diff --git a/python/src/META-INF/python-plugin-common.xml b/python/src/META-INF/python-plugin-common.xml
index 03c5501bd1d2..9e324dfe1dd4 100644
--- a/python/src/META-INF/python-plugin-common.xml
+++ b/python/src/META-INF/python-plugin-common.xml
@@ -326,6 +326,6 @@
             text="Run Django Console..." description="Allows to quickly run Django console">
       <add-to-group group-id="ToolsMenu" anchor="last"/>
     </action>
-    <action id="Console.Python.Execute" class="com.intellij.openapi.actionSystem.EmptyAction" text="Execute Current Statement"/>
+    <action id="Console.Execute" class="com.intellij.openapi.actionSystem.EmptyAction" text="Execute Current Statement"/>
   </actions>
 </idea-plugin>
diff --git a/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java b/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
index 8b83e8111923..256cc5605dc6 100644
--- a/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
+++ b/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
@@ -23,14 +23,8 @@ public class PythonBackspaceHandler extends BackspaceHandlerDelegate {
     if (myTargetPosition != null) {
       // Remove all the following spaces before moving to targetPosition
       final int offset = editor.getCaretModel().getOffset();
-      if (EditorModificationUtil.calcAfterLineEnd(editor) == 0) {
-        int delta = editor.getCaretModel().getVisualPosition().column - myTargetPosition.column;
-        assert delta >= 0;
-        if (offset <= editor.getDocument().getTextLength()) {
-          editor.getSelectionModel().setSelection(offset - delta, offset);
-          EditorModificationUtil.deleteSelectedText(editor);
-        }
-      }
+      editor.getSelectionModel().setSelection(offset - editor.getCaretModel().getVisualPosition().column + myTargetPosition.column, offset);
+      EditorModificationUtil.deleteSelectedText(editor);
       editor.getCaretModel().moveToLogicalPosition(myTargetPosition);
       myTargetPosition = null;
       return true;
diff --git a/python/testData/editing/smartUnindent.after.py b/python/testData/editing/smartUnindent.after.py
new file mode 100644
index 000000000000..44728335e4d1
--- /dev/null
+++ b/python/testData/editing/smartUnindent.after.py
@@ -0,0 +1,3 @@
+class Foo(object):
+def foo(bar):
+        pass
diff --git a/python/testData/editing/smartUnindent.before.py b/python/testData/editing/smartUnindent.before.py
new file mode 100644
index 000000000000..f5f92d75a7e9
--- /dev/null
+++ b/python/testData/editing/smartUnindent.before.py
@@ -0,0 +1,3 @@
+class Foo(object):
+    def foo(bar):
+        pass