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European Business News 96-09-20
From: The European Business News Server at <http://www.ebn.co.uk/>
Page last updated September 20 9:50 CET
CONTENTS
[01] Sweden calls for 2.6% GDP ratio
[02] EU states prepare for tense meeting
[03] UK suspends cattle cull
[04] CBI reports UK poised for recovery
[05] Clarke warns UK of euro folly
[06] US budget nears resolution
[07] Viag forecasts slight rise in profits
[01] Sweden calls for 2.6% GDP ratio
Sweden's 1997 budget calls for a deficit of 2.6% GDP, making Sweden one of
the few countries that can comply with the Mastricht criteria for a single
currency. The government's plans also call for a balanced budget in 1998,
with budget surpluses thereafter. But with high unemployment and a rigid
labour market, economists wonder if the success can be sustained.
[02] EU states prepare for tense meeting
The tensions between the EU member states are expected to show themselves
at the meeting of the European finance ministers this weekend. European
markets are hoping for some tangible results from Dublin and ministers are
aiming to firm up a more concrete path to long-term fiscal stability in
Europe.The tensions between the EU member states are expected to show
themselves at the meeting of the European finance ministers this
weekend.
European markets are hoping for some tangible results from Dublin and
ministers are aiming to firm up a more concrete path to long-term fiscal
stability in Europe.
[03] UK suspends cattle cull
Britain has decided to suspend its plans to cull its cattle herds citing
new evidence that suggests BSE will die out naturally within five years.
The decision to suspend the cull was taken at a two hour cabinet meeting
chaired by Prime Minister John Major and is certain to upset other
countries in the 15 nation EU which agreed to phase out the ban on British
beef if Britain culled 140,000 cattle. The EU has said it will study the
new research. A statement based on an evaluation of Briain's new position
will be made at 1200 CET.
[04] CBI reports UK poised for recovery
The UK's manufactuing sector is poised for recovery according to the
Confederation of British Industry's monthly trends survey for
September.
Despite current sluggishness in manufacturing, the CBI concludes that the
outlook is for non-inflationary growth as stocks of finished goods are run
down. The main area of weakness continues to be exports - a net balance of
11% of firms surveyed said that their export order books are below
normal.
[05] Clarke warns UK of euro folly
The British chancellor of the exchequer, Kenneth Clarke, has told the Daily
Telegraph newspaper that it would be complete folly for the UK to rule out
joining a European single currency.
The chancellor said that the UK could not take a sensible decision
whether to join EMU until discussions reached a late stage. The chancellor
also stated that he has no intention of risking the UK's economic recovery
with a giveaway budget.
[06] US budget nears resolution
The White House's Chief of Staff, Leon Panetta, has said that he expects a
quick resolution to US budget negotiations.
His assesment was endorsed by House speaker Newt Gingrich and senate
majority leader, Trent Lott. This cross party unity is in marked contrast
to the bitter divisions over the 1996 budget that shut down the government
for several weeks.
[07] Viag forecasts slight rise in profits
The German diversified industrial group, Viag, has forecast that its
operating profit for 1996 will be slightly above the 2.1bn DM reported in
1995.
However, company chairman, Georg Obermeier, cautioned that Viag's results
will depend to a certain extent on the direction of the German economy.
Obermeier also added that the group is giving serious consideration to the
prospects of a US listing.
From the European Business News (EBN) Server at http://www.ebn.co.uk/
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