AltAusterity Digest #6 July 20-26, 2017

Preparing for fallout from Brexit, the Bank of America has chosen Dublin as its new site to service EU clients. While both Citigroup and Morgan Stanley have chosen Frankfurt as their preferred site, Bank of America is choosing Dublin in part for its attractive business climate. Bank of America currently has 700 staff in Dublin and 6,500 in the UK, 4,500 of which are based in London.

 Internal British Conservative Party research carried out before the snap-election revealed that citizens found austerity too one-sided and were concerned over cuts in schools, healthcare services and public services. This finding has emerged during a time of party division between those who want to continue the hard-line austerity agenda, and those who want to take a softer approach.

The IMF has identified several target areas of reform for the Euro Area to maintain its current economic “health.” Among the problem areas are high public debt, disparities in income and competitiveness between countries, budget neutrality and aging populations.

 A new OECD report credits South Africa for its economic progress over the last twenty years, but advises the BRIC bloc country to find new ways for growth. The report recommends opening key sectors to global competition, introducing a national minimum wage and streamlining the labour dispute system to promote flexibility. Given limited monetary and fiscal avenues, structural reforms are perceived to be the appropriate route.

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