Truss, Elizabeth (1975- )

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      Markets Are Ready for Stability in U.K. Government

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      Investors appeared heartened by the prospect of Rishi Sunak, Britain’s former chancellor, becoming prime minister — but he must still solve huge economic problems.The front-runner.Isabel Infantes/Agence France-Presse — Getty ImagesMeet Britain’s (likely) new leader After weeks of turmoil, British politics appears headed for some stability, as Rishi Sunak, the former chancellor of the Exchequer, is poised to succeed the ill-fated Liz Truss as prime minister. The British pound and government bonds rose a bit on the news — but the economic problems that trouble the country aren’t likely to be cured quickly.Sunak has the numbers, with over 164 Conservative Party lawmakers backing him for prime minister as of Monday. (Conservative Party rules require candidates to have at least 100 pledged supporters to be considered.) The only remaining challenger, Penny Mordaunt, trails with roughly 90 pledged supporters, she says. But the clock is ticking. She has until 2 p.m. London time on Monday to reach the needed support threshold.Sunak’s most potent challenger was Boris Johnson, the former prime minister who was ousted after his own cabinet ministers — including Sunak, then chancellor — quit in protest over a series of scandals. Johnson pulled out of the race on Sunday, despite claiming to have the support of 102 lawmakers (with the BBC estimating he had just 57 public backers).Investors expect relative predictability from a Sunak government. During the race for prime minister this summer, Sunak defended his plans for higher taxes as fiscally responsible, compared with Truss’s promises of tax cuts to spur economic growth. The markets’ virulent reaction to Truss’s plans, which led to sweeping efforts by the Bank of England to prop up the government bonds known as gilts, suggest investors favor a less revolutionary approach, like what Sunak has promised.Investors appear particularly relieved that Johnson — a notably divisive figure in Britain and abroad, who still faces a parliamentary inquiry into whether he lied to lawmakers about breaking Covid lockdown rules — is out of the running.But Britain still faces enormous challenges. The Bank of England remains likely to raise interest rates to tamp down inflation that has reached 10 percent; Britain is still facing a huge cost-of-living crisis, owing largely to soaring energy costs; and homeowners face significantly higher mortgage payments. On Friday, Moody’s downgraded Britain’s credit rating outlook to “negative” from “stable,” citing weak growth and “unpredictability” in policymaking.Sunak must also corral a Conservative Party that has splintered into several warring factions. Hard-right lawmakers favor cracking down on immigration and taking a hard line against the E.U. over the checking of goods crossing the trade border between Northern Ireland and Ireland. He may also face rebellion from Johnson loyalists who blame him for the downfall of the former prime minister.HERE’S WHAT’S HAPPENING Tesla cuts prices for key models in China. The electric carmaker has reduced the baseline prices for the Model 3 and the Model Y by as much as 9 percent, Reuters reports. The move appears to be tied to slowing demand in China, the world’s biggest E.V. market, and growing competition from domestic rivals.The Trump family business goes on trial on Monday. The Manhattan district attorney’s office has accused the Trump Organization of tax fraud and other crimes, focusing on undeclared perks for executives. Among the star witnesses of the trial will be Allen Weisselberg, the company’s former C.F.O.Japan struggles to prop up the yen. The currency continued to slide against the dollar on Monday, despite what investors suspect was another intervention by the Bank of England to curb volatility. Japan is in a difficult bind because it is trying to maintain ultralow interest rates, which could bolster the yen, to spur economic growth.Chip makers struggle with tighter U.S. restrictions on China. YMTC of China has reportedly asked American employees in key roles to leave, to comply with new rules from Washington that require U.S. citizens to get permission to work at Chinese fabrication plants. And TSMC of Taiwan is said to have stopped work for a burgeoning Chinese semiconductor start-up.Brace for a potential “tripledemic” this year. With pandemic lockdowns mostly in the past, experts predict a resurgence in Covid cases this winter — along with more traditional outbreaks of flu and, perhaps, of respiratory syncytial virus. “It’s going to be a rough winter,” one infectious disease specialist told The Times.An “even more dominant” Xi China released third-quarter economic data on Monday, laying bare the deep challenges facing the country days after Xi Jinping was appointed to an unprecedented third term as leader.Gross domestic product in the world’s second-biggest economy grew 3.9 percent compared to the same period last year. That is higher than expected, but short of the full-year target of 5.5 percent — China’s lowest annual target in three decades. The authorities unexpectedly delayed publication of the data last week.Financial markets tumbled. The Hang Seng Index in Hong Kong closed down more than 6 percent at a 14-year low on Monday, reflecting anxieties about the worsening economy, and after Xi stacked Communist Party leadership positions with loyalists. Chinese tech stocks listed in the U.S. are the worst performers there premarket, led by the e-commerce companies Pinduoduo and JD.com. Xi’s move to tighten control was widely expected, but it underscores his ambition to accelerate China’s rise as a military and technological superpower, despite the potential economic damage, write The Times reports. That could have big implications for business.“He was dominant already and is even more dominant now,” Dali Yang, a political science professor at the University of Chicago, said of Xi. A newly energized Beijing is likely to remain defiant in the face of international criticism of its hard-line behavior. It still wants to become the pre-eminent military force in the region and to assert its claim over Taiwan. At the congress, Xi said China would promote its own initiatives to solve global development and security problems.Unchecked power could slow economic growth. Xi’s exceptionally stringent approach of imposing mass lockdowns and quarantines to eradicate Covid-19 outbreaks has throttled consumer spending and hit supply chains. The hugely important property market is also in a slump after he sought to curb speculation in the sector.The geopolitical divide between the U.S. and China is widening. President Biden has waged a crackdown on China’s access to U.S. technology — in particular, chips and chip production — and the threat of Russia-like economic sanctions looms. Some of the Western world’s biggest corporations are now evaluating how to reduce the business they do in China. Goldman Sachs, though, hasn’t closed the door. On Monday, it announced a joint venture in China to boost investment in local infrastructure-related real estate assets.Critics come after S.B.F. for his stance on crypto rules Sam Bankman-Fried, the founder of the crypto exchange FTX, got skewered by his crypto colleagues after proposing voluntary digital asset standards to better protect consumers last week — and he’s still reeling from the experience. “Whelp, that was an interesting few days,” the billionaire wrote on Twitter on Sunday, responding to complainants denouncing him as “S.B.F. — The Regulator.”Industry insiders are growing wary of S.B.F. The head of a sprawling global empire mostly built beyond the reach of U.S. regulators, the 30-year-old billionaire has donated about $40 million to various PACs and candidates in the 2022 election cycle and become a fixture on Capitol Hill. Some advocates for decentralized finance have grown increasingly concerned about Bankman-Fried’s high-profile support for a newish Senate Agriculture Committee bill on digital assets, which they feel could set back the DeFi movement. Bankman-Fried also got into hot water for suggesting that DeFi adopt “know your customer” mandates to appease authorities. Opponents say this would undermine the decentralized crypto ethos, and would force DeFi firms to adopt rules associated with traditional finance. Some users and influential industry voices, meanwhile, have called for a boycott of FTX.The crypto exec relented after the onslaught. S.B.F. thanked his critics for their input, which he used to revise some of his proposals. Among the most prominent was Erik Vorhees, the libertarian-leaning founder of the platform ShapeShift, who argued that DeFi should remain distanced from regulatory oversight, as it “transcends humans and their political machinations.”“The devil is in the details,” Kristin Smith, the executive director of the Blockchain Association, an industry trade group representing about 100 companies, told DealBook. The industry agrees that centralized exchanges are ready for regulation, she said, but DeFi is new and nuanced and regulating this area would require more time. Translation: S.B.F. should stop speaking for DeFi.Bankman-Fried thinks congressional action is coming. “It’s important to protect customers and to get federal oversight,” he wrote in an email to DealBook, adding that it’s equally important that code remain free. There’s still “some chance” that a narrow crypto bill that leaves DeFi untouched gets congressional approval after the November election, he predicted. “I think that, if it’s well-drafted (which I’m optimistic it will be!), it would make sense to pass it this year.”“This is a moment of truth for education. How we respond to this will determine not only our recovery, but our nation’s standing in the world.” — Miguel Cardona, the secretary of education, warning that a pandemic-fueled drop in the math and reading scores of U.S. students has deeper economic and societal implications.The week ahead What’s on the agenda this week? It will be a busy one for earnings — big banks in Europe, plus Big Tech in the U.S. We also have interest-rate-setting decisions and economic data releases.Tuesday: The Saudi Arabia-sponsored “Davos in the Desert” begins. Despite tensions between Saudi Arabia and the U.S. over oil, many U.S. executives still plan to attend.Wednesday: Meta reports earnings. An advertising slump and new privacy rules from Apple (which reports on Thursday) are expected to have eaten further into its revenue, which in the second quarter dropped for the first time since the company went public.Thursday: Credit Suisse presents a plan to fix itself. A broad strategic review is set to conclude with a restructuring that will likely involve thousands of layoffs and an overhaul of its investment bank. Elsewhere: The U.S. reports third-quarter G.D.P., and it’s rates decision day for the European Central Bank.Friday: deadline day for Elon Musk and his $44 billion Twitter deal. Last week, the Washington Post reported that he planned to cut Twitter’s staff by as much as 75 percent after taking the company private. In Asia, the Bank of Japan wraps up a two-day rate-setting meeting where no change in policy is expected.THE SPEED READ DealsMagic Johnson is reportedly in talks to buy a minority stake in the Las Vegas Raiders N.F.L. team. (Semafor)The banks tasked with financing Elon Musk’s bid for Twitter are expected to keep the $13 billion worth of debt on their books and try to sell it later, rather than immediately booking a $500 million loss. (WSJ)Amazon will take a stake in the parent of Hawaiian Airlines as part of a cargo-hauling deal. (Bloomberg)PolicyThe Republican National Committee sued Google, accusing it of directing the party’s political emails to users’ spam folders. (Axios)The White House is hoping that plans to refill the Strategic Petroleum Reserve will spur new domestic oil production, but energy companies are skeptical. (WSJ)Best of the restIsraelis and their adopted feral dogs — what could go wrong? (WSJ)“Rebranding is hard but there is no excuse for disemvowelling.” (FT)The British economy is reeling, but the country’s whisky makers are having a banner year. (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Race for U.K. Prime Minister Heats Up as Nominations Roll In

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      Conservative Party lawmakers have so far put more weight behind Rishi Sunak to be their next leader, but Boris Johnson is still in the fight to reclaim Downing Street.LONDON — The competition to replace Liz Truss as Britain’s prime minister intensified on Sunday, with Rishi Sunak pulling ahead in the scramble for votes of Conservative lawmakers, but Boris Johnson mounting a lively campaign to reclaim the job he gave up three months ago amid a cascade of scandals.Mr. Sunak, who formally declared his candidacy with a promise to “fix our economy,” had lined up at least 144 votes by early Sunday afternoon, according to a tally by the BBC, more than double the 56 votes pledged to Mr. Johnson. A third candidate, Penny Mordaunt, had 23.Beyond the numerical advantage, Mr. Sunak has picked up significant endorsements from people on the right flank of the Conservative Party. On Sunday morning, Steve Baker, a lawmaker who represents an influential group of euro-skeptics in Parliament, announced he would support Mr. Sunak.“Boris Johnson would be a guaranteed disaster,” Mr. Baker told Sophy Ridge of Sky News. “We cannot allow it to happen.”That is important because it suggests that not only do party leaders view Mr. Johnson as an intolerable risk, they also believe that Mr. Sunak, who served as chancellor of the Exchequer under Mr. Johnson, could bridge some of the bitter ideological fissures in the party, which were deepened by Ms. Truss’s turbulent six weeks in office. In the last contest, many figures on the party’s right flocked to Ms. Truss, which put her in a good position to beat Mr. Sunak.More on the Situation in BritainA Rapid Downfall: Liz Truss is about to become the shortest-serving prime minister in British history. How did she get there?Lifelong Allowance: The departing prime minister is eligible for a taxpayer-funded annual payout for the rest of her life. Some say she shouldn’t be allowed to receive it.Staging a Comeback?: When Boris Johnson left his role as prime minister in September, he hinted he might return. He is now being mentioned as a successor to Ms. Truss.Under the rules set out by the party, candidates are required to have nominations from at least 100 of the 357 Conservative lawmakers to advance to a second round of voting, among rank-and-file members of the party.Candidates have until 2 p.m. Monday to gather nominations. On Monday, the party will hold two rounds of voting to winnow the field to one or two. If two remain, party members will cast online ballots later in the week.Boris Johnson on Saturday at Gatwick Airport near London after returning from a vacation.Henry Nicholls/ReutersIf Mr. Johnson can drum up 100 nominations, it would significantly raise his odds of returning to Downing Street, as opinion polls suggest he would win the vote among members. Allies of the former prime minister insist he already has those 100 votes, but political analysts have expressed skepticism, noting that barely half that number have publicly declared their intention to back him.Mr. Johnson did receive a notable endorsement from a member of his last cabinet, Nadhim Zahawi, who served briefly as chancellor of Exchequer after the resignation of Mr. Sunak. Mr. Sunak’s departure helped set in motion the wholesale walkout of ministers that finally toppled Mr. Johnson.“When I was Chancellor, I saw a preview of what Boris 2.0 would look like,” Mr. Zahawi wrote on Twitter. “He was contrite & honest about his mistakes. He’d learned from those mistakes how he could run No10 & the country better.”In July, Mr. Zahawi was among those urging Mr. Johnson to resign. “The country deserves a government that is not only stable, but which acts with integrity,” he wrote in a letter to his boss. “Prime Minister, you know in your heart what the right thing to do is, and go now.”Mr. Johnson, who flew home on Saturday from a vacation in the Dominican Republic to begin lobbying lawmakers, has yet to formally declare his candidacy. But another of his former ministers, Jacob Rees-Mogg, told the BBC that he had spoken with Mr. Johnson, and that he would “clearly stand.”Ms. Mordaunt, who officially threw her hat in the ring on Friday, is viewed as unlikely to advance past the first round of voting. But she insisted on Sunday that she, too, was confident of lining up more than 100 lawmakers.Penny Mordaunt on Sunday in London. She declared on Friday that she would stand in the leadership race.Alberto Pezzali/Associated PressBritish newspapers reported that Mr. Johnson was seeking to strike a deal with Mr. Sunak to join forces in a unity ticket, and that the two had met on Saturday. But the shape of such a ticket was unclear, given Mr. Sunak’s large lead among lawmakers, and the animosity between the two men makes any cooperation look far-fetched.In the statement announcing his candidacy, Mr. Sunak said his experience as chancellor would equip him to lead Britain through the economic challenges that loom. He promised a government of “integrity, professionalism, and accountability,” drawing a clear comparison to the ethical failings of Mr. Johnson’s tenure.The success of Mr. Sunak’s message will hinge on how lawmakers weigh that against their own electoral fortunes. The Conservatives are trailing the opposition Labour Party by more than 30 percentage points in polls. Though the Conservative Party’s steep erosion in support began under Mr. Johnson, he is still viewed by many as a proven vote-getter after his landslide victory in the 2019 general election.Mr. Rees-Mogg, repeating the claim that Mr. Johnson had more than 100 votes, described him as the party’s “greatest electoral asset,” contending that only he could engineer a victory over the Labour Party. More

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      How Political Primaries Drive Britain’s Dysfunction

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      In the United States, too, the rise of inside-party primaries has empowered candidates at the extremes, and the result is likely to be a greater disconnect with the public.The rise and fall of Liz Truss, Britain’s six-week prime minister, embodies a seismic and long-mounting change in British politics, though its cause and consequences may not always be obvious.Ms. Truss was only the fourth British leader to win the job through a particularly American practice newly common in her country: a party primary.As in most parliamentary democracies, British parties, for most of their history, chose their leaders, and therefore the prime minister, through a poll of party officials.But in recent elections, Britain has shifted that power to party bases, which now select party leaders in elections somewhat like those held in the United States for party nominations.This was intended to empower voters over back-room party bosses, elevating politicians who would be more representative and therefore more electable. But the consequences have been very different.As in the United States, British primary voters tend to be more ideologically fervent and less inclined to moderation than are party bosses or even the median party supporter, surveys find.This has, in both countries, tended to elevate candidates who are more extreme, with research suggesting that the effect has been to make politics more polarized and dysfunctional. Ms. Truss, and the policies that seemingly ended her brief tenure, have become prime examples.Britain’s Conservative Party selects leaders first by winnowing down candidates in the traditional way: voting among party lawmakers. In four out of five such rounds, Ms. Truss was only the third-most selected candidate. In the fifth round, she came in second to Rishi Sunak, who is seen as more moderate.But, since 2001, the party has put its final two leadership candidates to a vote among dues-paying members. Ms. Truss’s libertarian ideas were seen as risky and extreme among party officials. But they were embraced by primary voters, who chose her over Mr. Sunak.More on the Situation in BritainA Rapid Downfall: Liz Truss is about to become the shortest-serving prime minister in British history. How did she get there?Lifelong Allowance: The departing prime minister is eligible for a taxpayer-funded annual payout for the rest of her life. Some say she shouldn’t be allowed to receive it.Staging a Comeback?: When Boris Johnson left his role as prime minister in September, he hinted he might return. He is now being mentioned as a successor to Ms. Truss.Those voters — about 172,000 of them — bear little resemblance to the average Briton. Roughly two in three are male. Two in five are 65 or older, double the proportion in the general population. Three in four voted to leave the European Union in the 2016 Brexit referendum, compared with only 52 percent of Britons, and 58 percent of all Conservative supporters.Ms. Truss’s economic ideas may have wooed those primary voters, but her policies, and the economic shudder that followed them, alienated much of the rest of the country. Even many Conservative supporters, most of whom do not qualify to vote in primaries, told pollsters that they intended to vote for other parties.In this case, the political shift brought about by primary voters’ pull toward an extreme was stark and, with Ms. Truss having resigned under party pressure, ultimately brief.But it is of a piece with what a growing body of political science research suggests are deeper and longer-term changes brought about by the rise of party primaries in a few democracies.A Quietly Seismic ShiftDavid Cameron, a former British prime minister, deepened his party’s commitment to primaries.Pool photo by ReutersBritain’s first leadership primary open to party members was held by Labour in 1994, part of an effort by that party to emphasize a connection to everyday citizens.The Conservatives followed in 2001, responding to deep election losses, said Agnès Alexandre-Collier, who studies British party politics at the University of Burgundy in France. Conservatives also began holding primaries for some individual seats in Parliament.This was intended to elevate Conservative politicians, Dr. Alexandre-Collier said, who would be “more modern, closer to the people, more in touch with the population, because the Conservatives were seen to be disconnected, out-of-touch elites.”Primaries were a relatively untested concept in Europe. The United States had only begun inviting voters into the process of selecting party nominees in the 1970s and ’80s.American party officials had long used control over nominations to block candidates who did not embrace party orthodoxy — and, often, to bar racial and religious minorities. Many Americans objected to this as undemocratic and divisive, pressuring parties to open up.In Britain, it was David Cameron, then the Conservative leader, who in 2009 deepened his party’s commitment to primaries, surrendering party control over nominations in dozens of races.“This will have a transformative effect on our politics, taking power from the party elites and the old boy networks,” he said at the time. A year later, he became prime minister.But in both the United States and Britain, primaries brought other changes, too.Party officials tend to overwhelmingly prefer moderate candidates over ideological ones, research has found. This holds true even in uncontested districts, suggesting that the preference runs deeper than electability considerations.To activists looking to push their parties further left or right, this can look like a conspiracy to block change. To parties, it is often intended to enforce internal unity and cohesion, as well as what is known in European politics as the “cordon sanitaire,” or an informal ban on extremists and demagogues.As primaries have shifted power from parties to the rank-and-file, these barriers have fallen away.This has also granted individual lawmakers greater independence, allowing them to more freely buck party positions — but binding them to primary voters’ desires instead.How Primaries Change PoliticsJeremy Corbyn won a Labour Party leadership vote in 2015 thanks to primary voters.Jessica Taylor/Agence France-Presse, via U.K. Parliament/AFP via Getty ImagesMr. Cameron quickly saw his party fill with rebellious lawmakers who had won primaries by championing a position that party insiders had opposed: leaving the European Union.At the same time, Mr. Cameron faced the prospect that, in any future leadership contest, his fate would be up to primary voters who also favored this policy. In 2016, partly as an effort to stave off these threats, Mr. Cameron held the referendum that ultimately resulted in Britain’s departure from the union.This is why some political scientists now argue that a straight line can be drawn from the Conservatives’ use of primaries, and the power it handed to a small and ideologically committed faction of voters, to Brexit.Britain’s Labour Party has also changed.Jeremy Corbyn, a left-wing lawmaker long at odds with his party’s leadership, won a leadership vote in 2015 thanks to heavy support from primary voters.But Mr. Corbyn took a soft line on Brexit, which saw his party’s support drop in polls and angered party officials who wanted Labour to champion a policy of remaining in Europe.Still, even as Labour officials tried to eject Mr. Corbyn, primary voters kept him in power. During his five-year leadership, Labour failed to win a majority although Conservatives struggled through leadership crises and economic turmoil.“Internal democracy can undermine a party’s ability to select candidates who can win general elections,” Georgia Kernell, a U.C.L.A. political scientist, wrote in a Washington Post essay, referring to Mr. Corbyn.“Party activists rarely represent the population,” she added. “Nor do they often represent the party’s own voters.”Weaker PartiesWhen Donald J. Trump was running his primary campaign, Republican officials tried to stop his rise.Rebecca Noble for The New York TimesIn perhaps the most famous case of primary voters overruling party officials, Republican leaders repeatedly attempted to halt Donald J. Trump’s rise in their party’s 2016 primary.Those who have not subsequently fallen in line, like Representative Liz Cheney, who called Mr. Trump a threat to democracy, have often seen their careers ended by primary challenges.“It’s counterintuitive, but democratizing parties will ultimately harm democracy,” Jennifer N. Victor, a George Mason University political scientist, wrote in 2018, just as Democrats announced changes to curtail party bosses’ influence over primary nominations.“Democracy requires institutional forces of coordination to enforce collective action,” Dr. Victor said. “It comes in many forms. All of them can be called leadership.”“Without them,” she added, “we’re all just in ‘Lord of the Flies.’”Still, in countries where voters now expect to select their party’s leaders, reverting that authority back to party insiders, even if their choices were sometimes more representative of the electorate, would surely feel to citizens like an unacceptable loss of democratic rights.Voter-led primaries remain unusual in the world.One exception was, briefly, France, whose two traditionally dominant parties held primaries for nominations to the 2017 presidential contest.Voters in France’s right-wing party, which had been expected to win, chose a scandal-plagued candidate who was friendly with President Vladimir V. Putin of Russia, and who lost. The winner of the left-wing party’s primary went on to take only 6 percent of the national vote.“This experiment was seen as an absolute failure,” Dr. Alexandre-Collier said. “It gave priority to the most populist leaders,” she added, as primaries have tended to do across countries.Both parties quietly ended the practice, returning candidate selection in France to party officials. More

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      How Tumultuous Forces of Brexit Divided U.K.’s Conservative Party

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      Some experts link Liz Truss’s downfall to the ripple effect of Britain’s departure from the European Union and the bitter, ideologically opposed factions it created in her party.LONDON — When Prime Minister Liz Truss of Britain resigned on Thursday after only 44 days in office, she spoke almost wistfully about how the collapse of her economic plans meant she would never achieve her goal of creating a “low-tax, high-growth economy that would take advantage of the freedoms of Brexit.”Her nostalgia for Britain’s exit from the European Union might be misplaced, at least when it comes to her Conservative Party. Brexit is the fault line that runs through Ms. Truss’s ill-fated attempt to transform Britain’s economy, just as it ran through Prime Minister Theresa May’s doomed government, and David Cameron’s before hers.Except for Boris Johnson, who was forced out because of scandals related to his personal conduct, the forces unleashed by Brexit have undone every Conservative prime minister since 2016. They have also severely divided the party, creating bitter, ideologically opposed factions seemingly more interested in warring with each other than in governing a country with the world’s sixth-largest economy.Ms. Truss’s calamitous tenure, critics said, is the most extreme example of post-Brexit politics that have now brought the Conservatives to crisis. In the process, it has damaged Britain’s economic standing, its credibility in the markets, and its reputation with the public, which is watching a leadership contest that may return Mr. Johnson to the helm of a party that tossed him out only three months ago.Prime Minister Liz Truss after announcing her resignation on Thursday at Downing Street in London.Daniel Leal/Agence France-Presse — Getty Images“The Conservatives are never going to recover the coherence that will make for good governance,” said Timothy Garton Ash, a professor of European studies at Oxford University. “This is a party that is tearing itself apart.”He traced the party’s unraveling from the 2016 referendum, called by Mr. Cameron, through Mrs. May’s futile efforts to craft a softer form of Brexit, to the uncompromising “hard Brexit” of Mr. Johnson, and finally to Ms. Truss’s experiment in trickle-down economics, which he said bore all of the hallmarks of Brexit thinking, from the derision of expert opinion to the disregard of Britain’s neighbors and the market.“It’s taking the logic of Brexit to the absurd,” said Professor Garton Ash, who has long lamented the vote to leave.Ms. Truss’s tax cuts made Britain an outlier among Western countries, but the factionalism of post-Brexit Britain plagues other European countries, from Italy to Germany, as well as the United States, where some may view the potential return of Mr. Johnson as a harbinger for another restless populist, Donald J. Trump.In announcing her trickle-down policies, Ms. Truss was an evangelist for a particular model of Brexit, an agile, fast-growing, lightly regulated Britain that its backers once branded Singapore-on-Thames. Whether that is a viable economic construct was never tested. Her policies were swiftly rejected by the markets because they were judged to be reckless at a time of double-digit inflation.More on the Situation in BritainA Rapid Downfall: Liz Truss is about to become the shortest-serving prime minister in British history. How did she get there?Lifelong Allowance: The departing prime minister is eligible for a taxpayer-funded annual payout for the rest of her life. Some say she shouldn’t be allowed to receive it.Staging a Comeback?: When Boris Johnson left his role as prime minister in September, he hinted he might return. He is now being mentioned as a successor to Ms. Truss.But Ms. Truss faced equally hostile forces within her own cabinet, which are fueled by the same nationalistic passions that drove Brexit.Suella Braverman, the home secretary whom Ms. Truss fired last week ostensibly for violating security rules, attacked Ms. Truss for abandoning the party’s promise to cut down immigration numbers. The prime minister talks tough about illegal immigrants, too, but her policies were shaping up to be more moderate because she believes new arrivals are needed to accelerate Britain’s growth.The clash between Ms. Truss and Ms. Braverman was part of a bigger clash between rival camps in the party — a free-market, libertarian wing, exemplified by the prime minister, and a hard-line anti-immigration wing, represented by Ms. Braverman. Those views, Ms. Braverman argues, are critical to retaining the loyalty of working-class voters in the north of England, who used to back the Labour Party but who propelled the Conservatives to a landslide general election victory in 2019.Suella Braverman, a Conservative Party hard-liner on immigration.Tolga Akmen/EPA, via ShutterstockThe party also has a centrist faction — personified by Ms. Truss’s chancellor of the Exchequer, Jeremy Hunt — which embraces small-government, business-friendly policies that predate Brexit. The centrists regained some influence after the market’s repudiation of Ms. Truss, when she was forced to hand over the Treasury to Mr. Hunt and the home office to one of his allies, Grant Shapps.Some major party figures, like Rishi Sunak, who served as chancellor under Mr. Johnson and is expected to run in next week’s leadership contest, do not fit neatly into a single group. He voted in favor of Brexit but opposed Ms. Truss’s tax cuts, warning that they would cause havoc in the markets.Quarrels over Britain’s relationship with Europe date back decades in the Conservative Party, of course. Mr. Cameron had little choice but to resign after failing to persuade voters to reject a motion to leave in his referendum. Mrs. May was forced out by her party’s lawmakers after trying to strike compromises with the European Union that made her look, to some, as too conciliatory.With Mr. Johnson having led Britain out of the European Union in 2020, the battles are now over how to shape its post-Brexit society. But they still revolve to a great degree around Europe-related issues, like the flow of asylum seekers across the English Channel or trade rules in Northern Ireland. Pressure from the party’s hard-liners forced Mr. Johnson and Ms. Truss to toughen their approach to Northern Ireland, for example.“The factions are on display in this leadership campaign,” said Tony Travers, a professor of politics at the London School of Economics. “But this is now on a bigger scale and profoundly affects what was once the incredible adherence of the Conservative Party to common-sense and pragmatism.”It also helps explain why Mr. Johnson, who only six weeks ago left Downing Street under a wreath of scandal that prompted a wholesale mutiny of Conservative lawmakers and a mass walkout of his ministers, suddenly finds himself a plausible candidate to retake control of the party. He returned on Saturday from a vacation in the Dominican Republic to lobby lawmakers for votes.Former Prime Minister Boris Johnson is one of three top contenders to replace Ms. Truss as prime minister.Alberto Pezzali/Associated PressMany Conservative lawmakers, fearful of losing their seats in the next general election, yearn for the political magic of “Get Brexit Done,” the upbeat slogan that Mr. Johnson used to unite the party’s affluent southeastern suburbanites with the so-called red wall voters in the Midlands and north. They are willing to accept Mr. Johnson, even with his ethical flaws, for the big-tent appeal he once commanded.“The advantage that Boris has is that he’s not interested in these factions,” Professor Travers said. “He’s not interested in ideology but in power. And the reason the members want him back is because they think he can help them stay in power.”As prime minister, Mr. Johnson did not hesitate to exploit populist passions. His government began the practice of putting asylum seekers on flights to Rwanda, drawing condemnation from human-rights lawyers and activists.But Mr. Johnson also oversaw a costly state intervention in the economy to insulate people from the effects of the coronavirus pandemic. And his signature program involved spending hundreds of billions of pounds on high-speed trains and other projects to “level up” corroded cities in the north with more prosperous London.Ms. Truss said comparatively little about leveling up. One of the first moves made by her first choice as chancellor, Kwasi Kwarteng, was to scrap a limit on bonuses paid to bankers, a move intended to appease London’s financial district.The problem for Mr. Johnson, if he were to run and win, is that he would have far fewer financial resources this time around to govern as a big-state Conservative. Mr. Hunt has warned that the government will have to make “eye-wateringly difficult” decisions about which programs to cut. Britain’s need to rebuild its shattered credibility with investors will require strict fiscal discipline.Jeremy Hunt represents a centrist faction of the Conservative Party.Henry Nicholls/ReutersBritain’s economic troubles, experts say, cannot be blamed wholly or even mainly on Brexit. While its departure from the European Union has tightened the labor market and hampered trade, Britain’s growth never recovered after the financial crisis of 2008. Its depleted public services are a legacy of the austerity of Mr. Cameron and his chancellor, George Osborne, which predated Brexit.Still, the often-ruthless tactics of the “Vote Leave” campaign, critics say, planted the seeds for the Truss government’s mishandling of economic policy. Campaigners for Brexit famously argued that the country should ignore experts who warned that leaving the European Union would exact a high cost. They brandished spurious figures about the cost for Britain of remaining in the bloc.This experts-be-damned philosophy was the underpinning of Ms. Truss’s economic plan. When Mr. Kwarteng announced the tax cuts, he refused to submit them to scrutiny by the government’s independent watchdog. He fired the most senior civil servant at the Treasury, Tom Scholar, a sign of his disdain for economic orthodoxy.“It wasn’t so much the fact of Brexit, or even the referendum itself, but the dishonesty of the referendum campaign,” said Jonathan Portes, a professor of economics and public policy at King’s College London. “They took a lesson from that, which was that dishonesty and trashing institutions was a way to success.” More

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      Auge y caída de Liz Truss en la escena política del Reino Unido

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      Cuando solo habían transcurrido un poco más de seis semanas del inicio de su gestión, la primera ministra británica anunció su renuncia.LONDRES — El colapso político de Liz Truss concluyó con el anuncio de su renuncia el jueves 20 de octubre, poco más de seis semanas después de haberse convertido en la primera ministra del Reino Unido. Sus planes trastabillaron, su propio partido le dio la espalda y proliferaron los pronósticos de comentaristas de todos los ámbitos de que no podría sobrevivir más tiempo que una lechuga fresca. Y así fue.Truss reiteró su determinación de vadear la tormenta política a pesar del clamor generalizado que pedía su renuncia. Por desgracia, la presión aumentaba minuto a minuto… hasta que, en cierto momento, se percató de que no había salida.Si necesitas ponerte al día, a continuación te presentamos una síntesis de los hechos básicos.¿Quién es Liz Truss y cómo se convirtió en primera ministra?El 6 de septiembre, Truss fue designada para remplazar a Boris Johnson, quien fue elegido por los votantes en 2019, pero sufrió una espectacular caída tras una serie de escándalos que no le dejaron más remedio que abandonar el cargo en julio.Los ciudadanos no eligieron a Truss, sino que ascendió al poder gracias a su triunfo en una contienda interna del Partido Conservador para convertirse en su dirigente. Para elegir al sustituto de Johnson, los miembros del partido en el Parlamento seleccionaron, de entre un grupo de candidatos, solo a dos. Estos dos candidatos se sometieron a una votación en la que participaron alrededor de 160.000 miembros del partido que pagan su afiliación (se trata de un grupo nada representativo de una nación de 67 millones de residentes, pues en su mayoría son varones de edad avanzada, blancos y de clase media).Truss, de 47 años, fungió como secretaria de Relaciones Exteriores durante el gobierno de Johnson. Favorecía medidas políticas agresivas, era partidaria del libre mercado y, tras cambiar de opinión, apoyó el brexit, con lo que se ganó al bando de derecha del partido a pesar de su pasado más moderado (antes de integrarse al Partido Conservador, perteneció al Partido Liberal Demócratas, un movimiento de centro, durante sus años de estudiante en la Universidad de Oxford).¿Cómo empezó su declive?Nunca fue una tarea fácil. Cuando Truss asumió el cargo, la nación enfrentaba un panorama económico desastroso, especialmente porque se esperaba que los costos de la energía se elevaran un 80 por ciento en octubre y que volvieran a subir en enero. Esta situación amenazaba con condenar a millones de británicos, que ya sufrían los efectos de la inflación y otros problemas, a condiciones de pobreza extrema que les imposibilitaran calentar su hogar o usar electricidad.Así que, cuando los planes económicos que tanto promovió empeoraron esos problemas, el descontento masivo no se hizo esperar.Sus planes de recortes fiscales, desregulación y uso de préstamos causaron tal alarma entre los inversionistas de todo el mundo, que el valor de la libra británica cayó a niveles récord con respecto al dólar. El Banco de Inglaterra tomó medidas para apuntalar los bonos soberanos, en una intervención extraordinaria con la intención de calmar a los mercados.Esta respuesta demostró que sus ambiciones de libre mercado eran insostenibles. En una decisión humillante, esta semana se vio obligada a revertir casi todos los recortes fiscales, incluido uno aplicable al grupo de mayores ingresos que fue objeto de muchas críticas. Despidió a Kwasi Kwarteng, el ministro de Hacienda encargado de preparar el plan y su aliado cercano, y adoptó políticas económicas promovidas por el Partido Laborista, el partido de oposición.“No es posible dar un giro total como el que ella dio y esperar que tu credibilidad política se mantenga”, dijo Jon Tonge, profesor de política en la Universidad de Liverpool.¿Cómo puso en peligro su cargo?Sus concesiones no lograron apaciguar la rebelión que se propagaba dentro de su propio partido que, como le sucedió a Johnson, tenía el poder para derrocarla.Los conservadores (también conocidos como tories), que ya habían sufrido una marcada caída en sus índices de popularidad en la opinión pública tras los escándalos de Johnson, vieron sus estadísticas hundirse a profundidades impresionantes con los tropiezos de Truss. Una encuesta dada a conocer por Redfield & Wilton Strategies esta semana reveló el porcentaje de aprobación más bajo registrado en la historia para un primer ministro: el 70 por ciento de la población ve con malos ojos a Truss y ese porcentaje incluye al 67 por ciento de los conservadores.Si se celebraran elecciones generales el día de hoy, el 56 por ciento de los votos favorecerían al Partido Laborista, mientras que el 20 por ciento de los electores votarían por el Partido Conservador, según la encuesta.El descontento del Partido Conservador con Truss llegó a su clímax y se vio envuelta en un ambiente palpable de crisis. El miércoles 19 de octubre, explotó en una lucha frenética por su supervivencia. En pleno bombardeo de preguntas de los miembros del Parlamento, declaró: “Siempre lucho, no me doy por vencida”.Entonces, sobrevino una oleada de caos. Suella Braverman, la ministra británica del Interior, que se vio obligada a renunciar a causa del uso indebido de su correo electrónico, aprovechó su carta de renuncia para criticar a Truss, expresando “inquietud por la dirección que ha tomado este gobierno”. Además, una votación sobre el tema de la fracturación hidráulica en el Parlamento se transformó, según la información que circula, en una escena de hostigamiento, gritos, maltrato físico y lágrimas. Más conservadores del Parlamento expresaron abiertamente su deseo de que Truss renunciara al cargo. Y empezaron a correr rumores sobre renuncias al más alto nivel. En ese contexto, resultaba difícil tener información actualizada.“En resumen, es un caos total, absoluto y abyecto”, dijo un presentador de noticias en iTV. Charles Walker, un legislador conservador, no se contuvo en una entrevista en la BBC.El jueves, Truss anunció que había entregado su renuncia al rey y que el plan era elegir una nueva dirigencia en el plazo de una semana.¿Y ahora qué?Los conservadores planean elegir al próximo primer ministro la próxima semana. (Aquí ofrecemos un listado de los candidatos favoritos).El partido ha optado por un proceso simplificado que fue diseñado para evitar una campaña larga. Los candidatos deben recibir 100 nominaciones entre 357 legisladores conservadores antes de las 2:00 p.m. del 24 de octubre. Si solo un candidato alcanza el umbral, esa persona se convertirá en el primer ministro.Si dos candidatos logran las 100 nominaciones, los legisladores votarán para indicar cuál tiene más apoyo. Si el finalista del segundo lugar no se retira, los aproximadamente 160.000 miembros del partido votarán en una encuesta en línea que finaliza el viernes.Si tres candidatos cruzan el umbral, la votación de los legisladores que se celebrará el 24 de octubre eliminará a un candidato, y los dos primeros clasificados avanzarán a la votación en línea.El candidato ganador será el segundo líder consecutivo del Reino Unido que no ha sido escogido en elecciones generales. Truss seguirá siendo primera ministra hasta que su sucesor sea elegido.Las próximas elecciones generales, en las que podrán participar todos los ciudadanos y el Partido Laborista tendrá una nueva oportunidad para tomar el control, están programadas para enero de 2025, a más tardar. El dirigente conservador podría convocar a elecciones antes, pero no sería nada lógico hacerlo pronto, pues las encuestas indican que el partido sufriría una derrota arrasadora frente al Partido Laborista.Tonge subrayó que una ventaja que tienen los conservadores es el tiempo. En teoría, el partido podría recuperar su credibilidad si la economía se recupera en los siguientes años, señaló.“No creo que el cambio de liderazgo garantice que los conservadores se salven”, aseveró. “Pero es posible que sea una buena medida para limitar los daños”.Daniel Victor es un reportero de temas generales radicado en Londres; ha reportado desde Hong Kong y Nueva York. Se unió al Times en 2012. @bydanielvictor More

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      Boris Johnson and Rishi Sunak Among Top Contenders to Replace UK Prime Minister

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      Former Prime Minister Boris Johnson and the man who helped oust him from his job, the former Finance Minister Rishi Sunak, are seen as two of the top contenders within the governing Conservative Party.LONDON — The race to succeed Liz Truss as Britain’s prime minister was already gathering pace on Friday morning, potentially pitting the former prime minister, Boris Johnson, against the man who helped oust him from Downing Street just a little more than three months ago, the former finance minister, Rishi Sunak.Penny Mordaunt, now a senior minister, was also seen as a serious potential contender in an election that will be conducted within the governing Conservative Party, which controls the government and can select a prime minister without calling a general election.The next government leader faces a formidable task as Britain heads into an economic slowdown with inflation surging, borrowing costs rising and a winter likely to be dominated by labor strikes and worries about energy supplies.Ahead of what could be a head-on battle against Mr. Johnson, Mr. Sunak’s supporters are presenting him as the safe pair of hands, the man who can restore stability following the crisis precipitated by Ms. Truss’s government when it announced unfunded tax cuts last month, sending financial markets into a tailspin. The British pound plummeted and borrowing costs soared.Less than seven weeks after she took office, Ms. Truss resigned on Thursday — the shortest-serving prime minister in British history.This summer, after Mr. Johnson was forced to resign, Mr. Sunak ran to succeed him but lost out to Ms. Truss. During that leadership contest he gave a prophetic warning of the risks of her economic program, including the tax cuts that ended up rattling the markets.So the appointment of Mr. Sunak, an experienced former chancellor of the Exchequer, might reassure financial markets enough to give a new government more leeway when it comes up with a new budget plan.“Rishi is the experienced leader to sort the economy, lead effectively, get us back into political contention and unite the Party and country,” wrote Bim Afolami, a Conservative lawmaker, on Twitter.Rishi Sunak, one of the possible candidates for prime minister, meeting with supporters in August in Birmingham, England.Susannah Ireland/Agence France-Presse — Getty ImagesBut the prospect of an extraordinary return for Mr. Johnson, who left Downing Street less than two months ago under a sizable cloud, has galvanized the looming contest.Reinstalling him would be a risk for the Conservative Party because he quit after a succession of ethics scandals and is still being investigated by a parliamentary committee over claims he misled lawmakers about lockdown-busting parties at his Downing Street office and residence.More on the Situation in BritainA Rapid Downfall: Liz Truss is about to become the shortest-serving prime minister in British history. How did she get there?Lifelong Allowance: The departing prime minister is eligible for a taxpayer-funded annual payout for the rest of her life. Some say she shouldn’t be allowed to receive it.Staging a Comeback?: When Boris Johnson left his role as prime minister in September, he hinted he might return. He is now being mentioned as a successor to Ms. Truss.Mr. Johnson has been on a Caribbean vacation. But his father, Stanley Johnson, did little to dispel the impression that his son was preparing a comeback attempt. He told Britain’s ITV television network on Friday: “I think he’s on a plane, as I understand it.”By the time he left office, Mr. Johnson, always a polarizing figure, was deeply unpopular with voters, according to opinion polls. He tarnished his party’s reputation and dozens of members of his government resigned.But since then, the Conservative Party’s support has collapsed. A new opinion poll showed the party plunging to a new low in support of just 14 percent.Mr. Johnson’s supporters argue that because he won a landslide election victory in 2019, he has a mandate from the voters, and his brand of optimism could help rally the Conservatives.If he were to run, he would be seen as the clear favorite as he remains popular among party members who could make the ultimate decision.Boris Johnson on his last day in office in September.Leon Neal/Getty ImagesIt was they who, during the summer, rejected Mr. Sunak in favor of Ms. Truss when the two reached the final stages of the last leadership contest. One of the main reasons for his failure was the perception among party members that Mr. Sunak betrayed Mr. Johnson by resigning from his cabinet, prompting the crisis that destroyed his leadership.Even before formal declarations by any candidates, their allies were canvassing lawmakers, who in some cases offered their public support.Among those urging Mr. Johnson to run are Jacob Rees-Mogg, the business secretary, who wrote on Twitter that he was supporting the former prime minister under the hashtag #BORISorBUST. Nadine Dorries, another strong supporter in Parliament, described him as a “known winner.”More centrist lawmakers might also be tempted to support Mr. Johnson because of his history of success in elections before his recent ethics scandals. But his critics say he would struggle to unite his colleagues, and one Conservative lawmaker, Roger Gale, has said he would resign from the party if Mr. Johnson returned.Ms. Mordaunt, who finished third in the summer leadership contest, has good communication skills and has raised her profile in recent weeks, including this week when she appeared in Parliament to defend the government.She is relatively untested at the highest reaches of government. But her supporters argue that she has more experience than former prime ministers like Tony Blair and David Cameron who never held ministerial positions before taking power, having been in opposition.And Ms. Mordaunt might be the best placed of the possible contenders to manage a fractured Conservative Party.“Penny is the best candidate to unite our party and lead our great nation,” said Bob Seely, one of her supporters and a member of Parliament.Britain’s leader of the House of Commons, Penny Mordaunt, is another potential candidate for prime minister. Daniel Leal/Agence France-Presse — Getty ImagesNone of the likely front-runners have yet declared, but by Monday afternoon, contenders must have nominations from at least 100 of the 357 Conservative lawmakers, a number intended to speed up the contest by limiting potential candidates to a maximum of three.If only one politician passes that threshold, he or she will become prime minister on Monday. If there are two or three, Conservative lawmakers will vote on Monday and the top two will then go for a final decision on Oct. 28 in a vote by about 170,000 Conservative Party members — unless one withdraws voluntarily.Other possible candidates include the home secretary, Suella Braverman, who was fired by Ms. Truss on Wednesday, and Kemi Badenoch, the international trade secretary. However, on the evidence of their performance in the summer leadership contest, neither is seen as likely to reach the threshold of 100 nominations.On Friday, the defense secretary, Ben Wallace, ruled himself out of the contest, and said he was leaning toward support for Mr. Johnson. More

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      Could Boris Johnson Make a Comeback as U.K. Prime Minister?

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      A comeback by Mr. Johnson is viewed as a very real possibility, delighting some Conservative Party lawmakers and repelling others.LONDON — It seemed at once incredible and inevitable.No sooner had Prime Minister Liz Truss of Britain announced her sudden resignation on Thursday afternoon than a familiar name surfaced as a candidate to succeed her: Boris Johnson, the prime minister she replaced a mere 45 days ago.Mr. Johnson, who is vacationing in the Caribbean, has said nothing publicly about a bid for his old job. But the prospect of Boris redux has riveted Conservative Party lawmakers and cabinet ministers — delighting some, repelling others, and dominating the conversation in a way that Mr. Johnson has for his entire political career.Nor is the idea of his return merely notional: Among those who are keeping tallies of the voting intentions of lawmakers, including some London news organizations, Mr. Johnson is only slightly behind his chief rival, Rishi Sunak. On Friday morning, Jacob Rees-Mogg, who is currently the business secretary and served under Mr. Johnson, became the first cabinet minister to endorse his former boss.But the prospect of Mr. Johnson back in 10 Downing Street appalls many Conservatives, who cite the serial scandals that brought him down in July and argue that voters would never forgive the party for rehabilitating him. Embracing such a polarizing figure, they say, would splinter the Tory ranks, perhaps irrevocably.“Only a nation which was gripped by pessimistic despair and no longer believed that there could be a serious response to its unfolding tragedies would want to take refuge in the leadership of a clown,” Rory Stewart, who ran unsuccessfully against Mr. Johnson in 2019, wrote on Friday on Twitter.Rishi Sunak on Friday in London. Mr. Sunak lost to Liz Truss in the contest to replace Boris Johnson, but now he may get another shot at the job.Beresford Hodge/Press Association, via Associated PressAnd yet, as Mr. Johnson’s supporters never tire of pointing out, he delivered a landslide Conservative victory in the general election of 2019. After the calamitous tenure of Ms. Truss, in which she tried to engineer a radical economic agenda with the support of only a third of the Tories in Parliament, some say that mandate gives him — and him alone — the capacity to restore the party’s depleted electoral fortunes.More on the Situation in BritainA Rapid Downfall: Liz Truss is about to become the shortest-serving prime minister in British history. How did she get there?Lifelong Allowance: The departing prime minister is eligible for a taxpayer-funded annual payout for the rest of her life. Some say she shouldn’t be allowed to receive it.Staging a Comeback?: When Boris Johnson left his role as prime minister in September, he hinted he might return. He is now being mentioned as a successor to Ms. Truss.“One person was elected by the British public with a manifesto and a mandate until January ‘25,” Nadine Dorries, a former cabinet minister who is one of Mr. Johnson’s most outspoken backers, wrote on Thursday on Twitter.Under election rules laid out by the party on Thursday, candidates need 100 nominations from lawmakers to appear on the ballot next week. According to the informal tallies, neither Mr. Johnson nor Mr. Sunak is close yet, though in one spreadsheet, which includes unnamed supporters, Mr. Johnson is at 52.Setting a threshold of 100 nominations was intended to winnow the field to a handful of candidates and keep the race brief, thus avoiding the drawn-out, divisive campaign that was won by Ms. Truss. Given that there are only 357 Conservative lawmakers, there can be, at most, three names.There is a lively debate in political circles about whether Mr. Johnson can clear that hurdle, but with several more lawmakers coming out in his favor on Friday, it no longer seems implausible. Asked who was likely to be the next prime minister, a member of the government texted in reply, “Boris?”Andrew Gimson, who wrote a biography of Mr. Johnson, said, “I think he’s got a very good chance of coming back. He’s got real momentum.” For a demoralized party trailing in the polls, Mr. Gimson said, “It would be a much better story if Boris came back. There would be a sense of incredulity — the sheer spectacle of it.”If Mr. Johnson were to emerge from the ballot as one of two surviving candidates, the odds of his winning could rise considerably. The choice would then go to the party’s 160,000 or so members, among whom Mr. Johnson remains enduringly popular. Mr. Sunak, whose resignation as chancellor of the Exchequer in July helped set in motion Mr. Johnson’s downfall, is viewed with suspicion by many party members, even if he has solid support among the lawmakers.Parliament in London. Mr. Johnson is under investigation by a parliamentary committee over whether he misled the House of Commons about parties held in Downing Street that broke pandemic rules.Mary Turner for The New York TimesThat is why some political analysts expect the party’s elders to lean on the candidate with fewer votes to withdraw before that stage.There are other significant hurdles to Mr. Johnson’s return: He is under investigation by a parliamentary committee over whether he misled the House of Commons about parties held in Downing Street that broke pandemic rules. It could recommend Mr. Johnson’s expulsion or suspension from Parliament.For all of his charisma, it is also not clear that Mr. Johnson retains the same power to turn out voters that he did three years ago. The scandals that brought him down eroded his popularity with many Britons, and it was under his watch that the polls began to tilt heavily toward the opposition Labour Party.Finally, there is the question of whether Mr. Johnson is actually ready to return. In his farewell speech to Parliament, he signed off with, “Hasta la vista, baby,” Arnold Schwarzenegger’s famous line from the movie “Terminator 2.” He later compared himself to Cincinnatus, a fifth-century Roman politician who saved the state from an invasion, retired to his farm, then subsequently returned to Rome as leader.Still, as a highly visible former prime minister, Mr. Johnson is in line to take in millions of dollars on the after-dinner speaking circuit. He is expected to write another newspaper column, a gig that could bring him several hundred thousand pounds a year.Mr. Johnson could also receive a lucrative advance for his memoirs, though that is complicated by the fact that he already owes the Hachette Book Group a biography of Shakespeare. Publishing executives said that if he sold the memoir to Hachette, it could allow him to set aside the Shakespeare book.With two young children with his wife, Carrie, and several other children by his former wife, Marina, people who know Mr. Johnson say he is keen to make big money — something he cannot do as a serving prime minister, even if the job comes with housing and a comfortable salary of £164,080, or about $182,400. More

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      Liz Truss Resigns After 6 Chaotic Weeks, Igniting New Leadership Fight

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      LONDON — Prime Minister Liz Truss of Britain announced her resignation on Thursday, bringing a swift end to a six-week stint in office that began with a radical experiment in trickle-down economics and descended into financial and political chaos, as most of those policies were reversed.With her tax-cutting agenda in tatters, her Conservative Party’s lawmakers in revolt and her government in the hands of people who did not support either her or her policies, Ms. Truss, 47, concluded that she could no longer govern. She departs as the shortest-serving prime minister in British history.“Given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party,” a grim Ms. Truss said, standing on the rain-slicked pavement outside 10 Downing Street, where only 44 days ago she greeted the public as Britain’s new leader.Ms. Truss said she would remain in office until the party chooses a successor, by the end of next week. That sets off an extraordinarily compressed, unpredictable scramble to replace her in a party that is both demoralized and deeply divided. Among the likely candidates is Boris Johnson, the flamboyant previous prime minister she replaced after he was forced out in a string of scandals.Only a day after declaring in Parliament, “I’m a fighter, not a quitter,” Ms. Truss bowed out after a hastily scheduled meeting on Thursday with party elders, including Graham Brady, the head of a group of Conservative lawmakers that plays an influential role in selecting the party leader.Graham Brady, leader of an influential group of Conservative lawmakers, following the resignation of Liz Truss as Prime Minister.Dan Kitwood/Getty ImagesIt was the most shocking jolt in a week of seismic developments that included the ouster of Ms. Truss’s chancellor of the Exchequer, Kwasi Kwarteng; the bitter departure of the home secretary, Suella Braverman; and a near melee in Parliament on Wednesday night, as cabinet ministers tried to force unruly Tory lawmakers to back the prime minister in a vote on whether to ban hydraulic fracking.The spectacle dramatized how Ms. Truss — only the third female prime minister, after Margaret Thatcher and Theresa May — had lost control of her party and government.By then, though, her mandate had already been shredded: her proposals for sweeping, unfunded tax cuts rattled financial markets because of fears they would blow a hole in Britain’s finances.That sent the pound into a tailspin that left it briefly near parity with the dollar, forced the Bank of England to intervene in bond markets to stave off the collapse of pension funds and sent mortgage interest rates soaring.The resulting chaos has left Britons frustrated and jaded, with many convinced the country is spinning out of control.“We are in an economic crisis, a political crisis, a food crisis — an everything crisis,” said Cristian Cretu, a gas engineer on a break from work. “Whoever is going to replace her, I don’t think they will make a difference.”The opposition Labour Party called for an immediate general election. But under British law, the Conservatives are not required to call one until January 2025.If enough Conservative lawmakers joined with the opposition, they could force an election, but with the party’s support collapsing in opinion polls, it is in their interests to delay any encounter with the voters. British political convention also allows them to change party leaders — and therefore the prime minister — using their own flexible rule book.Boris Johnson, the former prime minister who left office amid scandal only last month, is said to be considering a new run for the top job. Henry Nicholls/ReutersMs. Truss’s position was already shaky on Monday, when her newly appointed chancellor, Jeremy Hunt, announced that the government would undo the last vestiges of her tax proposals. As Mr. Hunt presented details of the reworked fiscal plan in Parliament, a silent Ms. Truss sat behind, a faraway smile on her face.For Britain, it is another chapter in the political convulsions that followed its vote to leave the European Union in 2016. The country will soon have its fifth prime minister in six years. Ms. Truss is the third consecutive leader to be deposed by the Conservative Party, also known as the Tory Party, which now appears to have devolved into warring factions and has fallen as many as 33 percentage points behind the opposition Labour Party in polls.The political upheaval also comes only a month after Britain buried Queen Elizabeth II, who reigned for seven decades and acted as an anchor for the country. Among the queen’s last official duties was greeting Ms. Truss at Balmoral Castle after she had won the party leadership contest. On Thursday, Ms. Truss said she had informed King Charles III of her decision to step down.The Conservatives announced rules for the new leadership contest, including a minimum threshold of 100 nominations from lawmakers, which will limit the number of candidates to a maximum of three.From a shortlist of two, selected by lawmakers, Conservative Party members will then vote online to choose the victor, with the goal of avoiding the prolonged, multistage campaign last summer that resulted in Ms. Truss. In fact, the contest might not get that far: if only one candidate passes the threshold of 100 nominations, or if the second-place contender drops out, there will be a decision on Monday.“In recent leadership contests, they have chosen someone who is manifestly unsuitable for the job,” said Tim Bale, a professor of politics at Queen Mary University of London. “It is unlikely anyone can rescue them electorally, but there are people who can walk into No. 10 and do the job of prime minister intellectually, emotionally and practically.”Still, the convulsions of recent days have exposed how divided the Conservative Party is, after 12 exhausting years in power, and how difficult it will be for Ms. Truss’s successor to unite it.Rishi Sunak, the former chancellor of the Exchequer who lost out to Ms. Truss in this summer’s leadership contest, is considered a strong candidate to succeed her.Andy Buchanan/Agence France-Presse — Getty ImagesRishi Sunak, a former chancellor who ran against Ms. Truss last summer and warned that her proposals would produce chaos, should be in the pole position, having led the Treasury and performed well under pressure in the leadership campaign. But he lost that contest largely because many party members blamed him for bringing down Mr. Johnson, from whose cabinet he resigned.“The obvious candidate is Rishi Sunak,” Professor Bale said. “The question is whether they can forgive him. The situation is now so extreme that people might be prepared to forgive him his supposed sins.”That is far from clear, however, because Mr. Sunak is also distrusted on the right of the party and among hard-core Brexit supporters in Parliament. His leadership would be hard to stomach for some who opposed him, including the business secretary, Jacob Rees-Mogg, who once refused to deny reports that he had described Mr. Sunak’s policies, which included tax increases, as “socialist.”Supporters of Mr. Johnson, who is reported to be considering a run at his old job, argue that because of his landslide election victory in 2019, he has a mandate to lead without holding another general election. Under the hashtag #bringbackboris, one of his supporters, James Duddridge, wrote on Twitter: “I hope you enjoyed your holiday boss. Time to come back. Few issues at the office that need addressing.”But restoring him would be highly risky, given the circumstances of his forced resignation in July and the fact that he remains a polarizing figure among voters. Mr. Johnson is also being investigated by a parliamentary committee over whether he misled the House of Commons about parties held in Downing Street that broke pandemic rules.Even if Mr. Johnson is exonerated, it will remind Britons of the serial scandals that led lawmakers to oust him. And the committee could recommend Mr. Johnson’s expulsion or suspension from Parliament — a sanction that might mean his constituents get a vote on whether to kick him out of Parliament altogether.The party’s ideological divisions were laid bare by Ms. Braverman in a blistering letter written after she was fired, ostensibly for breaching security regulations in sending a government document on her personal email. She accused Ms. Truss of backtracking on promises and going soft on immigration.While the government has reversed Ms. Truss’s tax cuts, the economy is still suffering from inflationary pressures that sent food prices soaring by 14 percent last month.Sam Bush for The New York TimesMs. Braverman’s parting shot illustrated the resistance from people on the right to what they see as the growing influence of Mr. Hunt, a moderate who voted against Brexit and was a supporter and ally of Mr. Sunak. Mr. Hunt, who has run twice for party leader, said he would not be a candidate this time.Were the Conservatives to allow Downing Street to fall into the hands of another untested candidate, outside the mainstream, like Ms. Braverman or perhaps Kemi Badenoch, who currently serves as the secretary of international trade, there could be renewed instability in the financial markets.Penny Mordaunt, the leader of the House of Commons who finished third in the contest last summer, appears well placed to straddle the divide. She is a good communicator, but is untested at the top level of government.Another option might be a candidate with little ideological baggage, like Ben Wallace, the defense secretary, or Grant Shapps, the new home secretary. But Mr. Wallace decided against running earlier this year, saying he did not want the job enough. Mr. Shapps concluded that he did not have the support to win.Whoever is chosen will inherit a forbidding array of problems, from 10.1 percent inflation and soaring energy prices to labor unrest and the specter of a deep recession. The new leader will have to make cuts to government spending that are likely to be resisted by different coalitions of Conservative lawmakers.On Monday, Mr. Hunt said the government would end its huge state intervention to cap energy prices in April, replacing it with a still-undefined program that he said would promote energy efficiency. That could prove unpopular, increasing uncertainty for households facing rising gas and electricity prices.While the government has abandoned Ms. Truss’s tax cuts — in one of the most striking policy reversals in modern British history — the chaos her program unleashed in the markets has left lingering damage. The rise in interest rates has made borrowing more expensive for the government, economists said, which will produce pressure for even deeper spending cuts.Despite the Conservative Party’s internal feuds, Professor Bale said he believed it was not inherently ungovernable, so long as it makes the right choice. As recent history has shown, the stakes for the party are extremely high.“The Conservative Party is an incredibly leadership-dominated party,” he said, “which means that if you get the choice of leader wrong, you’re in serious trouble.”Euan Ward More