Come on, Nick. Seize the day

It's now up to the Lib Dem leader to kill the health bill.

Ed Miliband nearly got it right twice last week.

First he said the NHS Bill was going to be the Tories' new Poll Tax. Then he said the same bill could become another tuition fees debacle for the Lib Dems.

You can almost feel him groping for the right political analogy. He knows it's there, just eluding his grasp. So let me help him out.

Ed, you need to jam those thoughts together. The NHS Bill is going to be the Tories' tuition fees fiasco.

We know a bit about how this works in the Lib Dems. You make some promises. You associate yourself personally with those pledges. You even start running advertising assuring everyone that everything is safe in your hands. And then, when you're in power, you do the complete opposite. And the electorate crucify you for it.

Admittedly this has taken a little longer to pin on the Tories. I wrote a year ago, when reforms were first introduced, that this would happen and have been bemused ever since that folk haven't been more livid that the promise of "no top down reorganisations of the NHS'" appears to have been a bit of a fib. Especially when the likes of Andrew Mitchell go on the BBC and assert (as he did yesterday) that Andrew Lansley had been planning this for 5 years in opposition. (Given how things are panning out, I use planning in the loosest of terms).

I guess when, generally speaking, the country has such a low expectation of a Conservative politician keeping a promise, it takes longer for the anger to really sink in than it did for us Lib Dems, for whom people really did have higher hopes.

Which brings me to the little matter of redemption.

A couple of weeks ago it looked like Cameron was going to seize the day, drop the NHS bill, fire Lansley, and paint himself as the man who saved the NHS. There was an open goal there. For some reason he didn't take it. Who knows - maybe he really does believe in the reforms. Wouldn't that be a turn up?

Anyway, Cameron welded himself firmly to the Bill. Which means there is a vacancy going for a political leader willing to grasp the nettle, kill the bill and save the NHS. Ed Miliband would love to take it. But he of course, has no power. No, it needs someone who could actually stop the Bill, negotiate some sensible compromises with the Tories and Labour - everyone agrees some changes would be a good thing - and go some way to restoring the faith of a nation in their political acumen. And their principles.

Hey, Nick. Carpe Diem.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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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