Monday, 11 June 2012

A Good Question

I note with interest that the pundits in the UK and in the US are still promoting the idea that "The End of the €uro Is Nigh!" I wonder what they hope to achieve by this to be honest, because that is exactly what they are not being. There certainly are problems within the €urozone, but the austerity measures adopted (imposed according to some) are stabilising most of them. Greece remains a major problem, mainl because the Greek government still hasn't addressed the issue of non-payment/collection of taxes. Spain has a major problem at present, but, with the help of the EZB, it now has some funds to get it going again.

On our recent stay in Denmark it was pointed out to us that a majority of Danes expect to join the €uro within the next few years. To them it is a matter of when, not if.

Across the €urozone the Balance of Payments is more favourable than that of either the UK or the US. Industries are recovering and the majority of governments - with the exceptions of Greece, Italy and Spain at present, are behaving sensibly and cutting their cloth to suit their pockets.

Something the Postulant reminded me of today, is the situation with regard to legislation and regulation. Ever since 1997, the UK has been regulating and legislating as if there was no tomorrow. The usual mantra from the civil service is that "The EU requires it" but that doesn't seem to be the case - at least not from the manner in which this is handled elsewhere in the EU. I am left to believe then, that the flood of regulations and legislation is Whiethall's desperate grab for ever more money from the taxpayer and even more control over the minutia of individuals lives.

I am no longer certain this assault on the UK's ancient freedoms is coming from the EU. Frankly I think it is generated more by the incompetence of the politicians compounded by the ambitions of the Civil Servants. Sooner rather than later, someone will have to give these folks a reality check. Probably at the point of a hayfork.

As for those trying to talk the €uro into oblivion, I rather think their reality check will come sooner than Whitehall's. I suspect that before much longer the €uro will start to strengthen - and when it does it will prove the doomsayers wrong. Of course, at present, it suits me to have the £ Sterling stronger than the €uro. My pension is paid in Sterling ...

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