European Commission calls on UK to speed up cuts
Share
The European Commission has warned the Government’s plans to cut its budget deficit are not ambitious enough.
In a report to be fully published tomorrow, the EC urges the UK to cut its deficit faster.
The report says: “The fiscal strategy in the convergence programme is not sufficiently ambitious and needs to be significantly reinforced.
“A credible timeframe for restoring public finances to a sustainable position requires additional fiscal tightening measures beyond those currently planned.”
The report suggests the size of the Government’s stake in UK banks adds to concerns about whether borrowing can be scaled back.
The report was commissioned by the EC due to the UK breaching EU stability rules.
The Government currently plans to half the budget deficit in four years and warns that faster cuts could make the economic recovery falter.
The issue is a key dividing line between Labour and the Conservatives in the run-up to the general election with the Tories calls for faster cuts.
Liberal Democrat Shadow Chancellor Vince Cable says: “The Government’s position on the size of the structural deficit and the speed at which it must be cut is the minimum. We must not cut Government spending too soon and risk plunging a fragile recovery back into recession.
“Cuts without economic growth will not deal with the deficit. To be credible all parties must not only show when they will tackle the deficit, but also what they will cut.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (2)
Julian Stevens | 16 Mar 2010 10:52 am
Were I in Crash Gordon's position, I'd wave two fingers towards Brussels and tell them to mind their own business.
What practical benefits to the countries of Europe has the EC delivered anyway? I think we'd be a whole lot better off rowing our own boat instead of allowing ourselves to be pushed around and dictated to by a bunch of unelected and overpaid Eurocrats.
And what happened to Labour's 1997 manifesto promise to give the UK electorate a referendum on Europe? That turned out to be about as empty as most of the promises on the FSA's website.
Unsuitable or offensive? Report this comment
Brooney | 16 Mar 2010 2:23 pm
Exactly right Julian.
How many billions would that save us instead of being sucked into the biggest black hole on the planet.
Unsuitable or offensive? Report this comment