I don’t envy the remaining Tory MPs. It was a hard job in 1997 and this time it will be even tougher. There's a moment when you understand you face the challenge of your lifetime, but that's a sign you’ve only just begun to grasp it. For the Conservative Party, the next big move can start a recovery or bring extinction.

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I welcome the formation of the new Israeli Government. I warmly congratulate Prime Minister Netanyahu on his second consecutive term in office at this important time in Israel’s history. We look forward to working with his new Government to further develop our strong bilateral relations and to advance our successful partnerships in areas such as trade, security, science, technology and higher education. As I have said previously, there is no more urgent foreign policy priority in 2013 than making progress towards achieving the two-state solution. I have urged the United States to lead international efforts to revive the peace process and pledged that the UK will spare no effort in mobilising European Union and Arab states behind decisive moves for peace. I welcome President Obama’s visit to the region next week. I call on Prime Minister Netanyahu, and President Abbas, to demonstrate leadership and courage in working with the international community to secure the peace which is so strongly in the interests of both Israelis and Palestinians.

To see how the post of a permanent President of the European Council could evolve is not difficult even for the humblest student of politics, and it is, of course, rumoured that one Tony Blair may be interested in the job. Now, if that makes us uncomfortable on these benches, just imagine how it is viewed in Downing Street! I must warn Ministers opposite that having tangled with Tony Blair across this Dispatch Box on literally hundreds of occasions, I know his mind almost as well as they do. I can tell them that when he goes off to a major political conference of a centre-right party and simultaneously refers to himself as a socialist, he is on manoeuvres, and is busily building coalitions as only he can. We can all picture the scene at a European Council sometime next year. Picture the face of our poor Prime Minister as the name of "Blair" is nominated by one President and Prime Minister after another: the look of utter gloom on his face at the nauseating, glutinous praise oozing from every Head of Government, the rapid revelation of a majority view, agreed behind closed doors when he, as usual, was excluded. Never would he regret more no longer being in possession of a veto: the famous dropped jaw almost hitting the table, as he realises there is no option but to join in. And then the awful moment when the motorcade of the President of Europe sweeps into Downing Street. With gritted teeth and bitten nails: the Prime Minister emerging from his door with a smile of intolerable anguish; the choking sensation as the words, "Mr President", are forced from his mouth. And then, once in the Cabinet room, the melodrama of, "When will you hand over to me?" all over again.

In the distant days when I was Tory leader I had a private rule never to appeal for party unity. This was mainly because, if your request as a leader for unity is promptly followed by more infighting, you look even less credible and in charge than before you asked. It was also a recognition that unity is seldom produced by calling for it. Unity arises from a leader creating the conditions for it.

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What has happened to our courts system when career burglars and muggers get a few dozen hours' community service, or a couple of months in prison if they are unlucky, while people defending their homes against the very same criminals risk long prison sentences?

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Many of them [European politicians] believe our ultimate objective should be the creation of a single European state, and that this is an inevitable destiny. I believe they are wrong. There is a limit to European political integration. We are near that limit now.

Nothing is more absurd than a Prime Minister who has committed us in principle to joining the Euro saying last week that he was against it. He talks about his five tests; we know what they are: "Does Peter want it? Will Gordon let me? Will the French like it? Will Robin notice? Can I get away with it?

We also need to see how changes in the eurozone are affecting the EU and how that affects this country and the relationship of the countries together. But when we have done that there is a strong case for fresh consent in this country and the people of this country having their say.

Labour looks less alarming than under Neil Kinnock but it is also a lot less exciting than under either him or Blair. The party is not the wave of the future, as it was in the early days of New Labour. Sir Keir Starmer's team are currently interesting because they are judged to be close to power, rather than being close to power because they are judged to be interesting. And excitement doesn't even come into it.