Financial News
- 12 June 2012, 11:35
UK Recovery Being 'Killed Off' By Eurozone
The prospects for economic recovery in Britain are being "killed off" by the crisis in the eurozone, according to Chancellor George Osborne.
He says the 17-nation single currency bloc is facing a "moment of truth" which could determine the future of the entire continent for years to come.
In some of his strongest comments to date, the Chancellor voiced his exasperation at the repeated failure of the eurozone nations to find a permanent solution to end the financial turmoil.
Writing in The Sunday Telegraph, he said: "The lesson of the last two years is that treating the latest symptom does not cure the underlying conditions."
While action is being taken to tackle the problems in the Spanish banking system, Mr Osborne said it would not be enough to end the threat to the UK economy.
"Our recovery - already facing powerful headwinds from high oil prices and the debt burden left behind by the boom years - is being killed off by the crisis on our doorstep," he said.
"I know from talking to British businesses that our country is bursting with entrepreneurial spirit and exciting investment plans that are being held back because of uncertainty about the future.
"That's why a resolution of the eurozone crisis would do more than anything else to give our economy a boost."
He added: "The British Government is clear that it is strongly in Britain's interests for our biggest export market to succeed; the risks for us of a disorderly outcome are huge."
With the prospect of further turmoil after the forthcoming re-run of the Greek elections, the Chancellor called on the eurozone countries to take decisive action to end the instability.
"We are approaching a moment of truth for the eurozone," he said.
"After more than two years of uncertainty, instability and slow growth, decisions taken over the next few months could determine the economic future of the whole European continent for the next decade and beyond."
Mr Osborne again underlined the need for greater fiscal integration - with more pooling of financial resources and the creation of a banking union - across the currency bloc.
"The solution in the eurozone doesn't have to be a full-blown United States of the Eurozone, but if it is to be successful it is likely to include most of the mechanisms that make other currencies work," he said.
what do you think?
TIM x
The way to recovery is to exit the eu once and for all! Referendum now!
Mike Jordan
You know what I say- tell them it's time to run a solid second European Currency throughout the trading block: No borrowing, No lending, Simply trade only; you could call this currency the Barter.
David Rhys Price
It is not only the Eurozone that faces a moment of truth , but more importantly to us it is the U.K that faces a moment of truth in its relations with the European Union. Having originally been a supported of the Union aeons ago, like so many in our country I am now a confirmed eurosceptic.It is in my onion now high time that the U.K reassess its entire relationship with undemocratic, and unaccountable sclerotic monster as we are now finding ourselves being dragged down rather by the eurozone rather enjoying the benefits of the so called free market. The U.K should, and to some extent is, looking to increase our trade with the rest of the world, as we have done throughout our history , and take advantages of the growing and emerging economies across the glob.The opportunities are out there, and we need to embrace them. I believe that which ever party wins the next election a complete reappraisal followed by a referendum should be the first priority of any new government.. It is not in the U.K's interest to be shackled to this corpse for a moment longer.!
David Wragg
Well said, David!
Raymond Castle
I very much agree David
Alan Todd
The torys took us into Europe is Cameloon brave enough to stand up to them and bring us out?
Martin Beadle
i think we took us into europe. there was a referendum. i was there...
David Wragg
Martin, there was a referendum but we simply voted for a free trade area, not a political union and a single currency.
Austin Samara
Blame eurozone, there is a hold world out there to sell but no body has any respect for british william haig and Cameron are hated by the world leaders due to their views. alex Salmon want independence this is the very reason, UK has no future,
Chris Price
According to these pointless opinion polls. Less Scotts want independence than the SNP claims
Michael Hawkins
Strange view there Austin With 50% of the UK trade being with Europe - someone must love us
Michael Hawkins
Chris Give us English a vote and I am sure we will be able to get shot of Scotland
David Wragg
As an Englishman living and working in Scotland - but my occupation is completely portable - I don't want the English to have a vote on Scottish independence as the English attitude these days is simply to take the easy way out and let the Scots go! Many Scots do not want independence - Alex Salmond seemsd to rule the roost up here because the other party leaders are pathetic nonentities - mind you, one can say the same about the party leaders in London as well.
Name witheld
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Martin Beadle
of course. its not the fault of my cretinous economic decisions at all. blame the eurozone, I'll still get paid + live in luxury....
Nathan Pegg
Why doesn't this guy get that when you group 17 nations with different economic conditions together and make them use a single currency, the second-world economies are going to bring down the others? "Greater fiscal integration" as the answer my posterior. It's the question, to which "no way" should be the answer for the developed countries who can almost balance their own books. It's hard enough balancing your own economy these days without being dragged down by doley nations.
MichaelStinton
What rubbish, "it isn't my fault its those nast europeans"!! With this incompetent loon running our economy we are doomed!
barry
Listen Germany did a deal with France on a fail attempt for a European Power base between them as they know we have the USA !! How good that is only Tony Blair benifits from that partnership. Unfortunately it hasn't worked as UK didn't play ball so they make sure we help pay the bail out billions and our exports are brought to stop no money to pay. Spain's not playing ball either don't want any conditions imposed, We live to fight the good fight people not each other!!
David Wragg
While the Euro crisis isn't helping our economy, the main culprit is Osborne's tax everything regime. Air Passenger duty discourages tourists and business visitors. High fuel costs stoke inflation and again, discourage tourists. Householders and businesses have their electricity bills increased to subsidise so-called 'green energy'. EU rules make employment more expensive and also help a massive influx of immigrants who have an immediate right to all kinds of benefits, something we can't afford and don't need as we are an overcrowded nation with growing unemployment. We spend GBP 9bn on overseas aid that we can't afford.
Jonathan Goodwin-Self
Overseas aid is increasing to 12.5 bn and benefits for illegals, immigrants and migrants plus their free legal aid is costing us 1.9 trillion. Also executives, civil servant heads and quangos cost us about 5 trillion. Public sector pensions do and will cost us 7.5 trillion. So Osborne and Cameron have destroyed this country by themselves.
ali baba
Utter rubbish
IRONSTINE
poor George one after another calamity, sabotaging his economic policies,
Raymond Castle
Somebody should tell poor old George that it's not the eurozone killing off our recovery.....it's him!
Brian Holmes
Totally agree. He is trying to pass the blame.
Jonathan Goodwin-Self
Osborne has and is borrowing more money in 2 years than labour did in 6 years. He has increased VAT to its highest in the world and has increased tax for the middle class. If you are a normal person you have your tax deducted and if it is wrong you have to wait 12 months to get it back. Millionaires pay about 1% in tax instead of 50% and Osborne backs them because he is a multi millionaire the same as Cameron and Clegg. Our economy is being destroyed by the Coalition
Rhys Sage
Blaming Britain's woes on something happening in another country is about the most pathetic thing I have heard of. Britain needs to get off its collective backside, stop navel gazing and get back to work. People need to start working and earning money, not waiting for some mythical job to arrive. Pick up your garden tools and offer to dig somebody's garden for five quid. That's the way to get the economy moving and money in your pocket.
Viv hanshall
It is true. It's very easy and very convenient to blame others for our lack of dynamism and failed policy.
Jock Haggis
From the beginning of time our leaders always know what best for us!
Chris Robinson
Nothing like bad news to bury,well, bad news. Since Gideon George Osbourne got his mitts on our economy, we've entered a double-dip recession. Why doesn't he do what he does best, him and his mate Cameron, hire posh restaurants and smash them up and let rich daddy pick up the bill?
Viv hanshall
' . . . . shackled to this corpse for a moment longer.!' What ? - the richest region in the whole world with a larger GDP than the US and twice that of China. Four of the largest economies in the world (G7) are in the EU. The EU is the largest free trading block in the world. There is freedom of movement, no death penalty, no wars, a liberal democracy, high living standards (again highest GDP on the planet) Fortunately our leaders (both right and left) know this and will not compromise the UK's position in the EU
ali baba
7:18am on 10/6/2012
Mavis I hope you reading this. Begining of the end. Start brushing up on ur Chinese cause we will all be emmigrating soon for work.
David Porter
8:11am on 10/6/2012
I am sure you have said in previous posts you are not English. You are now stating Europe is doomed and that India and China are like heaven. So why are you still in the UK earning our worthless money?
ali baba
8:42am on 10/6/2012
I came here in the Iranian revolotion, 1979. The CIA and British assisted Khomeini to get into power, as my king wanted to set his own prices and unite all the oil nations. (opec). I hate fanatics with a vengeance, but if u look at history the west have planted these people in our countries. I find it insulting for people like mavis who blame everything on immigration and presume we are all living off the system, people seem to forget the core reasons why immigrants are here. 60s 70Indians bought for work. 80s onwards wars and oil,. Recently eastern Europeans cause of Europe opening up. To blame everything on foreigners is ignorant.
ali baba
8:55am on 10/6/2012
Also david. It is my view that throughout history you have had many empires. Greek, Persian, Roman, etc. Currently Europe and America are the super powers. But what's going on in there banking systems is what's going to destroy them. Power will be changing hands soon. Just my understanding of the current situation, I may be wrong.
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10:07am on 10/6/2012
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Name witheld
10:50am on 10/6/2012
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David Wragg
11:38am on 10/6/2012
Ali Baba - get back into your basket now!
Keith Reeder
12:23pm on 11/6/2012
Well said, Ali - ignore these cretinous racist muppets: the crass stupidity they show is a bigger threat to UK prosperity than any number of immigrants. But it's easier to blame someone else for their own shortcomings, isn't it? On the basis of the tripe they write here I wouldn't give a single one of them a job.