An Old Man Special:
In a desperate attempt to get liquidity into European economies, the ECB have announced that it has printed enough Euros’ to pay the debts of Greece, Portugal, Spain and Italy.
This money will be sent through the European banking systems computers to remove all sovereign debts and allow indebted countries to start from fresh.
Mr Herman Van Rompuy, President of the EU, said in Brussels that “this piece of financial engineering, has been planned for 18 months, but we needed to put a lid on the “over exuberant” spending, which had become the norm for national leaders, as well as private individuals”.
With debt eradicated, the ECB expects a much stronger Euro currency, which will remove the future threat of soaring inflation within the Euro-zone.
Further measures include an increased tariff on Asian imports, which will make local manufactured products more competitive in the domestic market, and should encourage Chinese investment in European based industries, which will lead to a massive turnaround in the number of people unemployed.
Leaders of national governments have welcomed this move, promising, under EU monitoring, to keep future spending within EU targets. The 12 major European based banks have vowed to double the amount of lending within the EU, to ensure small business can take advantage of the new abundance of opportunities.
Raised import tariffs on foreign cars, is expected to benefit the European auto-makers, who are now only allowed to produce electric-powered vehicles; which will reduce the European dependence on imported energy.
At the national level, governments have also agreed to lower income tax to 20% and VAT to 15%, which is now possible due to the reduced number of public service employees.
In Portugal, a move to increase agricultural production by diverting fresh water of major rivers, away from the Atlantic and into drier regions. This growth in agricultural production should reduce the need for foreign food imports. Also the planned lifting of fishing quota’s will now permit Portuguese fishermen to return to their boats and increase the amount of fish they catch and the country can export.
These changes in fiscal policy have been welcomed by the World Bank and IMF, who has claimed – from their new offices in the Bahamas’ – that they expect to see some return to stability and ultimately growth by 2014.
Release of this statement from Brussels, on the 1st April, is considered very appropriate.