign is in one of its few fallow periods just now. Which means it is time for a favourite quadrennial pastime: the Veepstakes! Who will Mitt Romney choose to be his running-mate? Rob Portman of Ohio? Marco Rubio of Florida? Chris Christie of New Jersey? Someone else entirely? Who can tell but does it matter anyway? And that, as Mike Crowley points out, is the small secret lurking behind most of the press coverage of this mini-drama: most of the time the identity of the Vice-Presidential nominee isn’t worth even the famous bucket of warm spit. Very few people even consider, far less are swayd by, the

James Forsyth

Fears heighten as the Eurocrisis rumbles on

For all the coverage of hacking, pasty tax and the like, the continuing crisis in the eurozone remains the most significant political story. Until it is resolved, it is hard to see how the UK returns to robust economic growth. I suspect that the market reaction to a Hollande victory will be limited as it is already pretty much priced in. Those expecting a degringolade will be disappointed. However, if Hollande does actually try and implement some of his more extreme ideas, the markets could take fright. What is far more worrying than France is Spain. There’s a growing sense of inevitability that the Spanish banks will need a bailout