Europe

Thursday

Daniel Korski

Newsflash: Americans and Europeans like each other

A decade has passed since the attacks of 9/11 and so much water has flown under the proverbial bridge. Today, ordinary Americans don’t want to have a leadership role in the world, and Europeans aren’t too keen on it either. And having dithered over what to do about Guantanamo Bay, most people in the US and Europe don’t trust President Obama’s counter-terrorist policies. Right? No, actually wrong. According to the tenth-annual public opinion survey of the general public in the United States, Turkey, and 12 European Union member states – the Transatlantic Trends – 54 per cent of respondents from European countries surveyed want the United States to show strong leadership in world

Tuesday

James Forsyth

Cameron faces the eurosceptics

If Tony Blair thought that a meeting with Gordon Brown was like dental surgery without anaesthetic, one wonders how David Cameron would describe being questioned on Europe by Bill Cash and Bernard Jenkin. At the liaison committee, the two veteran eurosceptics pushed Cameron on why he was supporting far greater fiscal integration in the Eurozone. Cameron’s answer was, basically, that this was the only way the Eurozone could be made to work. But one can’t help but feel that greater fiscal integration is simply storing up problems for the medium term given that it will do nothing about the divergence in competitiveness between Eurozone members. The rest of the session

Friday

David Blackburn

EU bans Syrian oil imports

The EU has banned imports of crude oil from Syria. This is being touted as a major success for the EU, displaying the ability of governments to act collectively. Oil sanctions on Syria should, theoretically, impede President Assad: 95 per cent of Syria’s oil is exported to Europe, worth roughly £3bn a year. Germany and Italy are the premier destinations. This is a welcome move against a brutal tyranny, but the embargo is not the total success that it might have been. Italy was stalling earlier in the week, trying to defer the deal’s implementation until 30th November 2011, when existing contracts expired. Other European countries were pushing for a more

James Forsyth

Lagarde sets about the Eurozone

When Christine Lagarde took over the IMF top job, it was widely assumed that she would simply continue her predecessor’s policy of almost unconditional support for Eurozone bailouts. But Ken Rogoff, the IMF’s former chief economist, has detected a hardening in the IMF’s approach. He thinks that Lagarde’s call for, as he puts it, “forced recapitalization of Europe’s bankrupt banking system” signals a new, tougher approach towards the euro-zone. As Rogoff says, the IMF’s previous approach to the euro-zone simply wasn’t credible. The idea that Spain was really at no more risk of a default than Germany was risible. But, as Rogoff argues, there won’t be a full restoration of

Thursday

Daniel Korski

Eurosis

Most of Europe takes all of August off for summer. Paris is empty, Brussels eerie and nobody works in Madrid. But as politicians and officials come back from their holidays, they are finding that the problems of the euro have not gone away. Quite the contrary. No less a supporter than former EU Commission president Jacques Delors believes that the European currency is still “on the edge of the precipice”. It is easy to see why the European grandee feels as he does. The euro eased against the dollar today, taking a cue from lower stocks; the euro was down 0.6 per cent. The losses came on top of data

Monday

David Blackburn

Merkel's hard game

As James noted earlier, Angela Merkel’s response to the Eurozone crisis is hampered by the awkward arithmetic in the Bundestag. Merkel has been faced with these difficulties throughout the crisis. Her answer has been to oppose initial proposals to solve the Eurozone crisis, only to relent later in the day. This has been the pattern from the first Greek bailout to the expansion of the EFSF, which is currently before the Bundestag. Might her apparently determined opposition to Eurobonds (which, of course, would require a huge transfer of power and cash from Berlin to the Med and Brussels) go the same way? Wolfgang Münchau has a comprehensive piece on the

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

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