Cameron offers the eurozone advice

The PM offers advice to Europe but suggests little change at home.

David Cameron has made his big speech on the economy and the eurozone, focusing on the "three challenges" which Britain faces:

First, the struggle to recover from a long and deep recession at home.Second, the turbulence coming from the Eurozone. And third, the uncertainty over whether the world is on the right economic path, with debates about trade policy and how to support growth.

On the recession, the recent switch in emphasis from getting spending under control to building a sustainable plan for growth was in evidence. Cameron highlighted the reform to the planning regulations, which scrapped over 1000 pages of rules, the creation of 24 enterprise zones, and the regional growth fund. The latter has been panned as a costly mistake, but the Prime Minister suggested that it is on track to create 324,000 jobs – almost ten times as many as the National Audit Office predicted.

Internationally, Cameron was intent on offering advice which he doesn't seem to be particularly qualified to give, and which none of the recipients really want. He highlighted three things which the euro countries should do to keep the currency functioning properly:

First, the high deficit, low competitiveness countries in the periphery of the Eurozone do need to confront their problems head on. They need to continue taking difficult steps to cut their spending, increase their revenues and undergo structural reform to become competitive. The idea that high deficit countries can borrow and spend their way to recovery is a dangerous delusion.

Yes, point one: austerity! Of course, Italy and Spain are actually textbook practitioners of austerity already, and it hasn't done them a lot of good. But Cameron does also echo our leader today in calling for Germany to loosen monetary policy to make up for the absence of fiscal expansion, saying:

Germany’s finance minister, Wolfgang Schäuble is right to recognise rising wages in his country can play a part in correcting these imbalances but monetary policy in the Eurozone must also do more.

Cameron's second point calls for "governance arrangements that create confidence for the future":

As the British Government has been arguing for a year now that means following the logic of monetary union towards solutions that deliver greater forms of collective support and collective responsibility of which Eurobonds are one possible example. Steps such as these are needed to put an end to speculation about the future of the euro.

More collective support will irritate the already fuming Andrew Lilico, who wrote on Conservative Home today that Osborne and Brown should face criminal charges for the help already extended to Greece. Lilico wrote:

It cannot be acceptable for UK bureaucrats and ministers to act in clear defiance of the law, and then lose billions of pounds as a consequence of their nakedly illegal acts. That isn't just "one of those things". It is, in principle, actionable in much the same way as if the chief executive of your council acted clearly against the law and lost money by doing so. Ministers are not above the law, and are not entitled to defy Treaties, losing billions of pounds in the process, just because it seemed convenient to do so at the time.

Thirdly, Cameron argues that "we all need to address Europe’s overall low productivity and lack of economic dynamism":

Most EU member states are becoming less competitive compared to the rest of the world, not more. The Single Market is incomplete and competition throughout Europe is too constrained. Indeed, Britain has long been arguing for a pro-business, pro-growth agenda in Europe.

Cameron claiming a pro-growth agenda in Europe could be seen as faintly ironic. Lest we forget, Britain contracted last quarter while the eurozone merely stagnated. Perhaps this could be the government's new excuse for Britain's economic woes: we're pushing so hard for growth in Europe that we forgot to get any back home.

One line from Cameron was particularly welcome, however. Speaking about the right economic path to take post recession, he announced:

I’ve asked the Treasury to examine what more we can do to boost credit for business, housing and infrastructure.

We’ve taken the tough decisions to earn those low interest rates – so let’s make sure we’re putting them to good use. Building recovery is hard work because we are not reinflating the bubble but building a new model of growth. Some people asked why we didn’t have more economy Bills in the Queen’s Speech.  If you could legislate your way to growth, obviously we would. The truth is you can’t.

Despite the fact that many would argue that our low interest rates aren't "earned" at all, but merely a fortunate outcome of our low growth expectations, if we have them, we certainly should be using them. Let's see how the Prime Minister intends to do that.

Greek shoppers in Athens. 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.

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How the Democratic National Committee Chair contest became a proxy war

The two leading candidates represent the Hillary Clinton and Bernie Sanders factions.

While in the UK this week attention has been fixed on the by-elections in Stoke-upon-Trent and Copeland, in the US political anoraks have turned their eyes to Atlanta, the capital city of the state of Georgia, and the culmination of the Democratic National Committee chairmanship election.

Democrats lost more than a President when Barack Obama left the White House - they lost a party leader. In the US system, the party out of power does not choose a solitary champion to shadow the Presidency in the way a leader of the opposition shadows the Prime Minister in the UK. Instead, leadership concentrates around multiple points at the federal, state and local level - the Senate Minority and House Minority Leaders’ offices, popular members of Congress, and high-profile governors and mayors.

Another focus is the chair of the national party committee. The Democratic National Committee (DNC) is the formal governing body of the party and wields immense power over its organization, management, and messaging. Membership is exclusive to state party chairs, vice-chairs and over 200 state-elected representatives. The chair sits at the apex of the body and is charged with carrying out the programs and policies of the DNC. Put simply, they function as the party’s chief-of-staff, closer to the role of General Secretary of the Labour Party than leader of the opposition.

However, the office was supercharged with political salience last year when the then-chair, Debbie Wasserman Schultz, was exposed following a Russian-sponsored leak of DNC emails that showed her leadership favoured Hillary Clinton as the party’s presidential nominee to Bernie Sanders. Schultz resigned and Donna Brazile, former campaign manager for Al Gore in 2000, took over as interim chair. The DNC huddled in December to thrash out procedure for the election of a permanent replacement – fixing the date of the ballot for the weekend of February 24.

The rancour of the Democratic primaries last year, and the circumstances of Schultz’s resignation, has transformed the race into a proxy war between the Clinton and Sanders factions within the party. Frontrunners Tom Perez and Keith Ellison respectively act as standard bearers for the respective camps.

Both are proven progressives with impeccable records in grassroots-based organizing. However Perez’s tenure as President Obama’s Labor Secretary and role as a Hillary booster has cast him as the establishment candidate in the race, whereas Ellison’s endorsement of the Sanders campaign in 2016 makes him the pick of the radical left.

The ideological differences between the two may be overblown, but cannot be overlooked in the current climate. The Democrats are a party seemingly at war with its base, and out of power nationwide.

Not only are they in the minority in Congress, but more than a third of the Democrats in the House of Representatives come from just three states: California, Massachusetts, and New York. As if that weren’t enough, Democrats control less than a third of state legislatures and hold the keys to just sixteen governors’ mansions.

Jacob Schwartz, president of the Manhattan Young Democrats, the official youth arm of the Democratic Party in New York County, says that the incoming chair should focus on returning the party to dominance at every tier of government:

“The priority of the Democratic leadership should be rebuilding the party first, and reaching out to new voters second," he told me. "Attacking Donald Trump is not something the leadership needs to be doing. He's sinking his own ship anyway and new voters are not going to be impressed by more negative campaigning. A focus on negative campaigning was a big part of why Hillary lost.”

The party is certainly in need of a shake-up, though not one that causes the internecine strife currently bedevilling the Labour Party. Hence why some commentators favour Ellison, whose election could be seen as a peace offering to aggrieved Sanderistas still fuming at the party for undermining their candidate.

“There's something to be said for the fact that Ellison is seen as from the Bernie wing of the party, even though I think policy shouldn't be part of the equation really, and the fact that Bernie voices are the voices we most need to be making efforts to remain connected to. Hillary people aren't going anywhere, so Ellison gives us a good jumping off point overall,” says Schwartz.

Ellison boasts over 120 endorsements from federal and state-level Democratic heavyweights, including Senator Sanders, and the support of 13 labor unions. Perez, meanwhile, can count only 30 politicians – though one is former Vice-President Joe Biden – and eight unions in his camp.

However the only constituency that matters this weekend is the DNC itself – the 447 committee members who can vote. A simple majority is needed to win, and if no candidate reaches this threshold at the first time of asking additional rounds of balloting take place until a winner emerges.

Here again, Ellison appears to hold the edge, leading Perez 105 to 57 according to a survey conducted by The Hill, with the remainder split among the other candidates.

Don’t write Perez off yet, though. Anything can happen if the ballot goes to multiple rounds and the former Secretary’s roots in the party run deep. He claimed 180 DNC supporters in an in-house survey, far more than suggested by The Hill.

We’ll find out this weekend which one was closer to the mark.

Louie Woodall is a member of Labour International, and a journalist based in New York.