3 November 2008

EC says recession will be hardest in UK.
 
EC economists are predicting the expected slowdown will hit Britain worse than other major European economies.

Figures showing unemployment rising to around 2.25 million in 2009 a rise from 5.3% in 2007 to 7.1% in 2009 as the UK economy continues to contract by at least 1% with little to no growth expected in 2010.

The UK is expected to break the EU stability & growth agreement by 2011 by its budget deficit rising to around 60% GDP.

The EU statistics prove what many have been saying for a number of years that UK government claims of prudent fiscal policy have been misleading.

The UK economy will be worse that Ireland, with only the minnows of Latvia & Estonia expected to suffer more in 2009.

The EU paints a bleak prospect of falling housing prices, living standards and further rises in unemployment.

This prediction makes no allowance for the excessive growth in the numbers of the public sector nor does it mention how the public sector & council workers pensions are to be funded. Given that political statistics are well known for painting a positive picture will the UK government take the bull by the horns and cancel the public sector pension & begin the serious & very necessary hard pruning of the public sector overload or will a further tax burden be applied to those whose jobs & businesses are already threatened to pander to the whims of the political classes & their minions.

With the present prime minister Gordon Brown previously being the chancellor that oversaw what is proving to be a disastrous tenure of some ten years, some may wonder if he spent more time with socialism by the back door, with his next trick offering the fate accompli of the Euro and the loss of the (£) Pound whilst the British public are punch drunk from his previous attempts at economic policy.