With the news that a second bailout deal has been agreed for Greece there was a sigh of relief from many in the eurozone with the euro immediately rising. With the economies of the eurozone so closely intertwined all eyes have been, and remain, on Greece. However, the debt crisis is far from over and we are not out of the woods yet.

So while this is good news for the eurozone, just how is this latest bailout going to turn things around? Yes Greece will now avoid bankruptcy next month, but what the country needs is investment and a long term plan for economic growth. At present the money is being used to pay banks and not to build the economy. It's no wonder the Greek people are protesting when they are seeing huge budget cuts all around them but no prospect of substantial change or growth anytime soon. None of the money coming into the country is coming to them, but is going to the banks who are themselves to blame for much of the crisis in the first place.

As we begin 2012, the economic outlook is somewhat mixed depending on which think tank, economist or business owner you talk to. If you are Robert Peston, however, the world is a very gloomy place and we are all doomed!

 

We can’t get away from the fact there is a level of uncertainty with the economy – just look at the eurozone. That saga will play into the hands of the Euro sceptics who are gleefully saying "I told you so", but as just over 50% of UK trade is with the EU, the future of the Euro and the EU as a whole will have a direct impact on business here at home.

 

Looking at the current worldwide economy and the various impacts it can have on the UK is another breakfast meeting all together. So let’s look at the situation we find ourselves in at the moment.

 

Just when you think the end is in sight or at least an action plan to sort out the eurozone financial crisis, something else happens to send the markets, businesses and people in general into a panic... again. Last week there was a sigh of relief of sorts when the debt crisis plan was agreed, only for Greece to turn around and announce they were going to put it to a public vote. So, we have to wait for the referendum, thought to be taking place on 4th December. However, the debate has now moved on again with conflict within the Greek cabinet over whether the referendum should be a question of euro membership or simply about the baill out plan.

Should Greece stay in the Euro? Should it have been allowed in in the first place? What will happen if it leaves? There are no clear answers to these questions, but what is clear is that there's going to be a rocky road ahead - whatever the outcome.

While regulation is a good thing when it comes to protecting all areas of our lives - including businesses, employers and employees - the 21,000 plus rules that currently govern out lives are actually becoming a burden that is hurting businesses and as a result damaging the economy.

The current government has, therefore, set out to cut some of the red tape we are confronted by on a daily basis, and so members of the public, businesses and community organisations are being invited to have their say on regulations. This is where the Red Tape Challenge website comes in.

It's a very simple, but effective concept. Every few weeks a new set of regulations, affecting one specific sector or industry, will open on the website for anyone to comment on. Then, when a theme has closed, Ministers will have three months to explain why a regulation is still required, or it will be scrapped.

Tags: challenge, enforcement, environment, health & safety, rules, regulations, red tape, Red Tape Challenge, economy, business, government, policy, business link, customers, legislation

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Capita's Interim Management Statement

© 25-05-2011 by Paul Smalley

It appears that despite the UK economy facing difficulties, the outsourcing market is steadily becoming stronger and more active after a quiet 2009 and 2010. According to Capita’s recently published interim management statement summing up the first 4 months of 2011, the company has performed solidly due to a clear and strong ‘appetite’ for outsourcing.

The areas in which increased demand has been most significant are pensions and local government markets. The reason for an increased demand in the government area is reported to be due to the Government seeking to deliver public services at most cost effective price. With the ever increasing cost of employing staff and employment regulations, many small and medium sized businesses are beginning to recognise the value of outsourcing. The use of an outsourcing model provides business with access to a skilled workforce who can fulfil the tasks at hand efficiently, but also in a more cost effective manner.

Tags: public services, outsouce, Capita, economy, outsourcing, outsourced support, paul smalley, government, pension, outsourced admin

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