[Re: The UK can make the whole of Europe more competitive without a special deal, yesterday]
European reform will not happen as Roland Rudd hopes. The “big guns” – Germany and France – both have their vested interests to protect. France has the Common Agricultural Policy which, as Matthew Elliott says, has not been changed despite earlier attempts by Britain to revamp it. Euro-politicians take comfort in the confusion that is the EU bureaucracy, and will not be willing to change much. Unfortunately, we’ll have to wait for the debacle that is the euro to fall apart before anything meaningful changes in Europe.
[Re: With expectations high, is there any way governor Carney can deliver? Yesterday]
It is unlikely that Mark Carney’s arrival will prompt an immediate change in monetary policy, since maintaining a continuity in policy would far outweigh any gain from a surprise move. He may take action to enhance what the bank has already done. But further quantitative easing seems unlikely at this juncture as weakening the pound may inadvertently import inflation. Further innovation on policy is much more likely, including focussed credit easing measures similar to the Funding for Lending scheme.
James Butterfill, global equity analyst, Coutts
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Penalise wealth while subsidising poverty and guess what – you get less wealth and more poverty.
Where is the recovery? EU economic sentiment index fell again this month, from 98.0 to 97.3.
If paying MPs less means they legislate less, I’m for it. If paying more means they legislate less, I’m for that too.
Forward guidance a good idea, but focus should be on getting more lending into economy. Rates stay low.