Europe bank chief warns on debt

BBC News reports:

Governments that have borrowed heavily to fight the economic crisis should not accumulate any more debt, the president of the European Central Bank has said.

So why has he said this?

“There is a moment where you cannot spend more and accumulate more debts. We are at that moment,” he said.

The problem will be that interest payments on the debt will make it impossible to maintain government spending and cause further economic decline as well as having implications for future generations.

EU slices up ‘ugly fruit’ rules

BBC reports on the scrapping by the EU of certain “rules” relating to fruit.

The European Commission has scrapped controversial rules that prevent oddly-sized or misshapen fruit and vegetables being sold in Europe.

The EU’s agriculture commissioner called it “a new dawn for the curvy cucumber and the knobbly carrot”.
Marketing standards for 26 types of produce were scrapped, in a drive to cut bureaucracy.

The rules were introduced to ensure common EU standards, but are regarded by critics as examples of Euro-madness.

These rules were part of the significance of international trade and the European dimension for UK businesses. The cutting of the rules should make it easier to sell fruit.

Key question though, is will consumers suffer as a result?

EU seeks key deal on fruit trade

BBC reports on how the EU is seeking a deal on the trade in tropical fruit.

Failure to agree on tropical fruit exports to the European Union would put a global trade deal at risk, the European Commission has warned.

These agreements on international trade can have an impact on how a business in the UK operates and their sales.

No more “99p” airfares says EU

The competitive environment of the budget airline is one in which they all try and maintain a competitive edge. Virtually all use advertising to lure us into buying cheap flights, and more often then not the price they quote does not include taxes, unavoidable charges, surcharges and fees.

This is how you get the infamous 99p flights.

The BBC reports on how the European Union want to stop this “false” advertising.

“You or I might see an advert for an airfare for 99p,” British MEP Robert Evans says. “But we’ll end up paying £99. Those ads are misleading – and it’s great this regulation will stop them.”

The new law agreed by members of the European Parliament means that all taxes, unavoidable charges, surcharges and fees will have to included in the advertised fares airlines offer.

The report is interesting and useful as it explains how the changing business environment is forcing budget airlines to change the way in which they market their cheap flights.