Date: 18th June 2012 at 11:40am
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When Luca Di Montezemolo, president of Ferrari, calls for Formula one to implement a cost cutting scheme, the world of Motorsport listens.

Ferrari, a team of limitless funds, have only Red Bull and Mercedes for financial competition at the top of sport, but now with the current Eurozone crisis, Formula One needs to take immediate action and the cost cutting discussions aren?t going away any time soon.

From next season it is likely that the sport will gave cost control rules embedded into the sport for the first time in its rich history, focusing mainly on the control over car design costs.

Despite the recent economic catastrophe which has cast its shadow over Europe for the past four years, the twelve teams are concerned about the costs of the sport during a global economic crisis.

Details of the impending agreement, due to be announced on June 30th, are still unclear but are likely to impose a restriction on the way teams spend their money despite them already working to a Resource Restriction Agreement. However controversy is never far away in Formula One, and naturally teams are falling out over accusations that others are breaching its terms.

Ferrari may have been hit hard by the disastrous economic situation in both Italy and Spain, home of the teams main sponsor, Santander Bank. But many believe this to be a ploy from the cunning President to stop 2014?s controversial engine changes, or even to prove his political worth.

The governing body of the sport, the FIA, are pushing hard for new 1.6 litre v6 turbo charged engines, taking the place of the current 2.4 v8?s. These engines will bizarrely cost more money, making you wonder why the FIA are going ahead with them. There not going to make the slightest difference to the green effect of the sport.

If you take into account the amount of travel the sport demands taking all their equipment around the world, the matter of the engines is a drop in the ocean. The 2014 package will be more expensive, much to the dismay of supremo Bernie Ecclestone who has labelled the change as a ?PR? stunt.

As far as cost cutting goes, the teams are unanimous behind the decision to include it from now on. As we enter times of economic uncertainties, specifically in Europe, Formula One needs to secure its long term future by taking sensible measures that won?t damage the high levels of sport, while maintaining a sustainable future. All will be revealed on June 30th.