Comment, analysis and other offerings from Monday’s FT,
Wolfgang Münchau: Snags, diversions – and the crisis goes on
The European Union last week destroyed the illusion that the eurozone and the UK could happily coexist inside the EU, the FT columnist writes. That may have made it a historic summit. But the decision to set up a fiscal union outside the European treaties will do nothing whatsoever to resolve the eurozone crisis. There are different notions of a fiscal union – some more integrated, some less so, some obsessed with fiscal discipline, others with a joint bond. But whichever your preference, this is not something you would wish to do outside European treaties.
Jonathan Powell: Cameron’s catastrophic decision on EU
In 1955 a Conservative government led by Anthony Eden took the catastrophic decision of opting out of the European Community at its inception, impulsively and without really thinking about it, writes Powell, former British diplomat and ex-chief of staff to Tony Blair. Britain then spent years desperately trying to join in the face of repeated rebuffs and eventually gained admission only in 1972. Fifty-six years later, another Conservative government has made another catastrophic decision to opt out of a treaty that will shape Europe over the next several decades, without really thinking about the consequences.
John Plender: Moneylenders that want a mere 4,214 per cent
Interest rates in the UK are at their lowest for 80 years. But not for customers of the cheerily named payday lender Wonga, which advertises an annual percentage rate on its website of 4,214 per cent. That is the kind of rate for which Dante consigned usurers to the seventh circle of hell, along with sodomites and blasphemers, says the FT columnist.
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America used to be exceptional, the FT’s Edward Luce says. Postwar, it maintained lower unemployment than the Europeans and a higher rate of jobs turnover, enabling it to get away with more meagre benefits; “a fair day’s work for a fair day’s pay” was within the grasp of most. That gave America a booming middle class that until recently was the most important engine of global demand. No longer. Today, somewhat remarkably, US joblessness is higher than in much of Europe. And the US consumer is mired in high personal debt. As the jobs crisis deepens, so too does US political polarisation.
Gavyn Davies: Central banks fire the second barrel of QE
The financial markets are becoming ever more dependent on the continuing willingness of the central banks to use their balance sheets to rescue the global economy. The central banks are not flinching from their task. In fact, they are in the process of firing their second barrel of quantitative easing at the global crisis. It could prove to be as large as the first barrel in 2008/09, says the FT blogger.
The World: Will the Russian winter save Putin?
The Russian winter has helped the country to repel foreign invaders, from Napoleon to Hitler, the FT’s Gideon Rachman writes. Might it now also help Vladimir Putin to hang onto power? The Russian protesters all went home and their next big demo is not scheduled until Xmas eve. By contrast, the Tahrir demonstrators occupied the square and refused to move until Mubarak had gone. Occupation is obviously a much more effective tactic. But it also much harder to carry out in the middle of a Russian winter.
Lucy Kellaway: Social networks upend office etiquette
We all have known for ages that Facebook can end careers; if you post bad things about your company online, you can get fired, the FT columnist writes. But now we have to absorb another, more troubling truth: posting fawning things on Facebook can help you along no end. So what is the new etiquette for cyber sucking up? What is acceptable and what is shameless? The answer is that no one has the foggiest. We are all making it up as we go along.