Monday 15 December 2008

What if the Krauts are right about the Brown package?

I remember going to West Germany in the mid 70s when the UK was collapsing with strikes etc. I think I got 11 DMarks to the pound but I am not sure. What struck me how well-organised things were. Public transport worked while railway yards seemed ultra efficient. Then later West Germany carried out the biggest corporate acquisition ever and it has taken years to sort out with write-offs etc. Now, the Germans have the key role in the Eurozone economy. They can literally decide who stays (Spain?), who goes (Italy?). The single currency zone probably only works for countries next to Germany such as Holland.
You get the sense that Merkel does not have much time for Brown but at least we don't suck up to the Russians like the Germans. The Brown financial and economic package has not attracted plaudits in Berlin and the Germans have laughed at the VAT reduction. They remember our PM's lecturing when he was Chancellor and apparently he did not bother to listen to speeches in Europe by taking his headphones off. Yet the package has represented an attempt to fight the credit crunch and the recession. We will have to wait a while to see if it works. Brown will probably call an election before that happens.
www.seachaccountant.co.uk

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