Euro safe for now as Greece backs bailout June 18, 2012 GREEK politicians looked set to form a pro-bailout government with a very narrow majority last night, after a close run election gave no party a sizeable lead. The backing for the bailout programme could lead the Eurozone to give additional aid to the country, as the parties in line to form a coalition have shown [...]
UK unemployment falls July 18, 2012 The total number of Britons without a job dropped in the March to May period as the Olympics in London created extra work, data showed, providing a rare bit of positive news from the recession-hit British economy. The number of people claiming unemployment benefits, however, rose slightly more than forecast in June, but the Office [...]
Hollande’s left clinches victory in French vote June 18, 2012 FRANCOIS Hollande’s Socialist party won an absolute majority in France’s parliament yesterday, giving a boost to the President as he presses Germany to support debt-laden Eurozone states hit by austerity measures. The Socialists won between 296 and 321 seats in yesterday’s parliamentary election runoff, according to projections, giving him a comfortable majority to steer policies [...]
The government is off track with its uneconomic transport policy July 16, 2012 IS ELECTRIFYING branch lines in Wales a top priority for transport investment? It seems unlikely. But then again the government’s plans to invest £9.4bn in rail infrastructure show scant regard for economics. Cynical political calculation seems to be the driving force. Regional interests have long complained that London receives a disproportionate share of transport spending. [...]
Transaction tax row threatens German talks June 10, 2012 A REPORT that German Chancellor Angela Merkel is not serious about implementing a European financial transaction tax threatens to undermine an initial deal struck last week with the opposition over the EU’s planned fiscal pact. Der Spiegel weekly reported yesterday that Merkel’s chief of staff, Ronald Pofalla, had said such a tax would not get [...]
Coalition policy is damaging longer term productivity June 28, 2012 BRITAIN’S businesses and working families are paying a heavy price for the government’s mistakes. Abandoning the last Labour government’s balanced plan for deficit reduction, and raising taxes and cutting spending too far and too fast, has choked off recovery and pushed the UK into recession. As the only G20 country other than Italy already in [...]
Merkel seeks EU regulator after stress test flop June 12, 2012 GERMAN Chancellor Angela Merkel called for a centralised Eurozone banking regulator yesterday, blasting national regulators for failing to organise proper stress tests. The demand came as her government demonstrated Germany’s economic strength by slashing its budget deficit target. She said central authorities should be given more power to impose discipline on member states and to [...]
Is GM’s decision to build the Astra in Britain a signal that UK manufacturing is reviving? May 17, 2012 YES David Crow Vince Cable was yesterday trying to take all the credit for GM’s decision to continue building the Vauxhall Astra at the Ellesmere Port plant in Cheshire. But the truth is that Vauxhall workers secured their own destiny during the last downturn, when the labour force responded with remarkable flexibility to a sharp [...]
MARKETS LOOK TO THE FED FOR ITS NEXT POLICY MOVE June 18, 2012 Last Friday, equity markets were rallying on rumours that central banks were preparing for coordinated action, should the majority of Greek voters make the “wrong” decision and back the anti-bailout party, Syriza. Yesterday, the major indices gave up early gains following the news that Syriza came a close second to New Democracy. After all, although [...]
Merkel dismisses debt buying rescue scheme June 20, 2012 GERMAN Chancellor Angela Merkel yesterday shot down reports that Eurozone leaders at the G20 are planning for rescue funds to snap up the debt of distressed member states such as Italy and Spain. Yet later in the day the idea appeared to gain support from a senior official at the European Central Bank (ECB) who [...]