Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. The truth is we are all living on Benefits Street (Guardian)

Everyone is on the take, and whole industries are on white-collar subsidies, writes Simon Jenkins. Some of us are just smarter at concealing it.

2. Dave and Nick, time to prepare your divorce papers (Times)

The coalition must run right up to the election, but there is a danger of civil war unless a strategy is put in place, writes Daniel Finkelstein. 

3. Britain is educating its children for jobs that soon won’t exist (Daily Telegraph)

The fate of the 'Neets’ is tragic, but they aren’t the only ones being failed by the system, says Mary Riddell. 

4. 5 ways to cheer up the Tories (and kill off the 'nasty party') (Guardian)

Asking Conservatives to stop sounding negative may be naive but I agree with Nicky Morgan: they need a change of tone, says Melissa Kite.

5. This evil should shame us into halting Assad (Times)

Britain can no longer avert its eyes from the brutal reality of life, and death, in Syria’s Dark Ages, says Roger Boyes. 

6. It’s time to reject crony capitalism and embrace the real thing (Daily Telegraph)

The solution is to promote competition, tear up barriers to entry, unleash consumer choice, and eliminate subsidies and soft loans, says Allister Heath. 

7. Cost of living? What about the cost of being dead? (Guardian)

The spiralling price of funerals is a symptom of the triumph of the market and the accompanying poverty of civic life, writes Zoe Williams.

8. The very model of a modern central banker (Financial Times)

Ben Bernanke, outgoing chairman, deserves credit for the Fed’s handling of the crisis, says Martin Wolf.

9. There's optimism in the global economy - but only the wealthy are feeling the effects (Independent)

In the UK, it is ‘fat cats’; here in the US, it is Wall Street versus Main Street, writes Hamish McRae. 

10. For truth on immigration, look to the Bard not politicians (Financial Times)

The debate has not been changed by new facts so much as the complexion of the government, writes John Kay. 

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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.