I know that we are all still reeling from the budget, but we don’t exist in a bubble, how are other countries doing at the moment? According to the OECD they world economy will make a ‘hesitant and uneven recovery over the next two years’, they reckon that Europe will remain in recession until early 2013 with anaemic growth at best next year before moving towards a higher (but still deplorable) growth of 1.4% in 2014.
They also say that ‘More needs to be done to tackle negative links in the Euro area between public finances, bank solvency and risks that any country may have to leave the euro. In the long run, this requires a fully-fledged banking union with fiscal backstops. Recapitalisation of banks should be undertaken where necessary’. This is counter to what most of us think because of how awful our banking bailout has gone and the cost it has imposed on future generations. I would also say that just because the OECD think something doesn’t make it right, but that is an aside, the writing is on the wall, Europe is still a mess that has a lot of cleaning up to do, and business is the answer, it is business and trade that will lift us out of this eventually, the task of Government is to get out of the way of success and only intervene where absolutely necessary.
taken from our column in the Sun on Sunday
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