G7 leaders must recognise that monetary policy alone won’t solve the world’s ills May 26, 2016 Hosting a successful family get-together is a stressful business. Just ask Japan’s Prime Minister Shinzo Abe. With the leaders of the world’s major economies arriving in Ise-Shima for a G7 summit, Abe has promised “candid” and “fruitful” discussions to tackle the challenges to global growth. But against the backdrop of sluggish activity, doubts about the [...]
More than eight-in-ten local authorities will be in serious financial difficulty in the next three years, chief execs warn May 26, 2016 Local authorities are at risk of failing to deliver essential services in coming years, the government is being warned. PwC’s annual survey of local government leadership has shown that 81 per cent of local authority bosses believe that some will not deliver essential services within the next three years. Almost nine-in-ten – 86 per cent – of council [...]
Greek bailout deal: Details, reaction and next steps May 25, 2016 At 2am this morning, the final 'i's were being dotted and 't's being crossed on the latest stage of the multi-billion euro bailout of Greece. It may have felt like a slog for the finance ministers gathered in Brussels, but they have long memories, and the events of last summer – endless nights, referendums, broken promises [...]
Calculator: How much does the UK contribute to the EU budget? May 25, 2016 Statisticians have fired another shot in the war with Brexit campaigners over how much the UK contributes to the European Union – with an online calculator. The Office for National Statistics (ONS) has this morning published a guide outlining what they feel are responsible estimates of how much the UK pays into the EU, one of the key battlegrounds [...]
This group of economists is scandalised by the IFS’ “£40bn fiscal black hole” Brexit report May 25, 2016 The Institute of Fiscal Studies (IFS) is generally regarded as pretty impartial, so the fact it issued a strong warning on the potential impact of Brexit – warning it could leave the Treasury with a £40bn fiscal black hole – has surprised some. Not least the esteemed members of Economists for Brexit, which this morning slammed the report. [...]
Greek debt crisis: Eurozone strikes deal with Greece for €10.3bn bailout May 25, 2016 The Eurozone hammered out a €10.3bn (£7.9bn) bailout deal with Greece in the early hours of this morning. European finance ministers hailed the deal as a breakthrough, given that it carries with it a commitment from the International Monetary Fund (IMF) to return to taking part in the bailout. The IMF coming back on board [...]
Hinkley Point crisis deepens as experts warn that there’s “zero possibility” of the project being finished by 2025 May 25, 2016 The government is facing fresh calls to reconsider its plan to build two nuclear reactors at Hinkley Point in Somerset, with experts warning that there’s “zero possibility” of the controversial project being finished by 2025. The concerns come after Vincent de Rivaz, the French utility giant’s UK boss, failed to assure parliament's energy and climate [...]
Institute for Fiscal Studies says Brexit could blow £40bn hole in public finances May 25, 2016 Despite saving £8bn a year from no longer contributing to the EU budget, Brexit could put a multi-billion pound black hole in the public finances, the Institute for Fiscal Studies (IFS) has said. In a new report, published today, the number crunchers say that leaving the EU could result in the UK needing to find [...]
Greece expected to get €10.3bn in next loan payout May 24, 2016 Greece is expected to get approval for bailout loans of up to €10.3bn (£8bn) today. Eurozone finance ministers are currently discussing the loans in a Eurogroup meeting that’s been going on for over eight hours. The loan is likely to be paid out on two tranches with the first instalment of €7.8bn due in June. Read [...]
US new home sales figures lay foundations for June rate hike May 24, 2016 Sales of new homes in the United States jumped to their highest level since before the crisis, as the US economy picks up momentum in the second quarter. The number of newly-built homes sold – on an annual basis – hit 619,000, a jump of 16.6 per cent on last month and around 100,000 ahead of [...]