Opinion

The Great Debate

Britain’s Liberals flex their muscles, a little

Every marriage goes through its bumpy patches. Just ask British Conservative Prime Minister David Cameron and his Liberal Democratic coalition partner, Nick Clegg. They have just gone through the most serious spat since they cobbled together their civil union two years ago, when British voters removed Gordon Brown’s Labour government but didn’t give the Tories a clear mandate. The coalition is a marriage of convenience, a dynastic coupling where neither side is under any illusion that love or affection is involved.

The pretext for the current very public disagreement was a Labour motion in the House of Commons demanding an investigation into whether the minister responsible for deciding whether Rupert Murdoch could buy the 58 percent of broadcaster Sky he does not already own broke the government’s own strict code of conduct. Jeremy Hunt, the man at the center of the fight, has been shown to have made up his mind in favor before being given the job of impartially adjudicating and to have been ultra-cozy with the Murdochs, sending Rupert’s son James a high-five text suggesting that the deal was a fait-accompli. The Murdochs admit bombarding Hunt with no fewer than 788 exculpatory emails. Despite this, Cameron saw no problem with Hunt’s lack of objectivity, and Hunt has defied endless Labour calls to resign.

Clegg, who before the coalition was not deemed important enough to warrant even a Christmas card from Murdoch, spotted an opportunity. With the British public furious at how Murdoch has made a mockery of democracy by bullying and buying his way to business success, he declined to support the Labour motion. The Lib lawmakers were told not to back Cameron and Hunt. The Tories won the Commons vote anyway, as they have a few more lawmakers than Labour.

So, what was the point of Clegg’s rare display of independence? He is highly aware the Libs have suffered from putting the Tories in power. If Cameron succeeds in turning the British economy round within the next three years, Brits may well reward his party with a working majority. If the economy, which coalition policies have driven into a double-dip recession, fails to recover, the Libs will be blamed for aiding and abetting a painful experiment in austerity. At the general election in May 2010, the Libs won 23 percent of the vote. Since then their support, according to every opinion poll, has been cut in half. If an election were called tomorrow, they would suffer a profound collapse.

They need, therefore, to show voters they are not closet Conservatives by flexing the few muscles they have. It is a forlorn gambit. Everyone knows what they are up to, and few give them credit for distancing themselves from the government they are keeping in office. As Cameron put it: “To be fair to the Liberal Democrats, they didn’t have that relationship [with Murdoch that the Tories did] and their abstention tonight is to make that point. And I understand that. It’s politics.”

from The Great Debate UK:

Cameron tasked with changing Brits’ expectations

-- Mark Kobayashi-Hillary is the author of several books, including ‘Who Moved my Job?’ and ‘Global Services: Moving to a Level Playing Field’. The opinions expressed are his own --

After thirteen years, it’s all over. The New Labour project is dead. Or is it? Tony Blair brought British politics to the centre-ground and ensured that a single party could support free-market economic policies as well as social justice.

And that’s what most people want today, a government that can help the citizen without hindering the economy through the dogma of dated ideology. The old notion of socialists waging war on small-government-right-wingers feels somehow quaint. Clearly Tony Blair knew that David Cameron would be his successor in the New Labour project, but nobody told Gordon Brown.

from The Great Debate UK:

Pound’s fall a symptom of crisis, not a problem in itself

vince-cable

--Vincent Cable is Deputy Leader of Britain's Liberal Democrats. He is a former economist who is also the party's spokesman on economics and finance. The views expressed are his own. --

Most of Britain’s moments of high economic drama in the 20th century centred on sterling: the Gold Standard in the inter war period; the various balance of payments crises of 1949 and 1967; Black Monday and the ERM.  It is perhaps understandable that commentators should reach for these folk memories and attach the word “crisis” to the current fall of sterling against the main trading currencies particularly the Euro.  Understandable; but wrong.

Britain certainly faces very deep and painful economic problems  which may prove as serious as any since the second world war: a sharp contraction in output; high unemployment; perhaps, for the first time since the 1930’s, sustained price deflation; serious depressed asset markets, as for equities and housing; and, not least, a virtual collapse of the banking system.

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