Newsnight could blow open Labour leadership contest

First fully televised debate will be the talk of the town tomorrow.

Tonight's edition of Newsnight is going to include the first live televised hustings of the Labour leadership contest. This will be the biggest audience for any hustings so far and is going to have a very different dynamic.

All politicians respect Jeremy Paxman and all the candidates have already done one-on-one interviews with him on the show. But tonight's Newsnight is going to include a studio audience, not of committed party members who will cheer for their chosen candidate, but an audience of swing and former Labour voters. If one of them passionately challenges a candidate, we could get the equivalent of the Gillian Duffy/Sharon Storer/Joe the Plumber moment of this contest.

When Newsnight put together a focus group earlier in the contest, nine swing and former Labour voters unanimously picked David Miliband out as their choice, after being shown clips of their speeches from last year's party conference. Partly on the back of that focus group, David Miliband's supporters began to argue that he was the was the candidate who could win back the support of all sections of society and refresh Labour's offer to reach parts of the electorate that others couldn't reach.

That, however, was before Diane Abbott entered the race. Abbott probably has more TV experience than any of them because of her weekly This Week slot. And we shouldn't forget that David Miliband's campaign made a conscious decision to give her the nominations she needed to get on the ballot paper.

Time will tell whether that was a politically strategic masterstroke or New Labour's final blunder. At last week's New Statesman hustings, David and Diane clashed on Trident and Iraq in exchanges that can't have helped him win any votes in the party, though no doubt his arguments would have had greater resonance with the electorate. At every hustings so far, the audience has been packed with the politically engaged left, not the aspirational hard-working families of rural Kent, Bedfordshire or Buckinghamshire.

Ed Balls has had recent experience of a Newsnight hustings in the show on education before the last election. But there will be no Michael Gove on the panel tonight. At every hustings so far, Balls has been the strongest in terms of attacking the Lib-Con coalition, last night saying that Nick Clegg was a man who would stop at nothing to gain power, even supporting a regressive rise in VAT. The problem for Balls is that the very limited polling of party members available -- just 650 techno-literate LabourListers -- shows him falling to get a popular return for this formidable Tory and Lib Dem bashing.

Andrew Neil put the four ex-ministers to the test during the election when the Daily Politics ran six hustings on foreign policy, health, education and climate change, as well as crime and immigration. David Miliband more than held his own against the formidable William Hague and Ed Miliband absolutely wiped the floor with Greg Clark (remember him?) while managing to distinguish himself from Simon Hughes and the Green spokesman Darren Johnson.

Last night's hustings at the Institute of Education was the most jovial, but TV is very different. The candidates are getting more comfortable in each other's presence. There is a comradely camaraderie developing between the five of them as they put the hours in and travel the country. They are all having a shared experience. Yet the atmosphere in the Newsnight green room tonight will be very different.

Any slip-ups, gaffes or controversial talking points will get played out at branch and ward meetings across the country and in newspaper columns for the rest of this week. Tonight could be the first impression that many party and union members get of all five contenders standing side by side, giving them the chance to make a snapshot comparison.

Whatever the Labour Party equivalent of a water cooler moment is, it is likely to happen tonight. "Did you see Newsnight last night?" will be the question du jour for Labour tomorrow.

Richard Darlington is head of the Open Left project at Demos.

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Richard Darlington is Head of News at IPPR. Follow him on Twitter @RDarlo.

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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.