Boris undermines Osborne's austerity argument

Mayor of London points out that "Greek austerity measures are making the economy worse".

Even by his own high standards, Boris Johnson is on combative form this morning. The Mayor of London uses his regular Telegraph column to urge EU leaders to let Greece default on its debts and force it to leave the euro, while in a piece for the Sun, he launches an assault on Ken Clarke's sentencing plans. "Soft is the perfect way to enjoy French cheese, but not how we should approach punishing criminals," he writes.

But it's a line in his Telegraph column that really stands out: "The trouble is that the Greek austerity measures are making the economy worse." It's a point that Ed Balls and others have made frequently in recent months but it's not one that you'll hear from George Osborne, for the simple reason that it contradicts his claim that spending cuts are a precondition for growth.

The austerity measures adopted by Ireland, Portugal (which went one better than Osborne and raised VAT twice) and Greece have exacerbated, rather than diminished, their economic problems. As Balls argued in his LSE lecture last week: "[W]hat they [Portugal], Ireland and Greece have all discovered - just like Argentina, Brazil and Turkey before them - is that it doesn't matter how much they cut spending or how much they raise taxes; if they can't create jobs and growth, their debt and deficit problems get even worse and market confidence falls further still."

Similarly, in Britain, rather than increasing growth, Osborne's austerity agenda has destroyed it. The economy, which grew by 1.8 per cent over Q2 and Q3 2010, has not grown for the last six months. Britain, which was at the top end of the European growth league table, is now fourth from bottom, with only Greece, Portugal and Denmark below it.

Yet according to Osborne's doctrine of "expasionary fiscal contraction", the reverse should have happened. As the state contracts, the economy should expand. But with consumer spending still depressed and the banks not lending enough, where will growth come from if not from active government? Britain, like Greece, cannot cut its way out of stagnation.

George Eaton is political editor of the New Statesman.

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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.