UK government are the losers in EU shakeup
On the surface it appears that the UK government has been duped by its EU partners with French President Nicolas Sarkozy suggesting that Britain is the "big loser" in the recent EU shakeup. After apparently agreeing a deal with the French government, the UK appears to have walked in to a trap with Michael Barnier, the former French agriculture minister, catapulted in as commissioner for the internal market which effectively puts him in control of the City of London financial markets.
While President Sarkozy has in the past been very supportive of Gordon Brown it now looks as though this was nothing but a ploy to gain his trust and push forward with French and German hopes of dominating the EU. The UK government has already given up a number of vetos, much to the disgust of the Conservative party, and these will be very difficult (if not impossible) to renegotiate in the future.
All in all it does look as though the UK government has fallen into a well structured and well planned trap which could have significant implications for the UK financial sector and in particular the strength of the City of London markets. EU ministers have been looking to get their hands on the UK financial markets for some time now and slowly but surely their grip is tightening.
Share this..
Related stories
Brown Tries To Gloss Over Darlings Remarks
Using a keynote speech at the CBI in Scotland we saw Gordon Brown looking more upbeat than he has for some time, more resilient and more candid in his approach to the struggle with the economy. While he has watered down his recent more optimistic tones he said that he was 'cautiously optimistic' that the UK downturn would be short and sharp, followed by a strong bounce. So what else did he have...
Read MoreUK manufacturing output falls 2.9% in November
It has today been revealed that UK manufacturing output in November fell by a much worse than expected 2.9% against forecasts of just 1.5%. This devastating news comes just days after the Bank of England cut the UK base rate to 1.5% (a 314 year low) and put more pressure on the UK government to reduce rates yet further to try and stimulate an ailing economy. As expected the 2.9% fall was dominated...
Read MoreEurozone leaves the UK economy behind
Strong growth in the German economy has boosted the Eurozone as a whole and brought the area out of recession although the UK economy has yet to follow suit. The likes of France and Germany have been among the better performing economies of the Eurozone and despite initial hopes that the UK will be one of the first to leave the recession behind, the situation has not gone to plan.
W...
UK services sector showing signs of life
A survey by the Chartered Institute of Purchasing and Supply has given hope to those looking for a recovery in the UK economy later in 2009. The first time since last April the index is above 50% (at 51.7%) which indicates the fact that those surveyed believe the UK service sector is starting to grow again. This is by far and away the most optimistic view we have seen for some time in the UK servi...
Read MoreMore problems in the airline industry
Shares in Japan Airlines fell 11% overnight amid concerns that the company is on the verge of filing for bankruptcy with a £10 billion debt pile. Despite the fact that the company has offers from American Airlines and Delta to take a stake in the company, the Japanese finance minister has confirmed that no more state funding will be made available for the airline. This is just the latest in a len...
Read More