Is the EU taking control of member budgets?
A number of prominent figures within the European Union are now suggesting that the European Union itself should have the ability to cast an eye over draft budgets for member states. This is the latest in a long line of new regulations being suggested by those within the European Union to give more control over European Union members. But would this actually work?
The issue of budget problems has arisen only because of the Greek debacle which saw the Greek government effectively run out of money and go cap in hand to the EU and the IMF. The creation of a EUR30 billion bailout fund has taken away some of the short-term pressure although there are concerns about the relationship between the European Union, IMF and the Greek authorities. As a consequence, it is highly likely that member states of the European Union will need to have their future draft budgets rubber stumped by the EU before being passed by their local parliaments.
There is no doubt that such a move would not be well received in the UK, which is not part of the Euro zone at the moment, even if it is likely to become more European dependent in the future. This would certainly not be a vote winner in the next election!
Share this..
Related stories
Mervyn King warns next government of tough times ahead
Mervyn King, the governor of the Bank of England, has today suggested that the next UK government would have to make so many controversial cuts in public services that it would be potentially unelectable for decades to come. There is a growing concern that the next UK government could be left holding a poisoned chalice with large-scale public sector investment cuts, job cuts in the public sector a...
Read MoreScottish government fighting to save Diageo jobs
Recent news of significant job cuts by Diageo in Kilmarnock and Port Dundas in Scotland took both the Scottish government and Diageo workers by surprise. With literally hundreds of jobs on the line, as Diageo looks to close down a plant in Scotland and move the business elsewhere, it seems that while governments and MPs grab the headlines with job saving schemes and other initiatives, ultimately l...
Read MoreCould increased producer prices fuel inflation?
As we covered earlier today, the increase in UK producer prices has accelerated to the fastest rate in 14 months amid concerns that inflation could be fuelled and become a problem in the short to medium term. It is believed that the recent depreciation of sterling against the likes of the dollar and the euro have added to the cost of producing goods in the UK hence the increase in the Producer Pri...
Read MoreShould Gordon Brown Be Addressing UK Issues Rather Than Meddling Overseas?
The last couple of weeks have seen Gordon Brown venture out of his bunker at Number 10 with many in the UK expecting him to come forward with some radical plans to address problems in the UK. However, they have been disappointed with the Prime Minister choosing to take a more statesmanlike approach and address the issues of the world from Zimbabwe to oil, from wasting food to the environment. Is...
Read MoreBank Of England gives mixed opinions on UK economy
Charles Bean, the deputy governor of the Bank of England, has today attempted to tone down recent comments attributed to various members of the MPC. Over the last few days we have seen a number of relatively upbeat statements from various members of the MPC although Charles Bean has been a little more cautious today, suggesting the UK recovery will be a long haul fraught with uncertainty.
<...