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.

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John McDonnell accuses Labour of “rigged purge” of Corbyn supporters

The shadow chancellor criticises the party's national executive committee for its expulsion of members and supporters from the leadership election.

John McDonnell has accused Labour of targeting Jeremy Corbyn's supporters in a "purge" of those allowed to vote in the leadership election.

"Labour party members will not accept what appears to be a rigged purge of Jeremy Corbyn supporters", the shadow chancellor wrote. "The conduct of this election must be fair and even-handed."

McDonnell, who is Corbyn's campaign manager, added: "I am writing to Labour's general secretary Iain McNicol to demand that members and supporters who are suspended or lose their voting rights are given clear information about why action has been taken and a timely opportunity to challenge the decision. In particular, the specification of particular terms of abuse to exclude Labour party members from voting should not be applied retrospectively."

The statement follows the suspension of Bakers' Union boss Ronnie Draper from voting in the election, an action Draper attributed to unspecified previous social media posts. Labour's national executive committee has not commented on the reasons for his suspension.

"While Ronnie, a supporter of Jeremy Corbyn, has been denied his say in Labour's elecion, no action is being taken over the Labour peer, Lord Sainsbury, who has given more than £2m to support the Liberal Democrats," McDonnell said. "And no action has been taken against Michael Foster, the Labour party member who abused Jeremy Corbyn's supporters and staff as Nazi stormtroopers in the Daily Mail."

McDonnell's statement adds to an already febrile mood over the election, which sees Corbyn pitted against challenger Owen Smith. A week ago, a group of Labour grandees signed a letter condemning "intolerable" attacks on party staff - who are not allowed to respond to allegations made against them. The latest statement will be seen as a warning shot to general secretary Iain McNicol, who the leadership feel has consistently interpreted the party's rules to Corbyn's disadvantage. 

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.