Opinionomics | 14 May 2012

Must-read comment and analysis, featuring pasty-tax funded investment and much Eurocrisis.

1. As European Austerity Ends, So Could the Euro (Bloomberg View)

The euro currency is a malady that condemns at least a generation of Greeks, Italians, Spaniards, Portuguese and Irish to the economic infirmary, writes Peter Boone and Simon Johnson

2. The pasty tax could pay for a £30 billion infrastructure programme: four charts show why history will judge us harshly (Not the Treasury View)

Jonathan Portes writes that a £30bn infrastructure programme would cost just £150m a year, thanks to historically low gilt yields: that is the revenue raised by the pasty tax.

3. What history tells us about a potential Greek exit (Pragmatic Capitalism)

David Schawel asks what an exit from the euro would look like, and how it would be accomplished.

4. The recession deniers have gone strangely quiet this month (The Independent)

We are in the slowest recovery for a century, with no end in sight, writes David Blanchflower

5. World edges closer to deflationary slump as money contracts in China (Telegraph)

Ambrose Evans-Pritchard argues that more and more signifiers point to depression hitting not just the developed world but the BRICS as well - and China could be the first to go.

Greek President Carolos Papoulias holds a newspaper in his office in Athens. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.