Eurozone under crisis

Off the radar somewhat but fair play for the Independent in highlighting the story this morning is the worrying trend in European stock markets which have been plunging on fears of debt in Southern Europe.

As the paper reports

Some £30bn has been wiped from the FTSE in recent days, and it lost a further 1 per cent of its value yesterday as European policymakers again failed to reassure markets that the "contagion" could be contained. The crisis could push Europe, including the UK, into a "double dip" recession. In foreign exchange markets, the euro slumped to its weakest level against the dollar since May, and its weakest level against the yen for more than a year.

and as the FT says

The rout sent investors fleeing to the safety of US government debt, boosting the dollar to its highest level against the euro in more than eight months and sending US Treasury prices higher only days after the Obama administration forecast a $1,556bn deficit for 2010.

Problems in Greece,Portugal and Spain are puuting the Eurozone under its biggest test since formation and whilst the Greek government is urgently addressing those problems,it will need the giants of the zone,notably Germany to support such measures

Nobody likes us we don't care

Glen Oglaza has it spot on about the Tories and Europe.

Are the Tories the Millwall of Europe: Nobody likes us but we don't care?

But here is the real point that he makes

We are in the European Union, so let's lead it from the front.

The EU should be led by Britain, Germany and France - but we always seem to be the Tail-End Charlie.
But I guess that will remain the way so long as we are not in the Euro or signed up to Shengen (uniquely difficult for the UK).
If we are staying in, let's do it properly and whole-heartedy - or let's just get out and trade with the Commonwealth instead.

Make up your mind over Europe Mr Cameron

I couldn't agree more with Bagehot's post on the Economist thios afternoon.

He writes that

Time is running out for David Cameron's European policy. At his press conference this morning, he clung to his "one policy at a time", "it shall not rest" approach in regard to the Lisbon treaty, but he probably won't be able to do so for much longer. Indeed, to some the formula is already sounding more evasive than rational, precisely the sort of dodge that Mr Cameron frequently accuses Gordon Brown of making.

More tricky for Mr Cameron is the European President role

That led to two awkward follow-up questions that Mr Cameron struggled to answer. Was he really saying that Britain's interests in Europe would be better served by a foreign president than by Mr Blair? And wasn't the underlying thrust of his broader point that he wanted the job to be done badly (surely not a good thing, if it is to exist, for either the EU or Britain)?

Cameron-faling out with Europe

Besides upsetting most of Europe when imitating a German accent whilst explaining why he is against ID cards,he has also upset Mr Sarkozy.

The FT reports that

Nicolas Sarkozy, the French president, was asked this week about the pledge of David Cameron, the UK opposition Conservatives’ leader, to hold a referendum on the treaty if he comes to power before it is fully ratified. The French leader’s response was ­telling.
“I am watching the debate in that country,” Mr Sarkozy said. “I simply want to say that we have been happy to have Gordon Brown round the table with us because he has assumed his responsibilities and he has acted with courage by bringing his country with him on the path of European integration.”

Missing the point

Is it not simply shear folly for the Tories to hark back to calls for a Lisbon treaty referendum?

Conservative Home has just announced that

David Cameron has just launched the above poster as part of the Conservative campaign for the European Parliament election.

and adds that

Mr Cameron said now was the time to "maximise the pressure" on the Government to hold the referendum it promised at the last election. Indeed, he pointed out that the Conservatives were the only party which had stuck by its word on the issue

This smacks of a return to pandering the blue rinse brigade,instead of dealing with the issues that the electorate will be more concerned about which by definition will be the ceonomy,jobs and public spending.

Simon Heffer v Charlemagne

The Economist's Charlemagne goes on the offensive for those who see the current economic crisis as the death of the European single market.

Notably the Telegraph's Simon Heffer whose piece It's the Europhiles versus reality, and reality is going to win is taken to task.

His piece writes the magazine's European commentator

is the latest in a line of British newspaper articles glorying in the imminent collapse of the euro.

and concludes that

The events he predicts would, of course, plunge tens or hundreds of millions of people into economic misery. Some might not chortle at that. But then they do not write for the British daily press.

Brown's VAT proposals grounded in Brussels

Mark Mardell reminds us of something that occuured in the EU a couple of months ago when Gordon Brown managed to persuade the other leaders to look into cuting VAT on environmentallly friendly goods.

Unfortunately as Mark reveals it has become stuck in the mud so to speak

Many at the time thought the leaders and the Commission were willing to give him the headline, but precious little of real value.
British diplomats haven't been told by Downing Street to push the idea, and currently it's stuck in the office of the commissioner for taxation.
The Commission tells me that this is not a new idea; it is at least two years old.

Papers line up over the Euro result

Nothing divides the National press more than the European Union and thsi morning is no exception as Parliament votes not to have a referendum on the European treaty.

The usual suspects line up on both sides.

The Mail with a front page headline

A shaming day for democracy

The British people were finally denied a say on the EU constitution last night after a momentous day in the Commons.
MPs voted against holding a referendum on the biggest shift of power to Brussels for at least a decade.
This was despite pledges from both Labour and the Liberal Democrats that voters would have the chance to decide the issue.

Its leader describing the Day that Democracy died

The Sun says the Eu referendum is Brown bread

The “listening PM” ignored the demands of nine out of ten British voters and denied them the say he promised.
Mr Brown broke Labour’s 2005 general election pledge as he ordered his foot soldiers to reject a referendum.
However, 29 of his MPs rebelled and voted for a national poll.
Mealy-mouthed Lib Dems also broke their pledge to give the nation a say on the Lisbon Treaty.

And its editorial describes

it was cowardice that made Gordon Brown break his word over the EU Treaty referendum.
He reneged on his promise to hold one because he was scared of losing.
As a result, Mr Brown demeaned himself and damaged democracy

The Telegraph hasn't given up hope

Referendum campaigners admitted they had suffered a setback. But they refused to give up and said they were pinning their hopes on the House of Lords taking on the Commons and backing a referendum.
William Hague, the shadow foreign secretary, said after the vote that he hoped peers in the Upper House would reverse the Commons vote and ensure Labour and the Lib Dems honoured their election promises to hold a referendum.

Whilst affiriming in its leading article that

In an unworthy display of political cynicism, the Government ordered its own MPs to vote against one of the manifesto pledges on which they were all elected.

The Mirror supports the Prime Minister describing how Gordon Brown wins historic victory on EU treaty

The PM told the Tories: "When will you wake up to the fact that 3.5 million jobs are dependent on our membership of the EU, that 700,000 companies are trading with Europe, that 60 per cent of our trade is with Europe?"

Its editorial telling us that

Eurosceptics last night suffered a devastating defeat from which they will never recover.
By rejecting a referendum on the Treaty of Lisbon by 63 votes, the House of Commons passed a point of no return

The Independent describes

Victory for the Government in last night's vote on whether there ought to be a national referendum on the Lisbon treaty was the right result adding that

it should be quite clear to the objective observer that this treaty does not represent a shift in Britain's relationship with the European Union worthy of a referendum, no matter what the die-hard Eurosceptic lobby maintains.

The people may not get a referendum but at least they get to listen to a decent debate

Everyone seems quite complimentary over the debate this morning on Today between David Milliband and William Hague.


The big parliamentary event today is of course the vote on whether they should be a referendum over the European constitution

Alan Cochrane says

In a refreshing change from what has become the depressing 'norm' Miliband and Hague actually appeared TOGETHER in the studio to be grilled by Naughtie on tonight's vote on whether there should be a referendum on the new EU treaty.

The vote could be tight tonight,Nick Clegg has ordered his MP'S to abstain after yesterday's humiliation and some Labour backbenchers may well vote with the opposition.

Guido is predicting that up to three Lib Dems could quit,

Heath, Kramer and Farron are the most likely to resign.

There is an interesting article in this morning's Times by Mary Ann Sieghart in which she claims that two out of three parties are being damaged by the continuing debate

This reneging on a manifesto commitment, though, which will fuel public mistrust just as powerfully, affects only two parties out of the three. For David Cameron's Conservatives are still supporting the promised referendum. No wonder the Tory leader basked in a little Obama fairy-dust at the weekend by borrowing the American candidate's “broken politics” line and applying it to Westminster.

Another prespective by Bob Piper who has the advantage of age

I've mentioned this before and it really annoys the likes of the tory boy bloggers who whinge that they were only spotty kids at the time of Maastricht, and mentioning it now is irrelevant. Now that is convenient for dizzy... but it doesn't get all these senior Tories who now demand a referendum off the hook. William Hague was also a spotty youth, but he was a spotty youth who voted for Maastricht and against a referendum. Ditto John Redwood (well, not the bit about youth). David Davis, the Shadow Home Secretary was even a whip in the Major Government who corralled, bullied and badgered Tories through the Maastricht lobbies. The 24 Tory Maastricht rebels were vilified and spat upon by their own colleagues for going through the No lobby

.



But back to the interview on today and James Hoskin though thinks it once again portrays the BBC bias on the programme towards the Tories

The to-and-fro discussion went as expected - Hague arguing well for a referendum on the Lisbon Treaty, and Miliband arguing (quite) well against it. However, when James Naughtie pressed Miliband on whether the Government are opposing a popular vote on the referendum because it's one they'd lose, the Foreign Secretary dropped in this (quoting as accurately as scrambing around for a pen and paper will allow):
"James, I'm sorry you've given William Hague a points victory in the last minutes of this interview."

Blair for President?

As speculation grows over whether Tony Blair will run for the job of EU president,this morning's Times asks Is President Blair the man for the job

The piece by Philip Webster political editor claims

Tony Blair will win the backing of Gordon Brown if he attempts to become the president of the European Council

,and that the former PM

is waiting to see whether the new post, created by the Lisbon reform treaty, lives up to the billing

.

Blair's biggest hurdle will be his steadfast support for President Bush over the Iraq war,a issue which has irked many of his European colleagues.Whether the rest of Europe is ready to forgive him for that and let him be their spokesman remains to be seen.

In the words of William Hague,we await the day that his Mercedes rolls down Whitehall.