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Tag Archives: Euro-QE

Some 10 million Greek voters went to the polls yesterday, in an election with big implications for the future of monetary union. Even if Greece stays in the single currency, after choosing a party determined to defy the European Central Bank, negotiations over bond repayments between Athens and Frankfurt will be extremely hard-fought. The upcoming rhetorical slugfest, whatever the outcome, will have ripple effects across other “peripheral” members of the 19-country currency bloc which could send global bond markets haywire.

This Hellenic election holds big significance for Britain too. Ahead of our general election in May 2015, fears of renewed eurozone turmoil, which this Greek vote could spark, will bolster eurosceptics across all parties. That could lead to an earlier vote on UK European Union membership.

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George Osborne is in “I told you so” mode. Much to the Chancellor’s satisfaction, the International Monetary Fund has just upgraded its UK growth forecast for 2014 to 2.9pc – suggesting Britain will this year grow faster than any other G7 economy.

Just twelve months ago, with the UK in danger of triple-dip recession, the IMF reprimanded Osborne for “playing with fire”, urging him to abandon attempts to consolidate Britain’s public finances and speed up government spending instead.
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