Politics

Spain was always going to be where the doom of the euro would be determined. Ireland, Portugal, Greece and Cyprus amount, together, to less than 5 per cent of the EU’s economy. They can be rescued without emptying the bailout fund. Alternatively, their defaults can be managed as controlled explosions. Spain is in a different category. Europe’s banks are massively exposed there: an explosion could blast the continent’s financial system to splinters. On the other hand, the sheer scale of a rescue package might finally exhaust the patience of the northern European taxpayers. Spain’s agonies were caused directly by the euro. We can’t, as we can in Greece, blame irresponsible

In his first statement as Prime Minister on the steps of No10 Downing Street, David Cameron said that “One of the tasks that we clearly have is to rebuild trust in our political system… yes, it’s about making sure people are in control and that the politicians are always their servants and never their masters.” One key promise in the Coalition Agreement to achieve this was to introduce a power of recall, allowing voters to get rid of sitting MPs and force by-elections where they feel they have been let down. The Government published a draft Recall Bill in December last year, and invited a Committee of MPs to scrutinise

There’s been a lot of attention over the past few days as to whether George Osborne is too political. But what should really worry Tories is not how political George Osborne is, but how unpolitical Number 10 is. There are far too many Tories who think that politics is something you do in opposition not government. This view is profoundly mistaken. As I say in my column this week, city mayors were a major plank of David Cameron’s vision for reviving England’s cities. Yet all but one of the mayoral referendums were lost. Why? Because voters were never shown that mayors wouldn’t just be another politician. The Number 10 machine

Lord Oakeshott has just sparked some outrage by arguing on the World at One that George Osborne, who he described as a ‘Chancellor on work experience’ should be replaced by Vince Cable. He said: ‘I do think that George Osborne, he’s got no business experience, he’s never worked outside politics, and you know, he’s doing surprisingly well for a Chancellor on work experience, but really in a torrid time like this I think we do need the absolute best people available.’ A now-backbench Lib Dem peer announcing he would like to see a Lib Dem leading the Treasury team isn’t exactly the most surprising revelation. But what was interesting was

David Gauke was only elected in 2005, but it’s impossible that he can’t remember the Back to Basics campaign, and how well that moral campaign worked out for the Conservative Party. Its 1993 launch precipitated revelations of all kinds of non-traditional behaviour in the party, from affairs to cash for questions. Had the Exchequer Secretary who bears the outstanding achievement of being named Tax Personality of the Year thought about the damningly long list of revelations that the Major government had to endure, he might have thought twice before declaring that it was ‘morally wrong’ to pay your plumber or cleaner cash-in-hand. The problem with Gauke’s moralising was so obvious

Ed Miliband’s comments in the Independent today were clearly based on the assumption that Nick Clegg will not be around if and when it comes to negotiating a possible Lib-Lab coalition in 2015. Vince Cable has already thrown his fedora into the ring to be the next Liberal Democrat leader, and Miliband backed the calls for a change of chief in his interview today. ‘I would find it difficult to work with him,’ he said, when asked about Clegg. Clegg cannot go from being Deputy Prime Minister in one government to Deputy Prime Minister in the next: it would look ridiculous. A coalition with Labour would also not suit Clegg’s own political