Explaining Labour's 'U-turn'...

Danny Finkelstein points out in today's Times that Ed Miliband's new economic policy is to continue to oppose the cuts as 'too far and too fast', but to accept that Labour will not reverse them. To which many will ask what is the point of opposing the management of the deficit if it cannot offer the alternative? Especially since it has argued and voted against each and every measure to manage the deficit created by Labour?

Does Labour accept that it spent too much before the financial crash of 2007? No. Does Labour accept that it spent too much after the crash? No. Does Labour accept that the Coalition's plans to reduce borrowing over the lifetime of this parliament were correct? No. So what exactly is it saying? Two things. Firstly, the Labour party want to increase borrowing in order to cut borrowing. Secondly, they are against the Coalition cuts, but at the same time accept them. Clear? Not really.

So let me explain it to you in a different way.

The Conservative party knows that the Euro is a disaster. They have known this since the Euro's earliest conception, and clearly and repeatedly argued why the Euro was ill-conceived and how it's destruction would come about. The European political class of course, was not listening. They are still not listening. But rather than continue to oppose it with every breathe, Cameron and Osborne have chosen to move on. For the last twenty months they have supported Eurozone members - despite the carping from Sarkozy - by urging them to integrate further and more quickly into one federal country, knowing that only in those circumstances will the Euro as a currency become viable.

The Conservatives fully realise the implications of such a move by the seventeen Eurozone nations, effectively becoming one country. They also know that Britain would never give up its sovereignty in such circumstances. Yet they suggest that the Eurozone do something that they themselves find totally abhorent.

You may call this dishonest, disengenuous or even unprincipled. It is all of these things. And it is exactly what Labour is now attempting in its economic policy.