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Constancio joins the chorus of criticism of Britain’s “fiscal shock”: “It’s amazing” that “the pound is no longer a significant currency.”

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Constancio joins the chorus of criticism of Britain's "fiscal shock": "It's amazing" that "the pound is no longer a significant currency."

The reaction of the currency and bond markets to the fiscal plan of the government of British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng was immediate when there was a massive devaluation of the pound sterling and UK sovereign bonds. The reaction of political and financial officials outside the United Kingdom was not as immediate, but began to emerge in the face of chaos, with no difference between the former and the incumbent president. Vitor Constancio, former vice president of the European Central Bank (ECB) and former governor of the Bank of Portugal, was one of them.

Surprisingly” that “the pound is no longer an international currency.”, told the Financial Times.

Since Brexit, the UK has shown huge arrogance and denies reality as if a return to the greatness and days of empire (…) is delusional and reinforces the warning that Brexit presents that moving away from the European center was bad for the UK.”these.

“Yes there is gloat“Constanzio told a British newspaper, using a German word that describes the comfort and learning that comes from the suffering of others. — I wouldn’t say “pleasure”, that would be too strong. But yes, the ‘I told you so’ feeling is now widespread in Europe.”

The International Monetary Fund (IMF) backed the idea on Tuesday with mainland Chinese capitals, issuing a statement saying it is “closely following the latest economic developments in the United Kingdom (…) in contact with the authorities.” criticizing increased spending in times of inflation and tax cuts for the wealthiest, with more than likely rising inequality.

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The Financial Times notes in an article published this Thursday, September 29,that several continental European officials with finance portfolios have already spoken publicly about the debacle last week in the United Kingdom. Like Bruno Le Maire, the French finance minister, who said that the Old Continent’s main concern is not Italy, which has just elected a far-right government, but London, where “interest rates are jumping” under the European hat. above 4%,” he said.

In Germany, Finance Minister Christian Lindner is using this argument to defend maintaining the debt brake, which will be restored in 2023 after a suspension due to the covid-19 pandemic, a British newspaper recalls. He described Trouss and Kwarteng’s fiscal shock as “a huge experiment” in which “the state puts on the gas pedal and the central bank puts on the brakes.”

In Spain, the FT quoted Deputy Prime Minister Nadia Calvinho as saying that tax cuts are a recipe for “disaster” because they are presented in the UK and proposed locally by the opposition.

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Economy

Bankers demand 6.25% pay rise at ‘breaking point’ and refuse further layoffs – ECO

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Bankers demand 6.25% pay rise at 'breaking point' and refuse further layoffs - ECO





Bankers demand 6.25% pay rise at ‘breaking point’ and refuse further layoffs – ECO































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Economy

Woman with fake belly caught smuggling hundreds of semiconductors (already worth 500 times more)

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Woman with fake belly caught smuggling hundreds of semiconductors (already worth 500 times more)

Sanctions and supply chain issues have created a parallel market in China, where these chips are sold for 500 times the market value.

Chinese customs officials caught a woman trying to smuggle semiconductors inside a prosthetic belly while pretending to be pregnant. This arrest sheds light on the reality of smuggling that has emerged in the world’s second-largest economy following the sanctions imposed by the United States of America.

According to bloomberg, a woman was caught by the authorities while trying to enter Zhuhai via Macau on November 25. According to customs authorities, the suspect had more than 202 processors and nine smartphones.

The woman came to the attention of the authorities when she was asked what month she was pregnant. “She said she was five or six months pregnant but she had a big belly that looked like she was in her third trimester,” Chinese officials explained.

The economic crisis caused by covid-19 and all the problems that have arisen in the supply chain have opened the door to the emergence of a black market in semiconductors in a country that needs these advanced chips to produce millions of products.

The situation has worsened recently as the Joe Biden administration tightened sanctions on China, focusing on developing advanced technologies, especially for military use.

According to the North American economic publication, the situation is so serious that the prices of these devices reach values ​​up to 500 times their market price, which creates ideal conditions for creating an entire parallel market with telecom operators and resellers.

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Economy

Reduced provider discount in December due to falling fuel prices

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Reduced provider discount in December due to falling fuel prices

The Ministry of Finance reported that in December there is a decrease in the ISP discount by 3.9 cents per liter of diesel fuel and 2.4 cents per liter of gasoline, taking into account falling prices.

The guardianship statement states that, as announced, “the mechanism applied in the ISP is equivalent to reducing the VAT rate from 23% to 13%, and the compensation mechanism through the ISP reduces additional VAT income as a result of the changes. in fuel prices remain in effect.

Thus, taking into account the evolution of diesel and gasoline prices, “these temporary measures result in a reduction in the ISP rebate of 3.9 cents per liter of diesel fuel and 2.4 cents per liter of gasoline. a discount of 17.1 cents per liter for diesel ISP and 15.4 cents per liter for gasoline ISP,” the same note reads.

On the other hand, “the carbon tax update will be suspended until the end of the year,” and “taking into account all the measures in place, the reduction in the tax burden is 27.3 cents per liter of diesel fuel and 24.7 cents per liter of gasoline. “.

The government’s rebate mechanism assumes that a decrease in the price of fuel results in an increase in the Tax on Petroleum Products (NPT) due to a drop in VAT revenues.

“Measures to mitigate the increase in fuel prices remain in place in the month of December, while the government continues to support all consumers by reducing fuel taxes,” the ministry reminded.

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The ISP’s rebate, equivalent to a 13 percent VAT rate cut, was due to run until September 4 but was later extended through the end of the year as part of the government’s family relief package due to price hikes.

Average fuel prices have returned this week to below pre-war levels in Ukraine on Feb. 24, with a 5.1% drop for petrol and 4.1% for diesel calculated by ERSE.

According to the “Weekly Report on the Surveillance of Selling Prices for the Public” published on Monday evening by the Entidade Regladora dos Serviços Energéticos (ERSE), “For the week of 28 to 4 December, the effective pre-tax price is 0.860 euro/l. [euros por litro] for straight petrol 95 and 1067 euro/l for direct diesel”, which after tax is 1660 euro/l and 1685 euro/l for straight petrol 95 and straight diesel, respectively.

These figures are comparable to average prices of 1,816 euros/l for 95 straight-through gasoline and 1,660 euros/l for direct diesel filled on February 24 when the Russians invaded Ukraine, according to the Directorate General of Energy and Geology (DGEG). ).

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