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She was not yet thrown out of the door, but she was handed her coat. the Neue Zürcher Zeitung comments:
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The new British Chancellor of the Exchequer clears away the last remnants of his boss's political program

Failed British Prime Minister Liz Truss may still be holding on to office, but she has lost her authority. Her new Chancellor of the Exchequer is giving clear signals about reassuring the capital market - and thus burying Truss's political program.

He is the British gentleman the world likes to imagine: Perfectly groomed in a dark suit, calm and controlled, with a soft voice and friendly expression, the new Chancellor of the Exchequer Jeremy Hunt cleared away the last remnants of his boss Liz Truss' political program on Sunday morning. "This is a compassionate Conservative government," he declared on the BBC's main political morning show.

That was exactly the guiding principle of the Conservative governments of the last twelve years, from which Truss wanted to distinguish herself so radically with her reform program to return the country to more dynamic economic growth. The sophisticated Chancellor of the Exchequer, who supposedly rushed to the Prime Minister's rescue, dealt a death blow to her ambitions.

Truss's dismissal of Chancellor of the Exchequer Kwasi Kwarteng and the abandonment of tax cuts for companies on Friday had not yet really managed to calm the financial markets. The British pound even weakened somewhat after the announcements, and the all-important interest rates for 30-year government bonds (gilts) rose again slightly to a high 4.6 percent. The muted reaction left open the interpretation that the announcements were not enough. Hunt had to double down to defuse the situation when the market opened Monday morning. And he did it without regard for his new boss.

Taxes would not fall as quickly as previously thought, and some might even rise, he explained. In addition, all ministries would have to come up with austerity proposals, but no austerity policies as harsh as those the first Conservative government had had to implement from 2010 onward after the financial crisis were planned, he said. Hunt promised financial market participants the greatest possible transparency about the government's fiscal policy plans, thereby also taking a counter-position to his predecessor, who failed in record time.

He warned citizens of the need to make tough decisions. At the same time, however, he assured them that the poorest would be protected and that the government would do everything possible to keep the rise in mortgage rates as low as possible.

This is precisely the prioritization that many economists are now demanding of the British government. The irresponsible debt policies of Kwarteng and Truss had driven up the already rising interest rates on government debt by leaps and bounds. This forced the Bank of England to make short-term support purchases of government bonds at the wrong time, as these had the additional effect of driving up inflation instead of dampening it. In addition, rising mortgage rates are weighing on the disposable incomes of millions of households already suffering from high inflation of 10 percent. Hunt recognized this and initiated the necessary corrections.

However, many are asking what will be the vision of the government, which is only five weeks old, apart from troubleshooting. Hunt took pains to reiterate the prime minister's goals: stronger long-term growth. But no chancellor of the exchequer or prime minister would ever promise otherwise. How this goal is to be achieved is completely unclear apart from airy declarations of intent such as a more efficient bureaucracy or more successful research and development.

That leads to the question of what purpose is left in holding on to Truss, who has lost everything she used to campaign for her election as party leader in the summer. The party is split over that, which buys Truss some more time. A strong wing around her one-time rival for the party leadership, former Chancellor of the Exchequer Rishi Sunak, is pushing for a quick replacement of Truss. This faction could live well with a Chancellor of the Exchequer Hunt and would pursue a similarly moderate course for the party that somehow takes all interests into account.

Truss's predecessor, Boris Johnson, who was ousted in the summer, had made it clear when he resigned that he would seek a return to Downing Street. But at the moment, this does not seem to be his most pressing concern, and he would hardly have the support of the parliamentary party. Hardly anyone is still in favor of Truss. But many MPs still balk at the prospect of another lengthy procedure for electing party leaders.

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