Europe

There was a telling moment in Michael Gove’s testimony to Leveson yesterday, when he applauded Rupert Murdoch for The Sun’s campaign against the Euro: ‘Gove: Other politicians recognised that the campaign which the Sun and others ran to keep us out of the single currency was right, and I think if we’re reflecting on other newspaper campaigns, I think we can undoubtedly say that was a campaign in the public interest. Jay:  Well, some people might still disagree with that proposition, Mr Gove, but I’m not going to take you on it. Gove: I’m sure — well, a dwindling number may.’ To me, the exchange was a reminder of how

So Nick Clegg wants to present himself as anti-Establishment, does he? That’s hardly surprising. After all, the Deputy Prime Minister has ploughed this furrow before now, attacking the ‘vested interests’ that are the banks and the political class. And it’s generally a large part of the Lib Dems’ ‘differentiation strategy’ to come across as insurgents in suits. But Clegg’s comments today are still striking for how far they weaponise this theme and then turn it against the Tories. It’s not just the context of it: with Tory ministers — including Jeremy Hunt — appearing before Leveson this week, Clegg chooses to attack those who ‘bow and scrape in front of

There are calls for Britain to pull out of the Eurovision Song Contest, after Engelbert Humperdinck finished second-last on Saturday, with Norway bottom. The Mayor of Leicester has today denounced Eurovision, saying: ‘The politics of Europe — which countries are friendly with which others — has a lot more to do with it than the quality of the songs.’ I agree: politics are involved and it is outrageous. Had George Osborne not given Ireland that £3.2 billion loan we would not have had its four points and Britain would be where it deserved: at the very bottom. We were dismal, and in the eyes of half a billion people. But

Nick Clegg did not show his Berlin speech on the Euro crisis to Number 10 or the Foreign Office before releasing it to the media. This is quite remarkable. Up to now, there has been a recognition that while the Liberal Democrats may try and differentiate themselves from the Prime Minister on various things, the government must speak with one voice on the deficit reduction strategy and foreign policy. No credible country can afford to send mixed messages to either the bond markets or foreign governments. Clegg’s freelancing on this issue is a reminder of how Europe remains the biggest ideological fault-line in the coalition. When David Cameron formed the

Theresa May’s suggestion that Britain could suspend the free movement of people in the event of a Eurozone break up is a reminder of just how transformative an event the falling apart of the single currency would be. The Home Secretary is a cautious politician who picks her word carefully, so when she says that the government ‘will be doing contingency planning’ about the immigration implications of a Eurozone break-up you know it is serious. One of the things that makes this such an intriguing development is that it suggests a shift in government thinking on the severity of the crisis that could be coming. A few months ago, a

Fred Michel’s testimony this morning at the Leveson Inquiry was embarrassing but not devastating. The texts between him and Jeremy Hunt are cringe-worthy but my read is that the Culture Secretary is not in a weaker position than he was this morning. More important for Hunt’s survival prospect is the appearance of his former spad Adam Smith this afternoon. The question is, did Hunt not know of the extent of contact between Smith and Michel? Everything going on at Leveson, though, is a sideshow compared to the economic news and the storm brewing on the continent. On that note, it does seem odd that Nick Clegg is suggesting that the

Have you noticed the weird hold that François Hollande has over our politics? If you haven’t, then let me tell you: his name has been almost inescapable in Westminster over the past couple of weeks. Even in PMQs this week, David Cameron and Ed Miliband couldn’t resist of spot of Hollandery. Behind-the-scenes, too, there is much consideration being given to how the new French President should be treated. Political strategists recognise, as I’ve suggested before, that his election could be a significant moment in the life of the Eurozone and the European Union. Potentially, it’s the moment when the supranational consensuses of the past couple of years broke down, leading

David Cameron’s speech today is a sign of his frustration with the eurozone. Numbers 10 and 11 are increasingly irritated by how eurozone leaders are refusing to accept the logic of their project. What Downing Street is keen to avoid is another wasted year as Angela Merkel gears up for her reelection campaign. So, intriguingly, we see Britain throwing her weight behind Hollande’s support for project bonds. Cameron also uses the speech to again back eurobonds, which Merkel is firmly opposed to as she knows that this would mean Germany effectively standing behind everyone else’s debt. I can’t see a resolution to this crisis coming anytime soon, though. The economics

Today’s PMQs will be remembered for one thing, Cameron saying that the eurozone had to ‘make up or it is looking at a potential break-up’. This is a distinct hardening of the government’s line on the single currency. Cameron’s comment was particularly striking coming just days after George Osborne said that ‘open speculation’ about whether or not Greece would leave the euro was ‘doing real damage across the whole European economy’. However those close to Cameron are not resiling from the remark. Instead, I understand that we can expect more from the Prime Minister on this subject when he makes a speech on the economy tomorrow. The break-up of the

A second Greek election is looking more and more likely, with party leaders unable to form a coalition. I reported on Tuesday that Antonis Samaras — leader of the largest party, New Democracy — had admitted that he couldn’t put together a government and had passed on the mandate to Alexis Tsipras, leader of Syriza. Well, Tsipras also failed to build a coalition, as he couldn’t convince ND and centre-left Pasok to turn against their austerity plan, and so the baton has been passed to Pasok leader Evangelos Venizelos. His hope was to convince Democratic Left — which holds 19 parliamentary seats — to join his and Samaras’s parties in