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 Pimco said current policies are untenable in the absence of fiscal union and will lead to a break-up of the euro?

Andrew Bosomworth, head of Pimco's portfolio management in Europe, said current policies are untenable in the absence of fiscal union and will lead to a break-up of the euro.

"Greece, Ireland and Portugal cannot get back on their feet without either their own currency or large transfer payments," he told German newspaper Die Welt.

He said these countries could rejoin EMU "after an appropriate debt restructuring", adding that devaluation would let them export their way back to health.

Mr Bosomworth said EU leaders were too quick to congratulate themselves on saving the euro last week with a deal for a permanent bail-out fund from 2013.

"The euro crisis is not over by a long shot. Market tensions will continue into 2011. The mechanism comes far too late," he said.

The bond fund argues that the EU strategy of forcing heavily indebted countries to undergo draconian fiscal austerity without offsetting stimulus is unworkable.

The austerity policies are stifling the growth needed to stabilise debt levels.

"Can countries inside a fixed exchange-rate system like the euro grow and tighten budget policy at the same time? I don't think so. It didn't work in Argentina," Mr Bosomworth said.

Pimco also gave warning that the bond vigilantes have lost faith in the policy and are trying to liquidate their holdings of peripheral EMU faster than the European Central Bank (ECB) can buy the debt, causing a relentless rise in yields, and a vicious circle.

Despite this, the ECB said on Monday that it had cut purchases of government debt last week, settling €603m (￡509m), down from €2.68bn a week earlier. The withering comments from the world's top investor in EMU sovereign debt is a blow for Portugal and Spain. Both nations are hoping bond spreads will start to narrow before they face a funding crunch in the first quarter of next year.

Jacques Cailloux, chief Europe economist at RBS, agreed that last week's European summit had failed to grasp the nettle.

"None of the policy responses put in place in Europe since the start of the crisis provides a credible backstop to prevent further contagion," Mr Cailloux said.

"We remain most concerned about an escalation of the sovereign debt crisis hitting larger economies in the euro area. Markets continue to underestimate the potential disruption via financial transmission channels that such an event could trigger."

Meanwhile, Spain must cut harder and deeper to rein in its finances, the OECD has warned, calling for an overhaul of its labour laws and employment practices. Madrid is already in the midst of harsh austerity measures, but the influential Paris-based think-tank said more must be done. The Spanish economy should be able to shrink its budget deficit from 11pc of GDP last year to the 6pc target next year, the OECD believes.

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Vince Cable company Secretary believes intra-company transfer visas must not be included in the ceiling of immigration. Photo: AFP

However, a report of the Committee of the Interior published yesterday revealed intra-company transfers represent some 60pc of migrants qualifiés.En visas 2009, migrant workers 22,030 joined the United Kingdom to Highway of ICT compared to only 8,555 foreign workers entered into the General system of visa.

According to the Association of professionals representing the recruiters, staffing companies, to the exclusion of the intra-company Visa Cap make little difference to the overall number of migrant workers entering the United Kingdom.

Marilyn Davidson, Director of the Organization, said: "intra-company transfers are excluded, immigration largely ceiling will be an empty political gesture does little to limit the influx of non - EU IT workers to the United Kingdom".

She added that the reduction of intra-company transfers would increase the UK employment. "Most workers from United Kingdom on intra-company transfers have generic skills are readily available in this country."We are certain that a large proportion of these roles, if advertised in the UK market rates could be filled by the resident, labour market," she says.

Intra-company transfers road is heavily used by it and telecommunications, which accounted for all visa transfer for the first quarter of 2009 66pc sector.

However, employers were long accused of abusing the system by introducing the United Kingdom to perform the same tasks as domestic workers, but for a very small sum foreign workers.

IT giant Hewlett Packard was forced to defend last month after that unite the Union has brought foreign workers to replace British workers are dismissed .the ' company has denied claims.

However, Ms. Davidson said: "" we have complete transparency on the remuneration and the conditions of workers entering by the current system TIC.Le United Kingdom terms is much too opaque and is open to abuse."

She added: "Intra-company transfers are used because it's easy and saves on .the employer employment costs do not want to hire UK citizens or EU .the costs ' use of intra-company transfers in the sector often has little to do with the lack of skills of the workforce UK."

The Interior Committee has recommended that the intra-company transfers for a period of two years or less should be excluded from the CAP, which will enter into force April next, to reduce the number of migrant workers entering the United Kingdom "tens of thousands."

But his report said: "make any reduction [significant]" non - EU economic immigration, a ceiling would include intra-company transfers. ""

Vince Secretary business cable has been locked in dispute over the matter with Mr. Cameron urges that companies should be allowed to continue to hire migrant workers using the intra-company transfer route.

Some Conservative MEPs will be criticized however, Mr. Cameron for labour lib sweetening conservatives more stringent measures.

Your vision: is this the ceiling of immigration "a political gesture?

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