Economy

There is, really, little that is new in David Cameron's speech on immigration today. Besides one or two grace notes, almost all of its policy suggestions appeared in the Coalition Agreement: you know, all the stuff about a cap on immigration and a Border Police Force. Its rhetoric is strikingly similar to Cameron's last big speech on immigration in October 2007. So if he's not saying anything particularly groundbreaking, what is he saying? With the local elections only three weeks away — and on the back of the Lib Dems' newfound assertiveness — it's hard not to see this as an outreach exercise. This is one for core Tory voters, or perhaps those considering voting Ukip or worse. Which isn't to say that Cameron's speech is a Bad Thing.

There's an interesting post by Éoin Clarke on debt interest doing the rounds. It originally appeared on his blog, but was soon commandeered by LabourList — and little wonder why. Dr Clarke's point is a perceptive and striking one. Debt interest, he says, is lower now than it was under John Major. The implication is that when George Osborne rattles on about the money blown on just "servicing our debt," we should take it with an almighty heap of salt. It's not, perhaps, as bad as all that. Or, rather, that's one way of looking at it. There are other ways, which I would list thus:   1) Going beyond 2011.

Andrew Tyrie promised that the Treasury Select Committee would be an assertive, insistent body under his stewardship — and he hasn't disappointed so far. The committee's recent evidence sessions have been fiery affairs, particularly by the usual standards of these things. And today they have released the result: an extensive and prescriptive report into last month's Budget. Several of the report's observations are worth noting down — not least that advance briefing of the Budget is "corrosive of good government," and that "almost all the evidence received [about the government's Enterprise Zones] is unsure about the extent to which they will contribute to UK growth.

As Portugal bites the dust – following Ireland and Greece in asking for an EU bail-out – the most important question is still not being asked by EU policy-makers, or by the British government for that matter: will a bail-out actually solve any of Portugal’s problems? The simple answer is, it won’t. Asking the European Central Bank to take on more junk bonds, or piling more taxpayer-backed loans on Portugal’s already heavily indebted economy is not a long term solution. Ireland and Greece have already sought to renegotiate their bail-out terms as they are struggling to grow fast enough to repay their EU/IMF loans (ECB rate increases like the one we saw yesterday are unlikely to help).

George Monbiot is undergoing an astounding and very public transformation. Last week he overcame the habit of a lifetime and fully endorsed nuclear power as a safe energy source. He went further this week, attacking the anti-nuclear movement for perpetuating lies and ignoring the consensus around scientific facts. He levels special criticism at the allegedly lax scholarship of Dr Helen Caldicott, a decorated primate of the anti-nuclear communion.  He also debunks the myths surrounding the disaster at Chernobyl and laments that campaigners have abused that tragedy by exaggerating its consequences. Monbiot’s tone is neither arch nor righteous. Rather, he’s disappointed and the piece has a dignified poignancy.

Robert Peston called it: the Irish banks are mired. The latest round of stress tests has been conducted and the headline figure is that the Irish banks face a shortfall of 24 billion euros. A major recapitalisation will follow and it’s likely that more institutions will be taken under state control. Ireland is also likely to ask for more cash from the EU. These tests were based on conservative criteria, where the Irish economy contracted by 1.6 percent this year, unemployment peaked at 15.8 percent and there was a cumulative collapse in property prices of 62 percent. It’s grim in Ireland, but not that grim: most forecasters are predicting GNP growth of around 1 percent in 2011.