Every EU member states except the Czech Republic and the UK have signed up to a treaty aimed at enforcing budget discipline within the Eurozone. The UK refused to sign as it as they had “legal concerns” about the enforcing of the treaty while the Czech’s cited constitutional reasons for their refusal to sign. The aim of the treaty is to have closer economic co-ordination across Europe to help prevent excessive debts building up and therefore prevent more Greek style debt levels reducing the pressure on the Euro. The fact the UK have again not been involved in the latest treaty shows that there is a lack of cohesion in Europe and puts yet more strain on not only UK – EU relations but also Sterling Euro exchange rates.
In France we heard yesterday that France have cut their 2012 growth forecast by half. France announced this due to the declining economic situation in Greece and their exposure to the Greek debt levels. France had their debt rating downgraded recently ans shows that this decision could have been accurate as France, one of Europe’s biggest economies expects to be heading back towards recession levels towards the end of this year. In an aim to create growth French President Nicolas Sarkozy has introduced a tax on all financial transactions .
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