British politics in turmoil

A day before Britons go to the polls in local and European elections, the Labour party is in turmoil. Amid controversy over MP’s expenses several high ranking politicians have announced their intention to stand down from the cabinet. On Tuesday it was announced that Home Secretary Jacqui Smith was to step down from her position in the next cabinet reshuffle expected next week.

Within hours of this news breaking four other Labour Members of Parliament announced their intention to step down. Children's minister Beverley Hughes and ex-health secretary Patricia Hewitt said they would also resign their positions. Political turmoil continued after it was reported that Ian Gibson, Margaret Moran, Elliott Morley and David Chaytor would be barred from standing as MPs at the next general election scheduled for 2010. And on Wednesday Communities Secretary Hazel Blears announced she was quitting from her cabinet position.

Leadership contest

Gordon Brown has continually insisted he will not resign his position as prime minister nor hold an early general election. But as more and more ministers stepped down his position has been considered untenable by many political commentators.

One political pundit said there was little the prime minister could do except perhaps “saving a drowning kitten from the river Thames”. Speaking on Sky News the Times political correspondent said, “Short of the arch-angel Gabriel coming down I can’t see what he can do”.

On the street anger is building amongst the general public. One lorry driver angry at the current Labour administration told tvnewswatch that “political change was on its way”.

“Gordon Brown is washed up,” he said as he went on to criticise the prime minister’s latest initiatives. “His scrappage scheme is not going to work,” he said, “I drive hundreds of miles across the country and I see thousands of unsold cars parked up near Avon docks near Bristol.”

As a lorry driver he was also worried about his own job. “No-one’s secure in this economic climate,” he said.

Opposition parties were taking particular advantage of the situation with Shadow Commons Secretary Theresa May saying the government had “lost its authority” and was “in meltdown”. The Conservative MP said a general election was needed and that only “David Cameron can take this country forward”.

But many Labour MPs were pulling rank in support of Gordon Brown. “It would be madness to oust the Prime Minister at this stage,” Martin Salter, MP for Reading West, said. “He’s the best person to lead the country through the recession,” he insisted, but he conceded Gordon Brown had been "dealt with a pretty tough hand”.

Even Jacqui Smith, who is standing down as home secretary, insisted that Gordon Brown was the right man for the job and that there were “no wimps in the Labour party”.

A rowdy PMQs

The party in freefall, as it has been described by some, faced a grilling as the prime minister stood up in parliament during PMQs [Prime Ministers Questions]. Leader of the opposition, David Cameron, said the government was “collapsing before our eyes,” and called on the prime minister to “get down to the palace and call for a dissolution” of parliament.

But Gordon Brown defended his position insisting there was "still work to be done” and accused the Conservative party of having no policies. “They are all words, words and words,” the prime minister said.

But Cameron continued, saying that Brown was “in denial” following the resignations and departures of so many Labour MPs. Stuttering his way though his response the PM said there were pressures on all members of parliament in the house.

Cameron’s continued lambasting of the prime minister caused uproar in the house among the Labour benches and brought a threat from the speaker. “There is a danger of the house being suspended if the leader of the opposition is shouted down,” Michael Martin exclaimed.

Cameron went on to describe the government as dysfunctional and said the main issue was one of leadership. He was also critical of the Chancellor of the Exchequer, Alistair Darling, who was vehemently defended by Gordon Brown who said he was “doing a very good job.”

Liberal Democrat leader Nick Clegg also laid into the Labour party. He said the government was “paralysed” and that “Labour was finished”. There was only two choices for voters, he insisted, that of the Conservatives or his own party.

A scathing press

The government has suffered weeks of criticism from the British press with daily reports concerning expenses claimed by MPs. While no party has been spared from the uncomfortable revelations, it is the Labour party that has suffered in the polls and courted public anger. But the press coverage has also angered MPs with Keith Vaz, Chairman of the Home Affairs Select Committee, calling it a “media frenzy”.

The latest resignations brought strong headlines in many of Wednesday's newspapers. The Daily Telegraph, which broke the details of MP’s expenses, ran with the headline “Cabinet meltdown” and accused the departing Members of Parliament of milking the system “to the end”.

The Daily Mail reported the story with the headline “Rats desert sinking ship”, while the Independent described the situation as “Disarray in Downing Street”.

The Sun called it Labour’s blackest day and ran with the headline “Blunderbird” with a spoof image of Jacqui Smith dressed as a Gerry Anderson Thunderbird puppet. The comparison to the 1960’s children’s television series was more than a little ironic. It will need more than International Rescue to pull the party from the quagmire of the political mud it has found itself.

Important elections

Despite the difficulties the Labour party faces, those within its ranks have urged people to vote on June 4th. “There's an important set of elections tomorrow. My message is simple: get out and vote Labour,” Hazel Blears said in her resignation statement.

Others within the party warned that racist parties such as the British National Party would be given a boost if people stayed away from the polls. Barry Gardiner, a backbench MP, said “I would absolutely urge everybody, whether they vote for my party or any other party, to get out there and vote, as long as they don’t vote for the racists.”

The political infighting seen amongst the Labour ranks is nothing new in British politics. In the 1990s the then Prime Minister, Margaret Thatcher, was forced out, handing the reigns to John Major who himself had conflicts with some of his cabinet.

He too suffered from internal squabbling and once referred to some of his cabinet as those “bastards”.

John Major was caught on tape talking about possible reshuffles in his cabinet while preparing for an interview with ITN [Independent Television News]. During the conversation, which was not intended for broadcast, Major said, "I could bring in other people. But where do you think most of this poison is coming from? From the dispossessed and the never-possessed. You can think of ex-ministers who are going around causing all sorts of trouble.”

Then came the punch line. “We don't want another three more of the bastards out there. What's Lyndon Johnson's maxim?..."

It was at this point that someone, presumably an ITN technician, realised what was happening and pulled the plug. "Johnson's maxim" was, incidentally, a reference to FBI director J. Edgar Hoover, whom he declined to sack on the basis that "it's probably better to have him inside the tent pissing out than outside pissing in".

It appears there are quite a few Labour MPs pissing into Gordon Brown’s tent. And as British politics begins to smell a bit rank the electorate will make their voices known.

Though it is widely believed Labour will do badly, it is unclear whether there will be a major endorsement for the other parties.

Gordon Brown's 'new world order'

Brown addresses journalists after the G20 Summit

In a press conference to assembled journalists at the G20 Summit, Prime Minister Gordon Brown laid out the agreements that had been made by the G20 leaders. It was in effect long on rhetoric and short on detail. But he made clear that the proposals set forward were an attempt to rewrite the rules of capitalism.

"This is the day that the world came together to fight back against the global recession not with words but with a plan for global recovery," Gordon Brown said in is opening remarks.
He was clear that such an economic crisis that the world is currently facing must not be allowed to happen again and set out the key points that had been agreed upon. In a move that would have pleased French President Nicholas Sarkozy and Germany's Chancellor Angela Merkel he announced measures to deal with what he called the shadow banking system.

"We have agreed there will be an end to tax havens that do not transfer information on request," Brown said, and insisted that "The banking secrecy of the past must come to an end."

In his much repeated phrase he said that the global problems required global solutions, but said that the G20 leaders were committed to solving the crisis. "Today we have reached a new consensus, to deal with the problems we face, [and] do what is necessary to restore growth and jobs," Brown said after the four hour summit.

In order to achieve this goal, Prime Minister Brown announced six pledges which had been agreed upon.

The reformation of the global banking system was high on the agenda and the Prime Minister laid out several points which were to be addressed. He said that international accounting standards would have to be set and that there would need to be tighter regulation with regards hedge funds and tax havens. "We have agreed there will be an end to tax havens that do not transfer information on request," Brown said. He said there had also been agreement to impose tough standards and sanctions for those who did not comply. This was all part of a plan to encourage corporate responsibility throughout the globe. "We will implement new rules on pay and bonuses at a global level that reflect actual performance with no more rewards for failure," Brown added.

There were also proposals to spend huge amounts of money. "We are in the middle of an unprecedented fiscal expansion which will by the end of next year amount to an injection of five trillion dollars into our economies," Brown said. It was necessary, he insisted and said it would save and create millions of jobs.

Prime Minister Gordon Brown went on to announce further injections of cash. "We have also agreed today additional resources of one trillion dollars that are available to the world economy through the International Monetary Fund and other institutions," he said.

These funds would act as an 'insurance policy' for struggling economies, according to John Lipsky, the First Deputy Managing Director of the International Monetary Fund. The money would be made available in what the IMF calls a flexible credit line.

Talking to media on Thursday, Lipsky said the money would be used as part of "a new and innovative facility designed to provide crisis prevention support to countries that have good, strong policies, and economic fundamentals as well as a good track record of implementing solid economic and financial policies, but who could potentially be threatened by external developments by international financial market turmoil."

One such beneficiary might be Mexico who have already made representations. John Lipsky said he had already spoken with Mexico's finance minister, Agustin Carstens, and said he was seeking approval from the IMF's executive board to push through the proposal.

"Mexico has strong fundamentals," Lipsky told reporters, "they have a solid policy framework and a good track record of implementing policies." But he said, while Mexican authorities have indicated they don't intend to use the funds, it should be seen as "a kind of insurance policy; to armourplate the situation."

Several nations have already committed vast sums to the initiative. Lipsky said that Japan had agreed to provide 100 billion dollars, while the European Union has promised some 100 billion. In addition he said the U.S. Treasury Secretary Tim Geitner had spoken of providing an additional 500 billion.

As well as injecting money into emerging economies, some money may even filter into struggling Western economies.

Gordon Brown did not hint as to whether Britain would be joining the queue for a hand out. Instead he continued in laying out the role the IMF would play in helping to pull the world out of recession. He said the injection plan would increase global confidence and said that the International Monetary Fund would be called upon "to monitor our progress ... and to report on whatever further actions maybe necessary.”

It was important too that emerging markets and developing countries were given a greater voice and greater representation, Brown said and he promised that such nations would not be forgotten.

As Brown wrapped up his 20 minute address he spoke of his hope for the future. “I think a new world order is emerging and with it a new and progressive era of international cooperation.” It remains to be seen what cooperation materializes in the coming months.

Obama "to the rescue" as protests begin

Six protestors arrested driving an armoured vehicle

Barack Obama flew into Britain yesterday amid high security and under an intense media glare. There is anticipation that the US president will provide the impetus to help kick start the world economy as he joins 19 other state leaders at the G20 Summit. But it will take more than one man to pull the world out of its current downturn. There needs to be consensus amongst the other nineteen G20 leaders.

The French President Nicholas Sarkozy has already expressed his doubts and even said he may not sign any resolutions if they did not meet up to his expectations. There is already finger pointing with France and Germany accusing America of creating the financial crisis. And even Gordon Brown has made statements to the same effect, though he has backtracked since.
Speaking at the Foreign Office today the US President said, “I don’t want to identify blame I want to fix the problem”. He went on to quote a law professor who once taught him about responsibility versus blame. “Some are to blame, but all are responsible,” Obama said, adding that it was important for everyone to sit down together to solve the economic crisis.
Gordon Brown has continuously referred to the global problems requiring global solutions. And he echoed Obama’s stand that all the G20 countries should work together. “We must stand united to do what’s necessary,” Brown told assembled journalists.

There are fears that the G20 leaders will fail to meet consensus as there are too many vested interests. China is seeking to boost its export market as its projected growth drops below 8% and the numbers of unemployed soar above 20 million. But many Western countries may adopt protectionist policies, even if indirectly. Across Europe unemployment has grown significantly in the past few months and many countries in the Eurozone have fallen into recession. It has resulted in a fall in consumerism as people take a tighter hold on their expenditure.
There is a growing feeling that it is unlikely that any resolution will come together in the less than 36 hours during which the G20 leaders will come together. Indeed a larger proportion of time will be taken up with lunches and photo calls, leaving very little time for discussion.
The lack of faith in the G20 and increasing anger towards bankers and the government has encouraged many to take to the streets. On Saturday tens of thousands marched through London airing their grievances. And today hundreds of demonstrators have begun to converge on the capital.

There has been much media speculation that the protests may turn violent. But by noon most of the demonstrations had been lively but good natured. The occupants of an armoured vehicle were arrested after they drove into the financial centre. Six people were detained by police according to reports, and the blue ‘tank’ was impounded. Sky News also reported that three protestors had been arrested for possession of knives while another had been detained after assaulting a police officer.

Brown & Obama - an awkward relationship

The British press have ridiculed Gordon Brown's US visit

British Prime Minister Gordon Brown arrived in the United States on Tuesday with the hope of discussing a “global new deal”. But his effort to gather support to kick-start the world economy seemed to be getting a cold reception before it had even begun.

Snubs and criticism

Besides it being his first visit to the U.S. since Barack Obama became president, the Prime Minister’s itinerary was being downsized and rescheduled. Hopes of a joint press conference in the Rose Garden evaporated due to the heavy snow in Washington, though officials did not explain why the event was not moved inside. Some saw the move as a snub to the Prime Minister who has been particularly critical of the U.S. financial regulatory system.
During his monthly press conference last month [Feb 18th], Gordon Brown called for “an international system of regulation”, something he said was “absolutely essential”.
But his attempts of persuading others to join his plan have so far fallen on deaf ears. And it has not been helped by continued criticism of other countries. In his February statement he said there was a “failure in the American regulatory system.”

“If you take the sub-prime mortgage market in the United States of America, sub-prime mortgages, half of them were sold to Europe. So they were sold on by providers in the United States of America to Europe. But they were regulated by the American system and they were called Triple A. So the people who were buying these investments from America were buying what they were told was the most worthy investment of them all, Triple A rated, and there was a failure in the American regulatory system.”

However, while he said Britain was more tightly regulated, he conceded there was still room for improvement. “Our regulatory system has been a better system but it is still not good enough to meet the changing challenges of the times,” Gordon Brown said.

Despite his criticism of America, the Prime Minister has also praised Obama for his efforts in tackling the financial crisis saying they were doing “similar things” to what Britain was doing.
The atmosphere of Brown’s visit has already been soured by what some see as pointed gestures about the state of Britain’s so called “special relationship”. Barack Obama has already removed a bust of Winston Churchill that once sat in the Oval Office. And in what might be seen as another snub, former Prime Minister Tony Blair was invited to the national prayer breakfast in Washington last month and referred to by Obama as a “good friend”.

The White House insisted that a special relationship still existed between Britain in an attempt to brush off speculation. On his arrival at Andrews Airforce base the Prime Minister did receive a rather frosty reception in the form of extremely cold temperatures reportedly as low as minus 10 degrees Celsius.

'The special relationship'

His meeting with Rabbi Arthur Schneier of the Appeal of Conscience Foundation was somewhat warmer. During the visit Brown insisted the downturn could “only be resolved by people working together”. The Rabbi gave him a pot of honey in the shape of an apple in recognition of Britain’s work in tackling world poverty. But the Prime Minister will need more than a pot of honey to help him save global markets which have crashed to all time lows in recent days.
In an earlier interview with National Public Radio [NPR] he said that the priority was to “clean up the banking system”. But most of his discussions with Barack Obama were held behind closed doors. In a short question and answer session after the meeting Obama reaffirmed his belief in the special relationship between the U.S and Britain. “Rest assured it is not only strong but will get stronger as time goes on,” Obama said. He added that the relationship was important to the U.S and Great Britain. “It’s not just important to me but also the American people,” he emphasized.

Obama echoed the words of the British Prime Minister saying a “global new deal” was important. But he said the US banking sector had been dealt a heavy blow and economic recovery would not happen overnight.

Brown thanked Obama referring to their “partnership of purpose” which was founded on shared values and a need to solve world economic problems. He said that a “Big regulatory change” was needed. He was nonetheless positive saying, “There is a possibility of a global new deal in the next few months”.

Both leaders emphasized the need to work together with Obama declaring, “In this world we need to build alliances and not act unilaterally”. It was also important that all major G20 countries worked together with a common set of principles he said [BBC].

Despite much press speculation it appeared, that at least publicly, the two leaders were affirming their strong alliance.

'Weird and sinister'

However, Brown is certainly not running in the footsteps of his predecessor who was much admired in the US. Although he was welcomed by strong applause during his speech to congress, it was not in league to that seen in Tony Blair’s day.

The BBC’s Nick Robertson talked of 17 standing ovations, two less than that received by Prime Minister Blair. However not all pundits saw the reception as being so rapturous. Sky’s Adam Boulton described the so-called standing ovations as merely “seventeen bursts of applause”.
Blair was often described as Bush‘s poodle and recent cartoons have depicted Gordon Brown similarly as a dog sniffing at the butt of America. One could even descibe his speech as somewhat sycophantic. But his apparent obsequiousness did not go down well in the UK. Indeed his performance was even described as “dysfunctional” by one politician on the BBC’s Question Time. Shadow International Development Secretary Andrew Mitchell said the interviews in the Oval Office were “rather dysfunctional and rather needy”, though he thought that the Prime Minister’s call to avoid protectionism was important. Writer and feminist Germaine Greer was less than impressed by Gordon Brown’s delivery at Congress saying it was “Weird and sinister”. She said the speech was full of clichés and described it as “over the top”.

Indeed, he had barely begun his address before the praise for America drooled from his lips. "The US is and always will be an inspiration to me and the whole world," Brown said in his opening remarks. And the praise didn’t stop there. “America is an irrepressible nation" he said. "America is a nation with the vision to protect & preserve our planet Earth", a nation whose “spirit” would not be destroyed by terrorists, Brown declared. And of course there was the obligatory tribute to the "sacrifice of American soldiers who have given their lives" in two world wars, as well as Afghanistan & Iraq.

After the praise, and the announcement that Senator Edward Kennedy had been awarded an honorary knighthood by the Queen, Brown then launched into his bidding.

'Building for the future'

He said it was a "time for renewal“ and “ building for the future". "Let us agree rules and standards of accountability and transparency," he said and called on America to “renew our special relationship” and get “every continent playing their part for a global new deal”.
He may well find it an uphill struggle to get the full support of America despite his stated optimism. "I have never before seen a world willing to come together so much," Brown said, while insisting that it was time to “seize this moment” and “build tomorrow, today” [Full speech]

'Saving the world..'

While the reception was generally warm there were moments when some members abstained from applauding the British leader. In fact he received only half-hearted applause when he called for agreement on overhauling the world of international finance at the G20 talks in April.
It should perhaps also be noted that several dozen members of Congress failed to attend the speech. Their seats in the chamber were taken by House and Senate staff and other guests.
In December as the world recession was just beginning to bite, Brown was mocked for his slip-up in Parliament when he said, “The first point of recapitalization was to save the banks that would have otherwise collapsed. And we not only saved the world...”. His attempts to correct himself by saying “save the banks” were drowned out with laughter. The faux pas was then capitalized upon by opposition leader David Cameron who exclaimed, “Well, it's now on the record. He is so busy talking about saving the world, he has forgotten about the businesses of this country.”
There are many who now feel he forgot about “this country” as he fawned for America and its new charismatic, but seemingly disinterested, leader.

'printing money'

Back home the Bank of England announced another interest rate cut and a plan to inject billions of pounds into the economy in the form of “quantitative easing”. It was not met with huge enthusiasm except perhaps by politicians. Twitter, the micro-blogging service, was alive with comments suggesting the proposal to effectively print money could lead to rampant inflation and risked a Zimbabwe style economy developing. The interest rate cut, which was halved to 0.5%, has also created consternation amongst many Britons. Savers will see little point in putting money into banks which give so little return on their investment.

It remains to be seen if Brown’s global new deal and other initiatives will have any effect on the economy, or if he can pull nations together in fighting the global recession.