Morning Call: pick of the papers

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

1. End the damaging obsession with deficit (Financial Times)

America must not lose sight of infrastructure, jobs and growth, says Lawrence Summers.

2. Cameron's message is Tory but his enemies have drowned it out (Daily Telegraph)

The PM is allowing his adversaries to define him, says Benedict Brogan. Will the real party leader please stand up?

3. Cameron is lucky to have a Foreign Secretary with experience but no political ambition (Independent)

Unusually, Hague can be candid with Cameron without fearing for his political future, writes Steve Richards. He does not seek a future.

4. Israel’s moderate voices won't be heard at this election (Daily Telegraph)

The loudest applause is reserved for the new right and talk of peace with the Palestinians is increasingly drowned out, writes Peter Oborne.

5. Algeria hostage crisis aftermath: only folly lasts for decades (Guardian)

With such a history of failure in Muslim countries one would have thought David Cameron would choose his words with more care, says a Guardian editorial.

6. Custodian of an interventionist legacy (Financial Times)

Cameron filters Blair’s basic arguments through a very Tory temperament, writes Janan Ganesh. 

7. Algeria head good – Europe head bad (Times) (£)

The EU is an old and damaging distraction for Cameron, says Rachel Sylvester. He looks stronger dealing with modern issues.

8. I agree with Churchill: let's get stuck into the real shirkers (Guardian)

They parasitise us from above, writes George Monbiot. But landowners and the Tory party's idle rich are spared the fairest and simplest of taxes.

9. An action-packed thriller is about to unfold in Davos, Switzerland (Guardian)

In secret meetings in tiny rooms, the rich plot to get even richer, writes Aditya Chakrabortty.

10. A crisis of leadership in the western world (Daily Mail)

The west is now run by a new class of career politician, with no expertise in anything beyond spinning a line at election, says a Daily Mail leader.

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Angela Eagle is set to challenge Jeremy Corbyn. But many still hope for Tom Watson

Labour's deputy leader is the potential candidate most feared by Corbyn's supporters. 

The vote of no confidence came. But Jeremy Corbyn didn't go. As anticipated, the Labour leader declared just 20 minutes after his defeat that he would not "betray" his supporters "by resigning". Having never enjoyed the confidence of MPs to begin with (as few as 14 voted for him), he is unfazed by losing it now. His allies are confident that he retains the support of a majority of Labour's selectorate. 

The likeliest resolution is a leadership contest in which Corbyn is challenged by a single "unity candidate": Angela Eagle (as I predicted on Monday). Labour's former shadow first secretary of state, who impressed when deputising for the leader at PMQs, has been ready to stand for months. MPs speak of her enjoying support "across the span" of the Parliamentary Labour Party, from the "soft left" to "moderates" to "Blairites". A source told me: "It is no surprise that colleagues are turning to her. She is very much considered a tough, Angela Merkel-type figure who can lead the party through this difficult period." There is no sign that the backing of her own constituency party (Wallasey) for Corbyn will deter her. 

Other potential candidates such as Dan Jarvis, Yvette Cooper and Chuka Umunna have relinquished their ambitions for now. But two names still recur: Owen Smith and Tom Watson. Smith, who first revealed his leadership ambitions to me in an interview earlier this year, would run as a competent, soft left alternative to Corbyn. But it is Watson who the Labour leader's supporters fear most. He comfortably won last year's deputy leadership election and is renowned for his organisational abilities and trade union links. For these reasons, many regard him as a more formidable opponent than Eagle. "Fourth in the deputy leadership election to first in the leadership election in 10 months is a big challenge," an MP noted. 

But as deputy leader, Watson has long regarded it as his duty to preserve party unity above all. A challenge to Corbyn, pitting him against most current members (including a significant number who voted for him), unavoidably conflicts with this role. For this reason, Watson's supporters hope that a combination of pressure from MPs, some unions (who are expected to meet the Labour leader today), council leaders and members (who are "absorbing" the no confidence vote) could yet persuade the leader to stand down. Under this scenario, Watson would automatically become interim leader, either steering Labour through an early general election or presiding over a multi-candidate leadership contest. 

Should Corbyn refuse to resign today (as most of the rebels expect), some still hope that Watson could be persuaded to run. But assuming the Labour leader automatically makes the ballot paper (a matter of legal dispute), a contest between himself and Eagle is likely to ensue. Having won the backing of just 40 of Labour's 229 MPs in the confidence vote, Corbyn would struggle to achieve the 50 MP/MEP nominations required to qualify. 

A final, little-discussed scenario involves Corbyn agreeing to step down in return for a guarantee that John McDonnell, the shadow chancellor and his closest ally, would make the ballot. This would ensure the far-left representation in the contest and reduce the possibility of a split. But it would run the risk of merely replicating the present schism in a new form.  

George Eaton is political editor of the New Statesman.