![\"Peter](\"http:\/\/jackrosslegal.com\/images\/stories\/staff\/peter-black.png\" "\\"Peter")
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Are you feeling down about the economic outlook for 2011? You could be excused for feeling a little nervous at the very least, because daily three economic threats are hammered out in the Press.<\/p>\n
The first \u2018cause celebre\u2019 for the doom-mongers is the Euro crisis.<\/strong><\/p>\n Of course, the latest casualty is Ireland which has fuelled fears about the future of the Euro. However, it\u2019s clear that the EU is committed to saving the Euro and it has already put measures in place to deal with Greece. So should we be living in fear? Well, as I look at it Ireland has been dealt with, and, whilst Spain and Portugal may be problems in the future, it seems to me as though the worst is behind us here.<\/p>\n So on to number 2 \u2014 the rise in VAT to 20%.<\/strong><\/p>\n Will the VAT rise damage the economy? I\u2019m not convinced. Interest rates have remained low and the country did not fall about when VAT rose from 15% to 17\u00bd% last January. More to the point, consumers do not seem to be rushing out to buy big ticket items with frenzy, rather consumer spending continues to be driven by the calendar rather than \u201cone off\u201d events, which often only serve to increase business rather than distort it. Consumers have short memories and still have money to spend because interest rates are low. I think this threat is also being overplayed.<\/p>\n