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Europe has to work
together to end this turmoil
By Nick Clegg
Published: October 2 2008 18:46 | Last updated: October 2 2008 18:46
We are in the eye of a storm, the enormity of which we still cannot
fully grasp. It is difficult for policymakers to work with others
when they are barely able to keep track of what is going on in their
own backyard. But the corrosive effect of fear and panic will only
lift once we start working with each other and planning for the
future. That is the challenge – and opportunity – for Europe’s
leaders.
'Pathetic' Cameron struggles to find the right balance
By Jean Eaglesham, Chief Political Correspondent
Published: October 11 2008 03:00 | Last updated: October 11 2008
03:00
"Dear oh dear - dire, weak, pathetic and really bad." This appalled
reaction from assorted Conservative activists to David Cameron's
handling of the £400bn banks bail-out reflects the problems for the
political right in responding to the financial crisis.
Instinctive advocates of free markets and minimal regulation, the
Tories have struggled to strike the right balance between defending
capitalism and meeting populist demands for retribution against the
banks. Mr Cameron has gone from lambasting the nationalisation of
Northern Rock as a "disaster" in February to this week offering
"constructive support" for plans for the taxpayer to take
multibillion pound equity stakes in the banks. Thatcherite MPs told
the FT there was a sound rationale for this apparent inconsistency.
The banks' unique role in supporting the economy makes them im-mune
from the rightwing doctrine of condemning state intervention to prop
up ailing companies.
"This [rescue package] isn't about free enterprise - it's about
protecting the clean water in the tap of the economy," said Michael
Fallon, a Tory MP on the Treasury select committee. John Redwood,
the former cabinet minister, drew a distinction between the
"madness" of nationalising banks and the proposed bail-out. "Any
sensible person" would want the rescue deal to succeed.
This assertion highlights Mr Cameron's dilemma. In a national
crisis, the opposition leader is under pressure to take a bipartisan
ap-proach. Scoring points when the banking system appears near
collapse would not win voters. But the Tory leader's support for
Gordon Brown's initiative left him eclipsed when the deal was
ann-ounced, yet implicated in its potential failure.
Political rivals mocked the spectacle of the Tories - perceived as
the champions of the City - outflanking Lab-our's demands for the
state to "punish" bankers by regulating bonuses. The Tory leadership
is being forced to take such barbs in its stride. But Mr Cameron,
still with a healthy poll lead and fighting a government presiding
over a worsening economic downturn, remains confident
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