Eurozone

The waters are, once again, getting choppy.There is not yet a storm, but some on the Euro ship are beginning to feel a touch queasy. The U.K does not have to worry because it is not in the Euro. Well no, but that is not all the story.

To grapple successfully with its own budget deficit and rising debt mountain, Britain has to achieve a huge shift from the public sector, which accounts for over half its GDP; a figure which is an unsustainable burden on the rest of the economy and which will eventually drive it into decline. To achieve this requirement, and it is a requirement, the public sector has to shrink and the private sector grow. Much of this growth will come from exports, a badly neglected area of the economy and many if not most of these will be to the Eurozone. If the countires in it are skint or the Euro is sinking, our goods are difficult to sell and our recovery may shudder to a halt.

Have dealt a wrecking blow to the so called Pigs (Portugal, Ireland, Greece and Spain) nervous markets may begin to worry about the U.K, whose budget deficit is the largest in the G20 and whose toatal indebtedness is the second largest in the whole world and nearly five times the world average.

So if we are not feeling queazy about choppy Euro waters, perhaps we should be.