We’ve just sent in our submission to the European Commission’s public consultation on its trade policy. The consultation covers everything under the trade sun, and so does our long submission.

It’s not exactly weekend reading, so I’ll pick out one of the more juicy issues (and award a prize to anyone brave/sad enough to read the whole thing): the EU’s new investment powers under the Lisbon treaty. Read more »

   Filed under: Europe, Globalisation, Human rights, Investment, Multinationals, Trade | 1 Comment »

As I’ve been leading the TUC’s development of science policy for a few years, it would be remiss of me to let today pass without wishing the best of luck to the many physicists working at the Large Hadron Collider at CERN, on the French-Swiss border. Today is the day that scientists at CERN will attempt to collide beams of protons at high energy. The aim is to recreate conditions that occured microseconds after the Big Bang, when the earth was formed. Read more »

   Filed under: Investment, Science | 3 Comments »

Deemed irrelevant prior to the financial crisis, the IMF was given enormous powers by the G20 to resolve it. But in light of statements it made earlier this week, trade unions are wondering whether world leaders have put a fox in charge of the hen house.

At the end of April, the IMF will give an interim report to G20 Finance Ministers on their efforts to build “strong, sustainable and balanced growth” and outline options on how the Banks should help pay for the mess they got us in. In a worrying omen of what their conclusions might be John Lipsky, the second in charge at the IMF, said earlier this week, that to drive growth, “…liberalization of goods and labor markets and the removal of tax distortions… should be pursued vigorously”. As the global trade union movement’s statement of priorities for the meeting makes clear, the world is crying out for millions of green and decent jobs, not the cutting of taxes and slashing of workers’ rights. Read more »

   Filed under: Financial crisis, G20, Globalisation, Human rights, International development, Investment, Labour market, Transactions tax, Unemployment, Vulnerable workers | 1 Comment »

There are two interesting corporate governance developments hidden in the detail of the budget report. Mandatory disclosure by institutional investors of how they cast their votes at company AGMs has been a long-standing TUC aim that we have campaigned for over many years. We have edged closer to achieving this today, as the budget report (chapter 3, page 40) says that the Government will consider using its power taken in the Companies Act 2006 to require public disclosure of voting records for institutional investors. Read more »

   Filed under: Budget, Corporate governance, Investment | Comments Off

I’m rather disappointed by the immediate reaction to the Budget from the CBI. They do seem to have missed the target again.

In his response, Richard Lambert, CBI Director General, has called this a “clever, political Budget”, expressed anxiety about the repaying of the deficit and welcomed support for business as “modest but helpful”. He then adds, intriguingly, “However, it is the fiscal decisions over the next twelve months that will really determine the UK’s economic future.”

Surely that’s too simplistic? Read more »

   Filed under: Budget, Economics, Investment, Tax | 1 Comment »

In today’s Budget, the Government took a further step towards supporting strategic industrial sectors. Many of  those sectors will be ‘green’, both because there is a huge future in those sectors and because it is simply the right thing to do.

Central to this development is the £2bn Green Investment Bank, operating on a commercial basis  and involving public and private sector capital. The GIB’s mandate will be to invest in the low carbon sector, considering new energy and transport projects in particular, and focusing initially on offshore wind generation.

Read more »

   Filed under: Budget, Environment, Investment, Manufacturing | 1 Comment »

As political attention turns towards next week’s Budget, I was happy to be asked to comment on the needs of industry for Left Foot Forward. Regular readers will know of the TUC’s recent call for a French style strategic investment fund, with a £5bn budget, taking long term stakes in strategic companies. However, access to finance for companies, especially green tech companies or those that will improve the nation’s infrastructure, must be a priority as we move out of recession. I hope the Chancellor takes the opportunity to address this vital issue.

   Filed under: Budget, Investment | Comments Off

It is a sign of the pressure being felt at the heart of the eurozone that France and Germany, the main drivers of the European project, have had such a public spat in the last 24 hours. Yet the subject of that spat is a subject that has exercised many an economist as the economic downturn has progressed.

To recap, France has argued that years of moderate wage rises in Germany has raised the competitiveness of the latter country at the expense of its neighbours. Christine Lagarde, the French finance minister, has told the Financial Times that Germany should raise domestic consumption, helping weaker eurozone nations to boost exports and shore up their finances. Germany has responded by arguing that its success is based on strong companies and has suggested that other countries would be better off building their own industrial sectors in the German fashion than crying foul about German success.

Who is right? Well, both. Read more »

   Filed under: Economics, Europe, Financial crisis, Globalisation, Investment, Manufacturing | Comments Off

   Filed under: Investment | 1 Comment »

“One Creme Egg please.”

“That’ll be 50p, sonny.”

“I don’t have any cash.”

“Well, I’m afraid you kind of need to…”

“What if I paid you £5 later?” Read more »

   Filed under: Investment | 2 Comments »

The Cadbury/Kraft deal repeats all the same mistakes that generated the downsides of the last twenty years:

1. It’s a deal done to enrich shareholders rather than for the benefits of the company;

2. It’s a deal recommended to shareholders by people with a massive vested interest in the deal going ahead (notably the Board and a mass of consultants);

3. It’s a deal that relies heavily on borrowed money to fund the buyout;

4. It’s a deal that allows the supposedly free operation of the market and its benefits to trump other issues such as national identity, job security, and quality of produce even though we know that the mergers and acquisitions have a poor record of improving company performance;

5. And it’s a deal which goes through because it is largely supported by short-term investors after a quick buck than those with a long-term interest in the company.

Maximum discomfort now needs to be felt by Kraft and by those who will benefit from this deal. Only through public and media pressure might we be able to stop another era of pointless and damaging mergers and acquisitions.

The vested interest that drive this activity deserves to be as big a scandal as the bank bonuses.

   Filed under: Investment | 3 Comments »

Industrialists have some reason to cheer after today’s publication of the Pre-Budget Report.

The PBR contained an additional £200m for the Strategic Investment Fund, the body set up in this year’s Budget to support the ‘New Industry, New Jobs’ initiative. Read more »

   Filed under: Investment, Manufacturing, Pre-Budget Report | Comments Off