Eu

Why reason doesn’t apply to the Eurozone

The Eurozone is a kind of lunacy if you look at it as an economic project. But this isn’t about economics, or rationality — it’s about emotion, as the leader in today’s Telegraph says. The Brits and Americans often fail to understand this fully because we judge a currency union in terms of its economic merits. But many European nations see it as part of another, wider, agenda. For the Spanish and Portuguese it’s about not going back to dictatorship. For Greece it’s about being Western rather than Eastern (and not being run by the military). As John O’Sullivan wrote for The Spectator recently, Eastern European states still — even

Merkel heads to the G8

I doubt that Angela Merkel is looking forward to the G8 summit very much. It will mostly consist of the other world leaders telling her to give ground on austerity. But I suspect that Merkel won’t budge much, if at all. She clearly believes that the Greeks can be whipped into line by telling them that the election is really a referendum on euro membership. Hence both her suggestion of a simultaneous referendum on election-day and her backing for the European Central Bank cutting off support to Greek banks which shows that while there’s no formal mechanism for ejecting a country from the single currency there are ways of doing

The View from 22: Greece is burning

The upcoming Greek elections will push the nation into a confrontation with the European authorities, reports Faisal Islam, the economics editor of Channel 4 News, in his cover feature for the latest issue of The Spectator. And in this week’s episode of The View from 22 podcast he provides an insight into the changing attitudes he witnessed during his most recent visit to Athens last week: ‘Six months back, there was certainly a high stakes game of poker. But to me, it was pretty clear 6 months ago that the Greek people would do what was necessary to stay in the Euro. When you asked people on the streets, politicians,

Basel III and the EU’s strange desire not to compete

Greece is the centre of European attention, but as George Osborne met with other EU finance ministers today there was another issue bubbling in the background — Basel III. This had been brewing for a while and is yet one of those matters that threatened to isolate Britain from the rest of the EU (though some would argue this is a good place to be). The Chancellor this morning appears to have agreed to the Basel III accord, which stipulates the amount and quality of capital that banks are required to keep. But this was after much haggling — and an Osborne outburst where he said signing on to the

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

The View from 22: Will the riots return?

We haven’t done enough to prevent the riots of last summer happening again, says Simon Marcus in this week’s cover feature. And in the latest episode of our The View From 22 podcast he expands on this, discussing his personal experiences with the Boxing Academy in Tottenham and Hackney: ‘What enabled us to engage in strong debate during the whole process was what I saw on the front line at the Boxing Academy for many years. But what I was being asked, in many ways, to accept was wrong. When you’re being told that your eyes and ears have deceived you for five years, that’s something I can’t accept.’ James

James Forsyth

Why the Tories are shaping up for an EU referendum

An EU referendum pledge in the next Tory manifesto is ‘basically, a certainty’ according to one of those most closely involved in the party’s electoral strategy for 2015. The current plan is for the manifesto to declare that a Conservative government would renegotiate Britain’s membership of the European Union and then put the new terms to the people in a referendum within 18 months of the general election. I understand that the Tory line would be that they would urge staying in the EU if Britain’s concerns could be met through this process. But if the rest of the European Union refused to play ball, they would be prepared to

Hollande, Cameron and the 21st arrondissement

While David Cameron has good cause to be glad of Sarkozy’s defeat, he has even better cause to be nervous about this trend of lefty nerds being elected. Much of the Cameroon’s re-election hopes are pinned on the idea that their boss will trounce the geeky Ed Miliband. Nowadays, the argument goes, these ex-special advisers who have no charisma and alarming leftist policies just don’t win modern elections. But, as Ben Brogan argued in the Telegraph last week, the French may well be about to prove that even dullards can get elected — if the incumbent fails to deliver the change he promised. At least Hollande says he’ll balance the

How to get around the EU (and weed smokers)

The Dutch government has just banned foreigners from the country’s ‘coffee-shops’ — aka, cannabis cafés. Given how often we’re told that you can’t ban EU members from doing anything, how did they manage it? Basically, it all comes down to residency. If you live there, then you can apply for what’s being called a ‘weed pass’. If you don’t live there, then no dice. But is it legal for the Dutch government to ban entry to EU citizens in this way? A group of 19 coffee-shop owners decided to go to court over the matter, worried about this potential loss of custom. But a Dutch judge threw out their case,

Comedian-in-Chief

Every year, the White House Correspondents’ Dinner boasts an eclectic guest list, and last night’s was no exception. Stars of the political world — including Colin Powell and Chris Christie — were joined by Hollywood stars including George Clooney, Steven Spielberg, Kevin Spacey and Lindsay Lohan. Late night TV host Jimmy Kimmel provided after dinner entertainment, but — as last year — the best jokes came from Barack Obama. He poked fun at himself: ‘Some have said I blame too many problems on my predecessor. But let’s not forget, that’s a practice that was initiated by George W Bush.’ The Republican primaries: ‘[Mitt Romney] took a few hours off the

The Eurocrisis persists

Holland and Hollande; they’re the non-identical twins that are causing palpitations across Europe today. Holland, because the country’s Prime Minister yesterday resigned after failing to agree a package of cuts for his country’s budget. Hollande, because he’s the socialist candidate set to win the presidential election in France, probably eroding that country’s commitment to fiscal consolidation in the process. The markets quivered in fear at this morning’s headlines — and what they mean for the eurozone — even if they have, in some parts, slightly recovered since. It’s all another reminder that the Eurocrisis just isn’t going away — neither for countries such as France and the Netherlands, nor for

Encouraging signs from talks with Iran

The weekend’s six power talks with the Iranians about their nuclear programme were more fruitful than many, including I, expected. It seems that the EU sanctions on Iranian oil and gas, which are due to come into force in July, have concentrated minds in Tehran. However, we won’t know whether the Iranians are just playing for time again until the next set of talks in Baghdad on the May 23. These six power talks are an imperfect vehicle in that the Russians and the Chinese take a far softer line than the French, British, Germans and Americans. But as James Blitz blogs over at the FT, one of the most

Ed Davey’s ‘pro-European’ claim has Tory ministers fuming

There’s barely disguised fury among Conservative ministers about Ed Davey’s claim that the coalition may well be more pro-European than the Labour government was. One complained to me earlier that it was typical Lib Dem mischief making and that ‘if they are not going to behave like normal ministers then we shouldn’t either’. Indeed, this minister went on to suggest that William Hague should publicly slap down Davey for his comments. I doubt this is going to happen. Davey is the leading Lib Dem on the Cabinet’s European Affairs Committee and I suspect there’s little appetite in the Foreign Office for a coalition row over Europe. But Davey’s comments do

How do you solve a problem like Baroness Ashton?

Baroness Ashton has managed a return to diplomatic form by comparing the murder yesterday of three children and a Rabbi at a Jewish school in Toulouse with ‘what is happening in Gaza.’ Plenty of people have already deplored her comments. But they present an opportunity to address one of the underlying and too infrequently asked questions of our time: if you do not think Ashton is a very good politician, what can you do about it? Ordinarily if a politician says or does something you do not like we, the electorate, are at some point given the opportunity to vote them out. There used to be considerable pride in this

Cameron’s Human Rights quandry

The combination of the European Court of Human Rights and the European Convention on Human Rights is, I predict, going to give David Cameron an increasing number of headaches in the coming months. As Fraser wrote yesterday, Michael Pinto-Duschinsky’s principled resignation from the coalition’s Commission on the British Bill of Rights has revealed that this body was never really serious about dealing with the problem. The exposure of this Commission as merely a holding device will add to the pressure on the Prime Minister to clarify what he actually intends to do about the problem. The fact that the Cameroon’s favoured think tank, Policy Exchange, have today hired Pinto-Duschinsky shows

The role of Baroness Ashton

Recent reports have suggested that David Cameron is interested in swapping Cathy Ashton’s job as the EU’s high representative for foreign affairs and security policy for another commission post. But sources close to Number 10 tell me this ain’t happening. Supposedly, Cameron was interested in swapping Ashton’s current role for the post of commissioner for the internal market, currently held by the Frenchman Michel Barnier. But, in reality, this was never on the cards for a whole host of reasons. Foremost of these was that Nicolas Sarkozy was never going to give up the French claim to this job just weeks away from a French presidential election. Secondly, because Ashton

Europe is being strangled by the Franco-German alliance

David Cameron’s complaints at last night’s EU meeting about the lack of a growth agenda have, in part, been addressed by the new draft conclusions. Cameron — who was supported by the Dutch, Italians and Spanish — seems to have secured promises on the completion of the single market, deregulation and the services directive in the summit’s draft conclusions. This isn’t going to turn around the European economy. But it is a step in the right direction and a small, but possibly significant, victory for the PM.   I understand from sources in Brussels that there has been frustration with the extent to which the conclusions presented last night simply

Imagine if Cameron hadn’t vetoed…

When David Cameron headed to Brussels last December, it was far from certain that he would veto the proposed treaty. It was only when Nicolas Sarkozy proved totally uninterested in accommodating Britain’s demands that the Prime Minister decided that he could not sign up to it. In a way, Sarkozy did Cameron a favour. Imagine if Britain had got the safeguards the Prime Minister wanted and had signed up to the treaty. How would he then have reacted this week, when the Irish announced that they were going to hold a referendum on it? The pressure from the Tory benches to let the British people vote on it would have

Europe’s latest tonic could worsen Osborne’s political problems

Seems that the latest plan to fix the eurozone involves cooking up a pot of alphabet soup. Over in Mexico, G20 finance ministers are currently discussing whether to blend two existing eurozone bailout funds, the EFSF and the ESM, with some extra money from the IMF. They hope that this EFSF-ESM-IMF mix will add up to about £1.25 trillion of ready cash for failing eurozone economies. ‘Look at the size of our fund,’ they will then say, as they try to settle nerves across Europe and beyond. Details are lacking, but some things are already worth noting about this potential mega fund. First is that it seems to be coming

The hurdles facing Greece

Greece’s problems are far from over. As Pete said this morning, the €130 billion bailout hardly means the country is out of the woods, or that it won’t still be ejected from the eurozone. Standard Chartered have released a handy guide to the many obstacles Greece faces. Here are some highlights: 1. The first hurdle is the private-sector debt swap due to take place March 8-11. This is when private creditors are supposed to swoop in and save the day. But, to be enticed to do so, Greek bonds will likely have to come with collective action clauses (CACs). Here’s where it gets technical — if these CACs are invoked,