I must confess to a certain amount of schadenfreude at the woes currently facing the Eurozone.  I know it’s not nice and shows a lack of understanding, but I can’t help it.

As an active – and successful – campaigner against Britain’s adoption of the euro, I get a degree of pleasure (I know, I know – it’s not nice) in seeing one’s predictions being fulfilled.  European Economic and Monetary Union (EMU) was always doomed to fail for the same reason that every other attempted currency union has failed: without fiscal union, monetary union lacks the discipline to work. 

Despite being called Economic and Monetary Union, the Eurozone’s rules were subject to political interpretation, allowing Greece and other Club Med members to go on irresponsible spending sprees, confident that Germany (and possibly France) would bail them out if things got sticky.  And so it has proved. No wonder Germany is not happy.

The recent multi-billion euro rescue package has now begun the process of imposing strict auesterity measures on Greece – effectively transferring responsibility for fiscal policy from Athens to Brussels or (more realistically) Berlin.  This means that the voters in Greece – the birthplace of democracy – have lost control over their own economy.  No wonder the Greeks are not happy.  I rather fear that the riots and protests that we’ve already seen are just the beginning.

Will this lead to the break-up of the eurozone?  probably not because of the strong political will to make it succeed, but I predict it will lead to closer economic and political union between the core members – France, Germany and Benelux – and possibly the ejection of Greece and, maybe, Portugal.  If these economically fragile countries stay in the euro, it will only be as virtual colonies.

I’m so glad Tony Blair failed to drag us into the euro.

As you’d expect, Messrs Clegg and Cameron have been extolling the virtues of the “new politics” (aka the Lib-Con coalition).  But the acid test will be what the Government actually does, rather than what it says.  Rhetoric is valuable for creating mood music and managing expectations, but actions are ultimately what count.

We know that Government spending is going to be cut and recognise that reducing the budget deficit and national debt is THE priority.  However, the trick will be to do this without derailing the economic recovery by stifling growth.  If George Osborne and his team can pull that off, they will have earned their political spurs.

My yardstick for judging the Government’s success in managing the economy is its sensitivity to the needs of small and medium-sized businesses (SMEs), which comprise the engine of the UK’s economy.  If this sector is able to grow during the tough times that lie ahead, the UK will finally emerge from this recession leaner and fitter than before.  I wish Osborne & co well in this challenge.

Gordon Brown may well be within his constitutional rights to try to hold on to office (holding on to power is another matter) but it is a very undignified sight.  I can remember the similar situation in 1974 when Ted Heath clung on desperately trying to do a deal with Jeremy Thorpe’s Liberals. I thought that was pretty tacky, but at least his defeat led to regime change under Margaret Thatcher.

With Gordon Brown, we have someone who has never been elected Prime Minister or even leader of his party.  His coronation as party leader was more like a palace coup.  Typically, his whole General Election campaign was based on trying to scare voters into backing Labour.  “Vote for us or you’ll regret it,” was the message – (and it must have worked to a degree, otherwise the Labour defeat would have been a total massacre) but it was hardly a vision statement.

Others will dissect the different party campaigns, identifying their mistakes in mortifying detail.  But I’m inclined to agree with the old adage that electorates get the governments they deserve.   In our case, the electorate (that’s us, folks) made it clear that we did not want to be told the truth about the harsh medicine that we are going to have to swallow to restore the economy to good health.  The Tories started to tell us and their poll ratings went south, so they stopped.  Now we are about the find out and, no doubt, the Government will be accused of not telling the truth during the election.  But remember, when that happens, whose fault it is.

On a more personal note, I was delighted to see that my old friend George Eustice  has won Camborne and Redruth from the Lib-Dems.  I developed a huge respect for him when we worked together on the successful No campaign against the euro.  He then went to work for the Conservatives and, later, recruited me to help during the 2005 General Election.  I’m sure we’ll see and hear more of George now that he’s an MP.