European Union warns UK
The new UK government has today received a very blunt and a very distressing message from the European Union with regards to potential future bailout funding. After days of headlines regarding the £378 billion Euro zone bailout fund it now seems as though the UK government refused to sign up to the funding arrangements. As a consequence officials from France, Sweden and Brussels have today warned the UK government not to expect any financial assistance if sterling comes under pressure.
Many experts are concerned by the wording of the European Union statement and the comments attributed to various officials which effectively seem to be inviting speculators to attack the UK currency. Comments such as "it is only a matter of time before sterling comes under pressure" and "the English are very certainly going to be targeted given the political difficulties they have" would appear to be aimed at defusing concerns over the Euro and highlighting possible concerns over sterling in the short to medium term.
When you also consider that many in the Conservative party are anti-Europe and many in the Liberal Democrat party are pro-Europe there is immense potential for confusion and concern regarding UK policy on Europe in the short term at least.
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