Tuesday, July 20, 2010

David Cameron; Britain's new Prime Minister is planning a revolution

LONDON — In the five years David Cameron spent rebuilding the Conservative Party in opposition, opinion polls showed that as he sought to rebrand it by offering a compassionate but persistently fuzzy image, voters had trouble defining what sort of a prime minister he would make.

Not any longer.

After 10 weeks in office, Mr. Cameron, who met with President Obama in Washington on Tuesday, has emerged as one of the most activist prime ministers in modern times, rivaling in some respects even Margaret Thatcher, the “Iron Lady” who as the Conservative leader in the 1980s attacked unions and government bloat while privatizing national industries and vigorously pursuing free-market policies.

With a relentless battery of policy announcements, Mr. Cameron and his coalition of Conservatives and Liberal Democrats have proposed to couple the deep deficit cuts the conservatives sketched out during the May general election campaign with a wider effort to break the mold of big government in Britain that, despite Lady Thatcher’s best efforts, has largely prevailed since World War II...

...Their proposals for slashing spending go beyond anything Britain has experienced in its modern history, even under Lady Thatcher. They sharply reverse course from a Labour government that, for 13 years under Tony Blair and Gordon Brown, expanded the state’s power at a pace never seen outside of wartime, turning Britain into one of the most heavily taxed, tightly regulated countries in the developed world, with government accounting for about half the work force and half of the economy.

So far, the course charted by Mr. Cameron and his deputy prime minister, Mr. Clegg, remains largely visionary. At best, they face months, and potentially years, of slug-it-out battles with opponents, including skeptics in their own parties, as well as with newly restive labor unions and a recalcitrant bureaucracy. Their austerity drive alone could bring the coalition down, if people like Mr. Obama who fear that budget-slashing could drive economies like Britain’s back into recession prove to be right.

The main hallmark of the coalition’s program is a plan to halve the annual budget deficit of $235 billion within five years, and to achieve that by across-the-board cuts in almost all government ministries. All the departments involved have been told to prepare a plan for cuts as high as 40 percent, and some may have to cut much deeper than others to compensate for high-spending ministries like those responsible for the military and for Britain’s $290 billion annual welfare outlays, which are unlikely to make even the 25 percent reductions.
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