Hacked Off needs to know when to stop fighting

In danger of plucking defeat out of the jaws of victory.

The campaign group Hacked Off is beginning to resemble a rebel force which doesn’t know when to stop fighting. And it is in danger of plucking defeat out of the jaws of victory with a state-imposed system of press regulation which is set to go to the Queen for approval at the next meeting of the Privy Council on 15 May. This is because there is no point in creating a perfect theoretical system of press regulation which no-one uses.

Hacked Off got a dream deal on 18 March when the three main political parties agreed to a beefed-up Royal Charter-backed system of press regulation. The dream goes that the new regulator will be completely independent of Parliament and the press, editors will be in a minority on its code committee and it will have the ability to compel placement of front-page apologies.

It is backed up by two pieces of legislation which made their way on to the statute books last week. Under the Enterprise and Regulator Reform Act the Royal Charter, once okayed by the Privy Council, cannot be changed without a two thirds majority of both houses of Parliament. Under the Crime and Courts Act, news publishers outside the state-approved regulator will be subject to exemplary damages and increased libel and privacy case legal costs (except for a large list of exempt titles including blogs which turn over less than £2m and council-run newspapers).

For Hacked Off it is the perfect solution. Perfect except for the fact that most of the newspaper and magazine industry have now said they cannot stomach it. And without the buy-in of publishers themselves a new system of self-regulation cannot work.

Publishers have rebelled because they refuse to surrender total control over the regulator. That is no longer self-regulation as envisaged by Leveson, they say, and in any case they question why they should fund and organise what is effectively a quango. The regional press is deeply concerned that the arbitration arm set out in the Charter will lead to “crippling” new libel claims being made against them. And there remains a profound principled objection to a statute-backed system of regulation being imposed on publishers by the state. Their solution is to resolutely reject the Government plan and instead offer their own Royal Charter.

The main differences between their plan and the Government one are outlined here, but in a nutshell the publishers want:

  • A representative on the Recognition Panel which will licence the new regulator (and the ability to veto appointments to the board)
  • An arbitration arm which is optional rather than obligatory
  • No legislative underpinning but instead a system where a unanimous vote of the Recognition Panel, the regulator’s board and the various industry trade associations can agree to amend the charter.

The two sides are not so far apart that a deal cannot be done. But this will need publishers, representatives of the ‘victims’ and Parliamentarians to put down their rhetorical weapons and  negotiate.

The press cannot be compelled to join a regulator which most publishers fundamentally disagree with any more than the Government can regulate any citizen’s right to express themselves as they wish (within the bounds of libel, privacy and the criminal law on contempt of court).

If the Government Royal Charter to regulate the press is signed by the Queen in two week’s time, some publishers could ignore it and create their own regulator taking a chance on exemplary damages rules which may, in any case, be unenforceable. Many more titles might opt to be part of no regulator at all leaving the victims of future press excesses and mistakes with nowhere to turn. So for the sake of the victims, Hacked Off (like the publishers) now has to take a more pragmatic approach.

Hugh Grant, Hacked Off campaigner. Photograph: Getty Images

Dominic Ponsford is editor of Press Gazette

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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