James Forsyth

Nick Clegg did not show his Berlin speech on the Euro crisis to Number 10 or the Foreign Office before releasing it to the media. This is quite remarkable. Up to now, there has been a recognition that while the Liberal Democrats may try and differentiate themselves from the Prime Minister on various things, the government must speak with one voice on the deficit reduction strategy and foreign policy. No credible country can afford to send mixed messages to either the bond markets or foreign governments. Clegg’s freelancing on this issue is a reminder of how Europe remains the biggest ideological fault-line in the coalition. When David Cameron formed the government, he hoped that the whole Europe issue could be parked until he had a majority of his own.

Theresa May’s suggestion that Britain could suspend the free movement of people in the event of a Eurozone break up is a reminder of just how transformative an event the falling apart of the single currency would be. The Home Secretary is a cautious politician who picks her word carefully, so when she says that the government ‘will be doing contingency planning’ about the immigration implications of a Eurozone break-up you know it is serious. One of the things that makes this such an intriguing development is that it suggests a shift in government thinking on the severity of the crisis that could be coming.

Adam Smith’s Leveson ordeal is now over. The testimony we’ve heard from Smith and Fred Michel has left Hunt’s position weaker in one key regard. The crucial allegation is that he misled Parliament when he said that he had not tried to influence the quasi-judicial decision on News Corp’s bid for BSkyB when it was Vince Cable’s responsibility. It is hard to see how this squares with Hunt’s memo to David Cameron in November 2010 warning of the consequences for the media sector of the bid being blocked. Labour is also attacking on the grounds that Hunt should never have been given responsibility for making this quasi-judicial decision given the views expressed in the memo. But I think Hunt is on safe ground here.

Fred Michel’s testimony this morning at the Leveson Inquiry was embarrassing but not devastating. The texts between him and Jeremy Hunt are cringe-worthy but my read is that the Culture Secretary is not in a weaker position than he was this morning. More important for Hunt’s survival prospect is the appearance of his former spad Adam Smith this afternoon. The question is, did Hunt not know of the extent of contact between Smith and Michel? Everything going on at Leveson, though, is a sideshow compared to the economic news and the storm brewing on the continent. On that note, it does seem odd that Nick Clegg is suggesting that the seventy percent of German voters who would like Greece to leave the euro are irrational.

Personally, I’m in favour of gay marriage. But it is precisely the kind of issue that should be subject to a free vote and all the indications are that the government intends that when the legislation comes to Parliament it will be. So, it shouldn’t be a big deal that the Northern Ireland Secretary Owen Paterson feels that he can’t support it, a view he expressed in a letter to a gay constituent that Politics Home has obtained a copy of. There are several other ministers who feel the same way. Indeed, I understand that the Chief Whip himself has grave reservations about the matter. It would be deeply intolerant to attempt to whip these ministers to vote against their consciences.

A coalition bust-up was avoided today by Vince Cable’s absence from the Commons for the urgent question on the Beecroft Report. Tory MP after Tory MP got up to make warm noises about a report which Vince Cable has been gleefully trashing, describing one of its proposals as ‘bonkers.’ That Cable couldn’t make it back in time from the north of England to appear at the dispatch box will have been a relief to the Tory whips; one of them was distinctly concerned about how the Tory benches would treat the Business Secretary when he heard about the UQ earlier. Indeed, it was telling that when Chris Heaton-Harris attacked Cable and Lord Oakeshott, Mark Prisk — the Tory minister answering the question — did not rebuke him.

The publication of the Beecroft report on Thursday is a big moment for the coalition. The Lib Dems have long been dismissive of it but it is now a crucial part of any coalition grand bargain on growth. In recent days, those close to David Cameron and Nick Clegg have been talking about a more cooperative, coalition attitude to growth. There’s been a recognition that the two sides both need to make some concessions to give the coalition a more adequate growth strategy. As one senior figure puts it, the coalition needs to show ‘more radicalism and unity on growth’. This is what makes the publication of Beecroft on Thursday so important.

I suspect that ‘Weekend secrets of the “chillaxing” Prime Minister’ (£) is one of the last headlines that Number 10 wanted to see this Saturday. It is acutely sensitive about the idea that Cameron doesn’t work hard enough, a charge that it thinks is as unfair as it is damaging. But perhaps more interesting than the details of the Prime Minister’s Sunday routine — a ‘crap film’ and a few glasses of wine at lunch — is what Francis Elliott and James Hanning reveal about the Cameron-Hilton relationship.

I doubt that Angela Merkel is looking forward to the G8 summit very much. It will mostly consist of the other world leaders telling her to give ground on austerity. But I suspect that Merkel won’t budge much, if at all. She clearly believes that the Greeks can be whipped into line by telling them that the election is really a referendum on euro membership. Hence both her suggestion of a simultaneous referendum on election-day and her backing for the European Central Bank cutting off support to Greek banks which shows that while there’s no formal mechanism for ejecting a country from the single currency there are ways of doing it. The German government, intriguingly, seems more accepting of the idea of the Greeks leaving the Euro than others do.

The Cameroons have long taken comfort in their belief that Ed Miliband will never be Prime Minister. They have seen him as a firebreak between them and electoral defeat. Three things have driven their conviction that the Labour leader will never make it to Number 10. First, their belief that he fails the blink test: can you see him standing outside Number 10? Second, the next election will almost certainly be fought on the economy, Labour’s weakest area. Their final reason was a sense that he would never get the full support of those on the Labour side who know how to win elections. But recent events suggest that this confidence that Miliband will lose the next election might be misplaced.