So much for 'prudence' and the 'golden rule'
Straight from EUPravda:
"The United Kingdom's budgetary position has deteriorated over the past year and is expected to rise above the 3% of GDP reference value in the financial year ending in March 2009. In line with the Treaty, the Commission has therefore initiated the excessive deficit procedure" said Joaquín Almunia, Economic and Monetary Affairs Commissioner.
...
The planned figure for 2008/09 provides prima facie evidence of the existence of an excessive deficit in the UK.
...
Having examined the budgetary developments as well as the short- and medium-term economic prospects and policy action taken by the UK government, the Commission concludes that the planned excess of the deficit over the reference value cannot be considered exceptional or temporary and suggests that the UK is not respecting the deficit criterion set in the Treaty.
Since 2002/03, the United Kingdom has not built a sufficient "safety margin" for fiscal policy to operate freely and supportively during normal economic downturns without significant risk of breaching the reference value. Fiscal policy was expansionary in 2007/08, in spite of robust growth, leading to a deficit estimated to have increased slightly from 2.6% of GDP in 2006/07 to 2.9% of GDP in 2007/08.
"The United Kingdom's budgetary position has deteriorated over the past year and is expected to rise above the 3% of GDP reference value in the financial year ending in March 2009. In line with the Treaty, the Commission has therefore initiated the excessive deficit procedure" said Joaquín Almunia, Economic and Monetary Affairs Commissioner.
...
The planned figure for 2008/09 provides prima facie evidence of the existence of an excessive deficit in the UK.
...
Having examined the budgetary developments as well as the short- and medium-term economic prospects and policy action taken by the UK government, the Commission concludes that the planned excess of the deficit over the reference value cannot be considered exceptional or temporary and suggests that the UK is not respecting the deficit criterion set in the Treaty.
Since 2002/03, the United Kingdom has not built a sufficient "safety margin" for fiscal policy to operate freely and supportively during normal economic downturns without significant risk of breaching the reference value. Fiscal policy was expansionary in 2007/08, in spite of robust growth, leading to a deficit estimated to have increased slightly from 2.6% of GDP in 2006/07 to 2.9% of GDP in 2007/08.
Whilst general government gross debt is projected to remain below the 60% of GDP reference value set in the EU Treaty, debt has been on a rising trend since 2001 to reach an estimated 43.8% of GDP last year.
Labels: EU fun and games, Sane economics, The Worst Prime Minister Since Goderich
This entry was posted
on Wednesday, June 11, 2008 at 1:41 pm.
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With all the recent revelations about MEPs troughing activities, I would imagine that the EU budget has likewise deteriorated somewhat. I wonder if they will impose suitable sanctions on themselves?
The party of prudence.. whatever happened to her?
Nomad - Doubtless quite a challenge.
Bill - I think she is quite the Miss Havisham these days.
Imagine how worse the position would be had we joined the euro!!!
This is the outfit whose auditors have refused to sign off on the books for around a decade.
Decade and a half surely?
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