27/10/2011 This Week


27/10/2011

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Tonight on This Week, it's the final countdown for the eurozone.

:00:25.:00:33.

enough to end the crisis? One of the euro's biggest fans,

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broadcaster and writer Will Hutton, watches the clock.

:00:37.:00:40.

I think this is a watershed moment. There'll come a time when one day

:00:40.:00:47.

Britain will want to join the euro. Prime Minister David Cameron

:00:47.:00:51.

couldn't count on his MPs' support this week. But how much damage has

:00:51.:00:55.

been caused by opening old European wounds?

:00:55.:01:00.

The Mirror's Kevin Maguire has been counting the cost in the trenches.

:01:00.:01:03.

Cameron ordered his mutinous troops over the top, but did he shoot

:01:03.:01:11.

himself in the foot? Counting the cost of causing

:01:11.:01:15.

offence from pictures of Gaddafi to Ricky Gervais on Twitter. Does

:01:15.:01:20.

society have every right to be getting so touchy? Top broadcaster

:01:20.:01:25.

Richard Bacon is not looking to hurt anybody's feelings. And I must

:01:25.:01:35.
:01:35.:01:37.

warn viewers that what you are about to see won't offend anybody.

:01:37.:01:44.

Were leaving together, but it's still farewell.

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Evening, all. Welcome to This Week. OK, which politician described tax

:01:53.:01:57.

avoidance as a particularly ugly note in these straightened times?

:01:57.:02:02.

The Government crack down hard claimed it was utterly offensive in

:02:02.:02:07.

a recession and promised to do the maximum possible to stop it in

:02:07.:02:12.

future. I'll give you a clue - he's a Lib Dem ballroom dancer. Some say

:02:12.:02:14.

he's also the Business Secretary, though not all are convinced by the

:02:15.:02:18.

evidence. He's been forced to make an

:02:18.:02:23.

embarrassing apology. Well,ish, for not paying thousands of pounds owed

:02:23.:02:31.

in VAT. He was fined �500 after claiming his non-payment was an

:02:32.:02:40.

oversight. Still not got it? Let's two to St Paul's, because mongst

:02:41.:02:45.

the protestors, we'll see Vince Cable being pilloried as another

:02:45.:02:48.

member of the so-called ferrel elite. To think he was once the

:02:48.:02:52.

darling of the Liberal Democrat dance floor. Actually, I'm told

:02:52.:03:01.

there's no point in going live to St Paul's because Tristram ah Bella

:03:01.:03:09.

and the other s are gone home for the night. Speaking of the

:03:09.:03:13.

unacceptable capitalism, I'm joined by two men who always claim their

:03:13.:03:18.

dodgy shirt expenses against tax - the Al Capone and Ken Dodd of late-

:03:18.:03:23.

night political chat. You can work out which is which,. Actually, the

:03:23.:03:29.

one in the black shirt is Al Capone. Michael Portillo and Alan Johnson.

:03:29.:03:35.

The alis a clue. Definitely! -- Al is a clue. I've struggled to

:03:35.:03:39.

find a moment that wasn't Europe and I failed. I was at a

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British/Spanish conference at the weekend, a lovely gathering of

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friends. Even in the gathering, one of the Spanish said at one point,

:03:45.:03:48.

we are getting fed up with you British, and in the end, we are

:03:48.:03:53.

going to chuck you out of the European Union. I thought about

:03:53.:03:58.

this that day probably when Nicolas Sarkozy said in a moment of anger

:03:58.:04:00.

of David Cameron that he wished he'd shut up and not criticise the

:04:00.:04:04.

euro and make any suggestions about how they should manage their

:04:04.:04:07.

affairs. We are going to discuss this further shortly, but I think

:04:07.:04:11.

we've reach add new low in the relations between the eurozone and

:04:11.:04:15.

Britain. I hope you responded by saying, why don't you shut up and

:04:15.:04:21.

do something about your 40% youth unemployment? He said I'll have

:04:21.:04:26.

another glass of Riocca! anticipated what President Sarkozy

:04:26.:04:30.

said. The whole problem is caused by having too many countries in the

:04:30.:04:32.

euro and you might think the solution was to remove the

:04:32.:04:36.

countries, but they regard that as unthinkable. Indeed. Your moment,

:04:36.:04:41.

Alan? Sunday's election in Tunisia. The Jasmine Revolution. That was

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the start of the Arab Spring and it was a free and fair election, the

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talk of around 90% turnout, moderate Islamic Party are forming

:04:52.:05:00.

a coalition. How sure are we? are not quite sure, are we?

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first step is to have free and fair elections and all the international

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monitors said that went well. There had to be an equal number of male

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and females, so they're very different to some of the countries

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around them in terms of women's rights. It's an example that others,

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I hope, will follow, and I think it was a very encouraging thing.

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our best hope isn't it. Mongst the north Africans countries, that is

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the one that's most identifiably European. The all-night eurozone

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talks are over. The euro will live to fight another day for now. Have

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the leaders done enough? What's the future got in store? Will Silvio

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Berlusconi be able to resist the bunga nights? Will Nicolas Sarkozy

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refrain from his Sarky comments and can Angela stay off that second

:05:51.:05:55.

portion of cheese? All big vital questions of her time. Naturally,

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we have asked a keen euro supporter for his take of where now for

:06:01.:06:11.
:06:11.:06:19.

There may not be celebratory parties all over Europe and Italy

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this weekend, but for the time being, the crisis is averted. Last

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night, Europe's leaders agreed to half Greece's debts, to find one

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trillion euro for a bail out found and to recapitalise Europe ease

:06:31.:06:36.

banks. Already the markets are finding it a credible solution.

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It's a biggish bazooka, to coin a phrase, but there's more to do.

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Europe needs more growth and reform and there's a treaty on the way.

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It's already clear, especially from the remarks that Chancellor Angela

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Merkel made to the German Parliament before the summit began

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that the Europeans and the Germans in particular will do whatever it

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takes to make the euro work. I think Britain will radio the day

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that for the first time in modern history, we were bystanders as our

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continent Europe reshaped itself. Because we weren't members of the

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euro, our views were irrelevant. Our fate was decided by others.

:07:19.:07:25.

Europe is on the way to becoming fully two tier. On the inside,

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there'll be a group of countries acting in unison, less a superstate,

:07:30.:07:36.

more a political self-help club. On the outside, a bunch of

:07:36.:07:40.

countries relegated to the sidelines, like our entries to the

:07:40.:07:50.
:07:50.:07:50.

Eurovision Kong contest. # Making your mind up... #

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In if years ahead, we'll want to join the euro. Few people

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understand how chronically economically weak we are, volatile

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inflation to come, high unemployment, low economic growth.

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But 020, we'll be banging at the inner door asking to be allowed to

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join. By 2020.

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So was I wrong about the euro originally? I certainly didn't see

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how its design flaws would interact with the financial meltdown to

:08:26.:08:31.

create this order of crisis. But then, not one, not one of the

:08:31.:08:34.

crowing Euro-Sceptics touring the TV studios this week did either.

:08:35.:08:39.

As it stands, Britain is in a corner with very few options and

:08:39.:08:45.

the one economic block that could save us is sailing off in the

:08:46.:08:49.

opposite direction. I am only the person in the media who thinks that

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joining the euro could be part of our salvation. That itself is

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pretty alarming! Will Hutton in the bar in Battersea

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Bridge Road. Glad I got that out, and some people will be wondering

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what you were drinking. Let's come on to that in a moment.

:09:10.:09:15.

Let me come to the deal first of all. I mean, there are so many

:09:15.:09:19.

details of this deal that we don't know about. You are taking a lot of

:09:19.:09:24.

trust? Well, I start with the commitment

:09:24.:09:28.

that Angela Merkel got from her Parliament before she flew to

:09:28.:09:34.

Brussels. She, under the German constitute of court ruling, has no

:09:34.:09:38.

get Parliamentary approval before she can move and she got it.

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That was for not a penny more than the 00 billion of which 20 has been

:09:48.:09:53.

spent -- 400 billion of which 200 Han spent? The unity across the

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political spectrum in Germany and behind her business and Trade Union

:09:57.:10:00.

movement in Germany, the Germans decided they've got to actually do

:10:00.:10:05.

what is needed to keep the euro going. They've not actually, if

:10:05.:10:09.

they won't allow the European Central Bank to buy bonds? Hold on

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a minute... They wouldn't allow any more money to go into the bail out,

:10:13.:10:17.

so dodgy financial leverage will be used now? I think what's happening

:10:17.:10:23.

here is that there is going to be up to a trillion euro of credit

:10:23.:10:28.

facilities by EU states which a Government guaranteed. It only

:10:28.:10:33.

actually turns into a taxpayer bill for anyone in the eurozone if

:10:33.:10:39.

losses are cit tallised. The big thing about it is, it permits the

:10:39.:10:44.

European Central Bank to buy bonds -- crystallised. It's those

:10:44.:10:47.

combinations, together with the write-offs of the Greek debt,

:10:47.:10:51.

together with the recapitalisation of European banks that actually is

:10:51.:10:56.

an impress you have achievement. The markets don't lie. They jumped

:10:56.:11:01.

up by 5% in France and ours in Britain went up by 3%. They often

:11:01.:11:07.

get it wrong won one day as you might be the first to tell us --

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wrong on one day. We've moved away from the crisis of six weeks ago.

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You are a trusting chap. I am. it comes to Europe. Not America

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maybe but Europe. The end of the world is no longer

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nigh? The big picture is that you have a lot of economies within the

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Single Currency who should not be there who cannot cope with being in

:11:29.:11:34.

the euro and who are diverging, not converging, with the other

:11:34.:11:37.

economies. So, what is now being said, is that

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the solution to this is fiscal union. Fiscal union is a phrase

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that's easily uttered, but what it means is that you have to behave as

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though you are a country, which means transferring vast amounts of

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wealth to Germany to the countries in Europe -- from Germany. I don't

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rule the conclusion that the Germans have decided that the euro

:11:57.:12:00.

must be saved in the sense that all countries presently within the euro

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must be kept within the euro. I mean, what Sarkozy has said is

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precisely that, you know, a country like Greece shouldn't have been

:12:07.:12:10.

there in the first place. And the logic of that is that, actually,

:12:11.:12:14.

the way to save the euro is to shed some of the countries that cannot

:12:14.:12:19.

cope with it, because otherwise you have this endless bill. So what has

:12:19.:12:27.

been don yesterday still doesn't address that question. ALL SPEAK AT

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ONCE The reason the trillion euros might

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get used up is that the countries that are struggling are going to go

:12:36.:12:38.

on struggling and you cannot see how, within the euro, without being

:12:38.:12:44.

able to De value Spain, Italy, Greece or Ireland or Portugal, are

:12:44.:12:50.

going to grow. They're good points and, in all these arguments, about

:12:50.:12:53.

weighing up the balance. First of all, I think De valuation, although

:12:54.:12:58.

an important tool, is a lesser effective tool than it used to be,

:12:58.:13:00.

for modern economies who trade in knowledge, goods and services. We

:13:00.:13:06.

are seeing that ourselves in the UK. Big De valuation. But only a much

:13:06.:13:14.

lets robust response than one might have expected -- De valuation. Ic

:13:14.:13:18.

take your point. There are economies that are very different,

:13:18.:13:23.

but the open question is, they're going to be different in a world of

:13:23.:13:26.

floating exchange rates and different in a world of semi fixed

:13:26.:13:31.

exchange rates and dufpbt in a Single Currency area. -- different.

:13:31.:13:37.

Europe went through the Single Currency, a semi fixed exchange

:13:37.:13:45.

rate but it didn't work. But what's the answer to that? I think what we

:13:45.:13:49.

are underestimating is that it's been an absolute fight to the death

:13:49.:13:54.

in the 17 eurozone countries. The determination to actually hold this

:13:54.:13:57.

currency that they've created has been intensified by what they've

:13:57.:14:02.

gone through and actually to make the kinds of structural reform as

:14:02.:14:05.

necessary to make their countries live together. That's an important

:14:05.:14:11.

moment. Greek debt will still be 120% of GDP even after this. Yes.

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It's a huge amount. Alan, Ed Balls was quite lukewarm about this deal

:14:17.:14:21.

and Alistair Darling, we had on the Daily Politics today, he raised his

:14:21.:14:27.

famous eyebrows about it all. Labour sounding sceptical? He said

:14:27.:14:33.

they shouldn't leave Brussels until they get a deal. Given that it's

:14:33.:14:37.

still fresh news, I think it is as good as it could possibly be at

:14:37.:14:43.

this stage. Let them rumage around and see what is there. I disagree

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with Will's central premise that we don't carry the influence because

:14:46.:14:49.

we are outside the euro. I would rather be in a two speed Europe

:14:49.:14:53.

than to be in the euro at the moment and it's a bit stretching it

:14:53.:14:59.

a bit to say that not being in the euro when there's a crisis there is

:14:59.:15:03.

somethousand against our best interests. We are riebl to stay out.

:15:03.:15:06.

-- right to stay out. A better argument is about the European

:15:07.:15:10.

Union itself. I am pro-European Union and you almost got the

:15:10.:15:15.

impression this week in Parliament that it's now wrong to be anti-EU

:15:15.:15:18.

and you don't hear many voices speaking up for the European Union.

:15:18.:15:21.

I would rather do that. You can speak up for the European Union and

:15:21.:15:31.

You implied the economy was a mess and in a bad way. We can't deny

:15:31.:15:34.

that, but you said because of that we needed to get into the euro,

:15:34.:15:38.

where everything would be fine. It's not sustainable to say we have

:15:38.:15:44.

to join to be as good as Ireland, Portugal, Spain, Italy, Greece?

:15:44.:15:50.

Well, firstly, the eurozone will get up off its knees and I'm not

:15:50.:15:54.

talking about this happening in the next two or three years, but ten or

:15:54.:15:57.

15 years. What the position we are going to find ourselves in, is

:15:57.:16:01.

exactly the same position that the French and Spanish and ittalyands

:16:01.:16:07.

found themselves into the 70's, 80's and 90's, and that is that our

:16:07.:16:12.

monetary policy will be that we can set interest rates independently of

:16:12.:16:16.

what the European Central Bank or the US Federal Reserve will be for

:16:16.:16:19.

the birds. The markets will punish us if the policy is more lax than

:16:19.:16:24.

the zone. We'll find that we'll have to shadow what they're they

:16:24.:16:28.

are doing in Brussels, Paris and Berlin and Rome and Madrid. We may

:16:28.:16:33.

not like that, but that will be the reality. We will have, volatile

:16:33.:16:36.

inflation. We have a huge debt overhang and the consequence of QE

:16:36.:16:39.

will be volatile inflation in the middle of the decade. Growth I

:16:39.:16:45.

think will carry on being low. Our social contract will fray at the

:16:45.:16:51.

edges and suddenly it will look - this eurozone, in maybe seven years,

:16:51.:16:56.

it will be growing at a moderate rate and it will look much better

:16:56.:17:00.

than now. That's if it works. That comes back to you being a chap of

:17:00.:17:04.

faith. I am. You should be outside St Paul's. Indeed, you would be on

:17:05.:17:11.

your own at this stage. This idea that people didn't warn that the

:17:11.:17:15.

eurozone would end up in the nacker's yard and a complete mess,

:17:15.:17:21.

you were told again and again that the zone was not an optimal

:17:21.:17:31.

currency area, that you couldn't spachcocock together. You are both

:17:31.:17:34.

right, but the point I'm making is that the particular reason why it

:17:34.:17:40.

got itself into rubble, which is it didn't have a European monetary

:17:40.:17:47.

fund of more than one trillion euro to bail out the awful mix-up

:17:47.:17:52.

between sovereign and bank debt. No-one anticipated the financial

:17:53.:17:59.

meltdown that led to this mix-up of the debt crisis, which required the

:17:59.:18:05.

European monetary fund. I have to give Michael the final word. It's

:18:05.:18:09.

that limited point. Michael, splutter away. I would just say

:18:09.:18:14.

that in the mod erp world there is no such thing as deferred

:18:14.:18:18.

gratification -- modern world there is no such thing as deferred

:18:18.:18:21.

gratification. They should have taken three or four countries and

:18:21.:18:24.

built it out. Then had standards so when others met the standards they

:18:24.:18:28.

could join. What they did, they were very greedy and said, "We'll

:18:28.:18:32.

have 17 countries." That was a crazey thing, because there was no

:18:32.:18:37.

way that Italy, Ireland, Greece, Portugal would survive in that

:18:37.:18:40.

situation. I don't think the film is ridiculous at all, because

:18:40.:18:44.

although I believe in being outside the euro, I do think Britain is a

:18:44.:18:47.

vulnerable little country with a little currency and I don't know

:18:47.:18:51.

what will happen in the future, but I'm absolutely with Alan in saying

:18:51.:18:55.

I think it's perverse we would have been better off being there for the

:18:55.:18:59.

last few years. I didn't say that. I'm saying in the future. I want to

:18:59.:19:03.

talk about the future. I want you to come back in ten years' time and

:19:03.:19:09.

want you to wave your UK euro notes around and we'll look stupid and

:19:09.:19:16.

you will be triumphant. If we are still around, I will be tkphriet --

:19:16.:19:24.

delighted to do that. Will Hutton there is a tent and a bottle of

:19:24.:19:31.

Blue Nun waiting for you. Don't you say a word, it is European. Now, it

:19:31.:19:37.

may be too late to save the banks from a haircut but it's no too late

:19:37.:19:43.

to stick with us, because Richard Bacon will talk about the art of

:19:43.:19:51.

taking offence. For those of you who need little encouragement,

:19:51.:19:56.

there is a whole world on the interwebsite. You can follow us on

:19:56.:20:01.

twitter or join the half a dozen people who claim already to like us

:20:01.:20:08.

on the Facebook. Now, spare a thought for our poor Prime Minister,

:20:08.:20:11.

David Cameron. He's been so busy trying to gatecrash EU summits this

:20:11.:20:14.

week that he forgot to do something really, really important back home.

:20:14.:20:17.

No, not crush the little rebellion over Europe from his backbenches -

:20:17.:20:20.

you know, the worst for nearly 20 years - no, it completely slipped

:20:20.:20:24.

his mind to set the video for his favourite TV programme! So with him

:20:24.:20:27.

in mind, and back by no popular demand, here's The Mirror's Kevin

:20:27.:20:37.
:20:37.:21:16.

Maguire in series two of Downturn Prepare to move up to the line.

:21:16.:21:20.

don't like the sound of that. The truth is, the war's not going too

:21:20.:21:25.

well here on the Continent. Everyone says they are fighting a

:21:25.:21:28.

common enemy, the massed armies of debt, but over there in the far

:21:28.:21:31.

trenches, the bankers and speculators are shelling the

:21:31.:21:35.

Germans, who are shooting at the French and everyone is sniping at

:21:35.:21:40.

the Italians, who are fighting among themselves and it's bunga

:21:40.:21:50.
:21:50.:21:59.

bunga. Field Marshal Lord Cameron offered to send the force and his

:21:59.:22:06.

heir, George Osborne of Downturn. Surprisingly, Jonny Foreigner

:22:06.:22:12.

didn't want our help. Apparently President Sarkozy had had enough of

:22:13.:22:19.

the posterg and Hectoring and the know-it-all ways. You spoke not

:22:19.:22:28.

just for France, but for Britain as well. It's been a dreadful week for

:22:28.:22:32.

Lord Cameron. He suffered the most serious Conservative revolt since

:22:32.:22:37.

Major nearly copped it in the battle of Maastricht back in 1993.

:22:37.:22:43.

The Tory right flank want him to rush over to grab back powers while

:22:43.:22:48.

they are still weak. It's not the right time at this moment to launch

:22:48.:22:51.

legislation that includes an in-out referendum. When your neighbours'

:22:51.:22:56.

house is on fire, your first impulse should be to help them to

:22:56.:23:00.

put out the flames, not least to stop the flames reaching your own

:23:00.:23:08.

house. Field Marshal Lord Cameron has adopted the curious tactic for

:23:08.:23:12.

an avowed sewer row sceptic of urging the Europeans to unnight

:23:12.:23:17.

under a single command. The Euro- rebels accuse him of retreating and

:23:17.:23:25.

hiding in the bunker. Get out. Sorry, Sir. If Britain's future as

:23:25.:23:30.

an independent country is not a prop matter for a referendum, then

:23:30.:23:35.

I have absolutely to idea what it. The tentacles of the EU intrude

:23:35.:23:39.

into more and more areas of our national life. Over the last week,

:23:39.:23:43.

we have had many and many of e- mails and phone calls and letters

:23:43.:23:47.

from constituents urging me to support this motion and the only

:23:47.:23:50.

communication I've had urging me to vote against it was a telephone

:23:50.:23:54.

call from the whips' office. He won the immediate battle in the House,

:23:54.:23:58.

and in my view, had little choice but to send his troops over the top

:23:58.:24:04.

on three blasts of the wheef whips's whistle. -- Chief Whip's

:24:05.:24:13.

whistle. Shush. In here, well, that's poor Captain Clegg. Remember

:24:13.:24:19.

him? He used to be the footman, other wise known as Dead Meat. He's

:24:19.:24:22.

been cowering in the dugout for months. In the past few days, he

:24:22.:24:31.

has found his fighting spirit. Government is not going to launch

:24:31.:24:34.

some smash and grab raid on Brussels on its own, which would be

:24:34.:24:39.

condemned to failure. One day we have the Prime Minister saying, yes,

:24:39.:24:44.

to repatriation and 24 hours later, the Deputy Prime Minister says no.

:24:44.:24:47.

Mr Speaker, on this crucial question who speaks for the

:24:47.:24:53.

Government? Red Ed stirring tensions between them Tories

:24:53.:24:58.

upstairs and those Liberal Democrats deblow stairs, upset Lord

:24:58.:25:03.

Cameron. He was snapping and using language unusually you only hear in

:25:03.:25:07.

the skullary. What we have is very plain - there is a group of people

:25:07.:25:09.

on this side of the House who want some rebalancing and a group of

:25:10.:25:13.

people who want a lot of rebalancing and a complete mug who

:25:13.:25:21.

wants no rebalancing at all. "I hope this letter finds you well." I

:25:22.:25:29.

wonder how things are back at home, back at Downturn and how my Lord is

:25:29.:25:37.

coping without me? Maguire. Maguire. Where the devil are you? I bet he

:25:37.:25:42.

hasn't even got dressed yet. I hear they have got a new valet. Mr

:25:42.:25:47.

Clarke, a veteran of the war. He's always saying things that upset Mrs

:25:47.:25:52.

May. The idea that you mandatory sentence for certain types of

:25:52.:25:58.

offence to young offenders and children, to juveniles, is a bit of

:25:58.:26:03.

a leap for the British system. There's trouble back home. Them

:26:03.:26:08.

upstairs have come up with a ludicrous idea of sacking us

:26:08.:26:13.

without compensation. If you want a revolution, bring it on! But, I

:26:13.:26:17.

wonder if they had anybody in mind? I'm embarrassed by the fact that an

:26:17.:26:21.

honest mistake wasn't spotted. However, I make it absolutely clear

:26:21.:26:26.

that I did not avoid paying tax. suppose it's good to know that in

:26:26.:26:29.

these times of austerity a politician can earn more than �190

:26:29.:26:37.

on top of their salary. -- �190,000 on top of their salary. We'll know

:26:37.:26:41.

if the counter-attack is successful and Germany's Commander-in-Chief,

:26:41.:26:45.

Angela Merkel, isn't wrong when she says it's the biggest crisis since

:26:45.:26:51.

the war and Field Marshal Lord Cameron needs to quell the European

:26:51.:26:55.

revolt, or he will be weakened. Whatever happens, one thing is for

:26:55.:27:05.
:27:05.:27:07.

certain - the poor bloody infantry will be in the firing line.

:27:07.:27:17.
:27:17.:27:18.

# All together now, in no man's land... # Kevin Maguire, who played

:27:18.:27:23.

every part in that drama there. Something when the BBC cuts kick in

:27:23.:27:27.

you'll see a lot more of in BBC drama. We are joined by the former

:27:27.:27:30.

Liberal Democrat adviser, Miranda Green. Welcome. Very good to see

:27:30.:27:36.

you here tonight. I have to start with you, Michael, Tory split on

:27:36.:27:42.

Europe. Who would have thank you it? It must have been day sha view

:27:42.:27:47.

for you all over again? -- desha view for you all over again? Iity

:27:47.:27:51.

there has been maybe ten years when this hasn't dominated, but it's

:27:51.:27:54.

back. The euro sceptics are strengthened by the last general

:27:54.:27:57.

election and they are numerous within the party. Most of the

:27:57.:28:00.

ministers in the Government, on the Conservative side, share the

:28:00.:28:05.

sentiments of the people on the back benches. The euro sceptics

:28:05.:28:09.

cannot bear the idea there will be this enormous European crisis and

:28:09.:28:12.

possibly meltdown and that no benefits accrues to Britain from it.

:28:12.:28:16.

They want to get powers back at the very least. Some of them are at the

:28:16.:28:21.

extreme and see this as the opportunity to leave the EU. Their

:28:21.:28:26.

strength is enormous and it sends a terrific signal to Europe of

:28:26.:28:31.

British attitudes. I think it is going to be very serious, because

:28:31.:28:35.

there clearly will be a new treaty, one for reform and it seems to be

:28:35.:28:39.

unthinkable that there wouldn't be a referendum in this country.

:28:39.:28:42.

just interrupt you, the Government's already said tonight

:28:42.:28:45.

that it doesn't think - it doesn't know, but it shows you the way they

:28:45.:28:48.

are thinking and what they are trying to do, it doesn't think the

:28:48.:28:53.

changes will be big enough to justify a treaty change referendum.

:28:53.:28:59.

That is the argument that has been used in the past. That will

:28:59.:29:09.
:29:09.:29:10.

infuriate Parliamentarians. I mean What is it like to be caught in the

:29:10.:29:13.

Tory crossfire in this coalition? It's a strange position for the

:29:13.:29:16.

Liberal Democrats actually because when the coalition was formed,

:29:16.:29:18.

everyone treated the Liberal Democrat party as if they were the

:29:18.:29:22.

sort of teenagers yourbgs know, being invited to the adult table

:29:22.:29:26.

for the first time -- you know. Actually, in a way, you know,

:29:26.:29:29.

you've got the Conservative Party struggling to behave like a party

:29:29.:29:34.

of Government. I mean, this is protest, this is a serious party

:29:34.:29:37.

management problem that David Cameron has got. It's not going to

:29:37.:29:41.

go away. They don't seem to be good at party

:29:41.:29:45.

management? Indeed. You can say what you like about whether the

:29:45.:29:49.

Liberal Democrats are in tune with everything, but they're unite and

:29:49.:29:53.

calm and Nick Clegg is holding firm. I would suggest that it's double-

:29:53.:29:57.

edged for Labour. On the one hand Tory split always good, split on

:29:57.:30:02.

Europe with what we are worried about, jobs and growth and living

:30:02.:30:07.

standards, on the other hand, Euro- Scepticism is now the default

:30:07.:30:12.

position of this country? I don't think it's a problem for us. It's

:30:12.:30:16.

going to get worse for Cameron. Danny Alexander put it well when he

:30:16.:30:19.

said that Cameron's caught between a rhetoric of opposition and the

:30:19.:30:22.

reality of Government. In Michael's time, the one thung they didn't

:30:22.:30:31.

have was all the quotes from cast iron guarantees that David Cameron

:30:31.:30:36.

has hanging over his head -- the one thing. The Lisbon Treaty was

:30:36.:30:41.

endorsed and he said we won't treat this like unfinished business. The

:30:41.:30:47.

backbenchers, they're probably the only centre right party that takes

:30:47.:30:50.

this swivel-eyed view. But they're entitled to ask, when are you going

:30:50.:30:53.

to start this. Ed Miliband's question, what do you want to

:30:53.:30:56.

repatriate and when do you want to start, what's the process? Very

:30:56.:31:03.

difficult for Cameron. It can only get worse because I can't see him

:31:03.:31:07.

rushing... This has the prospect, for the reason Michael gave that,

:31:08.:31:11.

the Germans, we knew almost everything that was going to come

:31:11.:31:14.

out of Brussels last night, the thing that surprised me was that

:31:14.:31:17.

the Germans want to move more quickly towards a fiscal union and

:31:17.:31:24.

to put the structures in place that will do so. It will enef thatibly

:31:24.:31:33.

mean some treaty changing -- treaty -- inevitably mean some treaty

:31:33.:31:36.

changes. This interesting thing that's happened over the last year

:31:36.:31:43.

is that Cameron and Hague have sort of shifted slightly towards a less

:31:43.:31:48.

Euro-Sceptic point. Yes, that's what the backbenchers think? Yes,

:31:48.:31:53.

whereas the senti of gravity of the Tory benches has shifted the other

:31:53.:31:57.

way -- the centre of gravity. think that's a misinterpretation. I

:31:57.:32:01.

don't think that Cameron, Hague and Osborne are any less sceptical than

:32:01.:32:05.

they used to be. They have to be more pragmatic surely because

:32:05.:32:08.

they're dealing with day-to-day international things. They have

:32:08.:32:13.

decided that they want the euro to succeed and even more

:32:13.:32:16.

extraordinarily, they think greater integration in Europe is the way

:32:16.:32:19.

for the euro to succeed. These are all things that before the Tories

:32:19.:32:22.

didn't want to see at all. But, what is the difference between now

:32:22.:32:28.

and 17 years ago is that 17 years ago, we had a Government that was

:32:28.:32:37.

comprised of Major, Clarke and Heseltine, all euro fanatics but a

:32:37.:32:40.

euro sceptical party. The Prime Minister has to say things like,

:32:40.:32:45.

I'm going to recuperate powers when there is a renegotiation and I

:32:45.:32:49.

certainly cannot see how he's going to be able to do that. At some

:32:49.:32:52.

point, the rock is going to meet a hard place because there is going

:32:52.:32:55.

to be a renegotiation. I woke up this morning to hear people saying

:32:55.:32:59.

that the changes that are going to come about in the European Union

:32:59.:33:03.

are going to be game-changing and I believe that to be the case. They

:33:04.:33:06.

are going to go for major reform and no British Government will be

:33:06.:33:10.

able to argue that these are peripheral little changes that

:33:10.:33:16.

don't merit a referendum. Ed Balls, who I interviewed last Friday, did

:33:16.:33:21.

say that if the eurozone moves in the direction that Mrs Merkel and

:33:21.:33:26.

Mr Sarkozy accept that it needs to move on, this does change Britain's

:33:26.:33:31.

relationship with Europe. We can't just stand still and continue as

:33:31.:33:35.

business as usual. We'll have to look at what this means if they're

:33:35.:33:40.

not on the inner core. I think it's absolutely the case that if there

:33:40.:33:43.

is a major, fundamental constitutional change in Europe,

:33:43.:33:48.

there would need to be a referendum. But, you know, the proposition that

:33:48.:33:55.

we were debating on Monday was a kind of, there was a hocky cokey in

:33:55.:34:00.

out or shake it all about and when that comes, when that fundamental

:34:00.:34:07.

change comes, it's going to be very difficult not to have a referendum

:34:07.:34:10.

-- hokey-cokey. My point is that Labour's position is not

:34:10.:34:14.

sustainable as the status quo because the status quo is not

:34:14.:34:18.

sustainable in the new Europe we are heading towards? I think that's

:34:18.:34:22.

probably the case but it De pends what the changes are. If it had

:34:22.:34:25.

been the constitutional change that every party pledged a referendum on

:34:25.:34:29.

in the end, if that comes, that's the promise we have to keep to.

:34:29.:34:34.

Nick Clegg used this word in the coalition agreem, he doesn't use

:34:34.:34:39.

the word reTateration, but he uses rebalancing. Gree. Nick Clegg's

:34:39.:34:44.

spent a lot of time in Brussels and is not an opponent of EU reform. I

:34:44.:34:49.

think the point here is that what we are discussing is a very serious

:34:49.:34:54.

moment, as Michael said, potentially e pop-making moment.

:34:54.:35:00.

The debate in the Commons on Monday was on a motion that was

:35:00.:35:04.

fundamentally unserious. The point I wanted to make with the final

:35:04.:35:08.

moment of the week was that the eurozone's been through a searing

:35:08.:35:12.

experience. We might think from a British perspective, this will make

:35:12.:35:16.

them less keen on the whole thing because they can see it as a rush

:35:16.:35:18.

Iy failure, that's not their mentality at all, they believe all

:35:18.:35:22.

the more they are going to go in for this and all the less can they

:35:22.:35:26.

understand our position, not only of being on the sidelines of it all

:35:26.:35:30.

but wanting to take some powers back. There's no similar that thi

:35:30.:35:34.

for our position whatsoever so there will be a crunch coming aid

:35:34.:35:38.

head. We have not even had time to talk about Vince Cable's tax

:35:38.:35:44.

returns. Heavens, what a disappointment! Thought you would

:35:44.:35:47.

be disappointed with that. Dear reader, you have missed a good

:35:47.:35:52.

opportunity to shut up. We are sick of you criticising us and telling

:35:52.:35:56.

us what to do. When Mr Sarkozy slapped down our very own call me

:35:56.:36:00.

Dave earlier this week, for a brief moment, we thought the pocket

:36:00.:36:04.

rocket President had been reading the viewers section on this prom on

:36:04.:36:08.

the website. It got us thinking about how easy it is also to upset

:36:08.:36:11.

people, for example with pictures of Colonel Gaddafi's final moments

:36:11.:36:15.

widely used across TV news, including on this programme, which

:36:15.:36:19.

some people didn't like, and they told us so. We decided to put

:36:20.:36:29.
:36:30.:36:33.

taking offence into this week's # Do you really want to hurt me

:36:33.:36:38.

# Do you really want to make me cry... # Solving a debt crisis is

:36:38.:36:43.

tough enough without Europe's leaders mocking each other. Asked

:36:43.:36:49.

if Silvio Berlusconi could be trusted, journalists' giggles

:36:49.:36:54.

greeted the Sarkozy and Merkel smirk with great offence. They were

:36:54.:37:01.

keen to say that no offence was meant. People are using the word

:37:01.:37:06.

demand and humiliation, but there's no humiliation involved. Half David

:37:06.:37:10.

Cameron's backbenchers snubbed him. There is no surprise that the

:37:10.:37:15.

former PR man claimed his feelings were not hurt. There is no, on my

:37:15.:37:22.

part, no bad blood or bitterness. Ricky Gervais was forced to

:37:22.:37:26.

apologise for Tweeting a word that he didn't think was offensive but

:37:26.:37:36.
:37:36.:37:40.

others were outraged by. The media shows moments of Gaddafi's final

:37:41.:37:44.

moments. David add ten borough knows how to draw the line, even if

:37:44.:37:49.

nature, in all its glory, can be brutish, nasty and short. Hurries

:37:49.:37:56.

back to his mate, but now she seems to have lost her enthusiasm.

:37:56.:38:00.

Remind me of Diane and Michael leaving the programme every night.

:38:00.:38:03.

Richard Bacon joins us. Welcome back to the programme. Thank you.

:38:03.:38:08.

You are a broadcaster. Are you always conscious of avoiding

:38:08.:38:12.

causing offence? Sometimes I like to walk into offence, causing it

:38:12.:38:16.

can be healthy for a programme. But at the moment, I work on Radio 5

:38:16.:38:22.

Live for the BBC, you work for the BBC, it's quite a paranoid and

:38:22.:38:25.

nervous organisation, isn't it? The question they often ask themselves

:38:25.:38:29.

now is not is what we've done offensive and can it be De fended,

:38:29.:38:33.

what they ask themselves is, will this be in the Daily Mail, will the

:38:33.:38:39.

Daily Mail make hey with this. do we care? You see, I think if

:38:39.:38:43.

something is in the paper but can be De fended, so what, it's healthy.

:38:43.:38:46.

But actually, the BBC's scared of being in the papers, so I'm

:38:46.:38:52.

constantly trying to second guess what is and what isn't offensive.

:38:52.:38:57.

There is an unhealthy obsession with what is in the newspapers.

:38:57.:39:02.

Does this mean in this climate that you have act tufly censored

:39:02.:39:07.

yourself not to cause offence? -- actively? Yes, I do it quite a lot.

:39:07.:39:10.

I find myself thinking, could this be picked up by a newspaper because,

:39:10.:39:15.

if it is, I'll then be in trouble. I think it's partly to do with the

:39:15.:39:21.

old Ross Brand affair, I think we are still living in the aftermath

:39:21.:39:26.

of that. Exactly, yes. Do you think also that maybe in this climate

:39:26.:39:32.

today, that people are more inclined to take offence, that they

:39:32.:39:35.

like washing their outrage in public? I think do you know what

:39:35.:39:40.

you can do now because of Twitter and I'm a big De fender of it and I

:39:40.:39:43.

know you are as well, but the problem with it is that if you say

:39:43.:39:46.

this programme has one viewer who didn't like the programme and they

:39:46.:39:50.

can wait for you to make a misstep and then on Twitter you can whip up

:39:50.:39:55.

a bit of a storm and you can gather supporters and get them to complain

:39:55.:39:59.

and before you know it, 20 or 30 people have complained to the BBC

:39:59.:40:04.

and the BBC will get very nervous. While Twitter has made the world

:40:04.:40:07.

more democratic, it's given some people a louder voice than they

:40:08.:40:11.

deserve to have. Do people have the right not to be offended in a

:40:11.:40:15.

democracy? No, they do not. It's really important that we should

:40:15.:40:20.

maintain the right to give offence. You are absolutely right. Twitter

:40:20.:40:24.

is simply the latest itration of an age old problem. When I was a

:40:24.:40:27.

Member of Parliament, quite a long time ago by now, Members of

:40:27.:40:31.

Parliament would come up to you and say, we can't bear the strain of

:40:31.:40:37.

this issue, we've had 500 letters and I would say yes, but you have

:40:37.:40:41.

70,000 constituents who've not written to you and people get so

:40:41.:40:45.

worried about relatively small minorities and you are quite right

:40:45.:40:49.

that self-appointed minorities now can dictate the public taste.

:40:49.:40:53.

That's what it is though. Five complaints, you know, but we've two

:40:53.:40:57.

million listeners, you know, it's OK. Broadcasters decided to treat

:40:57.:41:01.

the final moments of Gaddafi differently from how we had treated

:41:01.:41:06.

other people being killed, just stick to Libya for the moment.

:41:06.:41:09.

There's lots of footage that's not been shown of other people who were

:41:09.:41:14.

killed in Libya, but we decided to treat Gaddafi differently. Was that

:41:14.:41:17.

right or wrong? I thought it was wrong. I didn't

:41:17.:41:22.

like that. I thought, you know, filming what was virtually a

:41:22.:41:25.

lynching. The funny thing about Libya is, you never saw what NATO

:41:25.:41:28.

were doing in Libya, that was really strange that there was no

:41:28.:41:32.

coverage of that. It was dangerous to have a cram ra underneath it

:41:32.:41:39.

though. We saw it in Iraq and we saw the attacks in the Balkans --

:41:39.:41:44.

camera. We didn't see them there. But I think there's different

:41:44.:41:48.

levels to this. I actually feel quite sympathetic to people who

:41:48.:41:52.

write to me because I've used an inappropriate word, particularly

:41:52.:41:55.

people who have strong religious beliefs and if you use a term that

:41:56.:42:00.

you feel is all right down the pub but not on TV. I think when you are

:42:00.:42:04.

broadcasting, you have to recognise there are people out there who get

:42:04.:42:10.

offended quite fairly small things. Are we too soft in the West. People

:42:10.:42:14.

of Libya didn't take that view. They wanted to see that he was

:42:14.:42:18.

dead?! Sfrpblgts yes, they did and actually Alan I think you are wrong

:42:18.:42:21.

about this. Here is what is changed about news. Even's got a video

:42:21.:42:25.

camera in their pocket because they are now built into telephones. I

:42:25.:42:29.

was on the radio when the Gaddafi story broke and had all the News

:42:29.:42:33.

Channels on my monitors, Al-Jazeera rbgz Sky, beeb and they were all

:42:33.:42:35.

rolling with it and showing the footage that had been instantly

:42:35.:42:39.

uploaded to the Internet. So that disturbing footage of his body

:42:39.:42:43.

being flown on to the back of a flat bed truck was everywhere and

:42:43.:42:48.

the whole world talked about it. And to not show it, one channel

:42:48.:42:54.

like the BBC not to have shown it would have been strange.

:42:54.:42:58.

But it's not that long ago when racial slurs, those who were on the

:42:58.:43:03.

receiving end of them, had to bite their bottom lip or, about their

:43:03.:43:07.

sexuality. That's changed now, you don't have to put up with that?

:43:07.:43:12.

No, you don't. That's the up side to political correctness. When

:43:13.:43:15.

people condemn political correctness, I find myself De

:43:15.:43:19.

fending it because in a way, it's a form of institutionalised

:43:19.:43:22.

politeness and those horrible words have gone because of political

:43:22.:43:27.

correctness. It's just OK to show someone being killed. You've not

:43:27.:43:31.

shown shown him being killed though, have you. How can you not show that

:43:31.:43:37.

footage when everybody else is? well if everybody everyone else is

:43:37.:43:42.

showing it. Always a good point to end on, disagreement. That's your

:43:42.:43:48.

lot for tonight, folks, but not for us, oh, no. We've booked a cab and

:43:48.:43:53.

Charles Clarke is waiting outfront, the metre running as usual. Our

:43:53.:43:56.

destination tonight, St Paul's Cathedral of course. We hear there

:43:56.:44:02.

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