France says EU will not bailout UK

Discussion in 'Europe and Russia' started by Armand2REP, May 14, 2010.

  1. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    France Hits at U.K. Euro Aid Demurral
    So much for entente cordiale: A senior French official slammed Britain's refusal to aid the euro, saying Europe will return the favor when markets turn on the pound

    May 12, 2010
    By Leigh Phillips

    Furious at the UK's refusal to participate in the eurozone bail-out, France has brusquely warned that Europe will not come to Britain's aid when – not if – the markets round on sterling.

    The French market regulator, Jean-Pierre Jouyet, on Tuesday (11 May) told Europe 1 radio that it is inevitable that the pound will be targeted and that when that happens, Britain will be on its own.

    "The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you," he continued.

    "If you don't want to show solidarity with the eurozone, wait and see what happens outside it."

    On the weekend, as EU leaders scrambled to cobble together a half-a-trillion-euro bail-out for the single European currency, the UK's main priority was to avoid being part of the scheme.

    British finance minister Alistair Darling at the time said: "When it comes to supporting the euro, obviously that is for the eurozone countries."

    Sweden and Poland however, both also outside the euro area, are to participate in the EU €440 billion "special-purpose vehicle," the EU's vast new emergency fund.

    The warning from Mr Jouyet, a former Europe minister and a confidante of President Nicolas Sarkozy, comes as rating agencies are considering a downgrade from the UK's triple-A credit rating.

    The European Commission's spring economic projections say Britain, already home to the third largest budget deficit in the EU, is to overtake both Greece and Ireland in terms of indebtedness later this year.

    Such a downgrade would raise the cost of government borrowing as interest payments would increase.

    "There is not a two speed Europe but a three speed Europe. You have Europe of the euro, Europe of the countries that understand the euro, such as Poland and Sweden, and you have the English," said Mr Jouyet.

    http://www.businessweek.com/globalbiz/content/may2010/gb20100512_285037.htm
     
  2.  
  3. LETHALFORCE

    LETHALFORCE Moderator Moderator

    Joined:
    Feb 16, 2009
    Messages:
    20,550
    Likes Received:
    6,554
    Armand was the Euro as one currency concept for Europe a good idea?? It seems like the better managed nations (france,germany etc...) are having to bear the burden of the laggards like UK,PIIGS etc... just to keep the currency alive and further placing themselves in debt to support the slackers??
     
    Last edited: May 14, 2010
  4. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    UK isn't in the Eurozone so we won't be supporting that slacker. France and Germany have a deep interest in seeing the PIIGS through their debt crisis as our banks have loaned them most of their money. Italy and Spain will be able to pay back their debts no problem which is France's biggest concern, we fund half their debt, Greece is a small player but we must stop the contagion from hitting the big boys credit rating. They will have problems paying it back if Moodys downgrades them. Now that we a have a trillion dollar safety net with the US taxpayer funding it, we should get most of our money plus very high interest.
     
    Agantrope and LETHALFORCE like this.
  5. Agantrope

    Agantrope Senior Member Senior Member

    Joined:
    Nov 1, 2009
    Messages:
    1,247
    Likes Received:
    68
    Armand, would the crisis of UK will trigger another wave of recession in the world wide as like the US was in the bay? Also if the UK's Pound was to be killed and the it enter the Eurozone then there will be a possiblilty for the single currency in the Euro Countries? Please clarify

    I think this is blessing in disguise as this may help to strengthen the ties between the Euro nations.
     
  6. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    It wouldn't be like the US, UK is only 1/6th of the US economy. UK won't join the Eurozone because they want to control their monetary policy and we would demand they have their fiscal house in order before they joined. Requirements for membership are 3% budget deficits. UK will never reach that unless they scrap their military and cancel the National Health Service.
     
  7. badguy2000

    badguy2000 Respected Member Senior Member

    Joined:
    May 20, 2009
    Messages:
    4,957
    Likes Received:
    613
    Mr. Armand, when you bear other country all day and all night, why not take care of the fire in your backyard? it already has fired your ass now. haha :)
     
    nrj and LETHALFORCE like this.
  8. AirforcePilot

    AirforcePilot Defence Professionals Defence Professionals

    Joined:
    Oct 17, 2009
    Messages:
    192
    Likes Received:
    61
    Location:
    Florida
    Many of us here in the US is angry because our money is being used to fund this bailout. It's time we take care of ourselves instead of worrying about other country's. Come election day many politicians will pay the price for supporting this bailout.
     
    LETHALFORCE likes this.
  9. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    It wouldn't do any good to bailout UK, their GDP is several points exaggerated compared to their productivity. They have no large shadow economy to start taxing like the rest of PIGS. The household debt is 173% of their annual incomes, they are instituting a £10,000 tax exemption for everyone, that is going to kill revenues. With no way to pay it back we won't give a bailout when their is no chance of repayment. All the Bank of England can do is print more money. They don't have the political will to scrap the military and the NHS.
     
  10. Zaki

    Zaki Regular Member

    Joined:
    Apr 26, 2010
    Messages:
    398
    Likes Received:
    56
    Location:
    Pakistan
    Who cares? UK is almost out of this recession and peoples are going back to their jobs......

    I think its about time when UK should be merged with Europe..... Pound should be abolished and they should accept Euro as its common currency........ it will largely benefit the economy of both UK and Europe
     
  11. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    Most Americans don't even know what the IMF is much less their role in it, there won't be many repercussions with an uninformed electorate. If you really want to lower your deficit why don't you stop funding the Pakistan Army to fight India?
     
    Oracle, Pintu and ahmedsid like this.
  12. badguy2000

    badguy2000 Respected Member Senior Member

    Joined:
    May 20, 2009
    Messages:
    4,957
    Likes Received:
    613
    isn't it ironic that some EU states are collapsing while CHina is still growing 8%+ after you have been hawking "CHina to collapse" for so long time?

    some people nether know about others,nor know about themselves. however they liking blahing other all day and all night.
     
  13. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    Nothing to do with the other except a collapse in EU demand will kill Chinese exports. UK is the EU nation with largest imports from China, more than imports from France. Hurts you more than us and with a weakened Euro, you will feel it twice as hard.
     
  14. badguy2000

    badguy2000 Respected Member Senior Member

    Joined:
    May 20, 2009
    Messages:
    4,957
    Likes Received:
    613
    guy, the cirsis has been there for over 2 years and the export of China once went down 30%-40% for several quarters in 2008-2009. but so what? China's economy now is still roaring while EU states are collasping!

    whose ass on earth needs be saved by others? EU or China, guy?
    I am very happy to see a collape of EU.
     
  15. ahmedsid

    ahmedsid Top Gun Senior Member

    Joined:
    Feb 21, 2009
    Messages:
    2,958
    Likes Received:
    243
    We are talking here about UK, Europe???? Where Did China Suddenly come in? Discuss it if, its related to the topic please!!! Otherwise, NO!
     
  16. Agantrope

    Agantrope Senior Member Senior Member

    Joined:
    Nov 1, 2009
    Messages:
    1,247
    Likes Received:
    68
    Please save your BS for any other thread. See the topic of the thread before start arguing. Whats there for China to do with the UK bailout??
     
  17. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

    Joined:
    Dec 17, 2009
    Messages:
    10,397
    Likes Received:
    2,314
    Collapse of EU? The crisis has brought the ECB more control over Euro monetary policy than it ever had before. These are the first steps of a United States of Europe. There is a trillion dollar bet saying it will happen. UK never wanted to really integrate in the first place so they will stand alone. France is the leader of Europe now which is exactly how we want it, even Germany has been dragged kicking and screaming.
     
  18. badguy2000

    badguy2000 Respected Member Senior Member

    Joined:
    May 20, 2009
    Messages:
    4,957
    Likes Received:
    613
    Euope would be something if it were united. however, it is nothing ,because it is disunited.
    After Rome empire was down, nobody succeeded in uniting Europe.
    Justinian II ,Charlie, Napoleon and Hilter all failed by a neck in uniting Europe.
    Once, I indeed thought Euro might unite Europe. However now, I think that the unity of Europe is just a myth.
     
  19. Zaki

    Zaki Regular Member

    Joined:
    Apr 26, 2010
    Messages:
    398
    Likes Received:
    56
    Location:
    Pakistan
    I agree Europe is disunited...... take an example of France and Germany with whom UK always have clash about one issue or another and has fought wars in the past.

    But i strongly feel they are only not united when it comes to internal affairs but when you see them as a whole of a group - they resolve their issues very quickly and often seen as an allys in the name of NATO, European Union, EEC, Paris Club, London Club etc. I don't think Europe can be re-united into one country for the next couple of decades at least but their bilateral ties are so great that outsiders cannot divide them whatsoever and have to consider them as One UNIT only. They are not father of their own son but they do love each other like father and son.

    Despite the fact they are not united i don't think you can find any other subcontinent who is having relationships with indepth like Europe. I think sooner or later Pound, swiss franks and Norwegian Karone (at last) will be abolished and one common currency Euro will bring all these nations so close to each other that they will be like United States of America..... different countries but so close

    The common currency can lay foundations for the re-emergance of European Union......... at the moment Euro is not acceptable in many european countries
     

Share This Page