Will the UK's shrinking economy spoil Cameron's EU speech?

Any political high from Cameron's EU speech could be shortlived if figures released on Friday show that the UK economy shrunk in the final quarter of 2012.

In the absence of any unforseen hitches, David Cameron will finally deliver his long-delayed speech on Britain's relationship with the EU this week. It won't be today, the day of Barack Obama's second inauguration, or tomorrow, when thousands of French and German politicians and diplomats will gather in Berlin to celebrate the 50th anniversary of the signing of the Elysée Treaty (also known as the Treaty of Friendship) between the two countries, or at the end of the week, when Cameron travels to Davos for the 2013 World Economic Forum, leaving Wednesday as the most likely date for the address.

When Cameron gives his speech, promising that a Conservative government would seek to repatriate powers from Brussels before holding a referendum on the outcome (offering voters a choice between what Cameron calls a "new settlement" and withdrawal), he will hope, among other things, for a bounce in the polls. The last time that the Tories enjoyed a sustained lead over Labour was in December 2011 after Cameron's EU "veto". With reports of Conservative MPs reacquiring their taste for regicide, the PM is keen to show that there are things he can do to improve his party's dismal chances of victory at the next election.

But his speech risks being overshadowed by the other big event of the week: the release of the first estimate of UK quarter four GDP on Friday. After growth of 0.9 per cent in the third quarter, artifically inflated by the inclusion of the Olympic ticket sales and the bounce-back from the extra bank holiday in June, forecasters almost universally expect a negative figure. The government's own forecaster, the Office for Budget Responsibility, predicts that the economy shrunk by 0.1 per cent, while the National Institute of Economic and Social Research expects a contraction of 0.3 per cent.

A contraction in quarter four wouldn't represent an unprecedented "triple-dip recession" (that would require two successive quarters of negative growth), it would make it significantly harder for Cameron to claim that the economy is "healing" and embolden Labour to go on the attack. If the economy is shown to have shrunk in Q4, four of the last five quarters will have been negative.

We know from the pre-released extracts of Cameron's speech that the Prime Minister intends to bemoan the EU's "crisis of competitiveness". But if the UK economy, which has performed worse than almost any other in Europe, is shown to have shrunk again, his lecture could soon look ill-advised.

David Cameron is expected to deliver his speech on Britain's relationship with the EU on Wednesday. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Why Barack Obama was right to release Chelsea Manning

A Presidential act of mercy is good for Manning, but also for the US.

In early 2010, a young US military intelligence analyst on an army base near Baghdad slipped a Lady Gaga CD into a computer and sang along to the music. In fact, the soldier's apparently upbeat mood hid two facts. 

First, the soldier later known as Chelsea Manning was completely alienated from army culture, and the callous way she believed it treated civilians in Iraq. And second, she was quietly erasing the music on her CDs and replacing it with files holding explosive military data, which she would release to the world via Wikileaks. 

To some, Manning is a free speech hero. To others, she is a traitor. President Barack Obama’s decision to commute her 35-year sentence before leaving office has been blasted as “outrageous” by leading Republican Paul Ryan. Other Republican critics argue Obama is rewarding an act that endangered the lives of soldiers and intelligence operatives while giving ammunition to Russia. 

They have a point. Liberals banging the drum against Russia’s leak offensive during the US election cannot simultaneously argue leaks are inherently good. 

But even if you think Manning was deeply misguided in her use of Lady Gaga CDs, there are strong reasons why we should celebrate her release. 

1. She was not judged on the public interest

Manning was motivated by what she believed to be human rights abuses in Iraq, but her public interest defence has never been tested. 

The leaks were undoubtedly of public interest. As Manning said in the podcast she recorded with Amnesty International: “When we made mistakes, planning operations, innocent people died.” 

Thanks to Manning’s leak, we also know about the Vatican hiding sex abuse scandals in Ireland, plus the UK promising to protect US interests during the Chilcot Inquiry. 

In countries such as Germany, Canada and Denmark, whistle blowers in sensitive areas can use a public interest defence. In the US, however, such a defence does not exist – meaning it is impossible for Manning to legally argue her actions were in the public good. 

2. She was deemed worse than rapists and murderers

Her sentence was out of proportion to her crime. Compare her 35-year sentence to that received by William Millay, a young police officer, also in 2013. Caught in the act of trying to sell classified documents to someone he believed was a Russian intelligence officer, he was given 16 years

According to Amnesty International: “Manning’s sentence was much longer than other members of the military convicted of charges such as murder, rape and war crimes, as well as any others who were convicted of leaking classified materials to the public.”

3. Her time in jail was particularly miserable 

Manning’s conditions in jail do nothing to dispel the idea she has been treated extraordinarily harshly. When initially placed in solitary confinement, she needed permission to do anything in her cell, even walking around to exercise. 

When she requested treatment for her gender dysphoria, the military prison’s initial response was a blanket refusal – despite the fact many civilian prisons accept the idea that trans inmates are entitled to hormones. Manning has attempted suicide several times. She finally received permission to receive gender transition surgery in 2016 after a hunger strike

4. Julian Assange can stop acting like a martyr

Internationally, Manning’s continued incarceration was likely to do more harm than good. She has said she is sorry “for hurting the US”. Her worldwide following has turned her into an icon of US hypocrisy on free speech.

Then there's the fact Wikileaks said its founder Julian Assange would agree to be extradited to the US if Manning was released. Now that Manning is months away from freedom, his excuses for staying in the Equadorian London Embassy to avoid Swedish rape allegations are somewhat feebler.  

As for the President - under whose watch Manning was prosecuted - he may be leaving his office with his legacy in peril, but with one stroke of his pen, he has changed a life. Manning, now 29, could have expected to leave prison in her late 50s. Instead, she'll be free before her 30th birthday. And perhaps the Equadorian ambassador will finally get his room back. 

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.