Economy

Monday

James Forsyth

Strike Thursday nears

After the failure of today’s meeting between union leaders and Francis Maude and Danny Alexander, Thursday’s strike now seems certain to go ahead. It’ll be the biggest test so far of the coalition’s ability to withstand industrial action. The coalition has constantly emphasised that it has contingency plans in place to deal with strikes. This Thursday will show us how good these plans are. Certainly, the more schools that are kept open, the less powerful the bargaining position of the unions will be. I understand that David Cameron will use his speech to the Local Government Association tomorrow to emphasise that the deal that the government is proposing on public

Daniel Korski

The danger of unbalanced trade with China

The Chinese premier seems to like cars; the Chinese in general seem to like cars. China has bought MG in Britain and Volvo in Sweden, to which it has just added Saab. If the Chinese can make European car companies viable, then what’s the problem? Theoretically nothing: trade will help the Chinese and Europeans alike. But, as Robert Peston made clear in his questioning of Wen Jiabao, trade remains unbalanced. For example, European companies are excluded from public procurement contracts in China. It is also worth noting that China’s purchase of Spanish and Greek bonds over the past year, coupled with their promise to buy from Hungary, have made it

David Blackburn

The dirty secrets of ‘no win no fee’

Jack Straw’s column in the Times today (£) contains the following revelation: ‘Our records indicate that you may be entitled to £3,450 for the accident you had. To claim free reply CLAIM to this message,” went the text that my pal Phil Riley received last week. This “accident” was, in truth, a minor prang. Phil had stopped in traffic. The chap behind drove into him, with minor damage to Phil’s car; no personal injuries. The other driver’s insurer paid Phil’s repair bill. Within days of this prang, 18 months ago, Phil was bombarded with texts and personal calls to tell him that if he would make a claim, three or

James Forsyth James Forsyth

Britain’s future economic challenge

Wen Jibao’s performance at today’s press conference was typically diplomatic. He declined to say that the UK was going too far in Libya and was emollient on the question of human rights. But his honeyed words can’t obscure the true nature of the Chinese regime. But Wen Jibao’s presence here was also a reminder that the economic competition Britain is going to face in the future is going to come increasingly from the east. If Britain is going to thrive in this world, then it is going to have to produce a huge amount of intellectual property. It is in this context, that Michael Gove’s educational reforms should be seen.

Sunday

David Blackburn

Badgering Spelman

The stars must be crossed for Caroline Spelman. First came the forests, then the bin collection fiasco, then the circus animals and now the FT’s Jim Pickard has news that the Cabinet will meet in mid-July to discuss whether to start a badger cull in the south-west. Badgers are one of those perennial issues of contention. As Pickard says: ‘It’s one of those classic issues where both sides have a highly convincing argument. The farmers (who have, I’m told, offered to underwrite the killing) believe that badgers have caused bovine TB among cattle herds and are pushing hard for the cull. But the animal welfare people want vaccination instead. They say

Saturday

David Blackburn

Immigration is so much more than an electoral issue

Further to Daniel’s piece about declining immigration in Europe, it is worth highlighting this passage from Iain Martin’s column in the Mail: ‘But once in Downing Street, Cameron was confronted by research from his personal pollster, Andrew Cooper, which confirmed the true extent of public concern about high levels of immigration. Ironically, Cooper was one of the very modernisers in the Tory Party who did not want Cameron to be tainted — as he saw it — by being seen as tough on immigration in the run-up to the election. But now he has changed his tune — and taken the Prime Minister along with him. In fact, Cooper has

Edward King

Empty lines on a CV

The intern is everywhere, slowly but surely, infiltrating every office on the planet. But while the internship is now ubiquitous, having become the standard first rung on most career ladders and the most frequent stepping stone between education and a career, it remains a largely unexamined and unregulated sector. Somewhere between an apprenticeship and a temp job, the internship resists easy definition and is understood more in terms of social cachet than actual responsibilities. Having had his fair share of directionless and underpaid internships between various degrees at Stanford and Cambridge, Ross Perlin, a researcher in linguistics, decided that the phenomenon deserved closer scrutiny. The result is Intern Nation, an

Friday

Christopher Fildes

9 March 2002: What though the spicy breezes blow soft o’er Buenos Aires, incompetence messes it up

As the world braces itself for the inevitable Greek default, and investors look nervously at potentially exposed banks, perhaps it’s worth recalling Argentina’s implosion a decade ago. Here is what the Spectator made of it at the time: The missionary Bishop Heber wrote a hymn about Ceylon: ‘Where every prospect pleases And only man is vile.’ On being told that this was unfair to his converts, he corrected ‘Ceylon’ in the second edition to ‘Java’, but his point stands: there is no prospect, however pleasing, that is beyond the power of human and governmental incompetence to mess it up. We have seen the Heber factor at work in our own green and pleasant

Dominique Lazanski

How to regulate the Internet?

This week, the Open Rights Group launched a campaign against the proposed website blocking scheme between copyright holders and Internet Service Providers.  The campaign was launched on the back of a leaked document suggesting that a voluntary code for industry website blocking be introduced. The document was presented to Ed Vaizey, the relevant minister. Vaizey meets regularly with internet stakeholders to debate digital issues, including net neutrality, parental controls, and, of course, web blocking. These meetings are a vast improvement over the last government, which made technology policy decisions behind closed doors without much – if any – input from outsiders. Stakeholders want a new structure for reviewing gross copyright

David Blackburn

Ancient hatreds mask Stormont’s current challenge

Ignore the antediluvian hatreds for a moment. As Anne Dawson says, the recent violence in East Belfast was largely inspired by current economic distress. Northern Ireland’s economy is a serious cause for concern. Central expenditure per head is 25 per cent higher in Ulster than the UK norm and 70 per cent of Northern Ireland’s economy lies in the public sector according to parliamentary one estimate. Although the province has much to commend itself to business – competitive operating costs and excellent transport links serviced by substantial capital investment – private enterprise remains depressed. A report by PriceWaterhouseCoopers in March found that growth was negligible and that unemployment is running

David Blackburn

Cameron: no more bailouts

It’s another of those special Cameron victories in Europe: we’re in for a second Greek bailout, but not quite as much as we might have been. Britain will contribute a sum through the IMF; however, it will not be contributing to EU funds. Cameron has succeeded in ensuring that the European bailout will be conducted under the permanent European Financial Stability Facility (EFSF), to which only eurozone members are signatories. Although it should be noted that some Brussels experts doubt that the European Financial Stabilisation Mechanism (to which Britain has subscribed) could have been used in this instance, which further devalues the government’s victory. Anyway, attention now turns to Greece

Thursday

Jonathan Jones

Poll round-up | 23 June 2011

We haven’t dwelt on the polls very much on Coffee House recently, although we have flagged up some nuggets on Twitter. Here are some of the measures of public opinion that provide an interesting backdrop to Westminster’s machinations: Labour in trouble despite poll leads Two weeks ago I reported on a poll that showed the extent of Ed Miliband’s unpopularity. There have since been a few more polls to compound his unease. ICM found that he had worse approval ratings even than Nick Clegg: YouGov find that 58 per cent of the public think he’s doing a bad job, but perhaps more worrying for “Red Ed” is that he even

Daniel Korski

Apparently, Britain is less stable than a country in danger of collapse

If there is one global index it is best not to be on, it is the Fund for Peace’s annual Failed States Index. It ranks 177 countries using 12 social, economic, and political indicators of pressure on the state. This year, the FSI ranked Somalia as number one for the fourth consecutive year, citing widespread lawlessness, ineffective government, terrorism, conflict, crime, and pirate attacks against commercial vessels as reasons for the country’s billing. Finland, on the other hand, has displaced Norway at the bottom of the index. “Slight fluctuations in demographic and economic indicators, though minimal, lowered Norway’s scores, allowing Finland, with its continued stability, to slip in front of

Anne Dawson

Why Belfast is ablaze

I live three miles away from where the rioting was happening in East Belfast last night, and heard the helicopters whirring overhead. It was the kind of sound that anyone living in the city hoped never to hear again. As a child, I’d lie in bed and hear bombs and sirens and helicopters — and we had all hoped that dark chapter had been closed. A tipping point of violence has now been reached. A press photographer has been shot, another given a fractured skull after a second night of riots. And in the aftermath, the blame game cacophony begins: Who started it? It was them. No it was them

Wednesday

James Forsyth

How the Tories intend to keep Westminster talking Balls

When Ed Balls is around, there are no shortages of stories. Balls, as is so often the case, has been the talk of Westminster today. First, there was the chatter generated by the FT’s story that members of the shadow Cabinet were irritated that Balls’ proposed VAT cut hadn’t been run past them. Then, there was Alistair Darling strikingly failing to endorse Balls’ VAT cut on the Daily Politics and to round it all off the shadow Chancellor was leading for Labour in its opposition day debate on the economy. The Tories are convinced that Balls’ relations with his fellow shadow Cabinet members is a weak spot for Labour. Indeed,

Daniel Korski

Euro-bondage

At a time when the Euro is looking so weak, it is a wonder that so many countries are still queuing up to join. Estonia has recently joined, while Hungary and Bulgaria are keen as mustard to join as well. Make no mistake, these countries want to join. They go to lengths to stay for two years in the European Exchange Rate Mechanism, while keeping inflation inline with the EU average. At a meeting this morning, the Hungarian foreign minister capped off his country¹s EU Presidency by declaring that Hungary is still focused on joining. But, even if these countries did not want to join the Euro, or felt perhaps

Tuesday

David Begg

High-speed rail is an opportunity, not a waste

Having spoken to civic leaders in Leeds yesterday about the impact of high-speed rail investment, I cannot recognise the world lived in by Matt Sinclair and the campaign against HS2. In the Midlands and the North, high-speed rail represents opportunity. Opportunities for business people to reach new markets, quickly, cheaply and with minimal hassle. Opportunities for bread-winners to reach new employers. Yes, it’s a massive investment. But the potential for our national wealth is also massive At the “Yes to HS2, Yes to Jobs” action days in Manchester and Birmingham, you felt some of this excitement among the businesspeople, civic leaders and young people who came out to show their

Monday

James Forsyth

Hoban wobbles in the House

Mark Hoban has just turned in a remarkably unconvincing performance at the despatch box. Summoned to the Commons to answer an urgent question from Gisela Stuart, one of the best backbenchers in the House, on what contingency planning the government was doing for a Greek default, Hoban attempted to stonewall.   But Hoban’s stonewalling could only carry him so far. Strikingly, he declined several opportunities to confirm that the British government thinks that the euro will survive in its current form with all its current members.   By contrast, Jack Straw was quite happy to make predictions. He told the House that ‘the euro in its current form is going

Peter Hoskin

Boris’s one-two punch against the coalition

Boris, we know, has never had any compunctions about distinguishing his views from those of the coalition government. Take his recent proclamations on the unions or on the economy, for instance. But his latest remarks are still striking in their forthrightness. Exhibit A is the article he has written for today’s Sun, which — although it doesn’t mention Ken Clarke by name — clearly has the Justice Secretary in mind when it exhorts that “it’s time to stop offering shorter sentences and get-out clauses.” And Exhibit B is his column for the Telegraph, which waxes condemnatory about Greece and the euro. As George Osborne struggles to limit our involvment in

Sunday

Daniel Korski

How the IMF might save Afghanistan from its leaders

The International Monetary Fund used to be hated, blamed for the privatisation programmes it imposed across the world in exchange for loans. Then it spent a decade in relative obscurity. Now, as countries like Greece are forced to beg for loans, the Bretton Woods institution has again become a popular bogeyman. Every Greek protester thinks that all would be well if only their government had a Love, Actually moment and told the IMF where to go. But the IMF — with its hard-nosed, unsentimental policies — is often what is needed to save governments from themselves. Take Afghanistan. As The Guardian reported yesterday, the Afghan government will struggle to pay