06/03/2016 The Andrew Marr Show


06/03/2016

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Our next Prime Minister - or the wilderness man?

:00:00.:00:11.

This morning Boris Johnson joins the argument over Britain's future.

:00:12.:00:33.

Baloney, piffle, hogwash, Project Fear - the Mayor of London

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has been characteristically forthright about the views

:00:37.:00:38.

In a little while Mr Johnson and I turn to the nitty gritty

:00:39.:00:46.

of this awesomley important national choice.

:00:47.:00:49.

Wolfgang Schauble says there would be a trade deal

:00:50.:00:51.

But the German finance minister still thinks that to go

:00:52.:00:57.

Staying with the big picture, I'll be talking

:00:58.:01:02.

to Mervyn King, the legendary former Governor of the Bank of England,

:01:03.:01:04.

who has a dark warning about the world economy.

:01:05.:01:16.

there's an election campaign in America.

:01:17.:01:21.

Our own Jon Sopel is here to review the papers,

:01:22.:01:23.

and tell us all about it - along with Labour moderniser,

:01:24.:01:26.

and former would-be leader, Liz Kendall.

:01:27.:01:28.

But we'll leave you we promise on a harmonious, uplifting note -

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quite a few notes actually - from Benjamin Grosvernor

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and Hyeynoon Park, to finish the show.

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And if that doesn't cheer you up and nothing will.

:01:47.:01:49.

But first, the news, with Katherine Downes.

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Boris Johnson has said it's "absolutely scandalous",

:01:53.:01:55.

that one of the country's biggest business groups

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suspended its director-general, for suggesting Britain

:01:58.:01:58.

could have a brighter future outside the EU.

:01:59.:02:07.

In an article in the Sunday Telegraph, The Mayor of London,

:02:08.:02:10.

who's campaigning to leave, claimed John Longworth,

:02:11.:02:11.

the head of the British Chambers of Commerce, was a victim

:02:12.:02:14.

Downing Street has denied a suggestion that it put pressure

:02:15.:02:18.

The BCC had said it would remain neutral in the referendum debate.

:02:19.:02:22.

The leading Republican candidates, Donald Trump and Ted Cruz,

:02:23.:02:25.

have each won two states in the latest stage of the race

:02:26.:02:28.

Donald Trump took Lousiana and Kentucky,

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while his rival won in Kansas and Maine.

:02:32.:02:33.

Bernie Sanders stays in the Democrat race after winning

:02:34.:02:35.

But Hillary Clinton strengthened her lead,

:02:36.:02:40.

Senator Cruz said his victories showed he's the candidate

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with the best chance of beating Donald Trump -

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still the Republican front-runner - and going on to win the Presidency:

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What we are seeing here in Idaho is really what we are seeing

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all across the country, which is Republicans are coming

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together, they are uniting behind our campaign.

:02:58.:02:59.

The 65% of Republicans who recognise Donald

:03:00.:03:03.

Trump is not the best candidate to go head with Hillary Clinton.

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That the odds are too high, he loses, we lose

:03:07.:03:09.

the Supreme Court for a generation, we lose the Bill of Rights,

:03:10.:03:12.

we lose the Senate and what we are seeing is Republicans coalescing

:03:13.:03:15.

Growing numbers of children who are stranded in a migrant camp

:03:16.:03:21.

on the Greek-Macedonian border are suffering respiratory

:03:22.:03:23.

infections, according to the aid agency Doctors Without Borders.

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The charity says poor sanitation and adverse weather

:03:27.:03:28.

At least 13,000 migrants are now believed to be stranded.

:03:29.:03:35.

A Greek regional governor has called for a state of emergency to allow

:03:36.:03:38.

Driverless lorries are to be trialled on UK roads

:03:39.:03:43.

The Chancellor, George Osborne, is expected to announce next month

:03:44.:03:48.

that tests using driverless technology will begin on the M6.

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Several companies are currently developing self-driving cars whilst

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these driverless lorries have already been trialled in Germany.

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The next news on BBC 1 is at 12.15pm.

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This is John Longworth, the head of the British chamber of, nurse, he

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lost his job allegedly after number ten bullying, we will talk about

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that later. The Sunday Times has a picture of Rupert Murdoch and Jerry

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hall getting married yesterday and we will talk about that. Scary story

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here, EU fuels terror and pastures and -- Fascism warns Michael Gove.

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The Sunday express the EU seeks can stroll of our coast, the Spanish

:04:55.:05:01.

Armada bobbing up, and a different Johnson, we will move quickly beyond

:05:02.:05:05.

that. Top headhunters admit UK bosses pay absurdly high. We will

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stick with The Observer Liz Kendall because your first story is at the

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bottom of the front page? That is correct, dominated about our

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membership of the EU and the story I think is very important is that Alan

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Johnson and Chuka Umunna are issuing a call to arms amongst Labour

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members and supporters to go out and make the passionate case were asked

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to remain part of the EU. We have not heard a great deal from the

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Labour Party, both buying chaps I am sure but they are not the leaders.

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-- both buying chaps. The story has been dominated by splits in the Tory

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party and we have to go out and make the case. This is the biggest

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political issue we face in a generation and it will rest on

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Labour members and supporters getting out to vote to make sure we

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remain part of the EU. There are some on the left of the party who

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might be provided to about our membership but it's actually about

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jobs, growth and the politics of solidarity and we have to make the

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case. You have been covering these things for a fair number of years,

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the left of the Labour Party back in the 70s and 80s was very

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anti-European and that in a way is the Jeremy Corbyn tradition. Yes.

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Those doubts still exist. There was a period where the social chapter

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came into Europe and labour embraced it because of workers rights and

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suddenly the Labour Party became very European. My vantage point is

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3000 miles away but I have been struck over the past few weeks

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trying to watch the Labour Party, just how quiet it has felt that the

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Labour Party have been on the whole subject, they don't seem to be

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leading the fight at all. Without doubt we have to make the passionate

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case, we still have one in five voters undecided, many of those are

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women and I would like to see more women having a stronger voice in

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this campaign because at the moment it is very male dominated. That's a

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fair point. Terrifying front page from the Sunday Times, the EU fuels

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terror and fascism according to Michael Gove. We have already had

:07:23.:07:27.

what is being called Project Fear, we saw the way the Scottish

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referendum was fought with a sense of being frightened and we get a

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paragraph like this, a warning that staying in the EU would make it

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harder to identify terrorists and keep the UK safe and accused

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Brussels of fuelling arise in Hitler worshippers across the continent. It

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all sounds pretty terrifying. Sounds like Project Fear is in full

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throttle on both sides. Exactly. I wonder what people who are trying to

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weigh up the arguments will make, will they believe it if the visions

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are both so apocalyptic on either side, no room for nuance. It is all

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getting a bit show tee, this business of John Longworth losing

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his job, we don't really know, number ten denies bullying him, a

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lot of people claim he was bullied but the British chamber of commerce

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were obliged to fire him because they want to stay neutral but I

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think almost every public figure is under pressure to say which side

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they are on. Yes, and particularly in industry because that is a

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clinching argument to say a certain number of captains of industry say

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Britain is better off or worse off. I think it is those voices that will

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convince people in the end, there will be a lot of heat and fury and

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it will be the leaders of companies like Toyota and Rolls-Royce who have

:08:51.:08:52.

raised real concerns about what would happen to their businesses if

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Britain left the EU. I think the public is more likely to leave those

:08:58.:09:02.

voices than politicians. If John Longworth is watching you have only

:09:03.:09:06.

been suspended, not fired, that was my mistake. Let's turn to the job

:09:07.:09:13.

you do everyday, George Osborne or an American story? I was going to

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talk about the debate over whether there should be televised discussion

:09:20.:09:24.

the referendum. In America we have had endless TV debates of varying

:09:25.:09:28.

quality. Extraordinary screaming matches. Extraordinary screaming

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matches, Donald Trump discussing allsorts of things aside from the

:09:34.:09:38.

strength of his candidacy which we won't go into. Two principal

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candidates, they are now known, Ted Cruz is now known as lying and Marco

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Rubio is known as little Marco. I just wonder it you could have a fair

:09:59.:10:02.

and balanced debate two days out from the referendum. Apparently the

:10:03.:10:09.

pro-EU side are getting a bit queasy about the project. Everybody should

:10:10.:10:14.

be able to watch the big beasts from both sides test one another. I

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completely agree and it is one of the things which has struck me about

:10:20.:10:24.

American democracy, you have it at grassroots level where politicians

:10:25.:10:27.

have to campaign on a local level but you also have the expectation

:10:28.:10:31.

that they will face a TV audience on a regular basis and put their

:10:32.:10:35.

arguments to the test and it just seems strange we have these debates,

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are we going to have a TV debate or not? Absolutely if it had not been

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for Europe we would have been talking about nothing except the

:10:45.:10:48.

looming budget. A big fight about pensions and George Osborne seems to

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have had a climb-down. Yes, a story about not just the climb-down over

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pensions but over raising social housing rents and I think if there

:11:00.:11:05.

is that you turn it will be welcome but there are some long-term

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challenges the Chancellor needs to address in the budget and I wanted

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to pick up something here. We are tiptoeing nervously into the 21st

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century. The Sunday Herald. We tiptoeing nervously into the 21st

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cannot get it on paper, from Glasgow, the front page. Very

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interesting front-page story, if you are born into a poor family you will

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die ten years earlier than if you are born into a better off families.

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This lack of life chances for people who are born in more disadvantaged

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areas is a huge challenge, we will never succeed as individuals or a

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country and everyone has a chance to get on in life and what I would like

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to see in the budget is instead of doing an inheritance tax cut for the

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very few at the top, I want to see that money going into the early

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years because what happens in those years has a big impact on how will

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you do in later life and that is the kind of budget I would like to see

:12:03.:12:07.

George Osborne present. Your leader is in some trouble in the Sunday

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Times but that is not unusual. I would like to move to the story you

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Times but that is not unusual. I have been obsessed by, Donald Trump,

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an amazing haircut with this picture. Yes, the child with a

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Donald Trump comb over by the look of things. He has a pacifier in his

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mouth and does not look very pacified by being in the arms of

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Donald Trump. He looks deeply upset. The phenomenon is extraordinary, it

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is real, there is enormous support for him. Among white working class,

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among all sorts of groups, all demographics. He is a student of the

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polls and he takes you through what he is doing in each demographic and

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is winning in most of them. Chances are he will become the Republican

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nominee and will be fighting in a head to head with Hillary Clinton.

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People were saying that Marco Rubio would come through and Ted Cruz is

:13:05.:13:08.

finished, and cover people seem to be wrong. Clever people have been

:13:09.:13:15.

wrong thread. This is the lead story of the Washington post which will be

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hitting the newsstands in a few hours. Talking about the victories

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he had in Kansas overnight and it will boost his bid to become the

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chief alternative to Donald Trump. What you will have is Ted Cruz is

:13:30.:13:35.

not the establishment candidate, Ted Cruz is low that even more by the

:13:36.:13:40.

Republican establishment because he is seen as ideological and

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flinching, very much to the Christian right and has not got one

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Republican supporting him even though, in the Senate, even though

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he is a senator himself. They do not like him as a human being? Here's

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hard to warm to. You have Donald Trump and I think it will be

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difficult to stop him getting all the way to the nomination. I just

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wanted to pick out the leader on The Observer which says we have to

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understand the root causes of the very real anger and frustration

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which Donald Trump is picking up on. America may be militarily strong but

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is not dealing with issues in Syria, issues on the economy and people are

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angry. I think this is the same argument in Europe, unless you give

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people hope that they can have a better life and deal with these

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issues... We will talk to Mervyn King about this later on, but we're

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running out of time so a thought on Mother's Day. My thought on Mother's

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Day is this piece which says, I wouldn't say forget mothers, but

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this talks about celebrating aunties and I am very proud to be one. One

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in five women in their 40s now are childless and I am one of those

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women but I love my nieces. I think an aunties day would be great.

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Finally, Ruppert Murdoch. I love looking at the Sunday newspapers,

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two Young starlets who have just got married, we have Ruppert Murdoch and

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Jerry hall having got married on the street yesterday. Then a glittering

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occasion with the good and are great, some of the good and some of

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the great. Rupert Murdoch has been a great antiestablishment figure but

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is so part of the establishment. All the people they are. Top Michael

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Gove. The former Justice Secretary was there. The pictures look great

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and it does look like a very happy and joyous occasion.

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Snow in the north, where winter is always coming.

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Winter Fell was briefly cut off but down here in Kings Landing it's

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I hoped to have John Snow here to bring you the weather,

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So making do in the weather studio is Peter Gibbs.

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Winter definitely still rules at the moment, we had a widespread frost

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overnight. We were sent this recent picture of snow falling in

:16:31.:16:33.

Stoke-on-Trent so there is still something wintry out there. The area

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of showers producing that sleet and snow is moving its way across the

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west Midlands. It will struggle to settle, and as you go further north

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that is where you break out into some of the best sunshine. It will

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look magnificent in those clear skies today. A bit more cloud from

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Northern Ireland, patchy rain into the west. Another cold day

:16:57.:17:01.

everywhere, still a bit of a chilly wind blowing in from the north.

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Colder still overnight tonight, and with clear skies and light winds, a

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widespread frost. Towns and cities dropping below freezing quite

:17:13.:17:17.

widely, but in rural areas it will be down to minus ten potentially in

:17:18.:17:22.

some of those Scottish glens. Looking ahead, Monday is a crisp

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day, Tuesday still on the chilly side, but things are starting to

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change, becoming more unsettled and we will be exchanging winter for

:17:32.:17:36.

something more springlike by the end of the week.

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At last! As Governor of the Bank of England,

:17:38.:17:40.

Mervyn King was at the centre of events when the great crash

:17:41.:17:44.

of 2008 shook this country, taking down financial institutions

:17:45.:17:46.

and ruining many businesses The costs to the taxpayer were huge,

:17:47.:17:48.

recovery painfully slow. But now he thinks we could be

:17:49.:17:53.

on the verge of another financial disaster because,

:17:54.:17:55.

frankly, we haven't learned Good morning. We were talking in the

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paper review about general anger against the elite, is your economic

:18:07.:18:12.

warning part of the reason, do you think? I think so, I think in the

:18:13.:18:18.

wake of the last crisis, government and central banks did boost

:18:19.:18:21.

employment and increase spending and in the short run that prevented a

:18:22.:18:25.

rise in unemployment that we saw in the great depression so we avoided a

:18:26.:18:29.

great depression, but since we didn't put right the fundamental

:18:30.:18:33.

problems, living standards have continued to grow slowly, we have

:18:34.:18:37.

seen an extremely slow recovery across the whole world and anger has

:18:38.:18:41.

built up because the people who are suffering words those who felt

:18:42.:18:46.

responsible for the crisis. And usual ways of trying to get out of

:18:47.:18:51.

this problem of people feeling very angry, low interest rates, that has

:18:52.:18:56.

been tried and tried and it has run out really. Yes, it was sensible to

:18:57.:19:02.

cut interest rates but it is a temporary solution, it is a

:19:03.:19:06.

painkiller if you like, and if all you do with painkillers is keep

:19:07.:19:10.

taking them and not deal with the underlying symptoms, you don't get

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better. You said in your book pities virtually certain we are facing

:19:16.:19:18.

another financial crash, why is that? In the long run the banking

:19:19.:19:23.

system is still potentially subject to the sort of runs we saw during

:19:24.:19:28.

the crisis. No one knows when that will be but what is clear about the

:19:29.:19:31.

world economy is that most countries if not every country around the

:19:32.:19:36.

world could say, if only the rest of the world was growing normally we

:19:37.:19:41.

would be fine, but since it isn't we aren't, so we get countries

:19:42.:19:43.

competing with each other to push down interest rates. You have the

:19:44.:19:49.

reputation of being a cautious man, but you say in the book that unless

:19:50.:19:55.

we get reform of the financial institutions, another crash will

:19:56.:20:00.

happen sooner rather than later, which will scare people watching.

:20:01.:20:05.

The financial system is not safe enough, but we do have 10-20 years

:20:06.:20:11.

to put into place measures that will make our banking system safer. In

:20:12.:20:15.

the short term we need to be worried about the rest of the world. The

:20:16.:20:20.

euro area, China, which is not growing as rapidly as it claims to

:20:21.:20:24.

be, many countries around the world are now starting to compete with

:20:25.:20:29.

each other rather than cooperate. So we should be worried about the

:20:30.:20:33.

failure of a Chinese bank setting off the ripples we saw last time

:20:34.:20:39.

round? Yes, I think one of the things people didn't appreciate

:20:40.:20:41.

enough last time round and the United States doesn't appreciate

:20:42.:20:45.

today is that events around the globe can affect our own economy. It

:20:46.:20:50.

is very clear from the book that some of the things you want to

:20:51.:20:54.

happen have been talked about for a long time, dividing ordinary banks

:20:55.:20:58.

that ordinary people use to put their money into from what has been

:20:59.:21:04.

called Casino banking. In the end you are talking about a lack of

:21:05.:21:08.

political leadership at the top level, I wonder why you think that

:21:09.:21:12.

has happened. Is it because frankly politicians have been intimidated by

:21:13.:21:18.

the bankers and financial services? I don't try to split banks into

:21:19.:21:24.

narrow and wide, I want them like motorists to take out insurance

:21:25.:21:29.

before they go on the road. If you try to drive a faster and more

:21:30.:21:34.

dangerous car, you pay a higher insurance premiums. You don't need

:21:35.:21:38.

to ban people, and that flexibility is one of the key points of the

:21:39.:21:44.

book. I think for politicians, it is very difficult for countries in the

:21:45.:21:49.

end to work for each other. I have been to every GE 20 meeting until I

:21:50.:21:54.

left the bank and most people were looking at their home constituencies

:21:55.:21:57.

and domestic considerations, not facing up to the major challenges.

:21:58.:22:02.

But there was a problem before the crisis and I suspect it hasn't gone

:22:03.:22:08.

away, that the large financial institutions had an influence. It

:22:09.:22:12.

wasn't crude in the sense of bribing people in any shape or form. I'm

:22:13.:22:26.

sure there are some countries in the world where that is true, not here.

:22:27.:22:28.

But first politicians depend on finance and funding, and you can see

:22:29.:22:31.

that clearly in the United States how they depend on financial

:22:32.:22:33.

institutions to pay for their campaigns, and hear people were

:22:34.:22:35.

captured by the apparent success, everything was going well. They were

:22:36.:22:42.

starry eyed. Yes, because this was a sector that was making ever bigger

:22:43.:22:45.

profits, but what risks are they taking? In the book also, you are

:22:46.:22:55.

very critical of the eurozone. You say it is a terrible disaster, you

:22:56.:23:00.

suggest Germany might be better off leaving the euro zone but they will

:23:01.:23:03.

go far deeper integration to try to make it work, and you talk about the

:23:04.:23:08.

importance of national sovereignty, people having control over their

:23:09.:23:13.

destinies. Reading this book, I came to the conclusion you must be in

:23:14.:23:19.

favour of us leaving the EU. I don't think you can draw that conclusion.

:23:20.:23:23.

It is clear we are influenced by what is going on in the euro area,

:23:24.:23:30.

and I think it has been an economic if not disaster very serious

:23:31.:23:38.

problem. Most divisive forces since the Second World War, you call it.

:23:39.:23:44.

Germans wanted to bind Germany into Europe so the rest of Europe would

:23:45.:23:48.

never again be frightened of Germany, it has had the opposite

:23:49.:23:52.

effect. If you look at the attitudes towards Germany today in Greece and

:23:53.:23:57.

even Italy, you see there is more concerned about Germany than ever

:23:58.:24:01.

before, and this is a headache for Germany. They didn't set out to find

:24:02.:24:07.

themselves in this position but the economic arithmetic has led them to

:24:08.:24:12.

it. That's why in the long run the euro area is something we should be

:24:13.:24:16.

concerned about. Isn't the problem, so long as we are inside the EU, we

:24:17.:24:21.

are tied to the euro area very closely. Therefore, if it goes down,

:24:22.:24:28.

if it gets into terrible trouble, we will be badly affected. That will be

:24:29.:24:36.

true in or out, the euro area is our biggest trading partner, that will

:24:37.:24:39.

carry on being the case, therefore it matters to us what goes on there.

:24:40.:24:47.

I worry this will be a battle between the political will of an

:24:48.:24:50.

elite that created this and stands now admit it was a mistake, and

:24:51.:24:55.

economic arithmetic and we will all suffer from that. On that cheerful

:24:56.:24:57.

note, thank you for joining us. Germany's Finance Minister,

:24:58.:25:02.

Wolfgang Schauble, is one of Europe's most experienced

:25:03.:25:04.

politicians, with a career spanning 30 years and a key ally

:25:05.:25:06.

of Chancellor Merkel. So there was great interest

:25:07.:25:09.

when he appeared at the British Chambers of Commerce annual

:25:10.:25:11.

conference in London last week. Sitting alongside George Osborne,

:25:12.:25:14.

he said Germany would cry if Britain I caught up with Dr Schauble

:25:15.:25:16.

afterwards, and we began by talking about the impact of the migration

:25:17.:25:20.

crisis in Europe. Had Germany been wrong

:25:21.:25:22.

to open its doors and invite TRANSLATION: We have not

:25:23.:25:25.

invited the refugees, Europe is confronted with

:25:26.:25:34.

the situation in the Middle East, and whether we want this or not

:25:35.:25:40.

we will have to take on more responsibility, and I think we can

:25:41.:25:43.

do so better together. If Europe is going to avoid having

:25:44.:25:47.

barbed wire between the borders and all the old borders going up

:25:48.:25:49.

inside the Schengen area, then there's a feeling at the moment

:25:50.:25:52.

that there has to be a much stronger, almost military

:25:53.:25:57.

border around Europe. Yes, of course, we will have

:25:58.:26:01.

to control effectively the external borders of the EU,

:26:02.:26:08.

that's quite clear. Any community that has no border

:26:09.:26:11.

controls within it has to control But this isn't the only question,

:26:12.:26:14.

it is also a question of cooperation with our neighbouring countries

:26:15.:26:18.

so that the number of those who want to come to Europe

:26:19.:26:21.

will actually be reduced to a level The European summit on Monday

:26:22.:26:24.

will of course also involve Turkey and we will discuss how,

:26:25.:26:30.

together with Turkey, You mentioned Turkey just now,

:26:31.:26:32.

and there's an obvious kind of deal to be done of some kind,

:26:33.:26:41.

but what would you say to people in Britain,

:26:42.:26:43.

for instance, who are very alarmed by the thought of 70 million Turkish

:26:44.:26:46.

people joining the EU and having free movement,

:26:47.:26:49.

for instance, to Britain? Well, it will be a long time before

:26:50.:26:55.

we reach the end of negotiations with Turkey about accession

:26:56.:26:59.

to the European Union. Actually, the German government has

:27:00.:27:04.

major doubts about whether Turkey But this is a question

:27:05.:27:09.

for the coming years, it is not The German people are now having

:27:10.:27:14.

to absorb a large number of immigrants and pay a high price

:27:15.:27:23.

to look after them properly, and at the same time the German

:27:24.:27:26.

people are having to deal with a lot Do you think, as a government,

:27:27.:27:29.

you have been pushing your Well, at the moment

:27:30.:27:35.

we are in quite good shape, We have the lowest unemployment rate

:27:36.:27:40.

since reunification, we have the highest level

:27:41.:27:50.

of employment that we have ever had, we have the highest increase

:27:51.:27:53.

in real wages and salaries. The refugee problem,

:27:54.:27:56.

of course, needs a solution, Those that will stay permanently

:27:57.:28:00.

will have to be integrated well, and once the number is reduced

:28:01.:28:10.

to a more acceptable level, We've had immigrants from Italy,

:28:11.:28:12.

Spain, Portugal, Turkey since the Second World War and it's

:28:13.:28:16.

been successful and Can I turn to the possibility

:28:17.:28:18.

of Britain leaving the EU Because one of the things that

:28:19.:28:22.

people who want us to leave say is that in the end Germany wants

:28:23.:28:27.

to sell German cars and washing machines and many other goods

:28:28.:28:30.

to Britain, and we have many things There would be a trade deal and it

:28:31.:28:33.

would be a perfectly reasonable one because it is in both sides'

:28:34.:28:39.

interests to carry on trading. I believe that of course

:28:40.:28:46.

we will still have trade, we also have trade with China

:28:47.:28:49.

and the whole world, but there's a big difference

:28:50.:28:52.

between having a common market with common rules without any

:28:53.:28:55.

controls, a market that is open, Isn't it possible for the UK

:28:56.:28:58.

to have the advantages of the internal market,

:28:59.:29:05.

the single trading area, without paying in and without

:29:06.:29:07.

accepting free movement of people? No, you are either in the single

:29:08.:29:15.

market or you are not in the single market, and if you are not in it

:29:16.:29:20.

then you have trade agreements. Of course there are countries

:29:21.:29:23.

in Europe that are part of the single market

:29:24.:29:26.

but they still have to pay into the budget of the community

:29:27.:29:28.

and they have to accept the free So, naturally they have

:29:29.:29:31.

all the disadvantages of the common market and they are not involved

:29:32.:29:36.

in the decision-making process I cannot really see why the UK

:29:37.:29:38.

would be interested in staying within the single market

:29:39.:29:48.

without being able to make For people watching,

:29:49.:29:50.

they might say, in the end, after all the fuss and the noise

:29:51.:29:57.

and so on, there would be a perfectly acceptable trading deal

:29:58.:30:00.

which would be good for Germany, good for Britain and good

:30:01.:30:04.

for the other European members, you don't have to be part

:30:05.:30:07.

of the EU for Germany, Britain and France to

:30:08.:30:09.

trade with each other. Once again, of course there's trade

:30:10.:30:15.

with all countries in the world, but whether you are within

:30:16.:30:20.

the single market or not is a major difference and you can either be

:30:21.:30:24.

in it or be out of it. Whether the UK wants to stay

:30:25.:30:28.

in the single market will be decided in the referendum,

:30:29.:30:31.

but if the decision is taken to leave, the UK will no longer be

:30:32.:30:33.

in the single market unless you find a new treaty, a new contract

:30:34.:30:37.

where you can be a member of the single market

:30:38.:30:41.

without actually being a member of the EU, and you will still have

:30:42.:30:43.

to accept the free movement of people that goes with it,

:30:44.:30:46.

and you will still have to pay contributions so it

:30:47.:30:49.

doesn't really make sense. And the British people

:30:50.:30:52.

base their decisions What happens to the rest

:30:53.:30:54.

of the EU if Britain leaves? Are you worried about a slow

:30:55.:31:05.

collapse of the institution itself? I believe that Europe would be

:31:06.:31:11.

weaker without the UK. The UK is a strong partner,

:31:12.:31:15.

and if the UK left this would weaken Europe, and I don't think it will be

:31:16.:31:18.

in the British interest either. Of course, if there was a negative

:31:19.:31:24.

decision, we would not commit suicide, we would still try

:31:25.:31:27.

to fight for the best. Let's say the referendum was to go

:31:28.:31:30.

that way, we would have years of the most difficult negotiations,

:31:31.:31:33.

which would be very difficult And for years, we would have such

:31:34.:31:36.

insecurity that would be a poison to the economy in the UK,

:31:37.:31:44.

the European continent, Do you think the mood in the rest

:31:45.:31:46.

of the EU would be angry, would be vindictive,

:31:47.:31:56.

would be vengeful, or do you think European politicians would then

:31:57.:32:01.

try to do serious and sensible deals with Britain if Britain

:32:02.:32:04.

voted to leave? Of course we will be sad to start

:32:05.:32:11.

with, and I think most in Europe will agree with the European Union

:32:12.:32:15.

that it would be to the detriment of Europe, it will be a weaker

:32:16.:32:18.

Europe and this cannot be Of course then we would try,

:32:19.:32:21.

and this is true of life in general, you have a setback and still you try

:32:22.:32:30.

and go on, and we will But I do believe that it is better

:32:31.:32:33.

to avoid such catastrophes rather than try to think how to get well

:32:34.:32:40.

again after the catastrophe. Dr Schauble, thank you very much

:32:41.:32:48.

indeed for coming to talk to me. The German Finance Minister,

:32:49.:32:51.

Wolfgang Schauble, talking If you are wondering about the

:32:52.:33:04.

wheelchair, he survived an assassination attempt in the 1980s

:33:05.:33:05.

and kept going. In a moment, I'll be

:33:06.:33:07.

talking to Boris Johnson, but first, a look at what's coming

:33:08.:33:09.

up immediately after this programme. Join us from Cardiff where Merlin

:33:10.:33:17.

will be helping us debate whether animals should be used in

:33:18.:33:21.

entertainment. Then in the human world is it the mother ring or the

:33:22.:33:24.

mother that matters? And would it be fair to raise the pension age? See

:33:25.:33:28.

you at 10am on BBC One. fair to raise the pension age? See

:33:29.:33:36.

dogs on this programme but the moment you have been waiting for,

:33:37.:33:41.

Boris Johnson here to talk to me about Brexit. Good morning.

:33:42.:33:42.

Boris Johnson here to talk to me pro-minister was in your seat he

:33:43.:33:49.

made an appeal which fell on deaf ears, but I said let's give you a

:33:50.:33:55.

chance to make your case straightforwardly so I will do the

:33:56.:33:59.

same to you. Tell us why you have decided we would be better off

:34:00.:34:04.

outside the EU? We have a once-in-a-lifetime opportunity which

:34:05.:34:09.

will not come again to strike a new series of relationships, free trade

:34:10.:34:12.

deals, with the growth economies around the world whilst maintaining,

:34:13.:34:19.

as Will Gong Schauble -- as Wolfgang Schauble just said, maintaining our

:34:20.:34:25.

agreements with the EU. I think staying in the European Union as it

:34:26.:34:29.

evolves to an ever centralised federalist structure in the effort

:34:30.:34:34.

to preserve the euro is the risky option. The best thing for us

:34:35.:34:40.

because we are a great country, proud economy and pro-democracy, is

:34:41.:34:43.

to take back control over our borders, over the huge sums of money

:34:44.:34:50.

that we send to the European Union and to take back large amounts of

:34:51.:34:56.

control over our democracy. That is what clinched it for me. I will

:34:57.:35:01.

describe, if you want, the journey that led me to this conclusion. We

:35:02.:35:07.

will come to that but part of that journey is I want to clean up

:35:08.:35:12.

exactly what you think and want to happen now? Relatively recently you

:35:13.:35:15.

were arguing that we could have a referendum, vote to leave, they

:35:16.:35:19.

would be so panicked and shocked that we would get a much better deal

:35:20.:35:23.

and then we could stay? I have to say that I think that is certainly

:35:24.:35:29.

true that if you vote to leave all your options are good. You could

:35:30.:35:34.

certainly strike a great free trade deal as has just been said with the

:35:35.:35:40.

European Union. But what I don't think you can do is hope that if you

:35:41.:35:45.

remain, stay in the EU for any real reform. What we were told, if you

:35:46.:35:51.

remember, what we were told, the stated government policy was that we

:35:52.:35:58.

should have a reformed EU, a fundamentally reformed, wholesale

:35:59.:36:00.

change in Britain's relationship with the EU was promised. That has

:36:01.:36:05.

obviously not been delivered. We were told at the time that Britain

:36:06.:36:09.

would be perfectly safe to walk away, by the government and the

:36:10.:36:14.

Prime Minister. That rhetoric has now very much been changed and I

:36:15.:36:17.

think that was right, the policy was right then. We are confident about

:36:18.:36:22.

the future of this country and at the moment... Those people watching

:36:23.:36:29.

need to be clear, your view is that we could vote no, leave the EU and

:36:30.:36:33.

there could be a second referendum coming back in on better terms? I

:36:34.:36:40.

don't think that is necessary. If we voted no, that would be it, the

:36:41.:36:44.

British people would have spoken and we would be out of the EU. There

:36:45.:36:50.

could not be a second referendum? What do you do, you vote to leave

:36:51.:36:55.

and then you have the opportunity to strike a series of free trade deals

:36:56.:37:00.

around the world. Which are currently forbidden. Can I explain

:37:01.:37:04.

why that is so important? Europe is not the growth area of the world at

:37:05.:37:08.

the moment. If you look at the relative performance of the Eurozone

:37:09.:37:11.

economies and the rest of the world it is tragic. Asked yourself, who is

:37:12.:37:18.

in a better position to negotiate free-trade deals with the rest of

:37:19.:37:24.

the world? The UK looking after the interests of British business and

:37:25.:37:27.

industry? Or the European Commission who currently have sole

:37:28.:37:32.

responsibility for negotiating those agreements? And of whom only 3.6% of

:37:33.:37:40.

the officials are British. I am asked myself how to persuade you to

:37:41.:37:46.

give me slightly shorter answers, because we have a lot to get

:37:47.:37:50.

through. Let's assume we voted to leave, we fought for Brexit. The

:37:51.:37:56.

thing which happens immediately after that is article 50 is

:37:57.:38:01.

triggered and we immediately begin negotiations about leaving. You are

:38:02.:38:07.

shaking your head, why? As soon as you leave the EU treaties remain in

:38:08.:38:12.

force for at least two years, they are grandfathered on and you have

:38:13.:38:14.

plenty of time to negotiate new free-trade arrangements. I have to

:38:15.:38:19.

say that I think one of the feeblest arguments from the remainders is

:38:20.:38:28.

that we are so emaciated in our diplomatic and commercial abilities

:38:29.:38:32.

today that we could not negotiate free-trade our self and that we have

:38:33.:38:35.

two entrusted to these brilliant officials in the European

:38:36.:38:42.

Commission. I think that is absurd. But 66 different new trade deals

:38:43.:38:47.

would have to be negotiated and that is for everything from shoes and

:38:48.:38:50.

marmalade, it's a complicated process. This is like, the jailer

:38:51.:38:58.

has accidentally left the door open and people can see the land beyond

:38:59.:39:04.

and everyone is suddenly wrangling about the terrors of the world

:39:05.:39:08.

outside. It would be wonderful. It would be a huge weight lifted from

:39:09.:39:14.

British business. It is very sad... Someone like John Longworth who

:39:15.:39:19.

shares my view and has great experience of British business and

:39:20.:39:23.

industry should have paid quite a heavy price it seems from what has

:39:24.:39:26.

happened today for sharing the optimistic view. You said the agents

:39:27.:39:31.

of Project Fear had got him out by bullying, who did you mean? It is

:39:32.:39:37.

certainly the case as far as I can tell... Did you mean the Prime

:39:38.:39:42.

Minister? He has been asked to step down for expressing a passionate and

:39:43.:39:45.

optimistic view of this country's chances. Perhaps for the benefit,

:39:46.:39:52.

can you imagine the CBI doing the same to any of its leading figures?

:39:53.:40:01.

You don't think necessarily that number ten believed or manipulated

:40:02.:40:05.

this? Younger, fitter journalists than this can discover what

:40:06.:40:11.

happened. Let's turn back to the sunlit uplands you were describing,

:40:12.:40:14.

because you for you get to them there would be pitied of uncertainty

:40:15.:40:27.

and dislocation. You use the analogy of the Nike. There are plenty of

:40:28.:40:37.

people who think the cost of getting out would be virtually nil and the

:40:38.:40:41.

cost of staying inward beehive. There would be an and economic shock

:40:42.:40:50.

to produce downward dislocation. Gerard Lyons says very clearly that

:40:51.:40:54.

Britain would be better off outside and reformed EU. Leaving the EU

:40:55.:41:00.

would be an economic shock and most of these shocks depress economic

:41:01.:41:06.

activity. Thus economic forecasts which focus on a couple of years

:41:07.:41:10.

ahead show that leaving the EU is always worse than the alternative.

:41:11.:41:17.

After that... That's not true. That is what he said! These are his own

:41:18.:41:25.

words. The best future is to get out of one and reformed EU. Can I just

:41:26.:41:30.

explain for the benefit of the viewers who remain faithful

:41:31.:41:35.

listening to this conversation, why I think, what I think the problem

:41:36.:41:41.

with the EU is. It boils down... I have given you the chance to do

:41:42.:41:49.

that. Let me explain. One last time. It has become injurious to

:41:50.:41:54.

government in this country. Even as Mayor of London I have encountered

:41:55.:42:01.

the delay caused by the EU. Crossrail, the tunnels, the EU

:42:02.:42:07.

decided, such is the Stockholm syndrome capture of officials in

:42:08.:42:12.

this country, they decided to interpret the directive on

:42:13.:42:19.

trans-European networks in such a way to insist Crossrail tunnels had

:42:20.:42:23.

to be 50% bigger to accommodate German trains. In the unlikelihood

:42:24.:42:30.

of German trains having to go through these tunnels. That would

:42:31.:42:33.

have cost billions and we had to spend literally a year to fend off

:42:34.:42:38.

that demand. Second it was horrific to be told that there was nothing I

:42:39.:42:44.

could do, nothing the Secretary of State for an sport could do, to

:42:45.:42:47.

ensure we had safer tipper trucks on the streets of London to stop

:42:48.:42:51.

cyclists and vulnerable road users being crushed. The EU agreed with

:42:52.:42:57.

their argument in 2015 and has put forward legislation to allow safer

:42:58.:43:01.

tipper trucks. It is blocked and there is no chance to get it through

:43:02.:43:06.

until 2021 or 2022 because it is currently opposed by, the commission

:43:07.:43:12.

might be in favour, but it is opposed by the French and the

:43:13.:43:16.

Swedish because they have truck businesses which don't want to see

:43:17.:43:23.

it. What has happened... It is coming in, this is Project Fear. In

:43:24.:43:30.

2011, 2012 we decided to give up type approval for vehicles to the

:43:31.:43:33.

European Union. We can no longer control what type of trucks we have

:43:34.:43:39.

on the streets of London. That, for me, is a very important issue of

:43:40.:43:42.

political control and accountability. People feel it very

:43:43.:43:48.

strongly. The third area... We need to move on, we have a lot to cover.

:43:49.:43:54.

I will tell you what I will cover. This is not the Boris Johnson sure,

:43:55.:43:58.

it is The Andrew Marr Show, I ask the questions. I have complete

:43:59.:44:05.

sovereignty. Unlike the UK! The single market, you were always a

:44:06.:44:09.

great supporter of it, you accept that if we leave the EU we must

:44:10.:44:15.

leave the single market? The single market people will say what do you

:44:16.:44:20.

mean by the single market, it is a huge territory now which comprises

:44:21.:44:24.

the member states of the European Union. Would we be able to trade

:44:25.:44:28.

freely with that territory? I think we would. But would we leave it as

:44:29.:44:33.

an institution? If I am trying to sell my marmalade to Italy and the

:44:34.:44:38.

Italians say your marmalade has too many PEPs purge are and we will not

:44:39.:44:45.

accept it, then there are rules -- too many pips purge are. You would

:44:46.:44:59.

still be able to sell your marmalade. They would be keeping it

:45:00.:45:04.

out and if I am outside the single market I'm outside the rules which

:45:05.:45:09.

stop discrimination. There are plenty of countries who export more

:45:10.:45:14.

per capita to the EU than we do, Switzerland is not in the European

:45:15.:45:16.

Union and they get around this problem. One of the interesting

:45:17.:45:21.

features... Are you in favour of leaving the European market or not?

:45:22.:45:27.

One of the interesting features of the last 30, 40 years is American

:45:28.:45:33.

exports to the European Union, the US, have increased faster than ours.

:45:34.:45:37.

They are not members of the single market. Let me explain what the

:45:38.:45:42.

single market is, it is a single judicial system whereby more and

:45:43.:45:48.

more power is taken away from... Individual member states and given

:45:49.:45:49.

EU institutions. And Boris Johnson has said I want to

:45:50.:46:02.

campaign for the single market. For free trade with the European Union.

:46:03.:46:07.

That is what we need and what we will get. Let me explain why the

:46:08.:46:11.

single market is evolving in the direction that I think... I would

:46:12.:46:18.

like to be able to campaign for the single market. Boris Johnson, on

:46:19.:46:23.

this programme. It depends how you define your terms. I'm talking about

:46:24.:46:29.

the great trade zone that is the European Union, I want to be able to

:46:30.:46:33.

trade freely with that zone, but I don't want to be subject to more and

:46:34.:46:40.

more top-down regulation. Can I just explain what the problem is with the

:46:41.:46:44.

single market, because it is a legal problem. When you vote in this

:46:45.:46:54.

referendum, the status quo isn't on the ballot paper. You cannot vote

:46:55.:46:58.

just to remain in the single market because the single market is

:46:59.:47:03.

changing. The project now is to rescue the euro by creating an ever

:47:04.:47:09.

denser series of political arrangements based around... The

:47:10.:47:16.

eurozone. We are not in the eurozone. It is clear that they want

:47:17.:47:25.

to harmonise property rights, social law, in all sorts of ways they will

:47:26.:47:29.

impact the entire European Union, including the UK. You have changed

:47:30.:47:39.

your view, you used to be in favour of the single market, I've got the

:47:40.:47:43.

quotes, now you are saying we should get out of it. You are equivocating

:47:44.:47:49.

on the term single market. It is not a complicated term. It is because it

:47:50.:47:57.

involves a top-down system of a single judicial... An area in which

:47:58.:48:08.

there is real free trade. This is BBC claptrap, it is not free trade,

:48:09.:48:12.

it is trade that is governed by a series of rules that are created by

:48:13.:48:19.

a single legal authority. To prevent protectionism. And protectionism has

:48:20.:48:27.

massively decreased in the last 30 years, the tariffs are well down and

:48:28.:48:30.

we should be able to trade freely with that area. What I object to is

:48:31.:48:41.

the loss of control. This is an opportunity, a once-in-a-lifetime

:48:42.:48:43.

opportunity, for the British people to take back control. I just want to

:48:44.:48:50.

explain the single market. You have explained it three or four times

:48:51.:48:55.

now. Just tell me, are we going to be in it or not in it, and if we are

:48:56.:49:03.

not in it are going to negotiate a similar deal? We will negotiate a

:49:04.:49:13.

deal that gives us access... If you look at free movement, it is very

:49:14.:49:17.

interesting how that has changed over the years. When I went to live

:49:18.:49:22.

on the continent, you had to go to the local town hall and present your

:49:23.:49:27.

papers and show what employment you propose to do, you had to register

:49:28.:49:34.

and all that kind of thing. Since Maastricht, since that treaty, since

:49:35.:49:42.

Lisbon, there has been a changing concept. What we now have is

:49:43.:49:47.

European citizenship, and the idea is we have created a single country.

:49:48.:49:53.

That is what we are being told. I think most people in this country

:49:54.:50:00.

don't believe that they share nationhood, that they are part of a

:50:01.:50:03.

single country called Europe and it seems entirely reasonable to me that

:50:04.:50:10.

you could have visa free travel for instance, as we have with the United

:50:11.:50:15.

States, but still require people to show they have capable employment or

:50:16.:50:19.

prevent people simply claiming benefits. Enough of that. You are

:50:20.:50:26.

the Mayor of London and you are responsible for the city, among

:50:27.:50:30.

other things. Have you ever had conversations with leading bankers

:50:31.:50:35.

who said if we leave the EU we will move our headquarters to the

:50:36.:50:42.

continent? No. Because that is what Goldman Sachs are saying, they are

:50:43.:50:47.

saying we have no choice but to move to continental headquarters, and

:50:48.:50:49.

bank after bank is saying the same thing. I don't believe that to be

:50:50.:50:55.

true. We have heard the same sorts of threats time and time again.

:50:56.:51:01.

London has such a massive concentration of skills and talent

:51:02.:51:04.

here in this city that I don't believe... Talk to serious bankers,

:51:05.:51:11.

they don't think... Michael Sherwood, CEO for Goldman Sachs,

:51:12.:51:19.

said banks will not disappear from London overnight but they will over

:51:20.:51:24.

time if Britain vote no. It would begin with a decline in investment

:51:25.:51:30.

and hiring. This is their business, they know what they are talking

:51:31.:51:37.

about. What I would say is that these are the same people who said

:51:38.:51:43.

that if we didn't join the euro there would be all sorts of economic

:51:44.:51:49.

disasters. They never happened. You remember Peter Mandelson, the banks,

:51:50.:51:54.

they were all saying that we had to join the euro or the British economy

:51:55.:51:58.

would be overwhelmed, we would be isolated, they were wrong then and

:51:59.:52:04.

they are wrong now. There are people on the other side now, there are

:52:05.:52:09.

people on both sides, there are people who think, as I do, there is

:52:10.:52:14.

a great and glorious future for this country. What we are being asked is

:52:15.:52:19.

to basically take a very pessimistic view of Britain and of our chances.

:52:20.:52:26.

You could say it is pessimistic to think we couldn't stay inside the EU

:52:27.:52:31.

and make it better. I think the proof of that is in the recent

:52:32.:52:36.

reform process. We were promised fundamental reform, we were told we

:52:37.:52:40.

would get wholesale changes. Anybody looking at the agreement we have now

:52:41.:52:45.

would be in no doubt this is not fundamental reform. The next item on

:52:46.:52:57.

the agenda is the creation, the turning, the further evolution of

:52:58.:53:01.

the single market, what was the common market, into this super state

:53:02.:53:05.

into which we would inevitably be dragged. You knew what the Prime

:53:06.:53:12.

Minister was going for from the time of the Bloomberg speech, he has been

:53:13.:53:16.

candid about what he was trying to do, so you knew at that point it

:53:17.:53:21.

wasn't the fundamental reform you wanted and you kept quiet. He

:53:22.:53:25.

briefed you again and again, you were agonising, going through this

:53:26.:53:29.

process. He rolled out the red carpet for you, and then when you

:53:30.:53:34.

finally decided you didn't even speak to him face-to-face, you sent

:53:35.:53:37.

him a text message. Can you understand why he is livid with you?

:53:38.:53:43.

I wasn't at the meeting where the deal was discussed because I'm not

:53:44.:53:47.

in the Cabinet, but what is certainly the case is that in the

:53:48.:53:51.

days leading up to that summit and indeed while the summit was going

:53:52.:53:55.

on, there was a huge effort going on which I was involved in to try to

:53:56.:53:59.

make sense of the so-called sovereignty clauses. A huge

:54:00.:54:04.

intellectual effort went into creating this language by which we

:54:05.:54:11.

could somehow ensure that our Supreme Court, our House of Commons,

:54:12.:54:17.

could overturn judgments of the European Court of justice if we

:54:18.:54:22.

felt, if Britain felt that they were in some way capricious or if they

:54:23.:54:29.

were going beyond... Exceeding their powers, exactly. Finally we had some

:54:30.:54:34.

language that seemed to work. I was very pleased with it. Hang on, we

:54:35.:54:39.

went back to the Government lawyers and the Government lawyers blew up

:54:40.:54:47.

and they said this basically avoids our obligations under the 1972

:54:48.:54:52.

European communities act, it doesn't work. That is the reality. You

:54:53.:55:01.

cannot express the sovereignty of Parliament and accept the 1972

:55:02.:55:06.

European communities act. There is no way of doing both at the same

:55:07.:55:10.

time. This was the moment when you decided which way you are going to

:55:11.:55:19.

go, was it? We were told... Specific question. Yes. We were told there

:55:20.:55:28.

would be fundamental reform, and reform is not achievable so we now

:55:29.:55:33.

have a glorious opportunity. To get back to this thing about what is the

:55:34.:55:36.

single market, the key thing about the single market is that it has

:55:37.:55:41.

this single judicial system, and interestingly, if you look at the

:55:42.:55:46.

other free trade groupings around the world, none of them are trying

:55:47.:55:54.

to create this single country, this single political unit. None of them

:55:55.:55:59.

have a single currency. The Prime Minister clearly thinks you are

:56:00.:56:03.

doing this out of personal ambition because you want to take him out.

:56:04.:56:08.

The longer we spend talking about this political stuff, the less time

:56:09.:56:11.

people have to focus on the real issues. You said you have no

:56:12.:56:17.

political ambitions left the other day, I find that hard to believe.

:56:18.:56:23.

The greasy ball is bouncing towards you, are you really saying no? I

:56:24.:56:28.

have to say, with the possible exception of Dan Hannan, I don't

:56:29.:56:33.

believe there is anybody in British media or British politics who has

:56:34.:56:38.

written more or said more over the last 30 years of the democratic

:56:39.:56:42.

deficiencies of the European Union. For the last few years I have said

:56:43.:56:46.

clearly that if we didn't get reform we should be prepared to walk away.

:56:47.:56:50.

I think we now have a golden opportunity to shrug off a

:56:51.:56:58.

regulatory legislative burden. As Michael Gove rightly says in his

:56:59.:57:08.

interview this morning, look at the consequences... You know the Prime

:57:09.:57:18.

Minister cannot carry on if he loses this, don't you? You cannot look me

:57:19.:57:22.

in the eye and say David Cameron will carry on as Prime Minister...

:57:23.:57:27.

To the best of my knowledge there is not a single European leader in the

:57:28.:57:31.

last 20 years who has had to step down as a result of a referendum

:57:32.:57:37.

whether on Europe or not. You are just trying to personalise it to

:57:38.:57:42.

make it more interesting. I want to talk about the real choice. And you

:57:43.:57:49.

have had plenty of time so to do. Boris Johnson, thank you very much

:57:50.:57:50.

indeed. That's all we have

:57:51.:57:52.

time for this morning. Andrew Neil will be here in an hour

:57:53.:57:54.

with the Sunday Politics I'll be back at the same time next

:57:55.:57:58.

week with - we hope - the Chancellor on the eve

:57:59.:58:03.

of the Budget, plus the But for now, we leave

:58:04.:58:06.

you with Benjamin Grosvenor They're about to embark on a UK

:58:07.:58:09.

tour, and they're going to play

:58:10.:58:14.

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