Stock Market News
EU warns Britain over deficit
16-03-2010 08:12
| Add To Google +1 | Tweet |
Prime minister Gordon Brown will be told by the European Commission to take more action to reduce Britain's soaring debt burden, according to early drafts of Brussels' latest assessment of the UK's finances.
The European Commission reports comes just a week before the pre-election Budget, which will be dominated by the size of the UK's debts and how they are going to be cut.
"The overall conclusion is that 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 Commission says.
Its main concern is official growth forecasts, which may be too optimistic, while it also highlights the size of the UK government's support to the banks.
Kate Barker, a member of the Bank of England Monetary Policy Committee, indicated some doubts over the strength of the UK economy in an interview over the weekend.
"It is possible we will have a quarter when GDP falls, but I don't think it will be a double dip. I would be surprised if we go back to recession but I think recovery will be bumpy and fragile," Barker said in an interview with the Western Morning News.
The government has promised to halve the current £178bn annual deficit over four years.
The European Commission reports comes just a week before the pre-election Budget, which will be dominated by the size of the UK's debts and how they are going to be cut.
"The overall conclusion is that 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 Commission says.
Its main concern is official growth forecasts, which may be too optimistic, while it also highlights the size of the UK government's support to the banks.
Kate Barker, a member of the Bank of England Monetary Policy Committee, indicated some doubts over the strength of the UK economy in an interview over the weekend.
"It is possible we will have a quarter when GDP falls, but I don't think it will be a double dip. I would be surprised if we go back to recession but I think recovery will be bumpy and fragile," Barker said in an interview with the Western Morning News.
The government has promised to halve the current £178bn annual deficit over four years.
| Related share prices |
|---|
Stock News is provided by Digital Look Corporate Solutions from Sharecast news. Please read the terms and conditions of useage of this data. Republication or redistribution of content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Digital Look Ltd.
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- UK 100 Shares
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways share price
- Centrica share price
- Tesco share price
- National Grid share price
- RBS share price
- GSK share price
- Marks and Spencer
- Rolls Royce share price
- Banco Santander price
- Rio Tinto share price
- Amec Share price
- Corac share price
- Lookers share price
- Telecom plus share price
- Kier share price
- Punch taverns price
- Blinkx share price
- Tan share price
- Yell share price
- Rsa share price
- Pendragon share price
- Logica share price
- Bat share price
- Sky share price
- Kingfisher share price
- Dragon Oil share price
- Desire Petroleum share price
- RRL share price
- BPC share price
- VOG share price
- SAR share price


Prices

