No-deal Brexit could hit Germany’s economy, industry body warns February 26, 2019 A no-deal Brexit could wipe at least 0.5 per cent off Germany’s GDP, a German industry body warned today. Read more: Carney: UK growth 'guaranteed' to fall in no-deal Brexit Joachim Lang, managing director of Germany’s BDI industry association, predicted a hard Brexit would slash €17bn (£14.7bn) from Germany's economy. The German government forecasts that economic growth [...]
DEBATE: Would scrapping peak and off-peak rail fares lead to a better train ticketing system? February 25, 2019 Would scrapping peak and off-peak rail fares lead to a better train ticketing system? Ben Glover, researcher at Demos, says YES. Rail travel offers lots to moan about, but little is more frustrating than the irrationality of ticket prices. Why can a single ticket cost the same as a return? Why can trains leaving minutes apart [...]
Eurozone inflation falls in January as energy prices continue to drop February 22, 2019 Eurozone inflation has fallen to 1.4 per cent as energy prices continue to drop across the single currency bloc but core inflation rose slightly. The euro area consumer price index (CPI) fell to 1.4 per cent year-on-year in January from 1.5 per cent the previous month, and significantly down on its 2.3 per cent October high. [...]
The emergence of the Independent Group offers a ray of hope for economic liberals February 22, 2019 As a free market liberal, I’m becoming more cynical by the day. After all, there seems to be something close to universal agreement across the major political parties for state interference (i.e. energy price caps), the nanny state (i.e. the sugar tax), and increasing the tax burden (admittedly by varying degrees), which is already at an [...]
Finally, the Tories have tackled the UK’s deficit February 22, 2019 Credit where it’s due, Philip Hammond has finally conquered the deficit – albeit several years after his predecessor George Osborne originally promised to have done so. While the government is still spending more money than it generates, the UK’s rate of borrowing is considerably below pre-crisis levels. In its analysis of yesterday’s borrowing figures the [...]
Government borrowing falls to lowest yearly level since 2001 with record January surplus February 21, 2019 Government borrowing has fallen to its lowest year-to-date level since 2001 and recorded the largest January surplus since records began. Public sector borrowing from April 2018 through to January was £21.2bn, the lowest at this point in the financial year since 2001, and £18.5bn less than in the previous year. Net borrowing in January itself [...]
DEBATE: Should we slash post-Brexit tariffs on food imports to offer consumers cheaper goods? February 21, 2019 Should we slash post-Brexit tariffs on food imports to offer consumers cheaper goods? Bill Wirtz, policy analyst at the Consumer Choice Center, says YES. Contrary what the protectionists will tell you, tariffs don’t only hurt the country upon which they are imposed. If the government decides to maintain import tariffs on food post-Brexit, it is [...]
A Brexit-induced price drop won’t fix the housing crisis February 21, 2019 The last 30 years have seen house prices in London soar to dizzying heights. The average home has leapt from £81,536 in 1988 to £473,882 in 2018 – that’s a 481 per cent increase. If the cost of a pint of milk (26p in 1988) had jumped up at the same pace, it would now [...]
Brexit clock ticking towards ‘crisis point’ for manufacturers, CBI warns, despite strong factory orders February 20, 2019 The Brexit clock is “ticking towards crisis point” for the UK manufacturing sector despite factory orders rebounding strongly this month, the Confederation of British Industry (CBI) has warned. The CBI’s survey of manufacturers revealed that output growth slowed in the three months to February but would remain solid over the next quarter as the UK [...]
The Eurozone’s push for unified fiscal discipline is doomed to fail February 20, 2019 It is widely acknowledged that, under a monetary union, fiscal and monetary discipline have to go hand in hand in order to maintain financial and macroeconomic stability, and thus ensure that the currency remains sound. For a monetary area with such diverse economies as the Eurozone, establishing the right legal architecture and operational rules to [...]