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Gordon Brown Resists EU Commission Criticism of Out of Control Debt


Tuesday, March 16th, 2010

British Prime Minister Gordon Brown lashed out at criticism from the EU Commission over the growing deficit in the U.K., which they are responding to much too slowly, according the the Commission.

A report due to be released on Wednesday was leaked early, which spoke of Britain falling behind in its obligation to adhere to EU rules to reduce its budget deficits to specific levels by 2015.

There was also an attack in the report on what is considered overly optimistic projections of growth by the British government, as it's based on assumptions the global economy will continue to grow, and evidently doesn't include what would happen if growth fails to materialize, which is a very real possibility and probability.

On the part of Brown, he claims the British government has in place "the most ambitious plan of any advanced country," which would cut the deficit in half in four years.

Of course this is part of what is being alluded to when pointing out what could be overly optimistic projections based on uncertain growth figures. In other words, it seems the EU is saying there are no contingency plans in place, and the projections could be politically motivated rather than based on reality.

Having a plan in place doesn't mean the plan is realistic and will work. The EU seemingly has its doubts as to the veracity of the plan itself, and not the alleged results which are based on factors which assume everything will go according to economic growth projections.

Conservatives responded quickly to the findings of the report, saying they concur with it, and that their "argument is backed by credit rating agencies, business leaders, international investors and now the European Commission. That is why we need a change of Government to restore confidence in our economy at home and abroad."



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: british debt , budget deficit , conservative party , european union , gordon brown