Markets beating politics in eurozone crisis. What next?

on Thursday, 04 August 2011. Posted in News

Soothing words of politicians drowned out by market fears

Markets beating politics in eurozone crisis. What next?

Despite the attempts by the continent's political leaders to calm fears regarding the ongoing European financial crisis, the markets are strongly suggesting that Greece is not the end of the story. Italy, Spain and Cyprus are obvious worries, but even Germany could be threatened if the financial contagion spreads.

Rather than step back though, the UK and others ought to show even more resolve to free up markets and promote growth through exports.

What the politicians say...

Barroso asks leaders to stand firm on pledges: Commission President José Manuel Barroso voiced support yesterday (3 August) for Italy and Spain – both under attack on financial markets – but acknowledged that as EU leaders have been slow to deliver on promises, investors now doubt whether the euro zone can overcome its sovereign debt woes. EurActiv

What the papers say...

Europe's banks feel the heat of debt crisis: The latest debt crisis woes to hit Spain and Italy have combined with investor fears about how big losses will be as a result of a Greek restructuring to hit bank stocks hard. Financial Times

Europe's money markets freeze as crisis grows: The European money markets have begun to seize up as pressure mounts on the Italian and Spanish banking systems, tracking the pattern seen during the build-up towards the financial crisis in 2008. The Telegraph

Good for UK in Europe?
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Will cuts affect the Libya enterprise?

on Wednesday, 03 August 2011. Posted in News

There are fears in the Government that if the Defence Budget does not increase then Britain may not be able to achieve its goals in Libya

Will cuts affect the Libya enterprise?

The Armed Forces Minister today has stated that he agree with a select committee recommendation that the budget for the armed forces must increase in real terms due to current commitments in Libya even with a long term withdrawal from Afghanistan. Mr Harvey has said that the current situation means the armed forces are being worked harder, however was quick to confirm they were not being overstretched.

This comes at a pivotal time for Britain in the Libyan conflict, as more pressure is mounted on the Government to make decisions on the extent to which they are willing to back rebel forces on the ground in their fight against Colonel Gaddafi. Nucleus has already calls for decisions to be made and for a stronger line towards Gaddafi over the past weeks. This news comes as a welcome sign that those in the know are willing to make the effort to stand behind the military if the conflict worsens and if we do become involved directly in the war.

What the politicians say...

The Rt. Hon. Liam Fox MP, Defence Secretary - "The Committee is also right to say that Future Force 2020 is only achievable with extra funding. That is why I announced two weeks ago that the military equipment budget will rise in real terms by over £3bn between 2015 and 2020, with new helicopters being ordered, new money for our armoured vehicles, the carrier programme, and guaranteed spending on the Joint Strike Fighter. Our future equipment programme is no longer an unfunded aspiration but one that provides real money for real equipment...We continue to have the fourth largest military budget in the world and the SDSR has put Defence back on a stable footing with highly capable Armed Forces and certainty for our personnel and their families. I am pushing through radical reform to ensure that the mistakes of the past are not repeated"

What the papers say...

Speaking on Radio 4's Today Programme Mr Harvey said he agreed with James Arbuthnot, the chairman of the defence select committee, that increases in real terms would be needed to meet the aspirations of the recent defence review. The Telegraph

Those in Westminster are fond of describing this or that report from a select committee as "damning" in its criticism of government policy. On this occasion, it's deserved because the defence committee has essentially driven a coach and horses through the coalition's defence of the Strategic Defence and Security Review. Sky News

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