France

Cameron defends the IMF

David Cameron’s statement to the House of Commons on the Cannes summit was dominated by the question of increasing Britain’s dues to the IMF. Cameron stressed that his message to the Eurozone countries was “sort yourselves out and then we will help”. He also tried to offer reassurance that the IMF would not contribute to any eurozone-specific bailout fund. But after Ed Miliband’s response, the Prime Minister tried to counter-attack. He began by saying of the Labour leader’s speech, “I don’t know who writes this rubbish” which drew one of Ed Balls’ infamous calm down gestures. Cameron then offered an aggressive defence of the IMF, calling it an “organisation that

The paradoxes of renegotiation

David Rennie (aka The Economist’s Bagehot) has an excellent column in this week’s issue about the difficulties that Britain will face if she tries to repatriate powers from the EU. His main argument, having spoken to a number of senior German politicians and officials, is that if Britain holds up any treaty revisions in the hope of extracting concessions in return, then the other EU states will organise themselves without the UK. The Economist’s former Brussels correspondent also makes the key point that the 10 countries that are outside of the euro are not natural allies for the UK – some, like Denmark, do not want to join the euro,

Reuters: Papandreou to resign on Friday

Reuters is reporting tonight that the Greek Prime Minister has agreed to resign on Friday. The news agency says that at a meeting Cabinet colleagues told George Papandreou that he had to resign for the good of the Socialist party and he agreed. It quotes one source saying, “He agreed to step down. It was very civilised, with no acrimony.” Now, after Thursday’s experience, I suspect we’re all taking reports about what will, or will not, happen in Greece with a pinch of salt. But it does seem that the referendum is off, stymied in part by Merkel and Sarkozy, who have ridden roughshod over the idea of non-interference in

An assault on humour

On Tuesday night the French satirical newspaper Charlie Hebdo was firebombed, presumably by Islamic terrorists, for naming the Prophet Mohammed its editor-in-chief. Nobody was hurt in the attack but the newspaper’s offices have been destroyed. They still managed to see the light side, running a commentary saying “After Greece, save Charlie”. The left-wing paper has never been as popular as its main rival Le Canard Enchaine but its outrageous cartoons and caricatures are a staple of French kiosk fronts. Naming Mohammed editor may be one of the more tame things the newspaper has done. But whether it is tasteless or not, the magazine’s right to publish, insult and ridicule is

Merkel and Sarkozy try to hold the euro together

Right about now, Nicolas Sarkozy and Angela Merkel are having George Papandreou for dinner. There have been all sorts of rumours today about what Sarkozy and Merkel will demand from him. Thankfully, they seem to have abandoned plans to tell him to cancel the referendum. But they still seem keen to dictate the question and the timing to him. How that will go down with the Greek demos remains to be seen. One thing is clear, though: the euro is now destroying the whole European project. The European Union’s claim to be a force for peace, stability and democracy in Europe is rapidly disappearing into the Athens smog. The wholesale

James Forsyth

The Greek land mines that Cameron must avoid

When the topic of Greece comes up at PMQs, David Cameron will need to avoid stepping on three land mines. The first task is not to say anything about what is going on in Athens, or Rome for that matter, that will exacerbate market anxieties. The second is a diplomatic challenge, to avoid anything that would sour Britain’s pitch ahead of the G20. The third, and perhaps most difficult one, is to keep his own backbenchers on side.   An ever growing number of Tories doubt that a 17 member Euro and fiscal union is in Britain’s, or Europe’s, interests. Already, some Tory backbenchers are talking about going to Greece,

The Euro masquerade

So much rot has been said about the Eurozone crisis that you do wonder whether Merkel, Sarkozy et al have come to believe their own spiel. This is an economic problem and it can’t be solved by political will. Greece is bust and several French, German and Dutch banks were stupid enough to lend €130 billion to the Greek government that they’re not going to get back. All the summits in the world cannot change this simple fact. These crisis talks are about bailouts for banks, not bail outs for Greeks. BNP Paribas is in for €37bn. Commerzbank of Germany is owed €15bn. And if Greece defaults, then insurance claims

Sarko’s dour challenger

One of France’s dullest politicians is now odds-on to take up residence in the Élysée Palace next year. François Hollande, the former leader of the French Socialists, has emerged on top in a competition to take on Nicolas Sarkozy for the presidency. Six contestants vied for the Socialist nomination, including Ségolène Royal, Hollande’s former partner who lost to Sarkozy in 2007. In the first round of the primaries yesterday, Hollande finished first ahead of current Socialist leader Martine Aubry. Here are the results based on 82 per cent of the votes cast:  The two will now face each other in a second round on Sunday, with Hollande the clear favourite.

Britain sues the ECB

As the EU debt drama continues unspooling like a perversely watchable soap opera (the FT’s Neil Hume describes it as ‘eurozone crisis porn’), an intriguing sub-plot has emerged: Britain is suing the European Central Bank. The Treasury is unhappy with an ECB move to limit the kind of euro-denominated products that can pass through UK clearing houses, suspecting it’s a bid to shift financial activity from London to Paris/Berlin. So it’s taking legal action, the first of its kind by an EU member state. This is not the first UK-EU disagreement that has surfaced in recent months, underlining the tensions between Britain and the Continent as financial centres across Europe

Merkel & Sarkozy have only words

It was something of a mystery. Emergency conference calls about the future of the Eurozone were being made yesterday, but there was no news of those discussions. As it turned out, this was for the best of all possible reasons: there was no news to report. Angela Merkel and Nicolas Sarkozy announced no new measures to alleviate the sovereign debt crisis; rather, they merely declared “solidarity” with Greece and assured the markets that Greece would not be forced from the single currency. Their words seem to have assuaged the markets for the moment, but only the most brazen optimist would bet on the rally being long lived. Tests of confidence

The Euro-crisis heats up

Angela Merkel, Nicolas Sarkozy and George Papandreou are in crisis talks about Greek debt. There are rumours that they are preparing an “orderly default” for Greece. But, officially, Merkel is still pressing ahead with implementing the existing Greek debt deals. This meeting also has a domestic context for Merkel. According to the FT, she is determined to stamp on the growing disquiet within her governing coalition over the Eurozone crisis and is pleading for calm resolve. It remains to be seen if she succeeds.  The danger of contagion within the Eurozone remains and concerns about the exposure of French banks persist, which is doubly worrying for Nicolas Sarkozy given the proximity

Rick Perry: Texas Gaullist

I’m sure Karl Rove is, on this at least, correct: Rick Perry’s book will cause him problems for as long as he remains in the race for the Republican nomination. To put it gently, few Americans believe that Social Security and many other federal programmes are unconstitutional; even fewer are likely to vote for a candidate who was on record, as recently as last year, suspecting that they might be and that these matters were properly the purview of the 50 states, not Washington. So it will be interesting to see how, if at all, Perry is attacked in tonight’s debate*. There is no shortage of large-bore ammunition. Against that,

The fallout from the DSK affair

It was an eventful day in New York yesterday. The rape case against Dominique Strauss-Kahn collapsed and, soon after, an earthquake struck that corner of the States’ eastern seaboard — thankfully there have been no reported deaths and damage appears to have been light, although there were fears about the safety of an ageing nuclear plant after the tremors. Medieval chroniclers might have drawn equivalence between the two events: the natural disaster being the judgement of God on the human drama in court. DSK was the premier contender for the Socialist presidential nomination to fight the despondent Nicolas Sarkozy, a battle he might have won. Those ambitions almost certain never

Gaddafi in Tripoli as the <em>entente cordiale </em>flourishes

The imminent success of the Libya intervention was, to a remarkable degree, down to Anglo-French cooperation. Though the media has been keen to play up, and even conjure up, rifts and disagreements between Paris and London — and the hyper-active Nicolas Sarkozy can’t help but act first and coordinate later — the fact is that the two states worked closer and better together than they have done for years. Probably not since the Suez operation have the British and French militaries cooperated so closely. But the intervention, even if it is coming to a (deadly and protracted) end did show up a number of deficiencies in materiel and command and

This isn’t just any solution; this is an M&S solution

Banks and financial institutions endured a painful day’s trading, following Angela Merkel and Nicolas Sarkozy’s announcement yesterday that the Eurozone should adopt a ‘Tobin tax’, a charge on financial transactions. Once again, M&S chose piecemeal changes over the grand structural scheme desired by markets. The Tobin tax was just one proposal of three. The other two were: to create “genuine economic governance of the Eurozone” under, for the moment, EU President Herbert van Rompuy. The second: to impose a ‘Golden Rule’ on the budgets of Eurozone members. The ‘Golden Rule’ will bind national parliaments to agree to limits on national debt levels and impose statutory requirements on mastering budget deficits. The

Battle of the century

The American historian Walter Russell-Mead has a cynical — but very possibly accurate — take on what the French are trying to persuade the Germans to accept with their plan for Eurobonds: ‘France’s clear short term goal is to commit Germany to underwrite debts from weak EU states.  That not only staves off a crisis that threatens to engulf France; by putting Germany on as a co-signer for Greek, Italian and Spanish loans, France will ensure that Germany’s credit rating will not be better than France’s. The French will accept almost any German rules to limit the ability of countries like Greece to run up new debts.  It is in

Back to the drawing board as Eurobonds look dead in the water

Watch her lips: no Eurobonds. Angela Merkel’s Finance, Minister Wolfgang Schauble has told Der Spiegel: “I rule out Eurobonds for as long as member states conduct their own financial policies and we need different rates of interest in order that there are possible incentives and sanctions to enforce fiscal solidity.” Merkel’s government is making its depositions ahead of tomorrow’s Eurozone summit, rebutting the moves made by other member states over the weekend to introduce Eurobonds, a step towards political integration. Those proposals were backed by Nicolas Sarkozy, with whom Merkel is meeting in private this afternoon. Interestingly, Le Monde reveals that Eurobonds are not even on the agenda of these

A friendly gesture…

The police received a savaging in parliament earlier. I lost count of the number of MPs who relayed their constituents’ anger about riot police who stood by as buildings burned. Cameron’s defence – that the police response had been inadequate to adapt to a new threat posed by crime facilitated by social networking – did not allay the concern. By the end of the debate, there was consensus among many backbenchers that police officers should receive training in riot control as part of their basic training. The extraordinary incidents in London and elsewhere have been at the centre of the world’s eye, and the police have not escaped censure. Le Monde carries a wonderfully mischievous

French with tears

The civilised world has always needed a lingua franca, through which educated people of international outlook can communicate with each other. For centuries that language was Latin, first the language of theology, then of learning — Erasmus, Milton and Thomas More communicated with a wide community of scholars in Latin. Nowadays, the international language of commerce and culture is English, and from Peru to Shanghai the employees of multinationals talk in their barbarous English idiolects of blue-sky thinking and learning curves, just as their children chant along to the lyrics of West Coast rap. Between the age of Erasmus and that of Ricky Martin, there occurred the supremacy of the

Cameron compromises, but Gaddafi might not

What a difference four months of air sorties make. Back in the early days of the Libya intervention, David Cameron was unequivocal when it came to Muammar Gaddafi remaining in the country: there was “no future” for the dictator within its borders, he said. But now, on top of comments by William Hague yesterday, the Prime Minister is thought to be softening his stance. As the Independent says today, he has decided that “the time has come to find a way out of the conflict and back a French proposal to allow Gaddafi to stay in the country as part of a negotiated settlement with rebel forces.” So, from no