Terry Murden: Bank Bonuses Are Back as Politicians Roll Over
THE SCOTSMAN: NO-ONE should be surprised that the banks are expected to defy public opinion and once again pay multi-million pound bonuses.

Difficulties in controlling the bonus culture have been made plain by the frustrations felt by politicians across the spectrum and were highlighted here as far back as August 2009 after the then shadow chancellor George Osborne demanded that bonuses should be banned altogether in banks that had been bailed out by the taxpayer.

Well, he's moved a long way from that particular argument and now doesn't even see eye-to-eye with the bite-your-legs business secretary Vince Cable, who has found himself muzzled over the issue.

The bankers believe the Lib Dems who have been making most of the noise on this issue are now a bit of a spent force in the debate and that the slightly more banker-friendly tone emanating from Osborne and Prime Minister David Cameron will leave them free to award themselves the sums they see as their right.

The banks argue that they contributed towards the £53.4 billion paid in taxes last year by the financial services industry, equal to 11.2 per cent of Britain's total tax receipts. No wonder the Treasury should consider it inappropriate to bite the hand that feeds it.

Before Christmas there were more threats of a new bonus tax, an idea revisited by Deputy Prime Minister Nick Clegg, and warnings from Cable that the banks would be punished if they didn't change their ways. But opinion in the City is that there is not much substance behind them.

The bankers are now said to feel so confident of getting away with paying large bonuses that they see no further need for Project Merlin, the initiative led by Barclays former chief executive John Varley to repair relations with the government. Expect the next round of bonuses to be trimmed, but only marginally, and as an acknowledgement of, rather than a concession to, public outrage. >>> Terry Murden | Sunday, January 09, 2011

THE SUNDAY TIMES: Lib Dems tear into Tories on bonuses: Ministers are furious at George Osborne’s apparent cave-in over unacceptable bank bonuses in a time of austerity >>> Marie Woolf, Whitehall Editor | Sunday, January 09, 2011 (£)

THE OBSERVER: Britain's best-paid bank boss set for showdown with MPs over huge bonus: Barclays chief Bob Diamond is under intense pressure to lead by example and give up payout >>> The Observer | Sunday, January 09, 2011

Lib Dems abstained on Lisbon Treaty referendum because they thought it "would fail"

One of the latest leaked US diplomatic cables has confirmed what many of us had suspected all along. The Lib Dems' U-turn on their pledge to hold a referendum on the Lisbon Treaty was not motivated by a principled preference for an 'in or out' referendum on EU membership but by a belief that a referendum on Lisbon would be lost.

Here's the relevant passage:

A Very Bad Day: The Lib Dems and The EU Reform Treaty

--------------------------------------------- ---------

2. (SBU) March 5 marked the worst day for the Lib Dems since one infamous week in January 2006, when the party became the laughing stock of Britain after sex scandals involving two of the four candidates to succeed leader Charles Kennedy emerged one right after the other. This time around, the party imploded in the House of Commons over a Conservative Party motion to hold a nationwide referendum on the Lisbon Treaty. The Lib Dems' convoluted official position on the referendum was part of the problem. As Clegg sought to explain it to the public, the real issue for his intensely pro-Europe rank-and-file was not the Lisbon Treaty itself, but confirming UK membership in the EU once and for all. The Lib Dem official position therefore was to propose an alternate "in or out" referendum on whether the UK should remain in the EU, and abstain on the competing Conservative motion to hold a referendum on just the Treaty itself.

3. (C/NF) This position left both the pundits and the public scratching their heads: why would the UK's most pro-Europe party, whose new leader actually worked for the EU from 1994 to 1999, abstain on a vote on the Treaty? The answer, senior Lib Dems have confessed to us, is that the party leadership believes a referendum on the Lisbon Treaty would fail.

Hmmm, we kind of suspected that was the motive. Or, actually, it was blatantly obvious as the Lib Dems flip-flopped like crazy on the Lisbon Treaty.

All of this brings back some horrible memories...

If it weren't for those pesky EU rules...

Last week’s vote on student fees saw thousands of angry protestors descend on Westminster, to no avail as the proposal has now passed both houses. This is obviously a very thorny issue for the Coalition - and the Lib Dems in particular.

But what's interesting is that the main counter proposal to hiking student fees was a proposed graduate tax. Only thing, it isn't really an option, due to two rather large glitches - foreign students and EU law.

A tax would only cover those residing and earning money in the UK, thereby allowing foreign students to circumvent paying. Considering that the UK is home to some of the best universities in Europe, and there are currently about 120,000 students from other member states at British universities, this could potentially mean substantial financial losses to the UK university system; losses that would have to be paid back by graduates staying in the UK.

A solution to this dilemma would be to have a two-tier system whereby a graduate tax would apply only to UK students, and university fees would apply to the rest. However, this is contrary to rules enshrined in the Maastrict Treaty - which determine that EU citizens studying in another EU member state must be treated under the same conditions.

To be fair, British students are allowed to go abroad and enjoy European universities under the same rules as all other EU students - which does count for something (which more UK students could take advantage of - language and grammar would be two particularly good areas to focus on). But it's amazing how EU rules seem to creep into everything these days - no matter how domestic of a matter it would appear.

Quite irrespective of the merits or drawbacks stemming from freedom of movement that is.

Lib Dem voters on EU membership: 31% want to stay - 42% want to leave

Here are some results from a fresh poll from Angus Reid on the attitude of British citizens to the EU (an online survey of a representative national sample of 2,002 British adults):

• In the event of a referendum on the UK’s EU membership, nearly half of Britons (48%) would vote in favour of pulling out, while 27% would vote to stay.

• Interestingly, 42% of Lib Dem voters would vote for the UK to leave the EU in a referendum (65% of Tories, 36% of Labour) against only 31% who said they want Britain to stay.
  

• 59% say EU membership has been moderately negative or very negative for the UK (30% and 29% respectively).

• Since June, the proportion of Britons who say the EU has been very positive for the UK has dropped from 7% to 4%. Back then, 31% regarded it as moderately positive, versus only 25% now.

• 80% would vote in favour of the UK maintaining the pound.
  

• 34% of 18 to 34 year olds feel the EU’s effect on the UK has been negative. 37% of them would vote to stay, while 32% would vote for the UK to leave.

See the full poll here. As with other poll results, it's clear that the EU's popularity continues to drop.

But the most interesting result is that Lib Dem voters - whose party often is presented as the UK's last europhile outpost - would come out against EU membership in such great numbers if faced with a referendum.

It just goes to show, in regards to the EU, there is a disconnect between the grassroots and the party leadership, and splits within the party on the issue might not only be a Tory phenomenon...

Nick Clegg: 'The Lib Dems Have No Future on the Left'
THE TELEGRAPH: Nick Clegg has said that there is no future for the Liberal Democrats as a left wing party.

The Deputy Prime Minister said he sympathised with voters who had turned to his party as an alternative to Labour and were unhappy that they had formed a coalition with the Conservatives.

But he risked alienating key supporters by dismissing those who see the Lib Dems as “a sort of left-wing conscience of the Labour Party”.

"There were some people, particularly around the height of the Iraq war, who gave up on the Labour Party and turned to the Liberal Democrats,” he said.

"I totally understand that some of these people are not happy with what the Lib Dems are doing in coalition with the Conservatives. The Lib Dems never were and aren't a receptacle for left wing dissatisfaction with the Labour Party. There is no future for that; there never was," he told the Independent. >>> Heidi Blake | Saturday, September 18, 2010

Nick Clegg: There Is No Future for Us as Left-wing Rivals to Labour
THE INDEPENDENT: As the Liberal Democrats' conference begins, their leader gives his party an uncompromising message

Nick Clegg has declared that there is "no future" for the Liberal Democrats as a left-wing alternative to Labour as he appealed to his party to show "patience" and maintain a united front with the Conservatives.

In an interview with The Independent on the eve of Liberal Democrat conference starting today, he promised his party it would reap the electoral rewards if it held its nerve about its slump in the opinion polls. >>> Andrew Grice, Political Editor | Saturday, September 18, 2010

Let CAP take the Lyon’s share

Two weeks ago, in Merida (Spain), the UK’s new Agriculture Minister Caroline Spelman called for “reduction and re-orientation” of EU Common Agricultural Policy (CAP) spending. “We cannot leave aside the fact that Europe is without money”, she said.

Unfortunately, Ms. Spelman’s demands seem not to have made it across the Pyrenees. In fact, last Tuesday in Strasbourg the European Parliament’s Committee on Agriculture and Rural Development endorsed a report on the future of CAP after 2013. Unsurprisingly, the report wasn’t exactly calling for fundamental reform of the CAP – MEPs remain staunch defenders of this wasteful policy.

The text reads as follows: “To meet the new priorities and the expectations of all EU member States, the CAP budget amount needs to be at least maintained at 2013 levels in the context of the new financial perspectives”.

You don’t need to be a seasoned Eurocrats to understand that “at least maintained” probably means “increased”.

Now, this seems like business as usual – the UK is trying its best to reform a policy which is protectionist and 50 years out of date (and which still absorbs more than one third of the whole EU budget every year, despite the fact that less than 5% of Europeans work in the agricultural sector), with the usual suspects (the European Parliament, France, Spain, etc.) doing everything to stop such effort.

Only thing is, this time the report was drafted by… a British Lib Dem MEP! The MEP in question is George Lyon (see the picture above), representing Scotland.

In other words: while at home the coalition is preaching the need to cut waste and reform the EU budget, in Strasbourg a Lib Dem MEP drafts a report opposing any downsize of one of the most wasteful and irrational spending programmes in recent history – the CAP. That the Conservatives and the Lib Dems aren’t on the same wavelength on Europe is one thing, but that the Lib Dems are sending out such “mixed” signals on a key EU policy is concerning, to say the least…

The coalition government must stand up for EU reform

In the Telegraph today, we argue:

Europe is in desperate need of reform in order to become more democratic, economically dynamic and modern. The Con-Lib government has the potential to become a powerful force for such reforms. But it must have the courage to stand up for these changes both abroad and at home. In the end, this would benefit Europe, Britain and the coalition itself.

Read the full article here.

What does the Con-Lib coalition offer on Europe?

As we detailed in our press release today – the Con-Lib coalition Government deal on Europe has some things which reform-minded people, such as ourselves, can be happy about, and some things to feel a twinge of disappointment over. A basic summary of our thoughts on the matter is here:

The Conservatives have retained their pledge for a ‘referendum lock’ – guaranteeing that any future transfers of power to the EU be subject to a referendum – which is welcome, and could give citizens the sense of ownership over EU policies that has been missing in recent years.

They have watered down their pledge for a UK Sovereignty Bill – saying instead only that they will “examine the case” for such a Bill. However, since it was never crystal clear how such a Bill might work in practice, we aren’t particularly vexed about this one.

In a somewhat cynical move, the new Government has also made it clear that the UK will not join, or plan to join, the euro over the lifetime of the next Parliament. Since we would have sooner seen Bill Cash say “I agree with Guy (Verhofstadt)”, than a political party recommend joining the euro in the next 4-5 years, the euro question was effectively neutered anyway.

Rather disappointingly the Conservatives appear to have shelved their plans to elevate the position of Europe Minister to Cabinet – this would have promoted the importance of the European Union in UK politics and shown that the Government was ready to become more engaged and forthright in promoting the UK’s interests in Europe.

The new Europe Minister is David Liddington – and not Mark Francois who has shadowed the position since 2007. While we hope David Liddington will approach EU reform with the tenacity that is required, it is a disappointment that the continuity Mark brought to the role over recent years (amid ever-changing appointments on the Labour benches) will not be maintained under the new Government.

The Conservatives have also dropped their pledge for an opt-out in criminal policy, and instead said they will approach any new legislation in justice and home affairs, and whether or not to opt-in, on a “case-by-case basis”. This is clearer a great deal closer to the position of the Lib Dems, who have favoured much more EU integration on justice and home affairs matters than any other party.

The coalition agreement has also dropped the pledge to seek an opt-out from the Charter of Fundamental Rights, and for the repatriation of powers in social and employment policy. Instead, the agreement only reads: “We will examine the balance of the EU's existing competences and will, in particular, work to limit the application of the Working Time Directive in the United Kingdom.”

This is a touch disappointing, as we have previously argued that this is an achievable, and desirable goal – giving the important impact such legislation has on the UK economy (and which is set to cost £71 billion over the next decade).

However, a key concession on the part of the Lib Dems in the coalition agreement would seem to be this pledge that: “We agree that there should be no further transfer of sovereignty or powers over the course of the next Parliament.”

While the Lisbon Treaty transferred a huge number of competences from member states to the EU, it is clearly a welcome step that the Government has committed to no new transfers of power over the next five years.

If interpreted strictly, this pledge has the potential to be very radical indeed, with Angela Merkel stepping up her calls of late that some kind of Treaty change is desirable to strengthen the rules of the eurozone. The Commission's new proposals, set out on Wednesday, do suggest that the possibility of further transfers of economic competence to the EU may be on the horizon.

The Greek crisis has meant that commitments to no more ‘institutional change” for ten years are all well and good, but countries such as Germany need some reassurance that the rules of monetary union will be toughened up and German taxpayers won’t be called on to bail out other eurozone countries who have run into financial difficulties.

Therefore a strict pledge that no more powers should be transferred to the EU/or if they are they should be subject to a referendum, presents the Government with the opportunity for the leverage in negotiations it needs, e.g. on the EU budget.

Is the Con/Lib agreement a good deal?

Well, some of the most important bits from the Conservatives’ Europe policy are still in there – notably the referendum lock and a pledge to transfer no new powers to the EU.

It is a disappointment to see a weakening in their stance on social and employment policy and justice and home affairs, but all marriages need compromise and given the gulf that lay between the two parties on the question of Europe, there is reason not to be too glum.

While the Europe issue may be a ‘sleeping dog’ at the moment – rest assured that the preparations for a full-throttled push for a European economic government will mean that the question of new transfers of powers are not far off.

One reason to oppose a Lib/Con coalition

For all the talk now of the Lib Dems as the kingmakers, wooed by both Labour and the Tories for their 60-odd votes, it is possible to forget that Nick Clegg is not some shiny, unblemished debutante, but a seasoned politician with his own electoral baggage that could throw up sticking points with both Tory and Labour backbenchers (should Con-Lib coalition talks end in much ado about nothing). Indeed, if there is one reason for the Conservatives to turn around and attempt to go it alone with a minority Government, it’s the Lib Dems’ appalling record on whether British voters should be given the referendum they were promised on the Lisbon Treaty.

The expression ‘flip-flopping’ doesn’t even begin to describe Nick Clegg’s behaviour when the issue was on the table in 2008 (see here for our reaction at the time).

Let us re-cap:

The Lib Dems, just like Labour and the Tories, promised in their 2005 election manifesto to put the European Constitution to a public vote. In 2007, in a bid to circumvent the No votes in the Netherlands and France, the EU Constitution was renamed the Lisbon Treaty and articles were recast, but the content remained virtually identical.

A bill to put the Lisbon Treaty/EU Constitution to a referendum went through the Commons in March 2008 (after the Commons debate on the Treaty was cut short). While most Labour MPs voted against a referendum, and most Conservatives voted in favour, Nick Clegg ordered his MPs to abstain on the vote, insisting that the Lib Dems were instead in favour of a referendum on the UK’s continued membership of the EU. Three frontbench Lib Dem MPs were forced to resign because they felt bound by their election promise and decided to defy Clegg by voting in favour of a referendum on the Lisbon Treaty.

After the failure of the referendum amendment in the Commons, Nick Clegg continued to insist that his party was committed to the idea of a referendum on Britain’s continued membership of the EU. He said : “I argued for an In-Out referendum – and have done so for years – because I am convinced it is the right thing for Britain”.

However, the Lib Dems tabled no amendment to that effect when the issue was discussed in the Lords a few months later, and actually abstained from voting for an in/out referendum when such an amendment was put down, and instead voted in favour of the Lisbon Treaty. If the Lib Dems had abstained, like they did in the Commons, the referendum would have been passed.

With the Lisbon Treaty ratified in all member states, the in/out referendum pledge then appeared to have been dropped, with former party leader Sir Menzies Campbell saying in December 2009 that there was "no public appetite" for such a vote since the Lisbon Treaty was now in force. However, the pledge then re-appeared in party’s election manifesto.

Absolutely extraordinary. Perhaps we have too high expectations, but should politicians – particularly those who profess to want to ‘clean up politics’ and reconnect with voters – really get away with this kind of schizophrenic behaviour, which leaves voters wondering exactly where they stand on their manifesto pledges?

If we can put aside any potential uncertainty in having a less-than-secure minority Government in place for at least a year and that is a big If – (for injecting confidence in the economy and for the ability of the UK to influence what’s happening in Brussels at the moment), this would be as good a reason as any for David Cameron to go it alone – not least since a key challenge for MPs over the life of the next Parliament is to be able to restore trust in politics.

Footnote:

On a similar, but distinct, question of referendum promises, Nick Clegg spent last week doing some serious backpedalling in a bid to try and distance his party from their pledge to join the euro, which they featured slap band in the middle of their election manifesto.

On Jeremy Vine’s Radio 2 show last week, Nick Clegg couldn’t have distanced himself from all of his previous talk of the benefits of ‘anchoring’ our currency to the euro any faster. When asked by Vine: “Of course, but just to bring you back as it is quite important this – because you did want us in the single currency in 2003, and the other two didn’t, and you don’t want us in now, and so I’m just checking that you accept you’ve changed your mind”, Clegg said:

“No, let me be clear – in the 2005 General Election, which was the general election which counts, we did not recommend, as we’re not recommending now, that we should go into the euro. We are saying that there may be economic circumstances, and by the way the Labour government under Gordon Brown’s tests has said something very similar, there may be circumstances where you can imagine that might be the case. It’s not for now, we’re not recommending it for now, we would only ever recommend it if it was good for the British economy, not out of sentiment, because it’s good for savings and jobs and so on.”

Quite clearly “there may be circumstances where you can imagine that might be the case”, is not the most ringing endorsement for joining the single currency ever to pass one’s lips, and yet their official position remains that joining the euro is in the long term interests of the UK? Perhaps the events of the weekend may be enough to convince some of them that such a scenario would never come to pass.

Where would a Lib Dem/Tory pact leave the EU?

So both Gordon Brown and David Cameron have extended an offer to the Lib Dems to begin talks to see whether some sort of coalition, however loose, could be agreed upon to form a Government. But Nick Clegg has said that it is for the Conservatives, as the largest party, to try and form a workable majority first.

Speaking earlier today David Cameron clearly opened the door to a potential coalition with the Lib Dems. There has also been speculation that senior members from the Lib Dems could be offered roles in a Conservative-led government in return for their party's support. However, Cameron also set out the manifesto pledges that his party would not be willing to compromise on, including pledges on immigration, defence and the commitment that "[no] government should give more powers to the European union". According to reports, Mr Clegg and Mr Cameron have already spoken this afternoon and agreed to explore possible deals.

Now, there are lots of things to say about this deal or no-deal. Quite clearly, although many European countries find this type of political uncertainty business-as-usual following a national election, pro-longued uncertainty over who governs this country is in no one's interest. Certainty is particularly important for cleaning up the public finances and injecting confidence into the markets (which are struggling to come to terms with the debt crisis and contagion effect facing the eurozone).

Much will happen before all is said and done, and other governing arrangements might triumph in the end - but just a note on what a potential Lib Dem/Tory coalition might mean for the prospects of EU reform, and the UK's relationship with the rest of Europe:

While electoral reform and the economic recovery will be the key issues in such an arrangement, the EU is clearly a dividing line between the Lib-Dems and the Conservatives, with Nick Clegg still committed to joining the euro in the long-term, favouring a common EU immigration policy and calling for further integration in justice and home affairs. Should the two parties agree to a coalition arrangement, especially if involved a Lib Dem cabinet position, the Conservatives could naturally find it more difficult to push through some of their key policy pledges on Europe. In particular, the Conservatives might fail to get support in Parliament for their flagship policy of a 'referendum-lock' - a law that would require every future transfer of power to the EU to be subject to a referendum in the UK (also 'the sovereign bill' might suffer but it's unclear how meaningful such a bill will be in practice in the first place).

The Conservatives and the Lib Dems could also clash on whether the UK should opt in to the EU's growing number of initiatives in immigration, policing and security policy. Over the next five years, there are a range of key decisions a UK government must take in justice and home affairs, as the Lisbon Treaty drastically accelerates EU integration in this area. Ambitions to opt out of some parts of EU employment law could also be complicated by a Lib Dem/Conservative arrangement.

Needless to say, none of this will go down well with Tory back-benchers or grass-roots.

Other key areas, such as the upcoming negotiations on financial services legislation (in particular the AIFM Directive, set for May 18) and talks on the EU budget, will not necessarily be profoundly affected by a coalition arrangement, since all three main parties tend to broadly agree on substance (although perhaps not on strategy and tone).

However, it's clear that the Lib Dems are out of step with the British public on the EU. Quite apart from the possible merits of a coalition in other areas, it would be most unfortunate if the Conservatives allowed a deal with the Lib Dems to kill off future momentum for EU reform. As we've argued before, Europe is changing - with the eurozone cracking and people across Europe seriously starting to question whether the current model for European integration is sustainable (most people already know it's not democratic) - the long-term prospects for a UK government to find allies and change things in the EU for the better are greater now than in any time in recent history.

Cameron should therfore stand firm on his ideas for EU reform in the talks on a possible coalitionwith Nick Clegg.

Flip-flopping Clegg

Nick Clegg didn’t exactly come across as coherent in last night’s debate between party leaders when David Cameron challenged him on the fact that the Lib Dem manifesto still calls for the UK to join the euro.

This was the exchange:

David Cameron: "people need to know that the Liberal Democrats, in their manifesto, are still in favour of joining the euro...if we were in the euro now, your taxes, your national insurance would not be going on hospitals and schools and police officers, they would be going to Greece, and possibly other countries as well, and that's why I say one of the lessons to learn is let's stay out of the euro, let's keep our own currency and let's recognise what a massive strategic error the Liberal Democrats would have made."

Nick Clegg: [nervous laugh] "No I'm not advocating entry into the euro, I would only ever advocate it by the way, if ever, if the economic conditions were right. If it was good for your jobs, good for pensions, good for savings, and of course it always has to be only decided, if we were ever to do that as a country, on a referendum where you can vote on it." The Lib Dems' manifesto states: "We believe that it is in Britain's long-term interest to be part of the euro."

Say what? Since when, exactly, is Nick Clegg in the "No I'm not advocating entry into the euro” camp?

The Lib Dems' manifesto clearly advocates UK membership of the euro stating: "We believe that it is in Britain's long-term interest to be part of the euro."

And Nick Clegg himself has in the last decade repeatedly called for UK membership. A few examples:

When he last year said the Euro would "anchor" the economy against the "vulnerable exposure to international financial markets".

Or that "The strict rules attached to the euro could emerge as one of the best ways to persuade the markets that we will put Humpty Dumpty back together again, put the public finances in order".

(So strict that Greece managed to fudge its statistics to bluff its way in?)

Or when he said that refusing to discuss the euro was a "failure of political leadership"
(Financial Times, 21 January 2009)


Or perhaps, back in the days: "If we remain outside the euro, we will simply continue to subside into a position of relative poverty and inefficiency compared to our more prosperous European neighbours."
(Prospect magazine, 20 January 2002)

Or, in the same article: "We will gain greater control over our own affairs by joining the euro. By pooling sovereignty, we will be able to extend sovereignty over economic forces which have long moved beyond the reach of national monetary policy”.

“The single currency, far from being an agent of continental style corporatism, is probably the greatest export vehicle of Anglo-Saxon economics. The euro has done more to enforce budgetary discipline, to promote privatisation and force through labour and product market liberalisation in the rest of Europe than any number of exhortations from the IMF, the OECD, or the editors of The Economist."

(There are so many flawed predictions in that last statement that it's almost painful)

The Lib Dems insist that it is in the “UK’s interest” to join the euro. However, at the same time Nick Clegg a) recently admitted that being in the euro would have made the UK’s current economic situation worse b) now says that he’s “not advocating entry into the euro”.

Anyone else confused?

The truth is that the Lib Dems' mixed messages on the euro undermine the credibility of the entire party. Advocating a policy in their manifesto that constitutes such a fundamental change, and then not having the courage of their convictions to back it up, smacks of ‘old politics’ and dishonesty. It’s difficult not to draw parallels to their flip-flopping on the question on whether a referendum should be held on the EU Constitution/Lisbon Treaty.

If he was serious about his euro pledge, Nick Clegg would spell out exactly under what conditions he would take the UK into the euro – which would be far more honest to voters. Nick Clegg’s confusion on the euro is at best folly, and at worst a threat to the health of the UK’s economy should he get near power.

Is this what we should expect from someone who could become Britain’s next Foreign Secretary?

What would a Lib Dem government do about Ian Bailey?

The Lib Dems' recent rise is rightly leading to closer scrutiny of the party's policies. Their support for the UK entering the euro, was correctly described as "folly" by the Sunday Times. If it wasn't right to join the euro when the UK was experiencing higher growth in comparison to the eurozone, and if you're willing to admit that the current eurozone interest rates would have hurt the UK's recovery (as Clegg has recently), then when would it ever be right to join? The Lib Dems' answer, "In the long-term", is simply not good enough from a party that wants to govern the country.

But another area that has received far less scrutiny and attention is the Lib Dems' commitment to further EU cooperation on crime, justice and policing. This is extremely important because, under Lisbon, this is the area of EU policymaking that is likely to grow fastest. And for a practical example of why this is all important, we need look no further than a story reported in yesterday's Independent, and today in the Irish Times.

Ian Bailey, a British former journalist suspected in connection, but not charged, with the murder of a French film-maker in Ireland 14 years ago, has been detained by the Irish authorities under a European Arrest Warrant issued by a French judge. French lawyers argue that they have jurisdiction over the case, citing the French constitution which states that murder cases involving French citizens in any part of the world can be brought in front of French courts.

But, as Carol Coulter, the Irish Times' legal editor, points out, the Irish Director of Public Prosecutions decided not to prosecute Bailey for the murder. Therefore, in practice, the French extradition request amounts to a breach of the double jeopordy principle, enshrined in the European Convention on Human Rights (ECHR), as well as the Irish Constitution.

We've pointed out some of the EAW's failings before, but this case could potentially prove to be a huge step in a very dangerous direction. If Bailey loses his fight against extradition, the Irish authorities will have deported someone, whom they believe did not have a case to answer under Irish law, to face charges in another country. Leaving aside whether Bailey is ever found guilty or not in the future, this simply cannot be right.

The Irish courts still have to decide whether to action the extradition request but it will be interesting to see how much pressure is put on them by the French government. And given that the French request effectively amounts to a vote of no confidence in the Irish legal and judicial system, what prospect does this man have for a fair trial in France? And doesn't the UK, given that Bailey is a British citizen, have a duty to point this out?

Whiplash

We confess that we are getting a touch of whiplash trying to keep up with the Lib Dems' constant to-ing and fro-ing over their position on a referendum on the 'EU question'.

As you might remember, the Lib Dems backed a referendum on the Lisbon Treaty in their 2005 manifesto, only to abandon that commitment (by abstaining with characteristic decisiveness) and teaming up with Labour to block a referendum when the Treaty went through Parliament in 2008.

They then said they were in favour of an 'in-or-out referendum', but Lib Dems in the Lords again abstained from voting for such a referendum when an amendment to that effect was put down.

Then in December last year, former leader Sir Menzies Campbell voiced yet another position saying that there was "no public appetite" for an in-or-out vote on the EU since the Lisbon Treaty was now ratified.

Now we see, in a debate in the House of Commons last night, Lib Dem Foreign Affairs Spokesman Ed Davey saying: "Liberal Democrats support a referendum on Europe, but on Britain's membership of the EU and not on the legalese of any specific treaty. We believe that the British people want to be able to answer the in-out question, and that that is the sort of constitutional issue that is best put in a referendum".

Parties should be free to change their minds when they have a genuine change of heart but the Lib Dem's flip-flopping on this issue smacks of complete incoherence and more than a whiff of political opportunism. Perhaps Sir Menzies hit it on the nose when he said that they have no interest in a referendum of any kind.

Surprise surprise

Now that the Lisbon Treaty is safely in force (as of yesterday) the Lib Dems have predictably abandoned their support for a referendum on Britain's EU membership.

The tactic to support such a referendum was nothing more than a pathetically transparent and feeble attempt to get them off the hook for abandoning their manifesto commitment to a referendum on the Constitutional Treaty. Pretending to favour giving people a referendum that was never on the cards, the Lib Dems shamefully teamed up with Labour to block calls for referendum on the Treaty as it went through Parliament last year.

Safely over that hurdle, Nick Clegg can now ditch the dishonesty and go back to what he really believes - which is that the British public should never be given a say on the EU of any kind.