Conservative party

What are the Lib Dems up to? On Tuesday, Clegg, Cable, Alexander, Huhne and Laws met with 'Business for New Europe', a group of pro-European business leaders, in what the FT describes as as 'a very public display of engagement with business over Europe' and the front page of today's Mail calls 'plotting to rally business chiefs against Cameron over Europe'. It is, of course, not surprising to see senior Liberal Democrats talking to pro-EU business people and advocating more engagement with Europe. But it does highlight what will be a key goal of the Lib Dem leadership over the next few months: building bridges with Europe, particularly to reconnect with traditional, europhile Lib Dem supporters following the PM's veto last week.

The Times has a very interesting story (£) today on page 17. It claims that David Cameron had agreed to inform Nick Clegg if it appeared that Britain was going to be isolated at last week’s European Council. The significance of this is that it suggests that the Lib Dems believed they would be consulted before the government vetoed anything. This news emerges after senior Liberal Democrats have privately questioned why their leader did not insist that Cameron only use the veto once he had Clegg’s explicit agreement. The Times also reports that this negotiating protocol did not envisage a situation where Britain was left in a minority of only a couple of countries.

David Cameron was greeted with a full-on, desk banging reception at the 1922 Committee. The applause only stopped when the chief whip told the assembled backbenchers to sit down. The Prime Minister’s message was that the next year is going to be even tougher than the 1979-81 period. He argued that the government needed to be even bolder to show that it wasn’t just a technocratic government but one motivated by a desire to help families who do the right thing, but sadly no MP pressed him on how that fitted with the coalition decision to increase out of work benefits by more than 5 per cent. One other interesting thing was that Cameron stressed to his party that they had to reach 2015 with the coalition in good order.

Others have already been there, but it's still worth noting Douglas Alexander's article for the lastest issue of the New Statesman. Much of it, it's true, is a predictable attack on David Cameron's recent activity in Brussels. But slightly more surprising is the fact that, rather than criticising the coalition in toto, Alexander saves his ire for the Tories and reaches out to the Lib Dems. Here's the relevant passage: ‘The roots of what happened on the night of Thursday 8 December lie deep in Cameron's failure to modernise the Tory party. Just because he puts party interest before the national interest, there is no reason others should do the same.

It is starting to feel like the build-up to the AV referendum again, if not worse. No longer the casual bonhomie of the coalition's early days, but a great show of mutual distrust and loathing between the Lib Dems and Tories. There was Nick Clegg's interview on the Marr Show earlier, of course, which James has already blogged about. There are rumours that Vince Cable is set to quit. And there is also Paddy Ashdown's caustic article in the Observer, which he has followed by attacking, Major style, the Tory ‘bastards’ on Sky this morning. For their part, many of those ‘bastards’ are looking on at the Lib Dems' pain with glee, eager to make it worse. Some of this is probably choreographed.

David Cameron’s decision, in the wee hours of Friday morning, to make clear that he would veto the proposed treaty change will have many far-reaching effects. One is that other European leaders know that Cameron is prepared to follow through on a threat to veto. As Charles Moore says in The Telegraph today, the dynamic that has existed throughout this country’s participation in the European project — that “Britain huffs and puffs, but always agrees in the end” — has now changed. This morning, those close to the Tory leadership were pointing out that a Cameron threat to, for example, veto the budget next year will be taken far more seriously than it would have been previously.