probing eyes
Saturday, 31 December 2011
Mahmudur Rahman
Nicolas Sarcozy isn't a leader given to mince words. Controversy is not battle heshies away from, especially when the world stage he relishes is so alluring. And so there was a chilling effect to his words when he dramatically declared that there were now two Europes -- one that was the UK and the other that was rest of the old Europe. Such as his open criticism of David Cameron not supporting the new rules of the game carefully and painstakingly drawn up by Angela Merkel and Sarcozy.
The new Eurozone has declared the end of the holiday in coming up with stringent penalties for countries raking up more than a 3.0% debt ratio against gross domestic product (GDP), a move that the British clearly see as an infringement on sovereign finances but was politically hamstrung to say so. In the end Cameron's version of protecting financial institutions did sound a bit weak.
Merkel played the gamble of calling the UK bluff, using Sarcozy' shoulder as the launching pad. Her options were limited. Under political pressure at home she could no longer expose the generously and enviously filled German coffers for any further bailouts. Sarcozy's France didn't have the money but a strong belief that if the Euro failed so would the Eurozone.
The UK has never said so with any urgency but the reluctance to share a common currency has been as deliberate as any denial. With her own debt problems reaching alarming proportions it certainly had little stomach for delving deep in to pockets.
Spain and Italy are headed the same way as the Greeks and that is an optimistic forecast. Unpopular belt-tightening exercises have sparked furore and protests across Europe even though the same persons know fully well there is no other way.
The great stagnation is only beginning to take effect on Bangladesh. Growth figures are being revised downwards even though spokespersons are trying to do damage control following frank confessions by both the Finance Minister and the Governor of Bangladesh Bank.
With exorbitant bank borrowing being frowned upon by the Bangladesh Bank, a lowering in the foreign reserves and a dip in remittances, the cupboard looks somewhatbare. The impetus has to come from new investment and new export markets. The glowing example of Brazil's increasing wealth is an indicator of direction. The problem is of course that of a race with no prizes for the straggler.
Where the country goes from here will be eagerly followed by many especially in the light of a new move by India and Japan to protect themselves from further economic tremors on the global stage.
(The writer can be reached at e-mail: mahmudrahman@gmail.com)
Nicolas Sarcozy isn't a leader given to mince words. Controversy is not battle heshies away from, especially when the world stage he relishes is so alluring. And so there was a chilling effect to his words when he dramatically declared that there were now two Europes -- one that was the UK and the other that was rest of the old Europe. Such as his open criticism of David Cameron not supporting the new rules of the game carefully and painstakingly drawn up by Angela Merkel and Sarcozy.
The new Eurozone has declared the end of the holiday in coming up with stringent penalties for countries raking up more than a 3.0% debt ratio against gross domestic product (GDP), a move that the British clearly see as an infringement on sovereign finances but was politically hamstrung to say so. In the end Cameron's version of protecting financial institutions did sound a bit weak.
Merkel played the gamble of calling the UK bluff, using Sarcozy' shoulder as the launching pad. Her options were limited. Under political pressure at home she could no longer expose the generously and enviously filled German coffers for any further bailouts. Sarcozy's France didn't have the money but a strong belief that if the Euro failed so would the Eurozone.
The UK has never said so with any urgency but the reluctance to share a common currency has been as deliberate as any denial. With her own debt problems reaching alarming proportions it certainly had little stomach for delving deep in to pockets.
Spain and Italy are headed the same way as the Greeks and that is an optimistic forecast. Unpopular belt-tightening exercises have sparked furore and protests across Europe even though the same persons know fully well there is no other way.
The great stagnation is only beginning to take effect on Bangladesh. Growth figures are being revised downwards even though spokespersons are trying to do damage control following frank confessions by both the Finance Minister and the Governor of Bangladesh Bank.
With exorbitant bank borrowing being frowned upon by the Bangladesh Bank, a lowering in the foreign reserves and a dip in remittances, the cupboard looks somewhatbare. The impetus has to come from new investment and new export markets. The glowing example of Brazil's increasing wealth is an indicator of direction. The problem is of course that of a race with no prizes for the straggler.
Where the country goes from here will be eagerly followed by many especially in the light of a new move by India and Japan to protect themselves from further economic tremors on the global stage.
(The writer can be reached at e-mail: mahmudrahman@gmail.com)