Europe

China in a bullshop

As if to illustrate Pete’s post about the rise of China and India, Chinese Vice Premier Li Keqiang has just finished a visit to Spain during which agreements worth 5.7 billion euros were signed. The Chinese delegation is said to have committed itself to buying six billion euros of Spanish debt, which helped calm markets and provided some relief for Spain’s recession-hit economy. Around the time that the Soviet Union collapsed, the Chinese used to say only they could save communism. Twenty years on, it seems only they can save capitalism. The Spanish are certainly in no doubt about the importance of their newfound Chinese friends. The left-leaning Spanish newspaper El País wrote that that Li was received in Madrid as "a new Mr.

The right has little cause for alarm

It is to his credit that nuance is a word inimical to Lord Tebbitt. The unashamedly independent voice of the past has written a cutting piece about the coalition, the Lib Dems and the Oldham East by-election. He says: ‘A Lib Dem win would tilt the Coalition even farther Left and away from Conservative policies.’ Many Tory ministers joke that they thought themselves right wing until meeting their Liberal colleague. This is a radical government that many on the right can cheer.

What to do about Belarus, Europe’s last dictatorship?

For a while it looked like the West had the upper hand. Belarus' Aleksandr Lukashenko, Europe's last dictator, seemed to be moving away from Russia and closer to the West. A succession of European ministers went to see him and returned to develop packages of support and assistance with his country. In that new "Great Game" played out on Europe's periphery it looked like Vladimir Putin's winning streak was finally coming to en end, after partial success in Georgia and outright victory in Ukraine. Or so European leaders hoped. But any hope of changing Belarus' position has now been dashed with the violent crackdown in Minsk against pro-democracy activists following December's presidential elections.

A preview of the rebellions to come

Today’s papers are full of the Tory right asserting itself. In the Mail On Sunday, Mark Pritchard—secretary of the 1922 committee—demands that the Prime Minister and his allies come clean about any plans to create a long-term political alliance between the Tories and the Lib Dems. In The Sunday Telegraph, there’s a report that Tory rebels will vote with Labour to try and defeat the coalition’s European Union Bill. I suspect that these stories presage one of the major themes of the year, an increasingly assertive right of the Tory parliamentary party. For too long, Cameron has neglected his own MPs both politically and personally. The result is a willingness to cause trouble for the government.

A debt-filled New Year

The Spectator is out today, with a cover story that I would commend to CoffeeHousers. Failure to learn from history usually condemns a nation to repeating its mistakes. That's why we should be nervous that no one seems to have worked out what caused the crash. Little wonder: the guys doing the analysis are the same guys who failed to spot the crisis building up, so it suits everyone to blame the banks. "How was I to know," says everyone from Gordon Brown to Joe the Pundit, "that they were doing all these complex debt swap thingies? They deceived everyone, the bounders." There is another analysis – and it's our cover story, written by Johan Norberg.

This year’s biggest story

This year was so rich in stories - Expensesgate, the election and historic coalition, the Icelandic volcano, General McChrystal's dismissal, the Pakistani floods, Haiti's earthquake, Greece's near-collapse, the Will n' Kate engagement, Wikileaks, the Chilean miners and so on - that it is hard to pick just one story. Looking back over the year, however, I think two stories stand out - because they may herald a seismic change.  The first is, of course, the establishment of coalition. By now, the novelty of government by cross-party compromise has worn off. But, despite the gossipy complaints of a few Lib Dem ministers, a new kind of politics is being forged.

Caught between two great evils

David Brooks, the great New York Times columnist, recommends the best essays of the year every Christmas. His selection this year includes a brilliant essay by Anne Applebaum, of this parish, on Hitler, Stalin and Eastern Europe. It makes you realise quite how bloody the Eastern Front was—‘On any given day in the autumn of 1941, as many Soviet POWs died as did British and American POWs during the entire war’—and think about the effect on these societies of being caught in the middle of these two extremist ideologies. There is always a tendency for us to discuss how the crimes of Hitler and Stalin compare.

The final sting

It's Christmas Eve, and the Daily Telegraph have wrapped up their sting operation in time for tomorrow. The final victims are the Foreign Office minister Jeremy Browne and the children's minister Sarah Teather. As it happens, Teather gets off without blemishing her copybook: her greatest indiscretion is to claim that Michael Gove is "deeply relieved" to be in coalition, as it means more funding for schools. Browne, though, is a touch more forthright: he says that Tory immigration policy is "harsh" and "uncharitable," but that Lib Dem involvement will provoke a "more enlightened" outcome. He adds that the Tories' EU grouping contains parties that "are quite nutty and that's an embarrassment to them.

Grim parallels with Germany for Nick Clegg?

Germany is one of the few countries that Nick Clegg has been able to look to for tips on how to be a successful Liberal party in coalition with a larger Conservative party. In 2006, Guido Westerwelle even took a delegation of Free Democrats to a Lib Dem frontbench meeting. Coffee House once predicted that, if the AV referendum was won, Clegg could one day become Britain's Hans-Dietrich Genscher, a permanent powerbroker. The parties are of course different in many ways. The Free Democrats are decidedly more pro-market and pro-business than the Liberal Democrats. They also have a lot more experience of government. Before the last election, the Free Democrats were part of Helmut Kohl's governments until 1998.

Kosovo deserves better

Dick Marty's report on Kosovo leader Hashim Thaci has rightly caused quite a storm. Accusing the recently re-elected Kosovo prime minister of running a mafia-like state, and even controlling a organ-trafficking ring, has not only led to condemnation but is being used by some as an excuse to re-tell conspiracy theories about what actually happened in the 1990s. First things first. The CoE report's accusations should be investigated by at least two courts: ICTY in the Hague and the Kosovo courts (the latter with the help of the 1800-strong EU police-and-justice mission). If any of these fail to take up the task, a court in an EU member-state should take it upon themselves to investigate the allegations.

Europe keeps vexing the coalition

That the Conservatives and the Lib Dems disagree fundamentally on Europe is a well-known fact. But how much they disagree is rarely put on display as clearly as in today’s European Voice. Andrew Duff, Liberal Democrat MEP and president of the Union of European Federalists, argues that the coalition’s European Union bill – David Lidington’s masterpiece – amounts to “legal pedantry” and will make the UK an “untrustworthy negotiating partner, particularly in matters of treaty amendment, which is such an important driver of European integration.” 'At home, referenda will unleash the forces of populist nationalism. Facile coalitions of nay-sayers will form to block Britain's progress in Europe.

What Cameron should push for in Brussels

As David Cameron stays in Brussels for his third European summit as PM, it’s becoming increasingly clear that the EU's approach to the eurozone crisis – put up short-term cash and pray – isn’t convincing anyone.   On Wednesday, Moody’s threatened to downgrade Spanish government bonds another notch, citing the fact that, between them, the country’s government and banks have to raise €290bn next year to keep the party going. And, across the eurozone, banks and governments face daunting refinancing targets in 2011, which begs the questions: at what cost? And what happens if they fail to meet them?

A “two stone” solution to the Euro crisis will unbalance the coalition

Whatever the British government wants, moves are now afoot on the Continent to address some of the structural problem with the Euro. They may in the end lead to some form of fiscal federalism. So far they are not supported by Angela Merkel, the key decision-maker, who worries constantly about the court in Karlsruhe, which has set clear limits on further European integration. But they are said to be supported, at least in part, by Finance Minister Wolfgang Shauble. Writing in the Financial Times, Frank-Walter Steinmeier and Peer Steinbrück argue that the EU needs "a more radical, targeted effort to end the current uncertainty, and provide stronger support for the future of Europe’s common institutions.

Rome smoulders

I'm visiting a stylish but tense Rome today, just as the Italian legislature has voted down a non-confidence vote in Silvio Berlusconi, Italy's mogul-cum-leader. "Rome is at war" my taxi driver told me and numerous demonstrations are going on. Ill Cavaliere, as Berlusconi is sometimes known, put in a strong defence of his record in the Senate and managed to coax, cajole and, some claim, bribe enough parliamentarians in the Chamber of Deputies to secure a small victory. He pulled not a Full Monty but a "Full Andreotti", using every trick and tactic in the book (and some scribbled in the margin too). For now, Berlusconi survives and can resume a life of partying pleasure-seeking and friendship with Vladimir Putin, which caused the political ructions in the first place.

Cameron must head for the common ground

All the attention last week was on the Lib Dem split – but what about the division within the Conservatives? This is the greater threat to the coalition, and while there is not likely to be an earthquake soon, one can discern the outlines of the tectonic plates. Ladbrokes has odds of 5-2 of an election next year, and these don't seem so short when one considers the short life of coalitions in British peacetime history. So where might the tension lie? A while ago, I referred to the bulk of the party as "mainstream Conservatism," as a more useful phrase than the tautological "Tory right". Tim Montgomerie last week drew a distinction between this and what Ken Clarke calls "liberal Conservatism".

Serbia’s Nobel U-turn

Yesterday, I blogged that Serbia's decision not to attend the Nobel Prize ceremony because of Chinese pressure was a shameful stance for the Balkan would-be EU member to take. Many others felt the same. Now, feeling the international pressure, it seems that Serbia's government has decided that the country's Ombudsman, Sasa Jankovic, will attend the event as special representative of Prime Minister Mirko Cvetkovic. A good outcome, and a sensible decision, which will hopefully be followed by a reprimand to Serbia's calculating Foreign Minister, Vuk Jeremić, who originally decided that Serbia would not attend the ceremony.

China’s new BFF: Serbia

China is doing what it can do to scupper the forthcoming Nobel Peace Prize ceremony in Oslo. Their Foreign Ministry has now said that countries who decided to attend event would be showing disrespect to China: "We hope those countries that have received the invitation can tell right from wrong," the ministry's spokeswoman told journalists. Many of the world's human-rights abusers have been only too happy to oblige, including Pakistan, Iran and so on. They want to keep friendly with China and share Beijing's anti-democratic agenda. But, oddly enough, Serbia, a would-be EU member, is said to have chosen to boycott the Norwegian event. Keen to get Chinese financial assistance and help in its Kosovo policy, Belgrade's thinking is clear.

Brit-free EU diplomacy takes shape

After months of behind-the-scenes work, the shape of the European External Action Service - the EU’s diplomatic corps - is now coming into view. The Bruxelles2 blog has obtained a version of its structure with some of the key names penciled in. You can find it here.      The top three jobs in the EU’s diplomatic headquarters will go to a Frenchman, a Pole and a German. The only senior UK official, besides Catherine Ashton (and her personal aides) is long-serving diplomat and geo-strategist Robert Cooper. But his name, rather mysteriously, is followed by a question mark. Of the EU “ambassadors” that have been appointed until now, there is one one Brit, ex-Ambassador Ros Marsden, who is now the EU envoy in Sudan.

Tax cuts: a Swedish recession remedy

I travelled in from frozen Stockholm this morning. My colleague Mary Wakefield set out from County Durham. No prizes for guessing whose journey took more time due to snow. When my £38 norewgian.com flight arrived at Gatwick, the captain said: “Sorry, we’re going to be delayed. They can’t seem to find people to open the gate, they say they are short staffed.” The Swedes on the flight burst out laughing: welcome to Britain. Mary’s £107 train was two hours late arriving to the station, and spent a further two hours stuck in the snow. That the Swedes do better at us in the snow is no great surprise, but it’s odd to see them do better at supply-side economics.

At the heart of Europe

The historic centre of Bruges has 16 museums, enough to cater for every touristic taste. There’s a Diamond Museum, a Lace Centre, a Choco-Story (the narrative element distinguishes it from the 50 chocolate shops) and a Friet Museum — or ‘Belgian Fries Museum’, for English-speakers under the misapprehension that fries are French. But the main focus of the city’s five-yearly festival, now in full swing, is on a local product the French cannot lay claim to: the Flemish painting tradition founded by Jan van Eyck, who died in Bruges in 1441. The historic centre of Bruges has 16 museums, enough to cater for every touristic taste.