David Cameron speaks during a visit to Kingsmead School on February 2, 2015. Photograph: Getty Images.
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PMQs review: Cameron rides roughshod over Miliband again

The Tory leader's exuberant confidence allowed him to dominate the chamber. 

The Tories are purring with confidence at the moment. Their dominance of the media war and new-found unity means that they are scenting victory (even as the polls continue to show them neck-and-neck with Labour or slightly behind). 

The evidence of this was on display at today's PMQs. Ed Miliband asked David Cameron about preferential tax treatment for hedge funds (they are not required to pay stamp duty on their share transactions), linking the policy to the Tories' industry donors. But Cameron swatted his question away with effortless superiority. He questioned why "for 13 years, during many of which he was in the Treasury, they did absolutely nothing about this", before declaring, in reference to Ed Balls's Newsnight interview: "I have to say I'm delighted he's raised the economy on the morning after his shadow chancellor couldn't name one single business leader who backed Labour." 

At this point, the well-drilled Tory backbenches began chanting in unison: "Bill, Bill" and "Where's Bill?" (the first name of the business leader Balls almost remembered). Their barracking  persisted throughout Miliband's second question and they were rewarded with a first-rate Cameron gag: "Do you know what he said, Mr Speaker? He said: 'Bill Somebody.' Mr Speaker, Bill Somebody’s not a person; Bill somebody is Labour’s policy." Cheers erupted behind him. The Labour benches, meanwhile, already becalmed by the grim news from Scotland, were deathly silent. 

Miliband fought valiantly on, pressing Cameron to answer, but the PM had too much ammunition in reserve: the confusion over Labour's tuition fees policy, the tax avoidance of their donor John Mills, even the news that "the person who wrote that 'Things Can Only Get Better' says it no longer applies to Labour." The only moment of relief for Miliband came when he archly observed, as George Osborne sought to brief Cameron on tax policy: "You can't help him, George, you're too far away". 

But while the Labour leader was routed in the chamber, he can hope that Cameron's evasiveness hurts the PM in the country. His refusal to pledge to close the tax loophole (as Labour has done) risks reinforcing the Tories' reputation as the party of the rich (the greatest barrier to a majority). As they deride Labour's weaknesses, the Conservatives would do well not to forget their own. 

Outside of the main exchanges, a notable moment came when Labour MP and shadow justice minister Dan Jarvis questioned Cameron about support for a solar panel business in his Barnsley constituency. The respectful silence with which he was heard was a good example of why many believe he could one day lead his party. 

George Eaton is political editor of the New Statesman.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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