Christopher Hitchens on the death of Pope Paul VI

"To judge by the tide of uncritical sentimentality which swept over the British press ... you might have thought that the Reformation had never taken place".

The Pope, the Flesh and the Devil

To judge by the tide of uncritical sentimentality which swept over the British press at the death of Pope Paul, and the way in which the Palace announced that flags on public buildings would be flown at half mast, you might have thought that the Reformation had never taken place. De mortuis … may be a good enough motto, but surely our journals of record can rise above the level of Lisbon or Limerick. After all, it is only a few weeks since they bemoaned his uncharitable veto on a Catholic marriage for Prince Michael of Kent.

Pope Paul's incumbency, so far from being a continuum with that of John, or a period of innovation and statesmanship (vide anybody this week from Rees-Mogg's Times to Paul Johnson in the Daily Mail) was a period in which ancient and threatened superstitions were actually entrenched and re-affirmed. It was only in Lent last year that the Pope insisted, in case of doubt among the flock, that the devil was an actual being, who dominated the temporal creation of God. During the same period of fasting he told the faithful that “you have heard a great deal about laicism, secularism, anti-clericalism and atheism. This is the world of Satan” (italics mine). Christian Democrats rejoiced.

The threat of the Evil One was a favourite of the obscurantist Paul. In 1973, admonishing the dissident cardinals who challenged his inflexibility, he solemnly intoned that “the smoke of Satan has entered the temple of God”. This was all of a piece with his alongside his controversial visit to Fatima, a Portuguese shrine which is looked on even by the most devout believers as a trifle doubtful and meretricious. His claim that he made the pilgrimage at the direct request of the Virgin only reminded some believers of the gap which Pope John had left.

Even the most sycophantic obituarists were in some difficulty with Pope Paul's stated and adamantine views on the use of contraception and the need for priests to be celibate. Here he was deaf to argument (and so many would-be critics preferred to hurry on and recall his absurd dispute with Archbishop Lefebvre). Less often recalled (and in the case of The Times recalled not at all) was the notorious Declaration on Certain Questions concerning Sexual Ethics, published by his order in January 1976. This astonishing document outlawed pre-or extra-marital sex, condemned homosexuality and categorically forebad masturbation (charmingly known in Vatican circles as solitaria voluptas). “Every genital act” said the statement “must be within the framework of marriage”. As for homosexuals, “in sacred scripture they are condemned as a serious depravity and even presented as the sad consequence of rejecting God”. Those given to solitaria voluptas were reminded that “the deliberate use of the sexual faculty outside normal conjugal relations essentially contradicts the finality of the faculty”.

One wonders how he knew enough to draft such gibberish. It is, of course, untrue to say, as so many papers did, that his tenure was totally untroubled by scandal. Shortly after that deathly 1976 edict received the imprimatur, Roger Peyrefitte published a detailed allegation of a relationship between Paul and a well-known actor during Paul's earlier sojourn as Archbishop of Milan. The Pope went so far as to deny the rumour in St Peter's Square (“our humble person has been made the object of derision and calumny . . .”). But let it pass.

In terms of internal and external Roman Catholic politics, Paul was dismally reactionary. He several times reaffirmed the doctrine of his own infallibility (a strictly mundane and temporal concept), especially when he ran out of arguments in rebuking dissenters. And in 1969, discussing the reunification of the Christian Church, he made a deliberate point of emphasising the doctrine of papal primacy, hardly an ecumenical or tolerant idea. On infallibility he was especially lyrical, describing it as “a beneficent lighthouse which guides the Church to its unrenounceable conquest: the truth of salvation”. Hard, in that case, to imagine how for so many centuries the Church got along without it. After this, his refusal to allow the synod of bishops a more democratic role was altogether unsurprising.

Obviously, he was a natural and instinctive conservative in secular terms as well. His period as Archbishop of Milan in the fifties is still remembered for its virulent crusade against the Communist Party and the unions. It is no accident that his announced “favourite” for the succession is the ultra-rightist Cardinal Benelli, who was seen this year with Franz-Joseph Strauss at a gathering of Euro-conservatives. The Catholic Church is a conservative institution, but seldom has its symbolic figure put such little distance between himself and the claims of medieval guilt and Italian expediency.

11 August 1978

Pope Paul VI in 1976. Photo: Getty Images.

Christopher Hitchens (1949-2011) was an author and journalist. He joined the New Statesman in 1973.

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Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation