Economy

It did not take David Cameron long to realise that there were three parties in his coalition. A few months into government, the Prime Minister worked out that only half of the policies he was enacting came from the shared agenda drawn up when the Tories and LibDems got together. The other half comes from the EU. Or, more specifically, the Civil Service machine, which is busy implementing various EU Directives, often passed many years ago. Cameron is trying to put the brakes on this process. As I say in my News of the World column, this has led to much frustration in Whitehall. And dismay: the Civil Service remembers how easily Labour waved through EU regulation and the piles of fat that Whitehall likes to pile on top of the EU regulation.

Ken Clarke’s political career has had the resilience of a cockroach, but even he now seems to be cracking. Tim Montgomerie has shot a vicious broadside at Clarke's dated politics in today’s Mail. And Clarke, for his part, has given an interview to the Telegraph, where he gives a convincing impression of a man completely out of touch. Clarke concedes (just) that the ECHR needs reform, but he defends its supreme jurisdiction: ‘Some people are very angry [about prisoner voting], but we should be able to resolve that. The jurisdiction of the [European] court remains the fraught issue. I don’t see how we can say that we don’t obey courts if we don’t want to.

Last night the Southbank Centre hosted its second “Think Tank Clash”.  As last year, it was a sell out event, and saw representatives of six of the country’s top think tanks take each other on in three debates.  These debates were ably and wittily compared by writer John O’Farrell and the winners determined by audience vote.  The winners of each “clash” then competed in a three-way discussion to determine the overall top tank. Round 1: “Revenge” – Res Publica v Demos Res Publica founder and director Phillip Blond commenced by making the case for breaking up the banks. He argued that the current system does not distribute capital, but rather concentrates it, thereby “strangling real business”.

Balls is a bit like a vampire – he has bite, but he works best in the darkness. In the House of Commons, with those lights shining on him, his powers drain. George Osborne had the better of him in their brief exchanges at Treasury Questions. Balls led on the snow joke. But Osborne had pre-empted that earlier, when he first stood up. Balls teased him about going to Klosters in the winter, but these things only work in newspapers where you can run a picture of Osborne in ski gear. It leaves the House cold.   The key Osborne line was that Balls is “the man with a past” – and how. It was said with just the right touch of menace. And he had a fairly decent gag: that Eds Miliband and Balls both “know what's it's like to be people's second choice.

Tomorrow is the first Osborne Balls Treasury Questions clash. It should be a fiery encounter. There’s little love lost between the two men, they are both aggressive despatch box performers  and the two of them know that their clash over the economy is likely to be the major factor in determining the next election result. Balls has a fair amount of material to work with: the disappointing growth—or, more accurately, non-growth—figures for the final quarter of last year, the limited success of the national insurance holiday for new small companies and the failure to publish a growth plan.

Cleggologists will mark down the Deputy PM's speech today as a typical effort. There was basically nothing in it that was new – but Clegg still put it across with more punch, and more persuasively, than most of his colleagues could manage. All of the slogans and pre-announced policies added up to something that sounded, fleetingly, like a plan for growth. Although we'll still have to wait for Vince Cable's review to see the outlines of that plan shaded in. Clegg's main point was straightforward enough: that the government has to, and will, go beyond deficit reduction to stoke the embers of the British economy. He then ranged across everything from the national infrastructure to – a theme of this week – endowing the British workforce with skills.