Opinionomics | 23 April 2012

Must-read comment and analysis. Featuring the entrepreneurial state, the austere state, and the Unit

1. IMF encourages Europe's economic suicide (Telegraph)

Ambrose Evans-Pritchard argues that the IMF’s pledge to increase its rescue fund to $1 trillion encourages EMU and German elites to believe wrongly that the essence of this crisis is a speculative attack on the euro.

2. Without state spending there'd be no Google or GlaxoSmithKline (Guardian)

Mariana Mazzucato argues for the "entrepreneurial state"

3. Austerity is no answer (Times)

Sam Fleming writes that western policymakers are, in the words of Andrés Velasco, Chile’s charismatic former finance minster, “screwing up”.

4. Crisis, what crisis? (Stumbling and Mumbling)

Chris Dillow points out that this crisis is worse than in the 1970s, but there is less of the accompanying sense of despair. He asks why this might be.

5. The Amnesia Candidate (New York Times)

"Just how stupid does Mitt Romney think we are?", asks Paul Krugman.

The shadow of French presidential front-runner François Hollande, who has spooked markets with anti-finance rhetoric. 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.