Jean-Pierre Jouyet said the UK would have to fend for itself if ongoing political uncertainty led to a meltdown in the financial markets. “The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you. If you don’t want to show solidarity to the eurozone, then let’s see what happens to the United Kingdom,” he told Europe 1 radio. Mr Jouyet, European affairs minister from 2007-2008, was clearly angered by the Chancellor Alistair Darling’s refusal to pledge funds in an attempt to protect the euro, by failing to agree to provide troubled eurozone countries with €440bn in loans or guarantees. He said it was a clear sign of the divisions within the European Union. “There is not a two speed Europe but a three speed Europe. You have Europe of the euro, Europe of the countries that understand the euro...and you have the English,” he said. However, Mr Darling did agree to contribute to a €60bn extension to an existing European Union facility to help those countries in particular difficulty. The International Monetary Fund has agreed to provide a further €250bn. The bail-out agreement boosted markets around the world on Monday, including the FTSE 100 which closed up 5pc – the biggest one-day jump since December 8, 2008. Part of that gain was unwound on Tuesday morning, with the FTSE 100 down 1.8pc at 5291. The pound was down at around $1.48. As political uncertainty rumbled on, with no new government in place, analysts at Morgan Stanley said investors should sell the pound, targeting $1.35. It said the prospect of a Labour-Liberal Democrat coalition would hit sterling. “We have decided to initiate a short pound-dollar position,” said Stephen Hull, global head of currency strategy. “This coalition would probably find it difficult to make the required tough spending cuts to the public deficit, risking a downgrade by the rating agencies in coming months.”Britain must fend for itself in
event of crisis, French official
warns
Britain should not rely on EU help in the event of a renewed
financial crisis after refusing to sign up to the bulk of a
€500bn (£429bn) rescue package for the eurozone, the
head of the French financial markets watchdog said.
Tuesday, 11 May 2010
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