View more on these topics

EU commissioner McCreevy warns on Govt debt

EU commissioner for the internal market and services Charlie McCreevy has sounded a stark warning on Government borrowing.

Speaking at the Association of European Journalists’ lunch earlier in the week, McCreevy warned specifically about the Irish situation, arguing that “people shouldn’t kid themselves that past spending levels are sustainable” but there was also a wider message about Government borrowing.

He said: “Diminishing tax inflows cannot be replaced with ever rising levels of public sector borrowing in order to sustain spending levels that are simply not sustainable indefinitely.

“Investor appetite for government debt is not limitless and the more we borrow the more the premium for new debt we will have to pay.

“We need to guard against this – otherwise we will be propelled into a downward spiral where rising borrowing costs have to be met by even deeper spending cuts:

“The reality is that over coming years the current levels of public spending will have to be pruned and pruned hard.”

Recommended

HSBC promises huge mortgage investment

HSBC has predicted it could increase its gross mortgage market share by more than 10 per cent in 2009 as it pledges to up its UK mortgage budget by 20 per cent.

Back to basics

“Low risk” is a fairly fundamental term used everyday in the financial sector. Advisers have to know what it means and apply it to their clients’ investment needs. The consequences for advisers who misinterpret or misrepresent the term can be dire.

Trusts and Taxations

Take a look at the trusts and trustee taxation video – The definition and classification of trusts. Once you’ve viewed the boxset, visit our Test Centre to test your learning and get your CPD certificate. View here

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment