This is a coalition without courage

Forget the double dip: ministers say we can now go faster on the M25 and don't have to recycle as mu

So here it is, then, the legacy of the Coalition taking shape. 80mph motorways, weekly bin collections, 5p plastic bags and making it easier to sack people.

Here is a Government acting like a giant mimsying parish council tinkering at the edges while everything else falls apart. Forget the double dip, our whole nation descending like a spittle-soaked nacho being plunged into an over-ripe bowl of taramasalata; we can go a bit faster on the M25! We can throw away as much as we like! We can pretend to care about the environment! We can get rid of more staff without worrying about their pesky so-called rights!

Neeyow! Stick two fingers up to the so-called speed cameras brigade daring to stop 'otherwise-law-abiding' motorists and put your foot down hard on the gas pedal. Here comes freedom! You might not have a job, but if you did have a job, you'd be able to drive a bit faster, if you could afford a car, which you can't, because there aren't any jobs. But suppose you did have a car: you could go more quickly in it. Doesn't that make you feel better about things?

As well as that, you can throw away as much as you like, because Eric Pickles has found £250million down the back of the settee to reward councils who reinstate weekly bin collections. Hurrah! Of course, you might find that cold comfort if you're not earning enough money to be able to afford anything - let alone to be able to afford to just chuck stuff away without recycling or composting - but suppose you did have money: you could waste more of it. Doesn't that make you feel better about things, either?

Forget your local library closing down. Forget the fact there are no jobs, there is no future, there is a whole generation scratching around for work that isn't there. Forget those hundreds of Navy folk heading for the Jobcentreplus; they'll have the consolation of knowing they can retrain as dustmen and women to fill the literally fives of vacancies that will spring up across the land when we enter the wonderful world of weekly collections. Let's have trained Navy personnel manning the dustcarts and launching wheelie bins as torpedoes as they roar around at 80mph twice a week; it's a perfect solution.

Of course, these are just amuse-bouches to whet our appetites as we await the big decisions at the Conservative Party conference, but they give an indication of what we can expect over the next three and a bit years as the Tories head towards glorious re-election. What we can expect is a mess. On the one hand: mess we inherited, tough decisions, privatise everything, sack everyone. On the other: weekly bin collections, driving a bit faster, possibly having to pay 5p for plastic bags.

A Government that wanted to make really tough decisions and leave a real legacy - as opposed to sacking loads of public sector workers they were going to sack anyway, but having the bonus of blaming the previous Government for the deficit in order to do so - would decrease the speed limit, and get even tougher on recycling targets for councils, in order to reduce emissions and stop waste. But we all know why that won't happen. It won't happen because the Coalition doesn't have any courage. All it has is an agenda to obliterate the state, while chucking a bone to its selfish heartland to ensure it gets served up a second term in office. The question is whether they're going to get away with it.

Patrolling the murkier waters of the mainstream media
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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