Matthew Lynn

Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’

Coronavirus has again exposed the euro’s fatal flaw

Rising death rates. Economies closing down. People forced to stay at home. The coronavirus is a health, social and economic emergency for every country where it hits. But in Europe it has also mutated very quickly into something else as well, and which, while it may not be quite so threatening in the short-term, could

Rishi Sunak has badly miscalculated his coronavirus bailout

Ten billion? Twenty billion? Thirty billion? To borrow a phrase from the American senator Everett Dirksen when scrutinising the escalating costs of the military, ‘pretty soon you are talking about real money.’ Chancellor Rishi Sunak has already thrown huge sums of money at rescuing the economy. He may well spend a lot more over the

Self-employed workers richly deserve a coronavirus bail-out

It will be impossible to calculate. There will be widespread fraud. And there is no mechanism for sending out the money. As the Chancellor Rishi Sunak scratches around for ways to bail out the UK’s five million self-employed in the same way he has done for employees he faces plenty of obstacles. No doubt his Treasury

Rishi Sunak’s wartime economy

At least no one can say it isn’t bold. The United States is fiddling around with some possible cuts to payroll taxes. Most of Europe is stuck with some printed money from the ECB. But the UK is embarking on one of the most radical experiments in modern economic theory, and one that will no

Tory taboos must be broken in the fight against coronavirus

A £330 billion package of loans to business. A huge tax break to any company in the hospitality or leisure industry. Mortgage holidays to anyone who has been impacted by the coronavirus. People can accuse the Government of being behind the curve on delaying the spread of Covid-19 through the population. But it is hard

The eurozone’s coronavirus response has been dire

A dramatic dawn cut in interest rates. A huge blast of public spending. And immediate cash help for companies that might find themselves temporarily in trouble as their customers stay at home and staff call in sick. We will find out over the next few weeks whether the British government has done enough to fight

Sunak’s leaked tax plan sends precisely the wrong message

It is too expensive. It mostly goes to Southerners who already have plenty of money. And it doesn’t even work very well, while the money would be better spent elsewhere. As the Chancellor puts the finishing touches to his Budget, the leaks suggest that the most generous tax relief for entrepreneurs will either be curbed,

Three ways to stop a coronavirus recession

Supply chains are shutting down. Factories and offices are closing. Flights are being cancelled, conferences postponed and football and rugby games rescheduled. It remains to be seen how much of a blow the spread of the coronavirus turns into for the global economy. But one thing is now certain: it is going to lead to

Trade friction with the EU is nothing to be afraid of

We will export less. There will be less competition. Prices will be higher and productivity lower. Textbook economics tells us that trade friction – that is anything that makes it harder for goods or services to flow across borders – is a very bad thing. So why is the British Government suddenly accepting trade frictions

Three better ways to spend £200bn than HS2

It will be big, shiny and it will make a difference. Even with its astronomical and rising cost and its wobbly economics, it is possible to see the gut appeal of HS2, especially to a big spending government such as this one which can borrow freely at virtually zero cost. After all, it needs to

Boris’s eco plans will end in tears

At least no one will be able to accuse it of not caring about the environment. The government has just bought forward its ban on all diesel, petrol and hybrid cars to 2035. From that date onwards, you will only be allowed to buy electric or hydrogen vehicles. The gas-guzzling, polluting SUVs we all like

2020 will be the year the UK market outperforms the world

Stock markets are hitting record highs. New companies are being listed. Fortunes are being minted. The last year has been a great one for investors, and so has the last decade, as what was already one of the longest bull markets acquired fresh impetus. There is one exception to that, however, and if you happen

Who can salvage the CBI’s reputation after Brexit?

The most vocal opponents of our decision to leave the European Union have been the City and big business. For the last three years, from the CBI to the Bank of England to the FT and countless FTSE chairmen and trade groups, there have been hysterical warnings about the consequences of leaving. As Project Fear

Five places to flee to if Jeremy Corbyn becomes PM

It is still too close to call. And the odds are still on a Tory victory. Even so, with the polls narrowing, with lots of constituencies likely to change hands and with plenty of voters still to make up their minds, there is still a real chance that by Friday morning Jeremy Corbyn could be

Labour’s nonsense about the cost of the state

Less than the cost of a Spotify subscription. Less than Netflix charges you every month. True, you might not be able to get the latest Taylor Swift remix or episodes of Stranger Things, but the Labour Party is trying to reach out to the streaming generation with the claim that the state costs you less than either

London’s Uber ban leaves us all worse off

It is unregulated, arrogant, unsafe and has destroyed the livelihood of the traditional black cabs. Ever since it was launched, the ride-sharing app Uber has been as controversial as it has been popular. Now it faces a ban in London that could see the ubiquitous Toyota Priuses favoured by its drivers disappear from the capital’s