What now for the EU ?

[DRIFT]

I was always suspicious that something like that was used by Ford (when they owned the component parts of - the now - Jaguar Land Rover); and by GM (when they owned Opel/Vauxhall).

After the Americans sold-off the(ir) respective European operations, it wasn't too long before the new owners began reporting profits . . . . Opel/Vauxhall within only months of being controlled/owned by PSA.

[/DRIFT]
TBH I don’t think so. When Ford bought Jaguar, the bought a basket case that was making cars the way it had in the 60s. Landrover was similar when BMW bought it in 94. Both received big investment from their parents. When BMW started to give up, Ford bought LR from them in reasonable order. But both still needed big investments, which Ford made. They bailed when they pulled the plug on PAG and Tata bought a great base into which to invest. It wasn’t really until that happened that it started making good money.

Vauxhall-Opel is, I think, different. GMs business model was to flog cars cheap and make money on the finance. TBH they ran their overseas subsidiaries very badly. Tavares has a track record of turning around failing brands, although it remains to be seen whether Vauxhall-Opel making money is sustainable.

In conclusion, before you can start booking profits anywhere, you have to make a profit.
 
It’s perfectly normal for a holding company to finance a subsidiary using debt. And it’s perfectly normal for the holding company to charge interest on that debt to account for the cost of capital.
Pedant hat on:

It's a tax/accounting obligation to charge interest on the capital on an "arm's length" basis.

Pedant hat off.
 
No, EU MS are stuck with massive amounts of debt, not the EU. The legal obligation rests with the individual MS. Those same MS currently have legal recourse, although it hasn't been used, to challenge overspending by the EU commission.

That's why the current move for the EU to issue its own debt, in its own name, is so divisive. It would a) make individual MS liable for EU commission debt, where all debt is underwritten by all MS.....which is another way of saying that the ultimate obligor of EU commission debt would be the MS least likely to default (read Germany), and b) it would make it almost impossible to leave the EU, as the exit package would include paying out an MS share of EU commission obligations so underwritten.
in other words a booby trapped monetary union.
 
Duck a l'orange? Interestingly back in the day when the Angus steak house was the height of sophistication duck a l'orange and boeuf bourguignon were the two most popular 'foreign' dishes ordered in restaurants as they
Been going on for a couple of years now.
It;s a much argued point at work but I still maintain that I can taste two identical products off one of our production lines and tell you which has British chicken in it and which doesn't

Evidently lots of our customers consider it valid because they increasingly insist on British.

You can have cheap and alright or you can have more expensive but good.
There is a steady shift toward the latter.
Having spent much of the last 8 weeks digging, sieving, sewing seeds and learning about the wonders of composting and 'well rotted manure' , I have (re) learned the value of quality - tools in this case.

And having exactly the right tool for the job.

So I went to these people
Burgon & Ball | Leading Garden Tools & Agricultural Supplies
who have been making tools - in Sheffield - for about 250 years.

Yes - it costs twice as much as Made in China BUT it is exactly the right tool for the job, it comes with a Lifetime Guarantee ( remember them ?) it kept a British taxpayer employed and it didnt come ashore contaminated with Chinese Plague.
 
If Corbyn dies soon we could float him off the French shore with a bunch of remain documents in a briefcase.
No chance of *ahem* expediting things, I suppose...
 

Cyberhacker

Old-Salt
Sorry mate
You are forgiven :)

When Gordon Brown reneged on the pledge of a referendum on the EU Constitution (which sought to consolidate the existing treaties, plus some amendments), on the grounds that the Lisbon Treaty was not a Constitution, he was guilty of weasel-wordism of the worst kind.

That the Lisbon Treaty included all the changes, albeit without the consolidation, meant the effect was the same.

For me, that was the moment I ceased being a Euro-agnostic and became profoundly Euro-sceptic
 

Chef

LE
You are forgiven :)

When Gordon Brown reneged on the pledge of a referendum on the EU Constitution (which sought to consolidate the existing treaties, plus some amendments), on the grounds that the Lisbon Treaty was not a Constitution, he was guilty of weasel-wordism of the worst kind.

That the Lisbon Treaty included all the changes, albeit without the consolidation, meant the effect was the same.

For me, that was the moment I ceased being a Euro-agnostic and became profoundly Euro-sceptic
Wasn't that the treaty Mr Brown sneaked into sign after the official signing? I recall one of our PMs doing that, which typifies the whole mentality of eurocrats and europhiles.

'Of course we'll let you have your say. Makes no difference as we're doing it anyway'.
 
You are forgiven :)
When Gordon Brown reneged on the pledge of a referendum on the EU Constitution (which sought to consolidate the existing treaties, plus some amendments), on the grounds that the Lisbon Treaty was not a Constitution, he was guilty of weasel-wordism of the worst kind.
That the Lisbon Treaty included all the changes, albeit without the consolidation, meant the effect was the same.
For me, that was the moment I ceased being a Euro-agnostic and became profoundly Euro-sceptic
I came back from a biking trip to northern Denmark in late '92 and stopped off in Maastricht overnight.
Talking to people in the bars etc they were all asking why the British people and press were making such a kerfuffle over such a little treaty.
I had to confess to them that I didn't know why, but I think back then we were definitely not being given the full facts.
Especially facts about the loss of sovereignty and the true cost of it all.
A vote back then would possibly have gone John Major's way and all of this since would be academic.
Being nearly 30 years older now and in possession of the full facts, my view is that he should never have touched it with a bargepole.
This article from '93 tells me all that I needed to know back then.

 
11 hits out of 113 rounds fired?
Should've gone to Specsavers.
I think quite a few may have been warning shots that they were allowed to do back then.
A very close thing and tense situation methinks, but nobody died, least of all the policeman who was cut off and being stoned.
Wait until QMV really comes into play after the current kerfuffle is over, we ain't seen nothing yet.
 
Wait until QMV really comes into play after the current kerfuffle is over, we ain't seen nothing yet.
All the poor European countries will be voting to take the rich countries money
 

Helm

MIA
Moderator
Book Reviewer
The EU cannot afford Brexit and it can also not afford an FTA with the UK which reduces its trade surplus. Financially, it is on the ropes.
How can this be? The grate branes have been telling us since 2016 we're all going to be paupers if we leave and will have to eat dirt. While the EU will watch while eating caviar and swilling fine wines.
 

New Posts

Latest Threads

Top