Europe

Money digest: Britain braced for ‘Super Thursday’ interest rate cut

Britain’s financial status could be downgraded this week amid reports the Bank of England will cut interest rates on Thursday. The Guardian says that the Bank's Monetary Policy Committee will examine the latest growth forecasts and inflation report, and then make a decision on whether to cut interest. If they do, it will be the first time the rate has changed since it was set at 0.5 per cent in March 2009. Mark Carney, the governor, warned that a vote for Brexit could tip the UK into recession and the figures seem to back up this pessimism, according to the paper. In May, growth was forecast at 2.3 per cent, but economists now believe that it could be as little as less than one per cent. It is expected that the bank will cut interest rates to 0.25 per cent.

Terror is the new normal for Germany and France

Update: This piece was written yesterday and so is already out of date. This morning two armed men entered a church near Rouen during Mass.  They took the priest, two nuns and a number of congregants hostage. It appears that they slit the priest's throat before themselves being killed by French security forces.  Nobody can think of any possible motive, though people claiming that attacking Christians at prayer is not a traditional Islamist practice have clearly not paid attention to Iraq, Syria, Nigeria, Pakistan, Egypt or any number of other countries around the world. Well this is all going very well isn’t it?

Theresa May gets a warmer than expected reception in Paris, and a pledge on the border

Paris was meant to be the more difficult leg of Theresa May’s first European tour as Prime Minister. But May’s press conference with Francois Hollande was far more cordial than expected. The French President was at pains to stress all the forms of cooperation that would continue between the two countries after the UK  left the EU. He continued to back the Le Touquet agreement which keeps the UK border at Calais.  However, he still wants Article 50 served quickly; ‘the sooner, the better’ was how he put it. There was, though, a tiny bit of softening on the question of talking about things before then. May, for her part, turned in a crisp performance.

Brexit won the battle. But now we’ve lost the war

When Jonathan Swift wanted to mock the immeasurable superficiality of British politics, he imagined it as a contest between the Big--Endians and the Little-Endians. That is, between those who believed fervently that the only way to open a boiled egg is at the pointier end; and those certain that the only proper way to attack it was from the larger, more rounded end. But that was in the 1720s and Swift was joking.

Theresa May has just shown she really is serious about Brexit

‘Brexit means Brexit’ has been Theresa May’s message since she started running for the Tory leadership. But Brexit could mean a whole variety of things. For example, a Norwegian-style deal with the EU would, technically, be ‘Brexit’. But now, Theresa May has shown real intent. She has demonstrated that she really is serious about this. She has appointed three leavers to the key Brexit-related jobs in government. David Davis will be Secretary of State for exiting the EU, Liam Fox gets the International Trade job and Boris Johnson the Foreign Office. The David Davis appointment is particularly striking. He resigned, unexpectedly, from David Cameron’s shadow Cabinet.

Merkel tells Juncker: Britain needs plenty of time to invoke Article 50

Der Speigel has published a fascinating write-up giving last week’s extraordinary events from Angela Merkel’s perspective. Specifically, it seems, she’s had enough of Jean-Claude Juncker, the egregious president of the European Commission, and has told him to bow out from future negotiations with the UK. She’s fed up of him insisting that Britain rushes to invoke Article 50. Indeed, her “utmost concern,” says the magazine, is “giving Britain as much time as possible” for an orderly transition. Here’s an extract:- At 1 p.m. on the Friday after the Brexit referendum, Merkel makes a statement to Berlin journalists in which -- in contrast to Schulz -- she does not demand a rapid British withdrawal.

The Brexit test

Stephen Crabb made a passionate plea this morning for Tories to stop thinking in terms of Remain and Leave when it comes to picking a leader. He warned that if people carry on doing this, it will lead to the party splitting. But all things being equal, I do think it would be best for the next Prime Minister to be a Leaver. After all, David Cameron resigned because he had campaigned for Remain and the country had voted to leave and he thought that made it impossible for him to chart the country on the new course it must now follow. There are two main reasons for thinking a Leave PM preferable. First of all, this would provide some accountability for what Vote Leave promised in the referendum.

Forget the fighting. We’re entering a period of unparalleled opportunity for the Tories

Auf wiedersehen, Boris. He’ll be back, like a blond, bloated Voldemort inhabiting another life form – Top Gear host? Archbishop of York? Or endless BBC camping tours of Britain on a bike, the Portillo of the Portacabin? As Boris’ agent collects the offers – and his publishers are still owed a Shakespeare biography by the end of this anniversary year - he leaves behind him a Conservative Party scarred but resilient. There’ll be recriminations this week. Yet there’ll also be enduring relief, as one of Britain’s oldest institutions finds itself finally free of wrangling Etonians, chaps whose Brobdingnagian entitlement so undermined the gospel of One Nation inclusivity that both presumed to preach.

Disunited Europe: Brexit exposes cracks in EU relations

Much of the media attention in recent days has been focused on the vacuum of leadership in Westminster. However, Britain’s momentous decision to leave the EU has exposed deep cracks in relations with the European Union. Almost immediately after the Brexit vote, nations across continent woke up to the new possibility of leaving the bloc. This has left Europe’s leaders scurrying to prevent the so-called 'Brexit contagion'. The Eurosceptic charge was led by Marine Le Pen who called for a referendum in France and all other EU states. President Hollande has since rejected her calls, however, it would seem that Le Pen is echoing concerns of the majority in France.

Jo Johnson backs Boris

Jo Johnson has declared his support for his brother’s leadership bid. In a statement to The Spectator, the minister for universities and science says: ‘Boris and I were on different side of a hard fought referendum campaign. But it is time to move on, time to unite and time to deliver. I have known my brother for longer than anyone in parliament. He is the great communicator—and I have no doubt at all that he is the person best placed not just to secure a new settlement for Britain in Europe but also to provide the optimistic, confident and outward-looking leadership we will need in months and years to come.’ Now, on the one hand Jo backing his brother is not that surprising.

Brexiteers need to act now, or become the most hated people in history

The British constitution is built on compromise and moderation; it's one of the main reasons why this country enjoyed a period of relative domination in the 19th century while our neighbours tore themselves apart. Referendums do not encourage compromise, which makes them such bitter devices, and why the last few weeks have been so painful. But now that the British people have made their choice – and I have no idea if it was the right one – we have the opportunity to make a compromise that will cause the least amount of pain. I'm talking about the Norway option, which an increasing number of Conservative MPs are coming around to. This is a half-way house between membership of the EU and separation.

No, Brexit wasn’t a defeat for humanist values – or for love

Perhaps the most important pundit to have emerged from the earthquake is Giles Fraser. As a left-wing vicar and longstanding anti-racism campaigner, he makes it harder for people to depict the Brexiters as closet racists. He disrupts the defeated Remainers’ assumption that they represent progressive values, humanism. The same applies to the handful of pro-Brexit Labour MPs, but MPs can be assumed to have murky motivations. On last night’s Question Time, Fraser quoted Galatians (one of the readings in churches yesterday): Love your neighbour as yourself. We need to get beyond our current divisions, and trust in this supra-political principle, he said. Contrast this with today’s offering from Zoe Willams, his fellow Guardian columnist.

At least the howls of Remain cry-babies give us something to snigger at

A very good piece by Libby Purves on the petulance, whining and spite of our liberal elite. Libby got there before I did, annoyingly – and has some terrific examples in her column. I bought Saturday’s Guardian for the sole purpose of harvesting a bunch of tantrums from the letters page – and it did not disappoint. 'Utterly ashamed to be English' and 'I’m moving to Scotland' (good) and a hugely pompous encomium from an idiot called Michael Rundell, of Canterbury, about the 'stupidity, mendacity and xenophobia' of the Leave campaign. Long may they howl – these are somewhat fraught times and it’s nice to have something to snigger at.

Set out your Brexit model, Foreign Secretary tells Tory leadership contenders

This morning, Philip Hammond has insisted that those running for the Tory leadership explicitly set out how they intend to leave the EU. The Foreign Secretary told Robert Peston that he wanted to know how they would manage the trade-off between single market access and free movement. Hammond himself appears to favour a version of the Norwegian model; in the single market and accepting free movement. Now, I think we can take this as meaning that Hammond won’t back Boris Johnson. Hammond accused Boris and other Leavers of making ‘contradictory promises’ in the referendum campaign.

Jonathan Hill’s resignation is an act of gross irresponsibility

The UK’s EU Commissioner, Jonathan Hill, has resigned today saying that he couldn’t carry on as ‘though nothing had happened.’ This strikes me as an act of gross irresponsibility. Britain has not yet invoked Article 50, the two-year process for leaving the EU, and Hill staying on would have provided some continuity at a time of uncertainty. Supporters of his argue that his resignation was the honourable thing to do as Britain is no longer part of the team in Europe. It might have been right that Hill should have volunteered to move to another portfolio. But an outright resignation seems excessive and an over-reaction. Even Jean-Claude Juncker tried to persuade Hill to stay on.

Will Boris, Gove and the Brexit band of brothers run for No 10 together?

Westminster is still digesting what happened on Thursday night. But before Britain can turn itself to the big question of how to leave the EU, a new Prime Minister has to be chosen by the Tory party. Nearly every Tory MP I’ve spoken to since Friday morning is of the view that the new PM will have to be an Outer. They argue that the public would find it find odd to vote for Britain to leave, and then have a new PM chosen who was on the losing side in the referendum. There are, as I report in The Sun this morning, Cabinet Ministers who want Michael Gove to run. They think he would be the best PM of the Outers and that he would find it easier to reunite the party than Boris. But, I understand, Gove is not planning to put himself forward.

The Spectator’s Notes | 22 June 2016

Commentators have complained about this referendum — its ‘lies’, bad manners, bitterness. Without exactly disagreeing, I would nevertheless argue that it has performed at least one of the roles intended, which is to encourage people to consider the issue. If you are actively engaged in political debate, as candidate, activist, journalist etc, you believe (often erroneously) that you have thought through the big questions. If you are an unpolitical voter, you often haven’t. This is particularly true of the European question because, for 40 years, enormous efforts have been made by all the political parties to discourage you. David Cameron only finally conceded to us the right to have our say because, for internal party reasons, he was desperate.

Corbyn’s immigration honesty creates a problem for Remain

Jeremy Corbyn went on The Marr Show this morning to talk about Jo Cox’s tragic death and the EU referendum. Corbyn talked movingly about Cox and how MPs don’t want to be cut off from the communities that they serve. The conversation then moved on to the EU referendum. Andrew Marr asked Corbyn if he thought there should be an upper limit on immigration. Corbyn replied, rightly, 'I don't think you can have one while you have free movement of labour'. https://www.youtube.com/watch?v=E6joUzXHwE8 Now, this is true. But it very much isn’t the Remain campaign script; David Cameron has even refused to admit that his ambition to reduce immigration to the tens of thousands is undeliverable while Britain is in the EU.

Boris makes it clear he isn’t interested in a coup against David Cameron

The murder of Jo Cox was a moment that leaves you numb; an MP paying the ultimate price for the open society we live in. For the fact that our representatives live and work among us. Despite this tragedy, democracy must go on. By this time next week, the EU referendum will be over. The country will have made up its mind. Whether it is Leave or Remain, the UK will need a period of stability. This means David Cameron staying on as Prime Minister and, as I reveal in The Sun today, plans are already well advanced to ensure that this happens. Boris Johnson has signed a letter saying that Cameron must carry on as Prime Minister regardless of the result; making clear that he isn’t interested in any coup attempt.

Long life | 16 June 2016

It was 41 years ago that The Spectator first urged its readers to vote Brexit in a referendum, but the circumstances were different then. In 1975 the Establishment was generally enthusiastic for Europe. Most of the Tory party, including its new leader, Margaret Thatcher, was keen to keep Britain in the Common Market it had only recently joined. The dissenters were few among the Tories and were mostly on the left wing of the Labour party and the trade unions, which saw Europe as inimical to socialism. Almost a third of Harold Wilson’s cabinet members were Eurosceptics, and he set the precedent (later followed by David Cameron) of suspending cabinet collective responsibility to let his ministers campaign against each other on this occasion.