Europe decline could be worse than expected, Brussels admits

Europe's social model is unable to tackle the modern challenges of globalization, and has left Europe with gigantic problems. A high public debt, huge unfunded pension liabilities, a rapidly ageing population, 19 million unemployed, and an overall youth unemployment rate of 18%.

Persistent financial turmoil, the fallout from a deepening US downturn and resurgent oil prices are set to inflict a more severe slowdown on the European economy than previously expected, Brussels said yesterday.

Economists said that despite Brussels cutting its previous forecast of 2.2 per cent growth, its view remained too rosy. Independent analysts expect eurozone growth to drop to 1.6 per cent or less this year. STORY

Price of Food rising much faster in Belgium than elswhere

The price of food in Belgium is rising faster than in our neighbouring countries. This has been confirmed by a study commissioned by the ING bank. The researchers question the profit margins of the wholesale and retail sectors.
The prices in Belgium have risen three times faster over the last year than the average. The cost of processed food has increased by 8.5% last year. The European average was an increase of 5.5%.

Belgium National bank publishes report

I always love the politicians here in Belgium. Their Standard line is "if we say there is no problem...there is no problem", never mind reality.....

Belgium's two biggest trades unions have reaffirmed their position on the need to increase spending power.
Belgium's two biggest trades unions have reaffirmed their position on the need to increase spending power. The unions did so in a reaction to the National Bank of Belgium's annual report that was published today. The Governor of the National Bank Guy Quaden said that people should not exaggerate the impact that the rise in inflation has had on their standard of living.
Mr Quaden added that most Belgians have a high enough income to be able to cope with the price rises. NO NEED TO DISCUSS THIS ISSUE I GUESS!

However, the unions' reaction to the Governor's words has been one of scepticism. The Christian trades union ACV says that it is not clear about what the Mr Quaden actually means. The union's Chairman's Luc Cortebeeck told the VRT that wealth needs to be more shared out more fairly "There is currently a group of people that have seen their living standard constantly improve.""However, there is an ever-growing group of people that are having to manage with less disposable income."


Meanwhile, the socialist trades union said that the National Bank should have taken a harsher stance on the deduction of notional interest. The tax incentive to companies (both Belgian and foreign) is an interest deduction for risk capital and was introduced in 2004. On Wednesday the socialist trades union called the scrapping of what it described as "fiscal gifts" to companies.

Got an Economic problem?...blame the US

The volume of sales in the Belgian retail sector in December of last year fell by 7% in comparison with a year ago.
The fall is the largest in a decade and a half. Higher food and energy prices are blamed for Belgians' reluctance to dip into their wallet.

Belgians also say they are worried about a recession in the US. Luc Aben of the bankers' Van Lanschot says there is a real problem with spending power, but there are also psychological factors, Belgians are influenced by the talk of economic gloom in the media.

The Economists have started to mimick the global warming modus operandi.

If you have any kind of bad weather, blame it on global warming. If you have an economic problem, blame it on the United States.

Last week poor figures were posted for the January sales. Retail sales fell across the European Union last year, but the reduction is largest in Belgium. Spending by the public at large has a big impact on the economy as a whole. The tumbling figures suggest that the European economic slow down is worse than anticipated.