British P.M. David Cameron reckons euro zone crises have a ‘chilling effect over’ country

British P.M. David Cameron reckons euro zone crises have a ‘chilling effect over’ country

The British Prime Minister David Cameron says that the euro zone debt crises causing a chilling effect to the economies of the many countries in the zone.

Cameron said in a speech to CBI business lobby, "Paralysis in the euro zone is causing alarm in the markets and having a chilling effect on economies in many countries – including our own.”

Cameron has revealed a bailout plan of 400 Million Pounds for the house building sector. The plan is to revive the British economy to normal as it is declines towards the recession.

The plan is an initial step from the series of measures that will be announced by the government. The euro zone crises are causing many countries to take immediate actions to avoid bankruptcy.

"When the nightly news is about rising interest rates in Europe and uncertainty about the future, it is not surprising that that affects business and consumer confidence,” he added “I am absolutely clear about the right answer for the UK economy. It can
be summed up in one sentence. We need to deal with our debts and go for growth."

Chancellor George Osborne will address his autumn statement to the parliament on November 29, 2011. It will take place along the downgrading of growth forecast from the Office of Budget Responsibility.

The coalition had made a cut on deficit of 11 percent in the budget that peaked than national output. It has also limited the funds for investment projects.

The funding amount is dedicated to the house building sector to boost its slump that has been worse as in the 1920s.

The age of the initial buyer of the property has been raised. The younger buyers face high prices that shoot the mortgage out their reach.

Cameron and his deputy Nick Clegg wrote in the foreword to a new housing strategy document for England, "The housing market is one of the biggest victims of the credit crunch: lenders won’t lend, so builders can’t build and buyers can’t buy.”

The plan is to favour the projects that are ‘shovel ready’ and can start the construction by July 2012. With the help of funds possibly 16,000 homes can be built that will provide jobs to 32,000 workers.

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Posted by Samer Ahmed on Nov 21 2011. Filed under World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry