Tag Archives: UKIP

United Kingdom

Should David Cameron change course over the UK budget?

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budget

The United Kingdom is closer to May 2015 than it is to May 2010, which is to say that it’s closer to the next general election than to the previous one.United Kingdom Flag Icon

With the announcement of the 2013 budget coming later this month, likely to be very controversial if it features, as expected, ever more aggressive expenditure cuts, what does UK prime minister David Cameron have to show for his government’s efforts?

The prevailing conventional wisdom today is that Cameron and his chancellor of the exchequer George Osborne (pictured above) have pushed blindly forward with budget cuts at the sake of economic growth by reducing government expenditures at a time when the global economic slump — and an even deeper economic malaise on continental Europe — have left the UK economy battered.  If you look at British GDP growth during the Cameron years (see below — the Labour government years are red, the Cameron years blue), it’s hard to deny that it’s sputtering:

UK GDP

 

One way to look at the chart above is that following the 2008 global financial panic, the United Kingdom was recovering just fine under the leadership of Labour prime minister Gordon Brown, and that the election of the Tory-led coalition and its resulting budget cuts have taken the steam out of what was a modest, if steady, economic recovery.  Those cuts have hastened further financial insecurity in the United Kingdom, critics charge, and you need look no further than Moody’s downgrade of the UK’s credit rating last month from from ‘AAA’ to ‘AA+’ for the first time since 1978.

An equally compelling response is that British revenues were always bound to fall, given the outsized effect of banking profits on the UK economy, and that meant that expenditure corrections were inevitable in order to bring the budget out from double-digit deficit.  In any event, 13 years of Labour government left the budget with plenty of fat to trim from welfare spending.  Despite the downgraded credit rating, the 10-year British debt features a relatively low yield of around 2% (a little lower than France’s and a bit higher than Germany’s), and we talk about the United Kingdom in the same way we talk about the Netherlands, Belgium and Germany — not the way we talk about Iceland, Ireland, Spain, Italy or Greece.  Given the large role the finance plays in the British economy, it wasn’t preordained that the United Kingdom would be more like France than, say, Ireland.

Nonetheless, polls show Cameron’s Conservative Party well behind the Labour Party in advance of the next election by around 10%, making Labour under the leadership of Ed Miliband and shadow chancellor Ed Balls, a Brown protégé, implausibly more popular than at any time since before former prime minister Tony Blair’s popularity tanked over the Iraq war.  Despite Cameron’s ‘modernization’ campaign, which notched its first notable triumph with the recognition of same-sex marriage in February, over the howls of some of his more old-fashioned Tory colleagues, he remains deeply unpopular.

Meanwhile, the upstart and nakedly anti-Europe United Kingdom Independence Party — Cameron famously once called them a bunch of ‘fruitcases, loonies and closet racists’ — has grown to the point that it now outpolls Cameron’s governing coalition partners, the Liberal Democratic Party. UKIP even edged out the Tories in a recent by-election in Eastleigh, and Cameron has relented to calls for the first-ever referendum on the continued UK membership in the European Union (though, targeted as it is for 2017, it assumes that Cameron will actually be in power after the next election).

Nervous Tory backbenchers, already wary of local elections in May and European elections in 2014, are already starting to sound the alarms of a leadership challenge against Cameron, though it’s nothing (yet) like the kind of constant embattlement that plagued former Labour prime minister Gordon Brown.

Former Conservative prime minister Margaret Thatcher faced an even more dire midterm slump in the early 1980s and still managed to win the 1983 general election handily, but if the current Labour lead settles or even widens, political gravity could well paralyze the government in 2013 and 2014 in the same way as Brown’s last years in government or former Tory prime minister John Major’s.

It’s worth pausing to note what the Cameron-led coalition government has and has not done.

Continue reading Should David Cameron change course over the UK budget? →

European Union, United Kingdom

Clarke’s pro-Europe tone highlights referendum risk to UK Tories from the center

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Longtime senior Conservative Party grandee — and former chancellor of the exchequer — Kenneth Clarke (pictured above) in no uncertain terms yesterday said that a British exit from the European Union would be a disaster.United Kingdom Flag IconEuropean_Union

That Clarke is pro-Europe is certainly not a surprise.

As former prime minister John Major’s chancellor from 1993 until the fall of the Tory government in the 1997 Labour electoral landslide, Clarke was the most prominent pro-European in Major’s government — at one point, Clarke was even in favor of the United Kingdom joining the eurozone.  When Major’s government irreparably fractured over divisons on the UK’s role with respect to Europe, Clarke was most certainly the top general of the pro-European faction.

So it’s not a shock to see Clarke joining forces with Peter Mandelson, the former Labour veteran, and others for a cross-party effort to boost the United Kingdom’s continued presence in the European Union:

“There’s a broad range of opinion inside the [Conservative] party. The number of people who actually want to leave the European Union; it’s quite tiny. They get a disproportionate amount of attention. My guess is that there are about 30 who want to leave and when we first joined the European Community I think there was slightly more than that.”

He warned that it would be “pretty catastrophic” if Britain left the EU and said he was now resigned to fighting a referendum on the issue if the Conservatives win the next election.

“The background climate in this county has become … unremittingly hostile. I think somebody has got to make the positive case again. The climate of public opinion just needs to be reminded how essential it is if we really want the UK to play a part in the modern world,” he said.

But it’s another headache for UK prime minister David Cameron, who announced in a widely anticipated speech last week that he would seek to renegotiate the United Kingdom’s role in the EU and, thereupon, call a referendum on the UK’s continued membership by 2017 (obviously depending on the reelection of the Tories in the 2015 general election).

Clarke’s outspoken support shows just how difficult Cameron’s balancing act on Europe has become — and it will only be more difficult as a potential referendum approaches. Continue reading Clarke’s pro-Europe tone highlights referendum risk to UK Tories from the center →

European Union, United Kingdom

Cameron pledges 2017 EU referendum: ‘It is time for the British people to have their say’

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Screen Shot 2013-01-23 at 3.32.55 AM

UK prime minister David Cameron, calling the democratic legitimacy of the European Union ‘wafer thin,’ has this morning pledged to renegotiate a new settlement with the European Union for the United Kingdom, and then a straight in-or-out referendum within the United Kingdom by 2017.European_UnionUnited Kingdom Flag Icon

Well, then.  Today’s address was probably the most important speech of Cameron’s career and perhaps the most important turning point on UK-EU relations since Britain’s hard-fought entry 40 years ago into what was then the European Economic Community.

Less than a month after the EU fiscal compact treaty goes into effect, and on the day that France and Germany are celebrating 50 years of friendship –as cemented by the Élysée Treaty — no less, Cameron is pledging the referendum that neither his Conservative predecessors as prime minister, Margaret Thatcher nor John Major dared to hold.

Given that the United Kingdom is not (and will not anytime soon) be a member of the eurozone, there’s a rationale for the UK to negotiate a role where it is not subject to the ever-closer political union that the eurozone crisis has required, and it should be clear that the UK won’t cede fiscal and banking policymaking to Brussels when it hasn’t ceded monetary policymaking.  But it doesn’t follow that the UK needs to renegotiate those issues; after all, given the ‘Europe at multiple speeds’ approach that’s now reality, the UK has opted out of many EU initiatives — not only the single currency, but also the Schengen Agreement that eliminates internal border controls within the EU.

I’ll have plenty of longer thoughts on Cameron’s gambit later this week.

But for now, as I listen to his speech in real time, here are some initial reactions.

Cameron has ended his speech with a note of caution that the United Kingdom is not Norway and it is not Switzerland, and he’s discussing the benefits of membership in the EU — ‘more powerful in Washington, Beijing, Delhi’ by remaining in the EU — not to mention the free trade benefits of the single market.

By 2017, if there’s actually a referendum, and Cameron’s Tories have won the 2015 general election, I predict that Cameron will be arguing for a ‘yes’ vote on such a referendum.

It’s worth noting that no member-state has ever left the European Union (although Greenland, part of the Danish realm, voted to pull out of the EU in 1985 in order to protect its fishing rights — an issue that’s snagged Icelandic and Norwegian membership in the EU as well).

In the meanwhile, this seems like a political masterstroke — Cameron has pulled a play directly from the political playbook of Labour prime minister Harold Wilson, who held his own referendum on the United Kingdom’s EU membership in 1975 (it won 67,2%).

Consider:

  • In giving the euroskeptics a clear referendum on Europe, Cameron has now given them a reason to work hard for a Tory victory in 2015.
  • Given the relatively anti-Tory and pro-Europe view of the Scottish, the referendum, scheduled for 2017, need not spook the Scottish toward independence, given the scheduled 2014 referendum within Scotland on Scottish independence.
  • He will have quieted the euroskeptic right within his own caucus, notably his former defense minister Liam Fox and other anti-Europe Tories.
  • He will have managed to draw some daylight between his party and his coalition partner, the Liberal Democrats, who are incredibly pro-Europe, thereby giving the Lib Dems something with which to distance themselves from the Tories.  That will only help win votes away from Labour in 2015.
  • He will have taken the steam out of the rising United Kingdom Independence Party, not only for 2015, but for next year’s elections to the European Parliament.
  • By keeping the terms of renegotiation vague, Cameron can take any concessions from Europeans and declare victory (say, an opt-out from the working time directive), and push for a ‘yes’ vote in 2017.

United Kingdom

Despite by-election result, UKIP is still a bunch of ‘fruitcakes, loonies and closet racists’

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After placing second in a by-election in Rotherham last Thursday, the United Kingdom Independence Party (UKIP) has vaunted to the center of British politics, with newsmakers wondering whether UKIP will, after two decades, finally emerge as a real force in British politics.

The by-election, which resulted after Denis MacShane, a Labour MP, resigned due to the ongoing expenses scandal (MacShane had submitted 19 invoices for reimbursement for non-covered expenses), should have been a non-event. One Labour MP was replaced by another Labour MP, Sarah Champion, who won over 46% of the vote, which was actually an improvement on Labour’s performance in the 2010 election, when MacShane won just 44.6%.

So why has the sleepy little constituency in South Yorkshire been treated like a political earthquake?

With 21.8% of the vote, UKIP’s second-place finish was its best-ever result in an election for the House of Commons.

UKIP was founded by Conservative Party rebels in 1993 in opposition to the Maastricht treaty (the European Union treaty that established the single currency).  Its primary characteristic as a party is its eurosceptic nature, but its ‘pro-British’ posture means that it has adopted harsher anti-immigration and anti-Muslim stances than any of the three major UK parties, notwithstanding a robust strain of euroscepticism within the governing Conservatives under prime minister David Cameron.

Cameron famously referred to UKIP as a bunch of ‘fruitcakes, loonies and closet racists’ in 2006 shortly after winning the Conservative leadership.  It was probably not far from the truth in 2006, and it’s probably not far from the truth today.  Despite the hand-wringing across England, UKIP is not necessarily any stronger or weaker than it already was before last week’s by-election — and winning about one-fifth of the total vote is hardly dominant. Part of its ‘success’ comes from controversy surrounding the local Labour-dominated council removing three children from foster parents, apparently on the basis that the foster parents were UKIP members.

Nigel Farage, UKIP’s leader (pictured above) declared after the by-election that UKIP is ascendant:

“We have established ourselves now as the third force in British politics. We have beaten the Lib Dems in all forms of elections over the course of this year. We are clearly and consistently now above the Lib Dems in the opinion polls.

“There is an upward trend. And I think the UKIP message is resonating with voters and not just Tory voters. There are plenty of voters, particularly in the north of England, coming to us from Labour and the Lib Dems.”

Farage, who’s known less for statecraft than for his stunts at the European Parliament (he’s been an MEP since 1999), would certainly like to think so.

But despite clear signs that UKIP would indeed make gains if the 2014 European elections and the 2015 general election were held today, UKIP is unlikely to become a truly powerful force in UK politics anytime soon.

Here are five reasons why. Continue reading Despite by-election result, UKIP is still a bunch of ‘fruitcakes, loonies and closet racists’ →

Bavaria, European Union, Germany

Is Bavarian finance minister Markus Söder really the most dangerous politician in Europe?

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Der Spiegel ranks the top 10 most dangerous politicians in Europe, and you might be surprised at who comes out on top.

The piece targets Markus Söder, the finance minister of Bavaria since November 2011:

The politician from the [Christlich-Soziale Union in Bayern (CSU, the Christian Social Union)], the conservative sister party to Chancellor Angela Merkel’s Christian Democratic Union, is known for his tub-thumping rhetoric and has stepped up a gear in the euro crisis with vitriolic comments about Greece. “An example must be made of Athens, that this euro zone can show teeth,” he told the Bild am Sonntag tabloid newspaper this week. “Everyone has to leave Mom at some point and that time has come for the Greeks.”

It also points the finger at Alexander Dobrindt, general secretary of the CSU to which Söder also belongs — Dobrindt has also called on Greece to exit the eurozone by paying its debts in drachmas instead of euros.

Söder, an up-and-coming politician in the CSU, has previously served as minister for environment and health from 2008 to 2011 and from 2007 to 2008, as minister for federal and European affairs.  He’s a solid populist, to be sure — for example, he’s in favor of Bavaria’s ban on the wearing of Muslim head scarves (but not nun’s habits).

But it’s easy enough to explain away the relatively strident tone from Söder and the CSU as political posturing in advance of Bavarian state elections that must take place sometime in 2013.  The CSU will be struggling to maintain the grip that its held on Bavarian state politics since the 1950s.  At the federal level, although the CSU-backed Angel Merkel has walked a tight line when it comes to balancing national and federalist European interests, but her leftist opponents are even more federalist when it comes to Europe and the eurozone.

The Spiegel list is dominated by some of the nationalist right’s usual suspects: Nigel Farage, leader of the UK Independence Party (UKIP) and a member of the European Parliament; Marine Le Pen, leader of the Front national in France; Timo Soini, leader of the Perussuomalaiset (PS, True Finns) party, also a member of the European Parliament; Geert Wilders, head of the Dutch Partij voor de Vrijheid (PVV, Party for Freedom); and Heinz-Christian Strache, head of the Freiheitliche Partei Österreichs (FPÖ, Austrian Freedom Party).

They seem like odd choices, though, because none of them (except perhaps Strache) seem to be on the upswing.  Wilders is polling quite dreadfully in advance of the Dutch elections on Sept. 4.  Farage and Soini are sideshows at best.  Despite her strong showing in the French presidential election in April and the shadow she casts over the French center-right, Le Pen failed to win a seat in France’s national assembly in the June elections — and her party won just two seats in total.

To me, the following politicians are far more “dangerous” — by “dangerous,” I mean the ability to win real power or to be more effective in making mischief: Continue reading Is Bavarian finance minister Markus Söder really the most dangerous politician in Europe? →