EU Commision will call on UK to cut budget deficit

UltimateMale

According to Sky this morning the European Commission will call on Britain to do more to cut the budget deficit. The document warns that Britian is not on track to cut it's deficit down below 3% by 2014-15.

With the Daily Express gives the Tories an 11-point lead and ICM/Guardian figures put the party nine points ahead. Is this the nail in the coffin for Gordon Brown ?

ei.sdraob

i can see the headlines already

"How dare the EU tell UK what to do"

"Von Rumpy tells Von Brownie to go on a diet"

:P

who the fug

What can they do if the UK does not comply?

Theta

who the fug wrote: »

What can they do if the UK does not comply?

Not invite them to the annual EU box social?

Fratton Fred

Its an odd position in the UK at the moment. Both parties desperately want to cut spending, but telling people you want to increase unemployment weeks before an election isn't particularly a good idea. The Tories were streets ahead in the polls until 1m civil servants realised Dave (as he is now known since his cute and cuddly documentary with Sir Trevor) wants to put 20% of them out of work.

The biggest concern at the moment is a hung parliament as neither party will be able to get their fiscal policies through easily (that is one of the reasons why sterling has dropped again).

As for the EU, didn't they also criticise France and Germany's policies as well?

UltimateMale

Fratton Fred wrote: »

Its an odd position in the UK at the moment. Both parties desperately want to cut spending, but telling people you want to increase unemployment weeks before an election isn't particularly a good idea. The Tories were streets ahead in the polls until 1m civil servants realised Dave (as he is now known since his cute and cuddly documentary with Sir Trevor) wants to put 20% of them out of work.

The biggest concern at the moment is a hung parliament as neither party will be able to get their fiscal policies through easily (that is one of the reasons why sterling has dropped again).

As for the EU, didn't they also criticise France and Germany's policies as well?

Well they did criticise other country's but Britain's tax structure will make it hard to raise fresh revenue quickly enough to restore confidence in UK public finances. Needless to say, some say that will cause a further run on sterling with incalculable damage to Britain's recovery ?

UltimateMale

who the fug wrote: »

What can they do if the UK does not comply?

They could loose their AAA rating for borrowing for a start.

sirromo

Brown to EU commission - Get Lost!

UltimateMale

sirromo wrote: »

Brown to EU commission - Get Lost!

And then EU, IMF, international banks/investors say to Brown - Get Lost ?

Brown's inaction could be throwing Britain into the mother of all trouble.

who the fug

UltimateMale wrote: »

And then EU, IMF, international banks/investors say to Brown - Get Lost ?

Brown's inaction could be throwing Britain into the mother of all trouble.

If Brown is seen kowtow to Brussels , the UK tells him to get lost in May

Fratton Fred

UltimateMale wrote: »

They could loose their AAA rating for borrowing for a start.

The UK's credit rating has nothing to do with the EU. In fact, from what I gather, the EU are pretty anti what they see as American credit ratings affecting their member states repayments.

UltimateMale

who the fug wrote: »

If Brown is seen kowtow to Brussels , the UK tells him to get lost in May

True, Brown is caught in a right dilemma.

Fratton Fred

who the fug wrote: »

If Brown is seen kowtow to Brussels , the UK tells him to get lost in May

It doesn't matter what Brown does, the UK is going to tell him to get lost.

kmick

About time it seems the PIGS will now be re-named PIGSE's.

who the fug

kmick wrote: »

About time it seems the PIGS will now be re-named PIGSE's.

Vat is E

View

who the fug wrote: »

What can they do if the UK does not comply?

Take them to the ECJ for breeching their own opt out protocol! In it the UK has stated that it will not run "excessive deficits". I am sure the lawyers would have fun arguing about that.

silverharp

Fratton Fred wrote: »

The UK's credit rating has nothing to do with the EU. In fact, from what I gather, the EU are pretty anti what they see as American credit ratings affecting their member states repayments.

ultimately the bond market will take its own view of how much it wants to lend the UK and at what interest rate. The ratings agency model is flawed and probably quite corrupt so if anything they are under reporting risks. The fact that the EU is anti the current "soft" ratings just goes to show how much they prefer to distract attention away from their unsustainable fiscal situation

Fratton Fred

Silverharp2 wrote: »

ultimately the bond market will take its own view of how much it wants to lend the UK and at what interest rate. The raings agency model is flawed and probably quite corrupt so if anything they are under reporting risks. The fact that the EU is anti the current "soft" rattings just goes to show how much they prefer to distract attention away from their unsustainable fiscal situation

There was a very good Blog on the BBC site about this, the "Stephanomics" blogs are very informative.

SeanW

who the fug wrote: »

Vat is E

I think he means England. Which isn't entirely correct. What is correct however is that the PIGS (Portugaul, Ireland, Greece, Spain) is rapidly becoming PIIGSJUSUK (Portugal, Ireland, Italy, Greece, Spain, Japan, United States, United Kingdom).

Like the old Chinese curse, "May you live in interesting times" I think that's where we're headed.

Fratton Fred

SeanW wrote: »

I think he means England. Which isn't entirely correct. What is correct however is that the PIGS (Portugaul, Ireland, Greece, Spain) is rapidly becoming PIIGSJUSUK (Portugal, Ireland, Italy, Greece, Spain, Japan, United States, United Kingdom).

I think the really worrying thing is that Germany and France could well get sucked into that list as well.