Okay Greece, now we really mean it…Sunday, please
Well, I wonder how many were surprised to learn that a deadline extension has been provided to the Greeks in order to submit a plan. Sunday has been given as the new deadline for the Greek government to come up with a proposal that is acceptable to the European nations who will fund the aid, and to the Greek cabinet who represent the interests of their country. The plan also needs to be different from the one that seems to have been recycled a number of times thus far. It seems little wonder that German Chancellor, Angela Merkel, has commented that she is not ‘exaggeratedly optimistic’ for a solution…
And finally some news of substance from outside of Greece. We will hear today of UK Chancellor of the Exchequer George Osbourne’s plan to provide a significant impact to the British economy. Some of the key factors for him to review will be cutting welfare spending and reducing the tax bill for those in employment amongst other initiatives.
In the last Government, there was a dual leadership party and a lot of the claims from the Liberal Democrats around the time of their first budget was that they stopped a lot of the welfare cuts that, they say, would have hurt the nation particularly in the economic conditions that existed at the time. Now, the Conservatives have a free reign to shape the budget as they wish and so, of course, they will do so around their central manifesto.
Earlier this morning, the UK Halifax house price survey showed a sturdy improvement. Today as we look to the wires, we expect to hear from the US Federal Open Market Committee in the form of their minutes from the last meeting. The news dominating today’s headlines will surely be Greece updates and most likely a series of reactions to their meeting yesterday from political and economic heads of state. The budget will probably create opportunities for political backlash too.