Who will bailout the UK if funds run short?
As the UK slips further and further into debt both on an individual and a national basis there is growing concern that EU members will step into the fore and offer financial assistance in exchange for greater ties with the EU. While it would be wrong to suggest that the UK is any way on the verge of bankruptcy, there is no doubt that the expected £1 trillion of debt due to be built up over the next couple of years will take a seriously long time to repay.
Recent rumours suggest that the UK government is already looking at joining the euro in the short to medium term as a way to bolster the future of the UK economy and the UK as a whole. There are now concerns that the government could effectively "sell the UK down the river" in return for financial and supportive assistance from the EU. This is something which European ministers have been dreaming of for sometime as the UK has more than any other EU member been the one demanding opt outs and changes to various agreements.
The Labour Party has already dismissed its promise of a national referendum during which voters were supposed to be given the chance to have their say about closer ties with the EU. Whether any further tie-ups with the EU would go unchallenged by the UK population is very much debatable.
Share this..
Related stories
UK economic growth 'to halve this year'
The rate of growth for the UK economy during 2008 will be half that seen last year, an economics consultancy has predicted. A report from the Centre for Economics and Business Research (CEBR) forecasts that the UK economy will expand by 1.5 per cent this year - less than half the rate of growth of 3.1 per cent seen in 2007. In a previous report CEBR had predicted growth of 1.8 per cent, but said i...
Read MoreWill large corporations now boycott Scotland?
When Diageo announced the closure of a bottling plant in Kilmarnock with a loss of 900 jobs this attracted significant fury from politicians and unions across the country. Despite Diageo apparently holding numerous discussions with the leading SNP party in Scotland the proposed closure, and subsequent job losses, do not appear to have been addressed at the time. However the ongoing fury against Di...
Read MoreCan we trust politicians to oversee financial regulations in the UK?
With news that the Conservative party is looking to dismantle the Financial Services Authority (FSA) and hand back ultimate regulatory control to the Bank of England, if it gains control of the UK Parliament, many are starting to ask whether politicians are ultimately the right people to oversee the regulatory environment.
Billions upon billions of pounds have been spent over the ye...
Will top bankers defect from the UK?
While Alistair Darling will today be appreciating the adulation of yesterday's announcement of an agreement between the U.K.'s top five banks to control remuneration and bonuses in the future, there is a feeling there could be a certain sting in the tail with regards to this story. There is even some debate as to whether the informal agreement between the government and the UK banking sector will...
Read MoreWhy are banks so central to the UK economy?
If nothing else the last few months has shown how vital the UK banking network is to the UK economy and the prosperity of the UK population. But why is the UK banking sector so vital and what role does it really play in everyday life?
The UK banking sector offers the food which feeds the UK economy from both a business angle and a consumer angle. Businesses would find it very diffic...