Great message – from a not so friendly messenger

The draft EU report on the UK economy is unfortunately all too accurate. It says the government does not plan sufficient measures to control the deficit, is running with growth forecasts that are too optimstic, and has failed to offer credible detail about the cuts it is planning to make. These are conclusions any self respecting UK governemnt would come to themselves without having to be told by Brussels. It is a nice irony that this most Europhile of government should in the end be undermined by their continental bureaucratic friends.

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9 Comments

  1. alan jutson
    Posted March 16, 2010 at 8:59 am | Permalink

    Its down to simple commonsense.

    You owe money, you need to pay it back as soon as possible, otherwise the debt grows.

    Anyone who has a credit card knows that.

    But perhaps Labour Ministers do not need, or use Credit Cards.

    • Stuart Fairney
      Posted March 16, 2010 at 9:14 pm | Permalink

      Moodys, the credit rating bureau and financial analysts, predict the UK will spend 7% of tax revenue servicing debt this year and between 9% and 12% in 2013

      If Moodys are right about 2013, this is the equivalent of a guy bringing home £20K a year paying £200 a month interest alone on his credit card, before he even makes a dent in the outstanding balance.

      This is the road to ruin as you say. The phrase I am thinking of rhymes with "clucking bell"

      • Stuart Fairney
        Posted March 17, 2010 at 2:01 pm | Permalink

        Just to develop that point, Moodys see the debt hitting 90% of GDP in 2013, so my £20K a year example has an outstanding balance of £18,000 on his credit card.

  2. Alan
    Posted March 16, 2010 at 9:20 am | Permalink

    And maybe an equally nice irony that Eurosceptic MPs should find support from their continental bureaucratic enemies?

    Actually Mr Brown is far from being Europhile. If he was we would have joined the euro and we would now be suffering totally different problems. Not more problems, or worse problems, just different ones.

    It is because Mr Brown and HM Treasury thought they could run the economy far better with sterling than if they were constrained by the euro that they defeated Mr Blair's wish to join the euro.

  3. Donna W
    Posted March 16, 2010 at 9:56 am | Permalink

    And Gordon Brown's response:

    They are wrong, wrong, wrong.

  4. Kevin Peat
    Posted March 16, 2010 at 11:03 am | Permalink

    How high could our interest rates go if we end up AA ?

  5. Stuart
    Posted March 16, 2010 at 2:51 pm | Permalink

    Ironic too that the EU hasn't had its accounts signed off for 14 years
    Pot and kettle

  6. Lindsay McDougall
    Posted March 16, 2010 at 3:12 pm | Permalink

    Should that not be 'fiends' rather than 'friends'?

    The EU advice is far from perfect. They think that the (more severe) action on the deficit can wait until 2011. No, it can't.

  7. JohnRS
    Posted March 16, 2010 at 6:44 pm | Permalink

    They'll take no notice though…Gordon has already saved the world so he knows whatever he wants to do "is right".

    I'd now like to see an all-out Conservative offensive to dissect Brown's numbers and use Europe to beat him over the head about his failings. I'm not sure I will though – there's not much passion in the Conservative party senior ranks.

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    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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