UK News

Insights from the UK and beyond

from Anatole Kaletsky:

Will Britain really leave the European Union?

Is it conceivable that Britain will leave the European Union? A few years ago this question would hardly have been worth asking.  In the past 12 months, however, the issue of EU withdrawal has shot into the British political headlines.

The latest, and apparently most authoritative, such headlines appeared this week, after a pugnacious speech by George Osborne, the Chancellor of the Exchequer and second most powerful figure in the British government. Reuters headlined the Chancellor’s comments like this: “Reform or lose us as a member, Osborne tells the EU.” The Daily Telegraph highlighted the same message: “Osborne warns Britain may leave EU over reform failure.” The BBC headline concurred: “Osborne – Don’t force UK choice between euro and EU exit.”

While the idea of a British EU exit has now become so mainstream that “Brexit” is a universally recognized acronym among diplomats and financiers, no British politician of Osborne’s seniority has previously threatened so explicitly to pull out. But does this really mean that Brexit is becoming more likely?

Osborne’s rhetoric may sound strident, but actually it suggests the opposite conclusion when British politics and European economics are taken into account.

from The Great Debate:

Where does Britain stand in the global economic race?

Following the international financial crisis of the late 2000s, the world’s financial leaders have been working towards a standardized banking system that will strengthen banks at an individual level, and thus improve the banking sector’s ability to survive stress when it occurs.

In 2010 the Basel Committee produced a third accord outlining a set of regulations, with the goal of solving the banking system's ongoing problems. Since then the conversation has yet to cease over whether enough has been done, since the peak of the crisis in 2008, to ensure a stable financial environment that supports growth on an international scale.

from John Lloyd:

‘My people throughout the world’

This week Queen Elizabeth the Second, now 87, will give her customary Christmas broadcast. Every year she tells most Britons what they want to hear: that they are still great. And she is given much love for that.

That love is said to have been hard won. A few of the books written about Queen Elizabeth’s reign detail a marriage that went sour, at least for some years, because of her husband Prince Philip’s adultery. Nearly all books point to a disciplined life of unremitting travel, briefings, lengthy state occasions and unfailing courtesy. They also mention the constant explosions of sexual waywardness of nearly all of her four children and her (temporary) drop in popularity when, after Princess Diana’s death in 1987, she appeared to insufficiently grieve.

from Breakingviews:

Why the UK is growing and the euro zone isn’t

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By Ian Campbell

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

British growth is forging ahead of the euro zone’s. UK austerity has been more effective, the pound is cheap, the housing market suddenly all too lively. But British simplicity also helps. A Germanically strong euro weighs heavily on a still systemically challenged zone.

from Anatole Kaletsky:

British economic governance encounters turbulence

Students of British history will recall the story of Thomas a’Becket, the 12th century prelate who was handpicked by Henry II to become Archbishop of Canterbury because of his loyalty to the Crown. Within months of his appointment, a’Becket turned against the King in the numerous conflicts between church and state. As a result, a’Becket was murdered at the altar of Canterbury Cathedral in 1170, after four of Henry’s henchmen heard their royal master mutter in irritation: “Will no one rid me of this turbulent priest?” Archbishops do not have much political clout these days, but comparable spiritual importance now attaches to central bankers. And a central banker who suddenly seems reminiscent of Thomas a’Becket is Mark Carney, the recently appointed governor of the Bank of England.

When George Osborne, the British chancellor of the Exchequer (finance minister), delivered his Autumn Statement on Britain’s economic and fiscal prospects this week, he intended it as a “soft launch” for the Tory-Liberal government’s campaign for re-election in May 2015. The big set-piece speech offered Osborne an ideal opportunity to boast about the British economy’s sudden improvement this year and to announce some populist measures, such as a “voluntary” price-control regime for energy utilities, that were carefully designed to wrong-foot the Labour opposition. Osborne’s speech marked the start of a long political campaign designed to create a Pavlovian association in voters’ minds between government policies, rising house prices and the economic recovery. If this campaign is successful it will virtually guarantee election victory for the Tory-Liberal coalition -- and it could even make an outright majority for the Tories conceivable in 2015.

from The Great Debate UK:

Only paying teachers more will raise Britain to the top of the class

--Vikas Pota is chief executive of the Varkey GEMS Foundation. The opinions expressed are his own.--

It was results day yesterday for education ministers around the world, and where they’ve come in the class will affect their prospects just as surely as a sixth-former opening their brown envelope. Nowhere around the world will the wait have been more nail-biting than in Michael Gove’s Department for Education.

from Breakingviews:

BoE’s small-firm stimulus is blueprint for Draghi

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The euro zone is no longer collapsing, but credit is. The European Central Bank is reportedly considering giving banks cheap loans to stimulate lending. The Bank of England’s so-called Funding for Lending scheme shows that’s tricky, but the euro zone shouldn’t hold back.

from John Lloyd:

The inconvenient voters of Europe

Sixty years ago, pondering the question of an unruly populace, the German playwright Bertolt Brecht mused, “Would it not be easier / In that case, for the government / To dissolve the people / And elect another?”

It was a rare piece of ironic criticism of East Germany’s communist regime for Brecht, since he usually supported it. But after the regime’s suppression of a workers’ revolt in 1953, he spoke out. It’s one of his most famed observations, trotted out whenever a populace is ungrateful enough to vote “against their own good.”

from The Great Debate:

Kennedy’s assassination, from the eyes of a British newspaperman

I heard the first uncertain fragment on BBC Radio. I was wearing a dinner jacket, driving in the dark to a press ball in Teesside in the industrial northeast of England. This dinner dance was quite an occasion for me. I was the new boy, early thirties, putting in a first appearance as an editor at a big social event where all the rival purveyors of news hobnobbed with mayors, MPs, police chiefs, bosses of the coal mines, steel mills and shipbuilding yards: in short, all the news sources of the entire northeast we covered.

I guess it was near 7 p.m. UK time when I heard the flash. President John F. Kennedy had been shot at 12:30 p.m. Texas time. I was 20 miles from the offices in Darlington where I'd just been entrusted with the editorship of the Northern Echo (circ. 100,000). It was, and is, a regional morning daily with a glorious heritage going back to the sensational editorship of W.T. Stead in the 1870's (he died on the Titanic), but with its circulation of 100,000 ebbing before the challenge of nine national dailies, two rival regional dailies, three city papers and TV and radio.

from Photographers' Blog:

At Duxford Airfield, Spitfires still rule the skies

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Duxford, England

By Neil Hall

Propellers whirring, a group of Spitfire aircraft zooms in formation across the sky over Duxford Airfield, one of the first stations of Britain’s Royal Air Force (RAF).

It could be a scene straight from the 1940 Battle of Britain, when British and German fighter planes vied for control of the skies in one of the key clashes of the Second World War. But this is 2013, and the shapes streaking over the landscape are models that have been worked on by the Aircraft Restoration Company, a firm dedicated to repairing historic planes, mostly for private owners.

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