Sunday, April 12, 2009

EU says, "don't put your own voters' interests first."

Via Vindico, this little nugget comes from the EU and does not bode well...
The pound’s slide against the euro has begun to trigger concerns on the continent that the UK is seeking to gain a competitive advantage over its European Union partners.

Sterling has fallen by more than 25 per cent on a trade-weighted basis since the autumn of 2007, raising the question as to whether Britain is letting its currency fall to help its exporters at a time when the eurozone is falling more deeply into recession.

Asked about sterling’s fall in an interview with Sky News on Monday, Christine Lagarde, French finance minister, said that all G20 countries had last week promised to minimise any negative impact on trade and investment of their domestic policy actions.

The European Central Bank, which rarely comments directly about exchange rates, uses similar code to warn countries to support their currencies.

Without naming the UK, Lorenzo Bini Smaghi, a member of the ECB’s executive board, on Monday reminded EU states outside the single currency that they had to treat their exchange rates as a “matter of common interest”, as stated in article 124 of the EU treaties.

In other words, the EU is saying, to the British government, "don't you fucking dare put the interests of your own country and your own electorate first; because you are in the EU, the interests of other countries, of other electorates, should come before your own."

To which the only polite reply should be, "go fuck yourself, you tedious wankers".

It probably won't be, because the Prime Mentalist doesn't actually have a spine, but this move does, in any case, make a mockery of the Tories' favoured line of "in Europe and not run by Europe."

If we are in the EU, we will be run by the EU—and nothing that Dave or Gordo says will make any fucking difference.


Anonymous said...

That French filly is very fanciable.

ThousandsOfMilesAway said...

Except for the fact that GBPEUR is up over 10% from the December 2008 low.

Although our EU chums are very likely right to expect new lows in due course, the main fallacy here (which I don't see many challenging) is that HMG can do much, if anything, to stop this.

Even if you accept the proposition that governments move markets over anything but the short-term (and there is much evidence to the contrary), the damage has already been done years ago and nothing can change that now.

Sterling is just about the weakest of all the major currencies on the planet. Look at any long-term chart and this is abundantly clear.

Dr Evil said...

All Gordo has to do is nothing at all. The EU wankers will continue to bluster and we will have competitive advanage. Mind you, one reason prices are high in supermarkets is that our Euro partners are buying up cheap farm produce and stuff here owing to the weakening of sterling. It's not just imports. So fuck the EU. Bastards!

2 Mac said...

I doubt they are dropping the pound on purpose. They just have not got a clue what to do.

Keep making press releases. Keep learning lessons and being seen to do something.

This useless bunch of cunts need to be unemployed as soon as possible.

Regardless its fuck all to do with the EU. Concentrate on your own disasters.

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