Greece

Friday

Daniel Korski

The Euro is so great – let’s have two of them

European leaders have now agreed to bail out Greece in a coordinated affair, involving the IMF and bilateral assistance. The Times has written this up as a grab for more centralisation of policy-making by European Council President Herman Van Rompuy, but even the Tories know that’s not true, as judge by William Hague’s calm remarks. Trying to understand the problems of the euro has sent me back to my undergraduate economic textbooks and Robert Mundell’s work on optimum currency areas. As Spectator readers (many of whom are bankers) will know, the US economist theorised that a group of countries will benefit from a common currency like the euro if three

Wednesday

Daniel Korski

Germany to the EU: no more integration

A Conservative Party article of faith has been the belief that other Europeans are innately more pro-EU than the British. In the past, this has undoubtedly been the case. Poll after poll has shown that Britons see the EU differently than most other Europeans. But as I have argued before, times are changing on the continent. In an article in the Frankfurter Allgemeine Zeitung (not a Europhile newspaper by any stretch), Germany’s new politics is explained. Nikolas Busse argues that the Greek crisis and failure of EU leaders to cobble together a plausible bail-out is the first major manifestation of Germany’s new role in Europe – that of a country

Tuesday

Andrew Haldenby

Alistair Darling needs to tell us that frontline services will be affected by cuts

The credibility of the Chancellor’s Budget tomorrow depends on the policy changes that he announces for the public sector.  It won’t be enough for him just to announce a series of public spending totals that decline gracefully in the years to come.  Within some broad limits, anyone can do that.  What counts is whether he backs it up with practical ideas to target the big government costs, which lie in two places – benefits and the public sector workforce. In retrospect, the general election has fallen at the wrong time for the UK public finances.  Since early last year, the prospect of an early election has allowed the Government to

Tuesday

David Blackburn

Clarke and Osborne are working well

The Daily Politics featured a telling exchange between Stephen Timms and Ken Clarke. Their arguments were unclear and their hypotheticals relentless – they were debating deficit reduction. A football phone-in DJ had been invited onto the programme to adjudicate. After 7 minutes he broke his befuddled silence and declared, understandably, that Clarke and Timms were a turn-off to ordinary voters. Immediately, Clarke responded clearly and directly, making a case for reducing the deficit with reference to the chillingly close reality of Greece’s collapse. He avoided patronising, homespun economics; and simply delivered bald analysis and a statement of intent with his characteristic gusto. By contrast, Timms remained silent. Clarke is the

Monday

Alex Massie

Dave, California and Greece

So I had an op-ed in the Los Angeles Times yesterday in which, inter alia, I compared Britain’s fiscal position with Greece’s (but at least we have the Elgin Marbles…) and the lack of faith in the political process to California’s own dysfunctional system. Matt Yglesias thinks this exaggerated and, well, “pretty flawed” For one thing, while it may be true that the British public has a California-esque level of faith in the political process, the fact is that the British political process is very different from California’s. Realistically, the next UK government’s fate will hinge on its ability to deliver economic growth. And while the next UK government may

Tuesday

David Blackburn

The prospect of another EU treaty is a huge problem for reformer Brown

It seems there must be discussion about a potential European Monetary Fund, and an organisation to manage Europe’s economies that circumvents Maastricht, to avert future fiscal crises. So much for Lisbon, the treaty to end all treaties. Quite why no one, especially the treaty’s opponents, acknowledged the possibility of a member state’s financial collapse whilst Lisbon was being ratified during the recession is a mystery. However, all that is past. The question for the future is will there be a referendum this time round? Adrian Michaels, rightly, point out that the Tories’ eurowars are likely to be renewed at the most inopportune time for Cameron. But Cameron will offer a

Thursday

Daniel Korski

Why we should give the Elgin Marbles back to Greece

While we’re talking about countries on the brink, it’s worth taking a look at Greece – which has probably passed beyond it.  The government has published its package of austerity measures – aiming to reduce its deficit to 8.7 percent of GDP by the end of 2010 – and the markets are deciding what they think. But, in the meantime, the country faces strikes; the Euro is taking a pummeling; there are fears that problems may spread to countries like Portugal and Spain; and Greek foreign policy – particularly with regard to Macedonia and the Balkans – is stalling.  Nobody is through the woods yet. All this mean that George

Monday

Mark Bathgate

Turbo-charged fiscal crises

The crisis in Greece shows just how quickly a fiscal crisis can blow up. Just two-and-a-half weeks ago, Greece was able to raise several billions in financing, with demand for almost 25 billion of their debt in an auction. The very next day, their bond market collapsed and the rout began. Just ten days later, they were turning up in Brussels with a begging bowl, and inviting the European Commission and IMF to Athens to start making their tax and spending decisions. There can be nothing worse for a government than having your economic policy dictated by the markets, and then other governments, as access to finance disapears. All you

Monday

Fraser Nelson

Europe: ignoring the Lisbon Treaty when it suits them

Is Greece too big to fail? When the Eurozone project was up and running, its taxpayers were promised: this was not a system where they’d have to bail out a badly-run country like Greece or Italy (or Brown’s Britain, were we members). But this rule (a clause in the Lisbon Treaty) is being torn up with various assurances from Germany and the ECB that they Greece is too big to fail – and they’d rather put their taxpayers’ wonga on the table than risk their precious promise. I made this point in my News of the World column yesterday (that bit not online). Here’s the story: 1. The Eurozone did