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UK’s Budget Deficit ‘To Surpass Greece’

From the UK’s Guardian:

UK budget deficit ‘to surpass Greece’s as worst in EU’

European commission’s spring forecasts put UK budget deficit this year at 12% of GDP – the highest in the European Union and worse than Treasury estimates

Katie Allen
Wednesday 5 May 2010

Whoever wins the election must make sorting out the public finances the top priority, the European commission warned on the eve of the poll, as it predicted the British budget deficit would swell this year to become the biggest in the European Union, overtaking even Greece.

The commission’s spring economic forecasts put the UK deficit for this calendar year at 12% of GDP, the highest of all 27 EU nations and worse than the Treasury’s own forecasts.

The country’s budget shortfall was the third largest in the EU last year but will overtake both Greece and Ireland this year, according to the forecasts. Greece’s measures to tackle its public finances problems are projected to cut its deficit to 9.3% of GDP.

Worries about Britain’s public finances – in their worst state since the end of the second world war – continue to unnerve financial markets and analysts are divided over whether a hung parliament will have the clout to rapidly reduce the deficit

In financial year terms, the commission’s forecasts are for a worse deficit than predicted by Alistair Darling at his March budget. In 2010/11 the commission puts the deficit at 11.5% of GDP, compared with Darling’s forecast for an 11.1% ratio of public sector net borrowing – the gap between tax and spending – to GDP.

The EU’s executive did double its forecast for British growth this year to 1.2% from 0.6%, in line with a March budget forecast for 1-1.5%. But in 2011 it warns growth will only pick up to 2.1%, significantly below a Treasury forecast of 3-3.5%…

London-based economists at BNP Paribas, have warned that the City is grossly underestimating the chance of a downgrade from the UK’s current top-notch AAA status

That, they say, could cost the taxpayer at least £10bn [$15 billion] because of higher interest costs on government borrowing.

Will there always be an England?

Stay tuned.

This article was posted by Steve on Thursday, May 6th, 2010. Comments are currently closed.

7 Responses to “UK’s Budget Deficit ‘To Surpass Greece’”

  1. NoNeoCommies says:

    I hope and believe that the British will not reach the depths that the union thugs in Greece have.
    Burning down a bank, killing 3 innocent workers, and then announcing you will strike one more day in respect for the victims of your violence is beyond the pale.

  2. Mithrandir says:

    Yet with all this turmoil, government irresponsibility & lack of any self-control with spending, people losing jobs and homes, the economy on the fritz world-wide…….

    IS IT TIME NOW that liberals will finally admit that government is the cancer to all of mankind’s problems? The corruption, the childishness, the petty in-fighting, the payoffs, the cover-ups, the back-scratching……

    NAW, it’s all redirecting blame onto someone else

    It’s the filthy rich bankers, it’s Bush, it oil companies, it’s greedy car executives, it’s CEOs! Gov’t has NOTHING to do with it……not a shred.

  3. Right of the People says:

    Europe is rapidly becoming the third world. The EU, which was the brain child of the French and Germans who thought that they could use it to take over the rest of Europe without another war, has created more problems than it fixed. I guess they didn’t anticipate by taking responsibility for the rest of the countries that they would be inheriting so many problems with all the nanny states over there.

    Mithrandir,

    Spot on, it’s never the liberals or their favorite organ the government that is to blame. It’s always someone or something that is successful that they can’t stand because neither they nor the government has ever been successful and they hate that. It’s really a form of jealousy.

    Weak people despise strong successful people and liberals are weak people, very weak people. They have no moral compass or standards, the ends always justify the means no matter what as long as they win. Ethics are a foreign concept to them as is honor and duty.

    They want to be helped but at the same time they hate those that are helping them. Liberals are big into self-loathing, that is what drives their hate. I’ve never met a happy liberal, even when they’re gloating over winning like they did in ’08, they still were whining about something at the same time.

  4. Reality Bytes says:

    Look who’s talking! With a 1.5T deficit, the US is pushing 10%.

    In the horserace to oblivion I have to say….”And here comes Uncle Sam on the outside”.

  5. proreason says:

    There is no “blame” for Greece, and there will be none for the other countries that are lined up to fall in the next few years.

    What’s happening is what the new aristocracy WANTS to happen. They aren’t blundering in the least. The serfs will suffer, but the Masters won’t suffer at all. Indeed, they will continue to live in unimaginable luxury while they shut down every comfort for the peons.

    Remember this. It took about 10,000 years of civilization for serfs to rise to the point where they (we) have freedom of action. The blink in history has now lasted 230 years.

    As has been proven over and over again, when the boot is on the neck with sufficient force, there can be no rebellion. The only rebellion that ever resulted in freedom for the people happened here and it only happened because the Masters were months away. The impact of that rebellion reached about a billion people eventually. The Masters have noticed, and they don’t like it. They were in disarray for a century. The rollback started in 1867 with the publication of Das Kapital, the sleight of hand that tricks the peasants back into their hovels. Now that the mouthpieces of the world have been bought by the Masters, the rollback is on the brink of completion. Then the Masters can exterminate the Muslims. If that takes a few nukes, why would the bunkered Masters give a damn about a few hundred million deaths in a desert thousands of miles away?

    We won’t get to 250 years of freedom unless the people of THIS country stand up in November. All the chips are on the table right now.

    • Steve says:

      Fine insights, PR.

      The history of the modern world, from say about 1844 to now, is one of a series of reactionary movements against ‘modernity’ — or what we think of as freedom and liberty — which is fueled by capitalism.

      Socialism, Communism, Nazism — and now, the Islamic movement — have all tried to stop capitalism and undo our freedoms.

      And they have come all too close, over and over again.

  6. proreason says:

    Looks like Soros and GS might be bored or might need a few more billions for their mistresses.

    The action in the markets today and this week was uncannily like Sept – Nov 2008. Of course this is just one week and that was 3 months, but….

    Need I remind you that GS has been at the center of every bubble for the last century and Soros has nearly bankrupted three countries….the UK in 90’s, Indonesia in the late 90’s and the US in 2008. Looks like they have Greece in the cross-hairs.

    Soros is plain evil. GS is just greedy beyond imagination.

    Other than the Moron, if you had to pick somebody as the anti-christ, it would certainly be the Nazi’s little poster-child, George Soros.


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