Europe

Sunday

David Blackburn

Osborne’s crusade

‘Tax evasion is morally repugnant. It’s stealing from law-abiding people who face higher taxes to make good the lost revenue. Those who evade taxes, like benefit cheats, are leeches on society. And my message to those who try to hide their incomes from the Revenue in offshore bank accounts and false declarations is simple: we will find you and your money.’ That was written by George Osborne in today’s Observer. He promises that the deal with Switzerland is “just the start” of his campaign to close tax havens. The rest of the article then relates the coalition’s achievements at reducing tax avoidance by increasing charges on capital gains and non-domiciled

Friday

David Blackburn

Clegg paints the world yellow

Nick Clegg laughed-off the dousing of blue paint he received in Glasgow yesterday, like one of Noel Edmonds’ unwitting victims. Today, Clegg has turned into the grinning douser: drenching his coalition partners in yellow paint by saying that the European Convention on Human Rights will not be watered down. Writing in the Guardian, Clegg says that the Conservatives are right to seek operational reform of the European Court of Human Rights, but the common ground ends there. He says that “the Human Rights Act and the European convention on human rights have been instrumental” in preventing injustices from council snooping to the misuse of DNA records and that the incorporation

Thursday

Alex Massie

The Eurocrisis Squeezes the SNP

What does Independence in Europe mean in 2011? That’s one of the questions Alex Salmond and the SNP have preferred not to ask, far less find an answer to. Way back in the dog days of the Thatcher-era Jim Sillars coined the slogan as a way to demonstrate that Scotland, small and on the periphery of the continent, would not be cut adrift and helpless were her people persuaded to back the Scottish National Party’s vision for independence. It was a canny move: reassuring and progressive and other nice and cosy things. That was then and this is now. The ongoing crisis in Euroland necessarily means things have changed. The

David Blackburn

Treasury agrees Swiss bank tax

First came the Germans and then came the Brits. The UK Treasury has secured an agreement with authorities in Zurich to tax the assets of UK citizens held in Swiss banks to reduce on tax avoidance and stamp out evasion. The deal will follow the lines of that which Switzerland made with Germany last month. The FT has details: ‘Taxes on future income will be withheld at a rate of 48 per cent, corresponding to the top 50 per cent rate that now applies to Britain’s highest earners. A one-off levy of between 19 and 34 per cent will be applied to all Swiss accounts held by UK residents, with the

Tuesday

David Blackburn

Further tension in the Eurozone

The Eurozone’s political crisis is deepening. Further to the news that individual member states were seeking their own bilateral deals with Greece to insure their taxpayers’ money from default, the FT reports that disagreements are emerging over how these deals should be conducted. Holland objects that Finland’s accord with Athens relies on Greece using EU bailout funds as collateral. “The Netherlands is no supporter of this proposal,” Jan Kees de Jager, the Dutch finance minister, said. “It is not compatible with the principle of equal treatment of all euro countries.” Moody’s, the credit rating agency, has said that this affair “confirms that Europe is conflicted over the very decision to provide financial support

Monday

David Blackburn

Stumbling towards fiscal union

Angela Merkel must tire of repeating herself. Eurobonds are “exactly the wrong answer” to the European debt crisis, she said yesterday for the umpteenth time. She added that they would “lead us to a debt union not a stability union”, a free-for-all funded by German taxpayers. She concluded that “greater commitment” from the 27 member states of the European Union was required to stabilise the situation. Her comments would have, perhaps, placated her mutinous coalition in Germany, which is virulently opposed to Eurobonds and expensive integration. George Osborne, on the other hand, might have been slightly perturbed that Merkel prefers “greater commitment” from countries like Britain over the “remorseless logic”

David Blackburn

Through the gates of Tripoli

After a summer of discontent, David Cameron must be counting his blessings this morning. He has broken his holiday because Colonel Gaddafi is about to fall. Rebel forces swept into Tripoli’s Green Square overnight and members of the regime were captured as Gaddafi’s militia vanished into the night. Gaddafi’s son Saif al-Islam, who was being groomed as his successor, fell into rebel hands; the International Criminal Court is in touch with his captors. Another Gaddafi family is also understood to have been detained. Of the Colonel himself, though, there is no sign. Rebel forces are moving to encircle Tripoli, cutting off his line of retreat. Rebel spokesmen told the Today programme

Sunday

Fraser Nelson

070, licensed to rebel

It’s no surprise that 70 Tory MPs have formed a Eurosceptic group, as the Sunday Telegraph reveals today. They are the modernisers now. The new Tory intake are strikingly robust on all this: by and large, their idea of political balance is a picture of Thatcher on the wall and Jacques Delors on the dartboard. The impending boundary review and thinner-than-they-expected majorities mean they worry more about their constituency (and constituency associations) than the whips. But I’m told today that this rebellion isn’t quite as fierce as it may seem. One Tory backbencher tells me the Tory whips have actually encouraged this group to call for renegotiation of the UK

David Blackburn

Human rights wrangle

A set-to has broken out this morning over the Human Rights Act. David Cameron has declared that he is going to fight the Human Rights Act and its interpretation. Cameron writes: ‘The British people have fought and died for people’s rights to freedom and dignity but they did not fight so that people did not have to take full responsibility for their actions. So though it won’t be easy, though it will mean taking on parts of the establishment, I am determined we get a grip on the misrepresentation of human rights. We are looking at creating our own British Bill of Rights. We are going to fight in Europe

Saturday

James Forsyth

Arresting the West’s crisis of confidence

What’s the most important geo-political event of this century? Most people would say 9/11. The Foreign Secretary believes that it is the Arab Spring. But in The Times today (£), Emma Duncan makes a persuasive case for it being the collapse of Lehman Brothers. Duncan argues that Lehman Brothers’ fall has three claims to be an epoch-making event. The first is its contribution to the financial crisis and subsequent economic stagnation. The second is the way that it has catalysed China’s economic rise vis-à-vis the US, with China now predicted to become the world’s largest economy within this decade. The third, the fact that that the economic troubles of the

Thursday

David Blackburn

The markets rout

The recent rally on the markets is now the most distant memory. Stocks continued to fall today amid concerns about the European sovereign debt crisis, negligible growth figures in the developed world and cooling Asian economies. Robert Peston has an excellent account of the causes and effects of the latest rout. Banking stocks were brutalised, with Barclays and RBS both shedding more than 10 per cent of their value, with Lloyds and HSBC not far behind. Continental banking stocks were similarly mauled, with Soc Gen losing 12.34 per cent and Commerzbank being shorn of 10.42 per cent of its value. But the unease spread across exchanges as investors put their

James Forsyth James Forsyth

Dark days

There’s a pessimistic mood in Westminster at the moment, a sense of gloom about the economic prospects of the West. The government expects there to be another round of the European sovereign debt crisis this autumn and believes that the problems of the eurozone will take at least a decade to resolve. No one I’ve spoken to really believes that the plan Merkel and Sarkozy announced on Tuesday will be enough to keep the markets at bay for long. Looking across the Atlantic doesn’t raise spirits either given the state of both the American economy and political system. But the global economic situation will get an awful lot worse if

Wednesday

David Blackburn

This isn’t just any solution; this is an M&S solution

Banks and financial institutions endured a painful day’s trading, following Angela Merkel and Nicolas Sarkozy’s announcement yesterday that the Eurozone should adopt a ‘Tobin tax’, a charge on financial transactions. Once again, M&S chose piecemeal changes over the grand structural scheme desired by markets. The Tobin tax was just one proposal of three. The other two were: to create “genuine economic governance of the Eurozone” under, for the moment, EU President Herbert van Rompuy. The second: to impose a ‘Golden Rule’ on the budgets of Eurozone members. The ‘Golden Rule’ will bind national parliaments to agree to limits on national debt levels and impose statutory requirements on mastering budget deficits. The

Tuesday

David Blackburn

Government expected to renew growth strategy

The word flying around Westminster this evening is that the government is going to announce a fresh package to stimulate growth tomorrow. In line with recent reports, the expectation is that new enterprise zones will be unveiled. Enterprise zones are, of course, the linchpin of the chancellor’s current strategy, offering generous tax breaks for start-up industries, relaxed planning regulations and investment in state-of-the-art broadband, so this would not be a novel move. But an announcement would be timely nonetheless. Lamentable inflation figures released today are set to be joined by poor employment figures tomorrow, suggesting that economic and business confidence may be becoming even more tentative, especially in deprived areas. The grim continental situation is also a matter of grave

Monday

James Forsyth

Battle of the century

The American historian Walter Russell-Mead has a cynical — but very possibly accurate — take on what the French are trying to persuade the Germans to accept with their plan for Eurobonds: ‘France’s clear short term goal is to commit Germany to underwrite debts from weak EU states.  That not only staves off a crisis that threatens to engulf France; by putting Germany on as a co-signer for Greek, Italian and Spanish loans, France will ensure that Germany’s credit rating will not be better than France’s. The French will accept almost any German rules to limit the ability of countries like Greece to run up new debts.  It is in

David Blackburn

Back to the drawing board as Eurobonds look dead in the water

Watch her lips: no Eurobonds. Angela Merkel’s Finance, Minister Wolfgang Schauble has told Der Spiegel: “I rule out Eurobonds for as long as member states conduct their own financial policies and we need different rates of interest in order that there are possible incentives and sanctions to enforce fiscal solidity.” Merkel’s government is making its depositions ahead of tomorrow’s Eurozone summit, rebutting the moves made by other member states over the weekend to introduce Eurobonds, a step towards political integration. Those proposals were backed by Nicolas Sarkozy, with whom Merkel is meeting in private this afternoon. Interestingly, Le Monde reveals that Eurobonds are not even on the agenda of these

Friday

David Blackburn

Desperate times

You have to hand it to the Eurocracy: it is nothing if not determined. The recent horrors on the stock market have concentrated minds in Brussels and across continental capitals. The headline news is that France, Italy, Spain and Belgium have placed a temporary ban on short-selling, but that’s just one counter-measure that has been introduced in the last 24 hours. And you’ll notice that these schemes are piecemeal; there is no grand plan as yet to calm the markets. First, Spain has bent a suppliant knee before the European Commission to secure restrictions on Romanians seeking work. This is momentous: the first time that border restrictions have been re-imposed

Wednesday

Alex Massie

Regression to the Mean

Via Art Goldhammer, a new paper examining trends in public disorder across europe from 1919 to our own blessed unhappy time. Here’s the chart: The authors explain their methodology: “We look at five different types of instability – anti-government demonstrations, riots, assassinations, general strikes, and attempted revolutions – in Europe over the period 1919-2009. The data comes from a large-scale international data collection (Banks 1994), and is based on an analysis of reporting in the New York Times. The individual indicators are then aggregated by summing them up for each country and year. This gives the variable called CHAOS. Figure 1 shows how it evolved over time since 1919, presenting

Monday

Peter Hoskin

Osborne’s debt dilemma

If there’s one sentiment that defines George Osborne’s article for the Telegraph today, it’s that there is no need for us Brits to panic. The economic convulsions of the past few days, contends the Chancellor, serve to prove that the coalition was right to approach deficit reduction as it has. “The alternative of more spending and yet more borrowing is now frankly ludicrous,” he says, “and places those who advocate it on the outer fringes of the international debate.” He has a point. As I blogged on Saturday, there are reasons to believe that we’d be hurtling towards a credit downgrade and higher borrowing costs were it not for the

Friday

Peter Hoskin

The markets wax and wane

CoffeeHouser ‘Ben G’ had it right in his comment underneath my earlier post: 24 hour news really does struggle in the face of economic crisis. This morning, all the talk was of a debt-induced apocalypse. Earlier this afternoon, the headlines were about the markets “rallying” after better-than-expected data on the US labour market. And now the BBC website’s main headline is that “turmoil in the stock market persists,” despite those very same labour market figures. Oh yes, it’s difficult to present a consistent front as the money merchants sway and buckle in the breeze. That said, the economic fundamentals remain discouraging. It shouldn’t be forgotten that yesterday’s losses were extraordinary;