“In the United Kingdom, two financial worlds do not defend the same political interests”

Ln September 24, as she was leaving 10 Downing Street, a reporter asked Liz Truss, silently and dressed in black: “Have they rejected ‘Trussonomics’ markets? »

Four weeks later, the rating downgrade of the United Kingdom’s outlook by the rating agencies Standard & Poor’s and Fitch, calls to order from the Bank of England, pension funds and the International Monetary Fund (IMF) -which judged british politics- “incredibly inconsistent” – seems to have forced Liz Truss will resign. Has finance beaten the British prime minister?

Still, “finances” would have to exist, which is not the case. Since the 1990s, there has been not one, but two finances in the UK.

No direct access to savings

The first “conventional” finance, It emerged in the 1970s. It flourished thanks to European integration and the financial “big bang” of Margaret Thatcher, and consisted of “financializing” large industrial companies and the pension system. It brings together the players linked to the stock and bond markets, in particular banks, insurance companies and investment banks.

Read the column: Article reserved for our subscribers “Behind the financial crisis in the United Kingdom, the shadow of a Brexit that did not keep its promises”

Dominant in British finance until the mid-2000s, this conventional finance has since been challenged by actors in a second financialisation movement.

The actors of this alternative financing accumulate capital in sectors of economic life that have so far escaped financialization, for example, small and medium-sized companies, through the development of private equity funds, real estate, through real estate funds and , more recently, certain social funds. and environmental activities, thanks to the development of impact investment funds.

Unlike the first financing, the actors of this second financing do not have direct access to savings: they manage assets from other places, raise funds from other professional investors and are responsible for investing them.

Uncovering bank bonds

These two finances do not have the same political interests. They raise capital differently and support competing political projects within the British Conservative Party and more broadly in Europe.

At the inauguration of Boris Johnson’s succession in July, major financial players broadly endorsed the neoliberal agenda of Rishi Sunak against Liz Truss. While Liz Truss proposed eliminating hats from bankers bonusWilliam Wright, founder of the neoliberal think tank New Financial, believed that the proposal made by Rishi Sunak when he was Boris Johnson’s finance minister was enough, because “any move by the UK to remove the bonus cap would be directly or indirectly met with a response from the European Union”.

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Vince Fernandez

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