Each day FT Leader writers on the Editorial Board meet to discuss the topics to be considered for Leader columns. Here are the issues that dominated this week:
It might seem a niche focus for debate as the gung-ho Tory leadership election intensifies, but the Solvency II rules are a politically hot topic.
Relaxing them,
as our leader pointed out this week, could release tens of billions of pounds of infrastructure investment. We welcomed the ongoing reappraisal, but our conclusion was cautious: "At stake are pensioners’ and policyholders’ life savings, which, if they are improperly invested, could lead to invidious choices between policyholder haircuts and taxpayer bailouts that a government may have to make long after this one, whoever leads it, has finished."
Earlier,
we took a swipe at the reactionary turn of the US Supreme Court, in the wake of regrettable decisions over Roe v Wade abortion rights and the powers of the Environmental Protection Agency. "There are big worries within the business and investment community about how this court’s rulings are dismantling the federal administrative state," our editorial concluded.
We also
opined on the surprise downward lurch in commodity prices. As inflationary pressures build, and central bankers harden their language about the interest rate rises that will be needed to stem higher prices, the fall in many commodity prices - from oil and metals to wheat - complicates the picture.
Our conclusion: "At the very least, the recent market movements muddle an already complicated picture [making] it even harder [for central bankers] to know whether the extent and pace of their tightening have been well judged."