- Wednesday, 14 December 2011 10:10
- Written by Sean Dudley
In what has been a controversial few days in the business world, various stories have made the headlines.
David Cameron’s decision not to sign up to the new EU treaty has been the cause of some rather light-hearted debate on both sides of the channel.
Praise has come from the anti-EU skeptics that ‘knew this would happen all along’, but Mr. Cameron has been blamed for potentially putting the English stock markets in jeopardy of being isolated from our European neighbours, something which may have large financial repercussions in the near future.
Whilst one does feel a certain admiration for the PM’s ballsy rejection of the treaty that would supposedly bring about an end to the ongoing crisis that has plagued European markets, the risk is Britain may well become a ‘black-sheep’ in the European circle. This could prove disastrous if the rest of Europe decides to hold a financial and economic grudge.
Britain’s stance is certainly risky, and this debate is unlikely to be settled any time soon. David Cameron has placed himself in a dubious position, and one does fear that the initial praise he has received for not kowtowing to the wants of the rest of the European financial community may be short-lived compared to the slander he will receive if the move backfires and he places Britain in a greater financial jeopardy than that in which it already finds itself.
In other news, the UK rate of inflation fell to 4.8%, statistics for November have shown - a drop of 0.2%. Whilst the Bank of England has stated a target rate of 2%, the slight drop is at least a step in the right direction. The Office of National Statistics (ONS) charted drops in various consumer sections, including food and non-alcoholic drink, which has been greatly contributory to the slight drop. It is hoped that the rates of inflation will continue to drop and it has been predicted by experts that the rate at which is drops is only likely to get larger.
And to finish, the pension deficit has hit a new record high. Private Sector pension schemes have hit an incredible £222bn, compared to only £1bn this time last year. The deficit has increased dramatically in recent times as the aforementioned statistic proves, and at a time when pension funding has been in the news due to public sector strikes, this new record is likely to turn a few heads.