Nicolas Sarkozy, the French president, is not impressed by Gordon Brown’s measures to tackle the UK financial crisis. Mr. Sarkozy told a domestic television audience Thursday that he will not follow the British Prime Minister in cutting VAT, claiming that it had ‘absolutely no impact.’ Sarkozy not impressed by Brown.
To me it seems like a slightly desperate act to lower the VAT by 2.5%, as it is reportedly expected to be in Alistair Darling the British chancellors pre-budget speech. In my mind it is just going to reinforce the idea that buying worthless crap is really the meaning of life.
But, at least this is a stimulus package that will reach the consumer directly and not have to filter through banks as cheaper lending. Will desperation save us all?