EU warns UKs debt is unsustainable

Discussion in 'The Intelligence Cell' started by Blogg, Oct 15, 2009.

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  1. All together now: Labour Investment, Tory cuts.....

    Oh wait, that was last month.


    "A damning report by the European Commission on the long-term prospects for Britain's public finances warns that Britain is at "high risk" of running unsustainable debts – implying that the nation will be unable to service its debts and that only default or high inflation can relieve the burden.


    The Commission's 2009 Sustainability Report says that Britain will suffer a "sustainability gap" of 12.4 per cent of GDP – meaning tax rises or spending cuts amounting to close to £200bn a year.

    The Commission says the black hole in the British public finances is far higher than the EU average of 6.5 per cent. It implies that, as Britain's population ages and makes increasing demands on the NHS and state pensions, governments will have to make even more painful decisions on public services and taxation in the decades ahead than so far envisaged. The Chancellor, Alistair Darling, currently plans a tightening of 6.4 per cent of GDP by 2017. The Commission's time horizon stretches to the middle of the century.

    The existing crisis in Britain's public finances will be exacerbated by long-term population and social trends, says the Commission: "To put public finances on a sustainable path, the United Kingdom should improve its structural primary balance in a durable manner by 12.4 per cent of GDP. In principle, this adjustment could take place via both an increase in revenues and cuts in expenditure. Alternatively, the social protection system would have to be reformed to decelerate the projected increase in age-related expenditure."

    Simply to stabilise the current levels of public debt will require an adjustment of 8.8 per cent of GDP. "The dramatic size of the structural primary deficit poses an additional risk... The UK appears to be at high risk with regard to the long-term sustainability of public finances. Although the contribution of an ageing population is not among the most problematic, the UK's budgetary position poses severe risks to the sustainability of public finances."

    Ignominiously for ministers, Britain is placed in the same sin bin of fiscal profligacy as the Czech Republic, Cyprus, Ireland, Greece, Latvia, Lithuania and Romania. The Commission says that by next year four EU members – France, Hungary, Portugal and Britain – will have debts between 80 per cent and 100 per cent of GDP."


    http://www.independent.co.uk/news/business/news/eu-warns-uks-debt-is-unsustainable-1802774.html
     
  2. £200 billion spending cuts sounds fairly sensible to me.
    Tax rises aren't going to work (especially on that scale) simply because there isn't enough money being earned in the country to sustain that kind of taxation.
    Nice to know the scale of the mess we are in isn't it?
     
  3. Triffic. I suppose this means that we should be in line for a reduction in the massive amount of money we give to the EU, then?

    Thought not.
     
  4. The scale of cuts required will be staggering but there is simply so much waste and bonkers spending.

    One small example: this morning I get an email encouraging me to apply for a low carbon buildings grant because I made an enquiry about getting a new wood burning stove a couple of weeks back.

    Seems I can get lower of £1500 or 30% or cost as a grant. For a wood burning stove. Sorry but sh1t like that has to stop
     
  5. Alsacien

    Alsacien LE Moderator

    The net contribution is only 0.4% GDP, so even a full refund would make no difference.

    But think on the bright side. When you are poorer than Eastern Poland, the EU will there to help you out with a subsistance farming grant :D
     
  6. Chuck in the cost of the criminals we cant deport due to the EU.

    Chuck in the cost of the unemployed who have been thrown on the dole while EU scabs undercut them.

    Chuck in the damage to the fishing industry

    Chuck in the costs of pen pushers and non jobs

    Chuck in the cost of MEPs and staff.

    Chuck in the cost of the endemic corruption.

    Chuck in the cost of the Human Rights lawyers

    Chuck in the waste of the CAP

    Think of Blair as your unelected president.

    It isnt a price worth paying.
     
  7. Does that mean we're being let off of paying contributions for the next few years? No, thought not...
     
  8. Alsacien

    Alsacien LE Moderator

    Actually the UK is on course to become a net receiver - not something you should really wish for though is it... :oops:
     
  9. EU warns 'Bears unhygienic in arboreal settings'. Glad they pointed this one out, seeing as I have plainly don't have more than 2 braincells to rub together.
     
  10. No it isn't... EU lies.

    Besides, we are owed hundreds of BILLIONS from previous contributions.

    When we invariably leave the EU... we should get every penny back we have poured into the crrupt trough.
     
  11. But they have said so and in an offical publication of the EU.

    Next stop: Downrating
     
  12. Alsacien

    Alsacien LE Moderator

    Either post a sensible fact or two or stop dribbling.
    Your senseless crayoning over every thread has become very dull.......especially as you repeatedly prove you have absolutely no idea about the subject matter.

    I will now await your typically banal response, before someone more knowledgeable than me turns up with some facts, and you disappear with your tail between your legs like you have done on every other similar thread.... :yawn:
     
  13. Facts? You produce no facts merely lies and propoganda. But you crack on defending the indefensible mate.

    You merely make yourself look like an Ashie or Sven.

    Your patronising attitude is typical of the Europhiles, we poor Nationalists are clearly not intelligent enough to understand the benefits that sacrificing our freedoms and democracy to a bloated and corrput dictatorship will bring us.

    Believe it or not, but you are FAR from the moral high ground on this one but self delusion is also another characteristic of the Europhile.

    Unlike you, I believe that the people have an inaniable right to choose who makes the laws on their behalf.

    Guess I'm a little funny like that.

    Terribly unintelligent of me to think that way though.
     
  14. Alsacien

    Alsacien LE Moderator

    Thankyou for proving my point, you can go now. :D
     
  15. We always bump up against how the figures are calculated; I say it's a total of €103B total contribution from 2007-13 (http://en.wikipedia.org/wiki/Budget_of_the_European_Union for one easily accessed source), you say a net of only 0.4% of GDP. Both of course are true.

    I grant you that €103B over 5 years wouldn't eliminate Brown's debt, but it would pay for those aircraft carriers, helicopters and nuclear subs we need, enable enough tax cuts (no more VAT anyone?) to get the economy moving and pay off a big chunk of the debt. Even the net deficit to the UK of €57B is worth having.