Europe

A show trial with a difference

It’s a sleepy morning in Westminster. Fleet Street is exercised by the arrival of a new strain of e-coli in Britain and there’s also the promise of a sweltering day’s Test cricket at Lords. The Hague, by contrast, woke to the prospect of seeing Ratko Mladic, the Butcher of Belgrade, arraigned before the international court. Mladic was in hospital over night, being treated for his cancer. In view of Mladic’s ailing health, the chief prosecutor, Serge Brammertz, shortened the list of charges to ensure that the trial is shortened. In other words, those charges that might not easily stick are to be dropped so that sentence can be passed quickly. The same expeditious ruse was used during the trial of Radovan Karadzic.

The Tory euro-wars make a brief return

The Europhilic ghost of Ted Heath is stalking the House of Lords, upsetting the passage of the European Union Bill, the bill containing the coalition’s EU referendum lock. Lord Armstrong of Illminster, who was PPS to Edward Heath between 1970 and 1975, is trying to introduce a ‘sunset clause’ to ensure that the bill lapses at the end of this parliament. (He is working with Labour whip Lord Liddle, although Labour insists that this is not party policy.) Another amendment has been tabled to guarantee that referenda are binding only if turnout exceeds 40 per cent. This could mean that Britain succumbs to legislative creep from Brussels because only major issues (such as joining the Euro) are likely to attract sufficient turnout.

The Euro’s uncertain future

Martin Wolf’s column on the eurozone today does a superb job of summing up its troubles. As Wolf says, "The Eurozone, as designed, has failed." Keeping its current arrangements is simply not an option for the eurozone. Wolf concludes that: "The eurozone confronts a choice between two intolerable options: either default and partial dissolution or open-ended official support. The existence of this choice proves that an enduring union will at the very least need deeper financial integration and greater fiscal support than was originally envisaged." The question now is essentially whether Germany and other prosperous eurozone countries are prepared to embark on further integration and a programme of fiscal transfers to save the project.

In England’s green and pleasant land

What do the TUC, heavy industry and the European Commission have in common? This is not the start of a bad joke; the answer is that they all oppose the government’s energy policy. Ten days ago, Tata (formerly British Steel) announced that it was to cut more than 1,500 jobs at plants in Scunthorpe and on Teeside. The directors later confirmed that their decision was influenced, in part, by the introduction of a costly carbon floor price at the last Budget. The floor price, which exists on top of levies imposed by the EU, has increased the burden of taxation on energy consumption to subsidise renewable energy research. In last week’s issue of the Spectator, Matt Ridley predicted how this policy will likely be an expensive fiasco.

A joyous day in the Balkans

The day started out looking bad for the Balkans, with the Serbian president boycotting a meeting with Barack Obama in Poland because the Kosovo president was attending. But things look rather better now. After a decade-long man-hunt, Serbian police arrested Ratko Mladic in northern Serbia. He was living under the name Milorad Komadic and had grown a beard like his former boss, Radovan Karadzic. A plane carrying Mladic is said to have left for The Hague, where he will soon be arraigned before the International Criminal Tribunal for the Former Yugoslavia. Foreign Secretary William Hague has rightly called the arrest a "historic moment" for the western Balkans.

The Tory divide over European bail-outs

As Obama and Cameron played table tennis yesterday, a considerably more furious game was being waged between the government and Tory backbenchers. It related to a Parliamentary motion tabled by Mark Reckless – and described here – that sought to stem UK involvement in any future bailouts for eurozone countries. All well and good, you'd think, until a rival amendment percolated down from on high to dilute Reckless's proposals. This new amendment would only go so far as to "urge the Government to raise the issue of the [bailout mechanism] at the next meeting of the Council of Ministers of the European Council". The green benches were set for a violent back-and-forth 'tween one side and the other. The outcome of all this was revealed yesterday evening.

A coup for the Tories?

The Tories are cock-a-hoop about the defection of UKIP MEP David Campbell Bannerman – positively crowing, in fact. “There’s nothing more satisfying,” said one CCHQer, “than UKIP suffering.” Activists and MPs alike reckon that the Conservatives could have won a majority last May if it weren’t for UKIP in the south-west. Vengeance is sweet, but is it of lasting importance? Campbell Bannerman has used a blog post to justify his action: David Cameron is an inspiring leader and an avowed eurosceptic. Perhaps it will become a salve for the right, increasingly seen as Cameron’s blind spot. Equally, the answers Campbell Bannerman gave to Total Politics’ Amber Elliott could be used in the tussle for wavering eurosceptics.

Cathy Ashton beats UK ministers to Bengazi

EU foreign policy Tsar Catherine Ashton has come under a lot of criticism, much of it unfair and/or put forward by those who want the EU to supplant the member-states. In this piece, I have tried to defend her. I argue that her realistic take on the EU’s role is in the UK’s interest: the last thing London needs is someone who ignores member-states to build an independent foreign policy. And she has managed to get Europe’s SAHEL policy in a better shape, worked closely with William Hague and Guido Westerwelle to coax Serbia into negotiations with Kosovo and helped to solve, at least for the moment, a crisis in Bosnia. For these reasons, she retains the support of David Cameron and William Hague.

Will Britain leave the EU in 2025?

Britain is going to stay in the EU for the next ten years at least. Of that I'm sure. But after that, when David Cameron's retired, William Hague has taken to writing books, George Osborne's had his chance and the 2010 intake run the party, the Tories are going to be more openly hostile to the EU. Labour will too; it has a larger reservoir of pro-EU sentiment among its ranks, but one that is shallower than it was. Focusing on the Tories, it is worth noting that nearly all of the names being bandied about as future Tory leaders have a visceral dislike of the EU. By and large they will, by then reflect popular opinion (if they don't already): as veteran EU watcher Charles Grant notes, there is a limit to how long an elite can cross the population.

DSK resigns from IMF

The IMF has issued three press releases on Dominique Strauss-Kahn since his arrest last week, but none more resonant than the latest. It contains this statement from their now former-Managing Director: Ladies and Gentlemen of the Board, It is with infinite sadness that I feel compelled today to present to the Executive Board my resignation from my post of Managing Director of the IMF. I think at this time first of my wife—whom I love more than anything—of my children, of my family, of my friends. I think also of my colleagues at the Fund; together we have accomplished such great things over the last three years and more.

Keeping the States interested

David Cameron has a good relationship with Barack Obama, which will be on display when the US president visits Britain shortly. They speak regularly and frankly and their senior advisers are in near-constant contact. The idea that the Lib Dems would foist a more "Love Actually" policy onto the coalition has come to naught. Yet Britain's influence in Washington has waned. This is no fault of the Prime Minister. In fact, his personal diplomacy has probably slowed-down the process. Instead it has to do with structural changes in the US: the coming to power of a "pacific" President, the importance of US-China ties, the emergence of the Tea Party.

This Social Union, This Commonwealth

On reflection, perhaps I've been a little too quick to discount the historical significance of the Queen's visit to Ireland this week. Like so much else, it's a question of perspective. If you're 80 years old and a citizen of the Irish Republic, perhaps the sight of the Irish President greeting and welcoming the British monarch on equal terms would seem quietly moving and even a cause of some pride. I might think that this was what it was all about and I might see the visit as another confirmation that the Irish state has taken its rightful place in the community of nations. That's been true for many years, but this is still some hefty symbol.

The battle over the 4th carbon budget

At the weekend, it appeared that Chris Huhne had won his battle with Vince Cable and George Osborne over whether or not the government should sign up to the 4th carbon budget. This budget covers 2023 to 2027 and is all part of a plan to cut carbon emissions by 80 percent by 2050 compared to the level in 1990; they have currently been reduced by 26.5 percent from the 1990 level. But it now appears that the greens in government might have been premature in declaring victory. First, the next set of cuts in UK carbon emissions is dependent on the European Union agreeing to embark on an equally significant emissions cut by early 2014. If this does not happen, then the UK carbon budget will default to the EU average.

Could a Briton run the IMF?

With Dominique Strauss-Kahn, known as DSK, undertaking scientific and forensic tests to determine if he sexually assaulted a hotel maid, the International Monetary Fund will be run by its No. 2 official, John Lipsky. A former banker, Lipsky was appointed “first” deputy managing director in 2006, and was expected to step down later in the year. But the change at the top will bring the former Permanent Secretary of the Department for International Development, Minouche Shafik, into the limelight.

The Arab Spring stalls in Syria

With more than 800 people thought to have died in Syria, the situation is getting more and more serious. President Bashar al-Assad has clearly decided he cannot allow any challenge to his regime and has rejected even the advice of friends like Turkey and Qatar to step back from the brink. The military — principally the loyalist 4th and 5th divisions — has now perfected their anti-protest tactics. People in Hama and Homs are fearing that what was visited upon Deera — where the regime cut off water, electricity and telephones before assaulting the city — will happen to them. Yet, for all this, it would be wrong to think that Syria is on the edge of an all-out uprising against the regime, for a number of reasons.

Another European squabble looms

There is much excitement in Westminster at the moment about Hugh Fearnley-Whittingstall’s campaign to end ‘discards’ under the Common Fisheries Policy. DEFRA and non-governmental organisations estimate that perhaps as much as 60 per cent of a catch will be returned dead to the sea because the CFP’s controversial quota system is based on the amount of fish caught. DEFRA has been pressing the European Commission to reform the quota system for years. At last, they seem to have succeeded. The commission is due to announce in July that the quota system will now be based on the amount of fish landed in port. With that apparently comes a concession to reduce discards significantly.

Mixed news from the Eurozone

France and Germany’s better than expected growth numbers are making news today. But the divergence within the Eurozone — Estonia grew at 2.1 percent in the first quarter, Portugal shrank by 0.7 per cent — highlights one of the single currency’s biggest problems: how can one interest rate fit all? Economists expect Germany, whose GDP is now larger than before the financial crisis, to continue to outperform the rest of the Eurozone. Given that Germany and France together make up half of the Eurozone economy, interest rates will have to be set with this in mind. But, on the other hand, the Iberian countries and Greece are struggling with austerity and need a continued monetary stimulus.

The gulf between public opinion and Westminster opinion on Europe

It's Europe Day today, where the flag of the EU will be flown by 26 of its 27 member states. David Cameron is refusing to join in* — and rightly. Why celebrate an institution to which the British public is hostile? I've always found it strange that Euroscepticism is caricatured as a fringe, minority position when the polling evidence is so overwhelming. The European Commission anxiously monitors this, conducting identical polling in all member states — the largest poll in the world. The results are never publicised in Britain because they make clear the depth of public hostility. We have dug a few out, from the Eurobarometer data archives, and print them below.

Another European mess for the coalition to deal with

Financial meltdown. As Ben Brogan says this morning, it tends to concentrate the mind. And so it is with the coalition, after days of infighting and spiteful diversion. The meltdown is not our own, of course, but that of the Greeks. And although much will be said by Conservative and Liberal Democrat politicians about how "there, but for the grace of George Osborne," etc., the real issue for them is simply this: how much are we in for? If Greece requires another bail-out, how much British money might be involved? Osborne himself – speaking across the news channels yesterday – has set out out a firm line. "We certainly don't want to be part of any bail-out of Greece," stresses the Chancellor.