A nation united can recover its confidence The New Year is a time of renewal. To the human spirit, it is inseparable from a sense of optimism, regardless of what challenges lie ahead. In this new year of 2012, undeniably fraught with difficulties, it is this spirit of optimism and determination that will inspire any economic and moral recovery. Indispensable to that fight-back against adversity will be a sense of national unity - the same sense that has sustained us through wars and crises in the past. As Matthew d'Ancona notes on the opposite page, two major events in Britain in 2012 offer an opportunity for coming together as a nation, and reasserting that common identity from which we have always derived strength: the Olympic Games and the Queen's Diamond Jubilee. Britain's hosting of the XXX Olympiad, in an age of globalised media communication, will make this country the focus of world attention, as Jeremy Hunt, the Culture, Media and Sport Secretary, pointed out in The Daily Telegraph yesterday. He rightly described the Games as an "incredible stroke of luck" and identified their potential to become a "huge plus sign" for Britain's GDP. Any country would be delighted to embrace such an opportunity to advertise its qualities and re‑energise its economy; having secured this advantage, we must exploit it to the full. This is no time for an austerity Olympics; the investment has already been made. The major structures have been completed within budget and on time: that is an achievement. Lavish expenditure on the scale of Beijing in 2008 would be unjustifiable, but presenting the Games in a worthy manner is necessary for the nation's credit. Another contrast between London and Beijing, as Jeremy Hunt made clear, is that legitimate protests conducted in an orderly manner will be tolerated, exhibiting Britain's maintenance of democratic liberties to the world. The Queen's Diamond Jubilee - the first such celebration since Queen Victoria's in the 19th century - will afford a unique opportunity both to say thank you to Her Majesty for 60 years of devoted service to her people and to celebrate that British nationhood which the monarchy embodies. There will be pomp and circumstance, as is fitting; but it is to be hoped that there will also be a proliferation of street parties, those quintessentially British occasions which do so much to bring local communities together and express their character. This will be a once in a lifetime event for most people, and we should value it. The recent health scare involving the Duke of Edinburgh showed how warm is the country's affection for the royal couple; the Diamond Jubilee will enable Britain to demonstrate that attachment in less strained circumstances, in a joyful renewal of that bond between the Queen and her people that she so solemnly affirmed on the day of her coronation. The Queen's closest affinity is with those who risk their lives in the service of the nation: the Armed Forces. In the three Services we see, undiminished, the dedication, courage and professionalism that epitomise the best that this country contributes to the world. In the past few years, much has been demanded of our servicemen and women, often at deadly cost - most recently, with the death in Afghanistan last Friday of a soldier from 1st Battalion the Yorkshire Regiment. But they have never flinched in the performance of their duties. Libya was a successful operation; Afghanistan remains challenging, but even there an end is in sight. We could not do better than look to the Armed Forces as a template for national recovery. If every element of society performed as determinedly as they do, we could look forward to a prosperous future. For the recovery that Britain must pursue in 2012 is not just economic: we need a moral renewal, too. We must resolve that last year's riots marked a nadir in our moral consciousness, a low point to which we shall never again descend. This year, we shall also celebrate Charles Dickens: we can learn many lessons from that entertaining moralist about avoiding a return to the squalid inhumanity he so trenchantly denounced. Only a positive spirit will enable us to overcome the problems that will confront us in 2012. There will be no rewards for negativism, no prizes for those whom Lady Thatcher famously dismissed as "moaning minnies." In the wake of David Cameron's well-justified veto, Britain is not "isolated" in Europe: if the preservation of our sovereignty, economy and national interests demands it, we should look forward to enjoying a more mature, detached relationship with the European Union, should the path the senior eurozone partners decide to follow dictate a less integrated role for Britain. Every challenge should be seen as an opportunity. The Union that truly matters is that of the four component nations of the United Kingdom. With an independence referendum impending in Scotland, the rest of Britain must make it clear to people there that the break-up of a Union that has accomplished so much would be a sad loss. For many of us - youngsters unable to find work, family breadwinners who have lost their jobs, householders struggling to pay mortgages, and other victims of recession - this is a stressful and ominous New Year. Yet the route back to happiness and prosperity can only be found by a spirit of optimism combined with a national sense of purpose and unity. Recovery will result from a collaborative effort, from a united front against adversity. In those historic moments when Britain came together to prevail against heavy odds, this was an exceptionally formidable nation. God willing, we shall prove so again in 2012. Happy New Year.