Eurocrash: the end result
Friday 29 March 2013
As predictable as the sun rising in the morning, EU officials are using the latest crisis as an argument for "more Europe". This time it is EU Internal Market Commissioner Michel Barnier, who has demanded as a consequence of the Cyprus crisis, that the management of the eurozone should be strengthened.
Monetary union become needs dedicated "Ecofin" type body, merging the offices of the eurogroup chairman and the EU economic affairs commissioner. Strangely, he gets short shrift from the chairman of the Union Group in the Bundestag finance committee, Hans Michelbach (CSU). He rejects the idea, saying that this "is another flimsy attempt to expand Brussels centralism". This does not solve the problem, he says. Rather, it threatened to proliferate problems. Such a lack of enthusiasm for further integration might seem a bit odd, although some Germans are still feeling bruised by the bad press they are getting. "Germanophobia is unfair", declaresSpiegel. However, before you decide whether it is safe to go out, check out FAZ Robert Menasse and Ulrike Guérot proclaim: "Long live the European Republic". No nation state can solve problems alone, they say, but it is the lack of democracy in Europe that prevents it coming into its own. This is one of a raft of articles on the same theme. The pursuit of European political integration is very far from dead. Spiegel though has other fish to fry, telling us more about the run of money out of Cyprus. The banks there are saying it was impossible to prevent all money slipping out of the country, despite the account freeze. Much of the money was withdrawn from overseas, where Cyprus had no authority. Branches of Cypriot banks in non-eurozone countries such as Russia and Britain do not answer to the European Central Bank. Their liquidity is controlled by central banks in those countries. What is priceless, though, is the magazine's comment that their defence is "nothing less than a voluntary admission of impotence". Holders of smaller savings accounts, it says, have been unable to access much of their money for almost two weeks, companies have been unable to pay their suppliers and across the country people are concerned that their salaries will not arrive on schedule on the first of the month. Meanwhile, rich businesspeople and those with connections overseas have been able to transfer their money into foreign accounts, says the magazine. And that is the reality of the European Union. For all the talk and the high aspiration, it's about the little man being shafted. COMMENT THREAD Richard North 29/03/2013 |
EU politics: an amending budget
Thursday 28 March 2013
 Already set at €132.8 billion, the Commission has cone up with an "amending budget", adding another €11.2 to that figure, in an attempt to by-pass the cap on the multi-annual spending target. It would represent an 8.4 percent increase over the level already agreed in December, pushing annual EU spending to its highest level ever. The extra funds must be approved by both the European Parliament and the Council – the latter by qualified majority voting – which means that the UK cannot block them, even though Downing Street has pledged to fight the proposal which would cost us about €1.2 billion. The European Parliament, which has been calling for extra funding, is most likely to approve the amending budget, and is threatening to block the multi-annual agreement unless the Council caves in, something about which Schultz has made himself abundantly clear. Meanwhile, the Commission is not pulling any punches. "This cannot come as a surprise", EU budget commissioner Januz Lewandowski says, referring to the current gap between projected income and commitments. "The ostrich policy can only work for so long: postponing payment of a bill will not make it go away". Britain's Financial Secretary to the Treasury, Greg Clark, has nevertheless described the Commission's proposal as totally unacceptable. "It is extraordinary that the Commission should demand an increase in the EU budget that is bigger than the rescue package that was agreed for Cyprus earlier this week," he says. And the point made is a good one. Considering all the hullabaloo there has been about €10 billion to the Cypriots, for the Commission to dump another €11.2 billion on the tab is more than a bit tiresome. Lewandowski, though, is unrepentant. In recent years, he says, EU budgets had been "increasingly below the real needs based on estimates from member states". Now this is creating a "snowball effect" of unpaid claims transferred to the following years. This is what originally proved to be the breaking point on the multi-annual budget, with the Parliament refusing to take a hit in order to pay outstanding bills. Now it is coming back to haunt Mr Cameron, further eroding his budget "victory" last year. The interesting this is that the use of the amending budget was flagged up in November 2010, and the funding gap was highlighted last October. Then, we wrote that, when the "colleagues" come round with their begging bowl, Mr Cameron is going to have to find about £1 billion to put in the kitty. Thus, Lewandowski is absolutely right. This shouldn't come as a surprise. But that does not stop it being a major embarrassment to Mr Cameron. The last thing he wants is to have to find another €1.2 billion for the EU, or the prospect of demonstrating his impotence when it comes to trying to stop the "colleagues" taking it. But Mr Cameron want to stay in the EU and, if he does, political embarrassment is part of the personal price he must pay. COMMENT THREAD Richard North 28/03/2013 |
Climate change: if in doubt, photoshop
Thursday 28 March 2013
 In response to the complaints, the administration on 26 March posted on its website a glorious photograph of three of its snowploughs, clearing the streets to let the traffic through (above). Spotted by Facebook user Jaroslaw Debeli, though, there were slight problems with the photo. It came not from Kiev, capital of Ukraine on 26 March, but from Moscow on 29 November 2012. In an attempt to conceal its identity, Russian license plates and other telltale detail had been digitally obscured. Despite this, a spokesthing for the city government dismissed the image as a "technical error". The web administrator responsible "was probably tired because he had been working non-stop for several days", the spokesthing said. Clearly the British authorities could learn from this. Complaints of failure to clear snow can so easily be addressed by posting photos of successful snow clearance from other eras.
After all, since Dr Viner told us that snow was "a thing of the past", this snow cannot be here. It must be virtual snow, in which case virtual snowploughs are the obvious answer.
COMMENT THREAD Richard North 28/03/2013 |
Energy: after the thieving bankers
Thursday 28 March 2013
The Daily Express is trying to steal a march on the Mail in the outrage stakes, highlighting on its front page the latest example of corporate greed. This time it is Centrica directors, milking £16 million in salaries and bonuses from the cash mountain acquired by British Gas.
Chief executive Sam Laidlaw raked in almost £5 million, with his salary of £950,000 topped up with bonuses and long-term share awards of over £2.6 million, plus benefits. Outgoing British Gas managing director Phil Bentley saw his total remuneration leap to £3.1 million in 2012 from £2.1 million a year earlier. His basic salary was £635,000. Head of power generation Mark Hanafin, finance director Nick Luff and North American boss Chris Weston each received between £2.5 million and £3 million. Critics, we are told, described these payments as "excessive greed", but that's a new one on me. What is excessive greed? Greed, by definition, is excessive. One is also less than impressed by the mouthings of sundry trades unionists, including TUC general secretary Frances O'Grady. The paper has her saying, "At a time when the poorest households are struggling to make ends meet and are spending over a quarter of their incomes on fuel bills, these huge payouts are insensitive beyond belief". Nevertheless, O'Grady has a point – and even more so does Unite general secretary Len McCluskey, declaring, "It is obscene and is the straw that could break the back of corporate excess". He adds, "Enough is enough. This excessive greed sees casino bankers and the corporate elite running British business pocket millions while working people struggle to pay their soaring household bills. It must stop. As Britain goes through the worst March weather in half a century, the sun shines brightly on Centrica's bosses while those struggling to pay the bills shiver". Yet, in this country, the government objects to caps on executive pay, and the people don't have a choice - unlike Switzerland. But, since the EU is proposing controls, this plays into the hands of the evil empire. It is taking a populist approach to the issue, where the British government is loathe to act. Mr Cameron, therefore, would be unwise to ignore this. There is a strong and genuine resentment of the pillaging of these corporate thieves. No one with any sense has any objections to executives of major enterprises being well paid, but multi-million salaries and bonuses paid to corporate employees are theft, pure and simple. What the powers that be possibly don't appreciate is the message this sends out, and the moral implications. How can the State condemn, or rightfully punish, the anyone stealing property, when it condones theft on such a vast scale? And, while the State might tolerate this situation, politicians need to be aware that public patience is limited, and resentment is growing. "Last chance saloon" doesn't even begin to describe it. COMMENT THREAD Richard North 28/03/2013 |
Eurocrash: keep calm and look forward to Easter
Thursday 28 March 2013
 Amongst the accounts cleaned out, it seems, were those of senior officials from the Cypriot banks and the government, and the suspicion is that they have been transferred to another EU country. The Cyprus Parliament President Giannakis Omirou is examining the suspicion that unusually high remittances were made abroad, with greater cash withdrawals than there should have been. Omirou has requested a list of the transfers in recent weeks and is also examining the government in Nicosia to see whether large sums were transferred abroad as the banks closed and the online banking was locked down. The extent of the capital outflow has been so huge that the Cypriot banks need far more money than just the money customers had withdrawn from ATMs. Süddeutsche relays a suggestion that there were up to ten billion euros deposited by Russian citizens. Other estimates put the sum at double and more, but it is difficult to determine precisely how much, as so many of the origin of many deposits are concealed in shell companies. Top of the list of destination countries is Malta (pictured) and it is now known that Cypriot law firms were recommending to their foreign customers with companies in Cyprus to maintain accounts in Malta. This trend increased dramatically after the first speculation about the involvement of savings in the bank bailout. Furthermore, an international law firms based in Texas sent targeted e-mails to Cypriot companies, telling them: "Malta has a strong financial sector, a good growth rate and low government debt". Apparently, firms in the Isle of Man and Latvia are also taking in refugee funds from Cyprus and there are also reports that there has been a substantial inflow of funds from diverse sources into Jersey. Back in Cyprus, a massive convoy brought five billion euros in cash in from Larnaca Airport to the Central Bank in Nicosia after it has been shipped in, preparatory to the banks reopening today. The news is that withdrawals are to be limited to €300 a day, with transfers abroad capped at €5,000 a month. If the bird has already flown, though, it maybe that the crisis is by no means over, as there may be insufficient in the banks to deliver the sort of cash the "colleagues" are expecting. And then there is the little matter of Luxembourg, which may also be in line for some corrective action. Meanwhile, with Cypriot riot police standing by to keep order, anti-German sentiment is growing, leaving Germany to complain that the "colleagues" are not defending it against unfair criticism.  Solidarity is required, FAZ concedes, but just because the German government insists on a return, it is pilloried. One can only wonder at Mrs Merkel's composure in the face of the insults she has had to put up with, the paper says. Comments are often "negative and rude". Germany, it says, is living the Thatcher experience. European governments used to hide behind the British prime minister, because they dare not say the things she said openly. Now the federal government is being blamed for a policy that is in line with other EU partners. So, says Handelsblatt, "keep calm and look forward to Easter", when the markets close for the holidays. Sounds like a plan … better than most. COMMENT THREAD Richard North 28/03/2013 |
UK politics: David Miliband resigns - do we care?
Wednesday 27 March 2013
Do we actually care that David Miliband is quitting as an MP for South Shields and walking away from the "soap opera" of British politics? And does it matter that he is putting the taxpayer to the considerable expense of finding a replacement – not that it will make a blind bit of difference.
South Shields was first represented by Labour in 1929, when JamesChuter Ede took the seat with a majority of 40, only to lose it to the Liberals in 1931, who regained the seat with a stonking ten thousand majority. Ede took it back in 1935, fending off a challenge from the National Labour candidate as well as the Liberal, possibly benefiting from the opposition vote being split. He kept it in 1945, and the seat has stayed Labour ever since –giving them a near 80 years of unbroken tenure. In the last election. Miliband polled 18,995 votes, as against 7,886 for his Conservative rival, and 5,189 cast for the Lib-Dems. UKIP did not stand. The overall turnout was 57.7 percent, giving young David a mandate from just 30 percent of the electorate. One assumes that UKIP will field a candidate for this thoroughly irrelevant contest, hoping to repeat the Eastleigh "success" of beating the Tories into second place. In South Shields, this is a bit like shooting fish in a barrel, although UKIP have always struggled to maintain a presence in the North-East, and have yet to gain an MEP in this region. However, BNP did quite well in to General, polling 2,382 votes, many of which are potentially transferable to UKIP, assuming that BNP does not stand again. But with Lib-Dem support in the constituency eroding (the party lost five percent at the General), it looks another shoe-in for Labour. Nevertheless, the fight for second place should provide some entertainment. COMMENT THREAD Richard North 27/03/2013 |
Energy: the reckoning to come
Wednesday 27 March 2013
 Not entirely coincidentally, the front page tells us to expect £286 in green taxes on energy bills by 2020. Already, we are told, we are paying £112 on an average bill of £1,267. In fact, it is going to be a lot more than that – the Mail is relying on government figures. But what is terrifying here is that ministers have swallowed the green mantra – that increased costs will be offset by efficiency savings, with DECC claiming that the increase will be offset by efficiency savings of £452 a year. There is no meeting of minds here. We are dealing with energy secretary Ed Davey. He refuses to see past his own departmental propaganda, into the real world, and simply repeats his mantras, not budging an inch. Cue then the Daily Telegraph which gives him space for an authored piece, telling us that "coalition policies are not only about tackling climate change, diversifying supply and creating jobs, but also about saving money on bills too". And the Telegraph thinks we are going to pay for this sort of guff via a paywall? But, if this doesn't take the biscuit, we have Labour's energy spokesman Caroline Flint, who roundly criticises the energy policy, declaring that, "the Government's underhand attempt to mask the real impact of its policies on families' energy bills is shameful". Yet this is the same Labour that, under Ed Miliband, launched the Climate Change Act, with the near-unanimous support from all sides of the House. When it comes to energy policy, therefore, there is not much to chose between the lot of them. They are as bad as each other. Sadly, that typifies modern politics. There are only a very few policy issues where there are any real differences, and those differences are not enough to make the difference. All parties are tarred with the same brush. Effectively, that leaves most people with a feeling of powerlessness, and explains why so many are walking away from the political system. But energy policy, like so many other aspects of government, cannot be fudged forever. When the lights do go out – and that looks more likely than ever – there will be a reckoning. There will have to be. Modern society cannot function without cheap energy and successive governments which have deliberately sought to increase costs for no good reasons need to be brought to account. COMMENT THREAD Richard North 27/03/2013 |
Climate change: the winter of our discontent
Wednesday 27 March 2013
 Now, courtesy of the BBC, we learn of another pile-up involving on the continent, this one on an Austrian motorway, involving 100 vehicles, leaving at least one person dead. In passing, the state broadcaster also tells us that there is a spell of freezing weather is causing disruption across Europe, adding that an icy carriageway was a likely factor in this crash. And this was not the only major incident. In southern Austria, at least 29 people were injured - six seriously - in two accidents inside road tunnels. The A2 motorway, which runs through the tunnels, was blocked in both directions. Further east, there has been record-breaking snowfall in the Ukrainian capital Kiev has caused traffic chaos, which has seen many residents taking to skis instead. Minsk has also been badly hit, and three regions of Romania heavy snow has blanketing three regions, closing schools and disrupted road traffic. The freezing weather, we are also told, has also caused chaos on Serbia's northern border with Hungary where lorries queued for hours amid heavy snowfall. Black ice coating roads in neighbouring Croatia has caused a spate of accidents. Then, thousands of people in Hungary found themselves trapped in heavy snow after a sudden cold snap and high winds swept over Eastern Europe. Budapest has deployed tanks to reach motorists trapped by the conditions. The heavy dump has trapped people in cars, buses and trains as dozens of major roads across the country were blocked by the snowfall. And it isn't just that. In Germany, it is estimated that long, cold, dark winter could cost up to €6 billion in extra healthcare and lost productivity as people stay away from work sick, as well as causing terrible confusion to the humourless German police. So long and so often have we been hearing the laments from the warmists about the perils of warning that it is about time that they stopped and gave some real though to the far greater dangers and disruption arising from cold weather, and the economic cost. Even then, there are the hard-line warmists who believe that this spell of bad weather is directly the result of "climate change", not able to deal with the reality of a cooling planet. Their obsession is diverting massive resources from the real problem, so much so that even at local level, English councils spending hundreds of thousands on the salaries of climate change officers cannot afford to clear the snow from the streets. When finally, sense prevails – as indeed it must – we shall, in our winter of discontent, remember these people. The evil that men do should not live after them. We cannot afford it. COMMENT THREAD Richard North 27/03/2013 |
UK politics: immigrant controls – a bag of nothing
Tuesday 26 March 2013
That was certainly the feeling yesterday when David Cameron told an audience of students at University Campus Suffolk in Ipswich that world he planned to show illegal migrants "the door" and rein in welfare benefits he believes lure foreigners to live off the British state.
Specifically, he declared that certain measures would apply to "all citizens of the European Economic Area", with immigrants having to wait up to five years for social housing. And they would also be subject to tougher "reciprocal charging" requirements when using the National Health Service - meaning their own country will have to pay. Very quickly, Cameron was accused of "the worst kind of dog-whistle politics", accompanied by reports of his pledges "unravelling" within hours of his speech. Then, today, we have the Daily Express report that "Brussels" was threatening to block the "crackdown" before it had even started, apparently warning that his proposals – including restrictions on housing, health and unemployment support – must comply with EU free movement rules. So, once again, we a mired in uncertainty, bumping against the limits of EU law, which circumscribe what a British government can do. Actually, though, the restriction is not so much "free movement" as Article 18, by which "discrimination on grounds of nationality shall be prohibited". Mr Cameron can impose all sorts of restrictions on benefits, and eligibility to social housing, as long as those restrictions apply uniformly to all residents, whether British or not. Basically, though, as long as a citizen of any EEA member state can pass what is known as the "habitual residence test", and then conform with the national eligibility criteria for any benefit or service, their entitlements must be placed on the same basis as resident British citizens. However, Mr Cameron is making a particular play on social housing provision, declaring that, "New migrants should not expect to be given a home on arrival". He thus says he intends to introduce new statutory housing allocations guidance this spring, "to create a local residence test" which "should mean local people rightly get priority in the social housing system". What Mr Cameron doesn't say, though, is that Local Authorities (LA) have a statutory duty to house certain categories of the homeless, which includes those who have dependent children. If immigrants who are able to pass the "habitual residence test" fall into these categories, the LA is obliged to house them, irrespective of whether they are local or not. Very often the so-called "statutory homeless" will be housed in temporary accommodation, such as a bed and breakfast hotel. But, if eligible migrants have children or are pregnant, in common with British residents, they can only be placed in a bed and breakfast in an emergency, and there is nothing else available. Even then, the LA can only use this option for a maximum of six weeks, when they must be given more permanent accommodation. It is unlawful for an LA to turn applicants away or require them to apply to another council because they do not have a local connection with their area. And, if applicants do not have a local connection anywhere - as will often be the case with migrants - the LA cannot refer them to another council for housing. Of what we have seen, therefore, Mr Cameron is offering us nothing at all. What he seems to be doing is dressing up existing provisions and controls, re-presenting them in such a way as to appear to be "cracking down". In other words, it is smoke and mirrors time once again. COMMENT THREAD Richard North 26/03/2013 |
Climate change: a rare and exciting event
Tuesday 26 March 2013
 This is all good stuff, but it might have carried a little more conviction if the Great Littlejohn had kept an eye on the blogs. He might then have discovered it appearing on this blog on 27 December 2009. 
Littlejohn might also have noted that the quote was picked up by Watts up with that two days later, and has since becoming a standard part of the armoury in the war against the warmists. It first appeared in the Booker column in February 2010.
But then, we mustn't grumble. For the Mail actually to catch up with what is going on outside its own tiny little bubble is also a rare and exciting event. We should all applaud the speed with which it has come to the party … only three years late. That has to be better than never. Do we expect a new revelation on Hammond by, say, July 2016? By the way, we've got another fall of global warming this morning. And while there is a humorous side to the warmists' stupidity, the damage they do is incalculable. Talk to Scottish farmersabout the need to tackle global warming – and see how long you live. COMMENT THREAD Richard North 26/03/2013 |
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