James Fitzsimons: Just what we need: 270 more uses for red tape
Even the Government itself doesn't really believe in the Action Plan for Jobs, writes James Fitzsimons
Published 19/02/2012 | 05:00
The world of high finance is rebuilding itself while our own inept Government has stuck its head in the sand. It does not have the expertise or financial acumen to lead us out of the crisis.
Mario Monti, Italy's new Prime Minister, made the cover of Time magazine with the caption 'Can This Man Save Europe?' There is no sign that the efforts of our own leaders will win any accolades. They stir the pot and we are left to stew. Their sole aim is to keep public servants happy. Meanwhile, the private sector is drowning. Public sector quangos are like parasites siphoning off funds that should go directly to private enterprise. Bureaucracy is holding us back.
The European banking crisis has slowed down global recovery because the EU refuses to let its bad banks go. Last year, 10 per cent of the European banks failed to meet their stress-testing targets. Another 20 per cent barely passed. If the weakest 10 per cent were allowed to fail, the rest could be strengthened by what the others left behind. The EU clings on to a failed banking model that is dragging the rest down. Had we fooled global money markets, on which we depend for funds, we might have saved our credibility. We fooled nobody and countries such as Ireland are paying the price so that Germany and France can stay in control.