Europe

Westminster is preparing for the Tory conference and Ben Brogan reports that a confident mood pervades the blue camp. The positive briefings have begun. The Guardian reveals that the speed limit on motorways is to be raised from 70 MPH to 80 MPH. This is a victory for Transport Secretary Philip Hammond over recalcitrant forces in Whitehall and the Health and Climate Change Secretaries. The Guardian adds that several welfare announcements will be made. It’s also likely that there’ll be further initiatives relating to the riots, perhaps inspired by Labour’s concerted assault on law and order. Meanwhile, the Eurozone crisis continues. Angela Merkel passed the controversial expansion of the EFSF this morning.

James Forsyth has interviewed the foreign secretary, William Hague, in tomorrow’s issue of the Spectator. Here is an extended version of the piece that will appear in the magazine. Politicians normally have to wait for the history books for vindication. But for William Hague it has come early. All his warnings about the dangers of the euro, so glibly mocked at the time, have come to pass. But, as he makes clear when I meet him in his study in the Foreign Office days before the start of Tory conference, he is not enjoying this moment. Rather, he is absorbed with trying to sort out the mess that others have created.

Chris Patten has held almost every great and good job the great and the good can offer: Governor of Hong Kong, Companion of Honour, European Commissioner, Chancellor of the University of Oxford and Chairman of the BBC Trust. Only his parents’ decision to send him to a Catholic church will prevent him becoming Archbishop of Canterbury and winning the game of establishment bingo with a full house. Patten features in Peter Oborne and Frances Weaver’s strange polemic against British supporters of the Euro. (Strange because Gordon Brown and the Labour Party stopped Britain joining the Euro so the authors have no crime to accuse the “guilty men” of – other than being wrong.

Ed Balls’ choreographed apologies earlier today included the acknowledgment that “we should have adopted tougher controls on migration from Eastern Europe”. He first adopted this stance during last year’s leadership election, when he offered an undeliverable but popular objective to court the ‘Gillian Duffy tendency’, who had turned away from New Labour. What began as classic opposition politics is now the party line, with Ed Miliband telling delegates yesterday, “We got it wrong in a number of respects including understating the level of immigration from Poland, which had a big effect on people in Britain.

Most of today’s papers carry reports of a deal to relieve the European sovereign debt crisis. The details are varied, but it seems that 50 per cent of Greek debt will written off and the currency will be allowed to remain within the single currency. This means that banks that are exposed to Greek debt will incur potentially ruinous losses. The EFSF mechanism will probably be extended to cover those losses and guard against contagion. Estimates vary, but it seems the fund will have to increase to somewhere around 2 trillion euros if the mounting crises in Italy and Spain are to be contained. Britain's exposure remains unclear at this stage.

                                      In July 1990, Nicholas Ridley told Dominic Lawson that monetary union was "all a German racket designed to take over the whole of Europe". He was immediately forced to resign from the Cabinet. In this week's magazine, which hits newsstands today, Lawson says that Nicholas Ridley was right (subscribers click here). Here, in full, is the article that ended his career: Saying the unsayable about the Germans, Dominic Lawson, 14 July 1990 It is said, or it ought to have been said, that every Conservative Cabinet minister dreams of dictating a leader to the Daily Telegraph.

The Lib Dems have just had a brief Q&A on foreign affairs. Paddy Ashdown and defence minister Nick Harvey gave staunch their support to the Afghan Mission, but confessed to having misgivings. Ashdown described the Bush administration's strategy as an "absolute model of how not to intervene, both militarily and politically". This failure, Ashdown said, ensured that a "victor's peace" is now beyond NATO's grasp. Harvey admitted that NATO's political progress in Afghanistan remained "very slow" despite ISAF's recent military success; this is scarcely surprising given the litany of bombings and assassinations over the course of the summer. The debate touched on the need to forge new trade relationships and Britain's role as an "aid super power".

Today's Lib Dem attack on their coalition partners comes from Chris Huhne, who rails against a "Tea Party tendency" in Conservatives sceptical of the European Union. His premise is that those who are hostile to the EU are a minority. It's worth digging a little deeper here, because the opposite is true. If you believe that Britain has benefited from EU membership, you're in a smallish minority – 35 per cent to be precise. Huhne seems genuinely unaware of the depth of feeling out there. CoffeeHousers may be familiar with opinion polls commissioned by eurosceptic groups. But – as we say in the leading article of this week's Spectator – the European Commission can hardly be accused of an anti-EU bias.

One of the most striking things about Lib Dem conference has been how up for a scrap over Europe the party’s ministers are. Every single Lib Dem Cabinet minister has, over the past few days, ruled out any attempt to repatriate powers from Brussels. Given that the Conservative party wouldn’t forgive David Cameron not attempting to use any new treaty negotiation to try and regain control of various issues (see David’s blog from earlier), this puts the Prime Minister in quite a dilemma. Personally, I expect Cameron will go for the repatriation of powers. The AV referendum showed that when he has to choose between really angering his party or the Liberal Democrats, he crosses his coalition partners.