In These New Times

European Commission has serious concerns about British economy

October 15, 2009

Globally
Government officials are furious at recent reports from Brussels that the U.K. is seriously in danger of going bust. The reports put Britain on a high risk list of countries that are struggling to keep control of their national debt. The European Commission says that because of the U.K.’s increasing budget deficit they fear that it will not be able to pay for spending it has already committed to. One example given was pensions.
The new report ranks Britain alongside countries such as Greece, Romania and Latvia. Labour government officials have angrily countered that they do not believe the European Commission has the ability to put together accurate economic reports. However the Conservatives have been quick to respond by saying that the report highlights Gordon Brown’s inability to keep control of the spiraling debt situation in the U.K. and that the country now needs plans to be put into place to tackle the deficit in order to prevent further job losses and an economy that is out of control.
The European Commission predicts that only Ireland is likely to have a bigger budget deficit over the next year and that the U.K. will have to borrow in the region of £200 billion this year.
Labour says that the report is nonsense and outlines only what might happen if the U.K. government simply sat back and did nothing. They say that there are already measures in place to prevent such an outcome.