The news dominating the headlines overnight was the announcement by 'Merkozy' referring to German Chancellor Angela Merkel and French President Nicolas Sarkozy. The way in which their names have been comically united reflects the way in which investors have viewed the announcement. Rather than stating firm actions to move forward, the leaders dabble around the idea of fiscal union and taxing financial transactions in an attempt to raise more revenues. Both ideas, despite the UK not being involved in the euro itself would affect our economy due to our association with the EU.
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