Gordon Brown comes under attack from German ministers
Gordon Brown has today come under serious attack from his German counterparts as questions are asked about his ongoing economic rescue plan. The German minister Peer Steinbruck has today called the UK rescue plan ineffective and cast doubt on Gordon Brown's economic prowess. Quite what the German minister plans to do with his own economy is unclear as is the reason why Gordon Brown has been attacked in such an open manner.
It may well be that Gordon Brown's rising stock in the European Union has upset the German government who had until a few weeks ago been the major player in the EU. The French and UK coalition seems to have grabbed the top chair at the EU table and there appears to be some infighting amongst many of the larger and more forceful players in the EU.
It will be interesting to see what alternatives the German government put forward in the short term both for their own economy and the EU economy as a whole. So far the response of the UK government has been neutered although there have been murmurings that the German government will "move down the same path in due course".
Share this..
Related stories
Interest rates expected to fall later this week
A quick look at the currency markets will confirm the worst fears of savers in the UK, with interest rates set to fall later this week. The currency markets are already factoring in a fall of up to 1% although there is some speculation we may see a 1.5% cut. This should be relatively good news for the UK economy and the mortgage market although there is some doubt as to whether the savings will be...
Read MoreIs Gordon Brown risking the wrath of the unions?
As part of Gordon Brown's attempt to rescue the Labour Party from the worst political polls for some time, it would appear that he is willing to freeze public sector pay which is totally at odds with what the UK unions have demanded. At a time when the Labour Party is stuck between a rock and a hard place, under pressure from the electorate and pressure from the unions, it seems that Gordon Brown...
Read MoreBank of England set to increase quantitative easing fund by £25 billion
The Bank of England is this week expected to ask the Treasury for permission to increase the limit on the quantitative easing program from £150 billion to £175 billion. It is also expected that the MPC will this week agree to hold UK base rates at 0.5% until we receive further signs of economic recovery and increased demand in the financial markets. However, any request to increase the quantitat...
Read MoreWhat will happen at the next MPC meeting?
As we approach the next meeting of the Bank of England Monetary Policy Committee (5th March) there is a general consensus that interest rates will be reduced but there is some debate as to whether this will have any impact on the economy. The vast majority of economists expect a 0.5% reduction in UK base rates which would take them down to 0.5% although there are strong suspicions that the event w...
Read MoreUS consumer confidence figures push markets lower
A surprise drop in US consumer confidence figures saw the US stock market fall by 0.5% today at a time when many believed the market was on the verge of another rally. While the fall today may seem insignificant in the overall picture, there is a feeling that perhaps some investors in the US have "got ahead of themselves" with regards to the US economy and a potential recovery in the short term.