So is New Labour dead or not?

When is a party dead? Paul Evans brings us the best of the politics blogs from domestic politics thr

Nusferatu: A Party Undead

This week Lord Mandelson declared Cameron’s claims of New Labour’s demise to be premature.

Andy Newman on Socialist Unity considered what defined the New labour project, and concluded that it: “…was built on two foundations: one was a commitment to neo-liberalism; the other was the belief that electoral success could come through winning over swing voters in marginal seats by triangulating around the Daily Mail driven socially conservative agenda”.

In a detailed look at the failings of the party’s economic agenda, he argued that it was “corrosive because it de-legitimised the whole idea of state intervention in the economy”.

Over at Spiked, the ever confrontational online heir to Living Marxism, deputy editor Rob Lyons observed that “The suggestion that New Labour is dead is somewhat ironic since the party is itself merely the zombie left behind after the demise of ‘Old Labour’.” But Heresiarch argued that Old Labour has never truly left us, suggesting rather that we have been collectively duped:

“Tony Blair looked and sounded like a right-winger when he was actually a statist authoritarian. Gordon Brown looked - and so was accounted - cautious and trustworthy. As a spectacle of legerdemain, New Labour was unprecedented,” he wrote.

Elsewhere, Tory MP David Jones blogged that behaviour in the chamber gave the lie to Mandelson’s claim – while right-winger Shane Greer enjoyed an unseemly chuckle at the disappearance of the New Labour domain.

What have we learned this week?

That it’s not always funny when Tory MPs get arrested. Damien Green has been nicked for allegedly receiving leaked Home Office documents.
Within in minutes, Conservative Home was speculating and Labour Home was gloating. Perhaps if we had greater transparency and decent responses to difficult parliamentary questions, such leaks would be unnecessary?

Around the World

As India wrestled with terrorist outrages on an unprecedented scale, Seriously Sandeep was irked by what he perceived as the appeasement and concern for the perpetrators by fellow bloggers. Aditya Kumar confessed “I am terrified. Petrified,” while Anuradha Bakshi (perhaps the sort of commentator Sandeep was needling at) asked:

“…who are the real culprits: the predators lurking with their indoctrination spiel or a fractured society where dreams of some can never be fulfilled, where hate and animosity are easily ignited and stoked?”

It transpires that Tory MEPs were also among those caught up in the chaos.

Videos of the Week

It’s easy to forget that Robert Kilroy-Silk is still, in theory at least, representing our nation in the European Parliament - he hasn’t spoken in a debate for more than three years. But if you do want to see his powers of rhetoric at work, here he is having a row with TV ghost Timmy Mallett. Online supporter cottz2008 cheered him, writing:

“cum on kilroy u to win it i can rember wen u came to ilkeston to try n be a mp well cum on win it for us”.

But now he has been chucked out of this telly competition, and it’s hard for all of us.

Quote of the Week

“It depends, I suppose, what you imagine New Labour was. If you mean the media-manipulating, bullying, authoritarian bulldozer, then it is still very much alive, and probably worse than ever.

No punches pulled, on Heresy Corner.

Paul Evans is a freelance journalist, and formerly worked for an MP. He lives in London, but maintains his Somerset roots by drinking cider.
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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump