The BBC fightback begins

In tomorrow's New Statesman, BBC director of television Roger Mosey and Joan Bakewell ride to the corporation's defence.

After weeks of criticism of the BBC, there's a growing sense that the corporation needs to be defended from those in the Conservative Party and on Fleet Street who are seeking to exploit the crisis to destroy it. In this week's New Statesman, Roger Mosey, the BBC's director of television, who led its coverage of the Olympics, calls for a "sense of proportion" after "a grisly weekend". Mosey, who is one of those tipped to take over as director general, writes:

This shouldn’t be seen as luvvie-style moping about not liking it when the heat is on us. We hold others accountable, so there’s no argument that we should be accountable, too. But as a journalistic culture, we should apply ourselves to the difference between what’s serious wrong­doing in the sense of being criminal or wicked – and what’s just a “good” story with fallible human beings at the centre of it.

He adds that the ultimate test of the BBC is what audiences think about its programmes "rather than about the corporation itself". Here, he says, there is reason for confidence. "Last weekend we broadcast moving coverage of Remembrance Sunday at the Cenotaph and in the Royal Albert Hall, and we’ll be bringing communities together again this weekend for Children in Need. It doesn’t feel that difficult to make the case for the BBC."

Elsewhere in this week's issue, Joan Bakewell, who began her career at the BBC in the 1950s, says that the BBC should "be left alone to regret, to mourn and to repair itself". She writes:

[T]he BBC is a human institution: like any other, it is flawed. It may have been the aspiration of its first director general Lord Reith that it should be entirely perfect, but he was a puritanical control freak.

The BBC now needs a large dose of courage that enables it to look boldly on its structural failings and put some hefty remedies in place. It has a decades-long history of fine programmes that have made legends of its stars, educated the public, spawned heaps of imitators and won a unique reputation throughout the broadcasting world. It now needs to be left alone to regret, to mourn and to repair itself.

You can read these pieces in full, along with contributions on the BBC's future from Jason Cowley, Tristram Hunt, Mehdi Hasan and Rachel Cooke in tomorrow's issue.

The BBC headquarters at New Broadcasting House. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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