The European Commission will tell Britain to do more to cut its ballooning budget deficit in the medium term, saying the country's fiscal programme lacks ambition, a draft from the EU executive showed on Monday. The draft, obtained by Reuters two days before publication, said the programme failed to guarantee Britain would meet a European Union deadline of 2014-15 for cutting the deficit to below the bloc's cap of 3 percent of economic output. "The overall conclusion is that the fiscal strategy in the convergence programme is not sufficiently ambitious and needs to be significantly reinforced," said the draft, expected to be approved by the Commission on Wednesday. "A credible timeframe for restoring public finances to a sustainable position requires additional fiscal tightening measures beyond those currently planned," it said.
The draft, obtained by Reuters two days before publication, said the programme failed to guarantee Britain would meet a European Union deadline of 2014-15 for cutting the deficit to below the bloc's cap of 3 percent of economic output.
"The overall conclusion is that the fiscal strategy in the convergence programme is not sufficiently ambitious and needs to be significantly reinforced," said the draft, expected to be approved by the Commission on Wednesday.
"A credible timeframe for restoring public finances to a sustainable position requires additional fiscal tightening measures beyond those currently planned," it said.
The government's plans for reducing the budget deficit are not ambitious enough - according to a European Commission report to be published later this week.The report warns that the UK is not on course to cut its deficit in line with EU rules by a deadline of 2015. Those rules say deficits must be below 3% of GDP, but the UK's is expected to hit £178bn - 12.6% of GDP - this year. Ministers insist their plans to halve the deficit in four years are less likely to halt the economic recovery. Those plans, announced in the pre-Budget report, would see the UK's deficit reduced to 4.7% by 2015 - missing the EU target outlined by finance ministers last year.
The government's plans for reducing the budget deficit are not ambitious enough - according to a European Commission report to be published later this week.
The report warns that the UK is not on course to cut its deficit in line with EU rules by a deadline of 2015.
Those rules say deficits must be below 3% of GDP, but the UK's is expected to hit £178bn - 12.6% of GDP - this year.
Ministers insist their plans to halve the deficit in four years are less likely to halt the economic recovery.
Those plans, announced in the pre-Budget report, would see the UK's deficit reduced to 4.7% by 2015 - missing the EU target outlined by finance ministers last year.
Europe is Doomed and I'm not a scaremongering right-winger. We're doomed because we're incapable of thinking past right-wing frames - our institutions are rotten to the core with neo-liberalism.
Sad but true. The brainless should not be in banking -- Willem Buiter
our institutions are rotten to the core with neo-liberalism.
i just heard trichet mouthing opaque platitudes on euro news. the operative, repetitive phrase 'structural reforms' was chanted as my gut clenched in rhythm.
not that structures don't need reforming, but... ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
