Condemned to five years' hard labour

Article Abstract:

The re-elected Conservative Party is faced with the task of bringing the UK out of the economic crisis which it helped to create. The Party, serving its fourth consecutive term, must contend with falling revenue while social security payments rise due to the sharp increase in unemployment. Overseas demand for UK products is only half as much as the demand in the UK for imported goods. To make matters worse, the Government's means of raising money to augment its depleted finances have been limited by the Maastricht Treaty's imposition of a ceiling (3% of GDP) on EC countries' public borrowing. Although the Tories promised no tax hikes in their election campaigns, the government may need to introduce 'backdoor' tax increases. A perfect opportunity for doing this will come when the UK restructures its tax policy in accordance with EC requirements.

Economic policy, Conservative Party (United Kingdom)

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ERM: driving London into pole position?

Article Abstract:

The bid of London, England, to remain the premier financial center in the European Community has been strengthened by the entrance of the pound sterling into the European Monetary System's exchange rate mechanism (ERM). Professionals in the London financial markets believe that the pound's membership in the ERM will increase the attractiveness of London for foreign investors by increasing their confidence in the pound. ERM membership will reduce the volatility of the pound and strengthen UK financial institutions. A stable pound makes it easier for financial institutions to manage their balance sheets. London is positioning itself to become the center of centralized markets emanating from European monetary unification and a center for the European capital and currency markets.

Prices and rates, London, England, Capital market, Capital markets, Pound (United Kingdom), European Monetary System

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