In 1969, the UK saw Lulu representing it in the Eurovision song contest with that well known piece, “Boom Bang-a-Bang”. As contestants gear up for tonight’s annual music extravaganza in Dusseldorf, Germany, the Boom Bang-a-Bang could now be a term best associated with comparing the UK and EU Economies.
In April, figures from the Office for National Statistics suggested that growth in the UK in the first quarter of the year was just 0.5%, which served only to cancel out the 0.5% fall in output in the previous quarter. And predictions by the Governor of the Bank of England , Mervyn Kings now suggest that annual growth will by 2.9% in 2 years’ time, compared with the 3.1% predicted just three months ago, at the same time he predicted inflation growing to 5% later this year.
Compare this with the recent news that growth across the Eurozone for the first quarter was 0.8%, fuelled by surprisingly good growth figures of 1.5% in Germany and 1% in France. Indeed, even bailed-out, debt laden Greece, constantly highlighted by Chancellor George Osborne as the country that the UK could become if it followed Labour’s policies saw higher growth than the UK at 0.8%.
Unsurprisingly, this has all be too much of an open goal for Labour, with Shadow Chancellor, Ed Balls declaring:
“Britain’s economy has gone from the economic fast lane to the slow lane. As our economy has flatlined with zero growth over the last six months, countries like France, Belgium, the Netherlands have overtaken us while Germany is powering ahead.
“All these major economies were hit by the global financial crisis and so have a big challenge to get their deficit down and they also face the same high world oil prices as us. But while they are now growing strongly, our recovery has been choked off.”
On Eurovision night therefore, the opposition’s message seems pretty clear – continental Europe is seeing the boom and the bang-a-bang is being felt in the UK.
For more on this ludicrous Eurovision metaphor to describe the European economy, have a look a BBC Chief Economic Correspondent, Hugh Pym’s report on last night’s Ten O’clock News.




