UK on Brussels' watchlist for "Macroeconomic Imbalance"

Discussion in 'Current Affairs, News and Analysis' started by whitecity, Apr 10, 2013.

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  1. European Commission: Macroeconomic Imbalance Procedure

  2. Wordsmith

    Wordsmith LE Book Reviewer

    Fine as it goes but it doesn't say that the biggest single factor in the problem was the debt binge Brown went on for 10 years. Strip his stupidity out of the equation and UK PLC would be in far better shape.

    Strip out the £10 billion net payments we make to the EU as well and our debt would come down still faster...

    • Like Like x 1

  3. shouldnt Brussels be more worried about the euro crisis? Incidentally, with out own government looking at all of this. The OECD, the IMF etc. should we not be raising the cost saving of shutting that office down and save not only the british taxpayer, but other European taxpayers some cash?

    So tell me if I'm wrong on this, but i thought we we're in the shit because people are not spending their cash preferring to pay down debts.

    however a quick flick through indicates that all nations seem to have the problem. Incidentally the phrase 'needs monitoring' normally equates to 'we'd like a bigger budget please to empire build.'
  4. Wordsmith

    Wordsmith LE Book Reviewer

    The EU has an excessive debt procedure.

    EU Excessive deficit procedure - European Commission

    If the EU had been more vocal about countries breaking those limits in the first place, most countries would not be as deep in the shit as they now are.

    Here's the interesting bit.

    So the EU has the legal power to impose financial sanctions on countries with excessive deficits (Slovenia and Spain among others). It'll be interesting to see what happens if it tries to impose sanctions on Spain - which is big enough to tell the EU to go form and multiply if it chooses to do so.

    And here's another interesting link. The EU has been telling Greece it's been running an excessive deficit since 2004.

    Excessive Deficit Procedure - Greece - European Commission

    Greece joined in 2001. So 4 years before the Lehman crisis, Greece was being flagged up as having excessive deficits.

    There's none so blind as won't see.

  5. You're wrong.
  6. Who's going to break it to Wordsmith that this is about Household (Private) debt and not Government debt or the deficit?

    Or at least explain the difference.
  7. Given the number of targets closer to home the European Commission could have chose but they pretty much nailed the flaws of the UK PLC's debt dependency culture. It has become a moral cancer running through the whole way the place works, well shirks and puts its consumer baubles on the credit card, and even thinks.

    There's a simple reason for not highlighting the deficit: Osborne is already obsessing on it and like the one in the US it is properly seen as a secondary symptomatic problem as far more urgent problems present themselves and multiply. Having the UK bumping along in a multi-dip recession for what could be a decade, or worse tilting into full on depression is immediate and has the potential to greatly deepen the hole Brown left in public books after his mainly post Lehman spending binge. That the alram bells are not ringing in No 11 at this point is putting the countries credit line and longterm future at risk.

    At this stage this is pretty obvious, simply blaming the Brown-Blair nexus and their rosy eyed Thatcherism-lite or even more desperately the EU is looking very lame.

    It's not just the carping bureaucrats of Brussels, the supposedly like minded Septic policy elite are increasingly perplexed by the wrongheadedness of the EU's richer countries including the UK in it's fit of penny wise piety though they rightly see Germany as the leading proponent of dummkopf economics.
  8. You seem to suggest that a large Keynesian inducement is required.

    I disagree.

    I would argue that the UK economy (and those of much of the 'western' world) are not in depression but merely taking a downward adjustment to an equilibrium position after years are 'induced' inbalance and disequilibrium. Perpetuating disequilibrium will not work. Current gloom and doom is the very proof of that.

    It's not a case of the UK not spending enough, it's a case of it not spending it correctly. Simply adding to the debt mountain may bleep the growth data upwards in the short term, but then what? Just look at Brown's post-Lehman 'miracle' stimulus that simply created a utterly false dawn.
    • Like Like x 2
  9. Wordsmith

    Wordsmith LE Book Reviewer

    What part of:

    can't you understand? (my bold)

    (Page 2 and 3 of the EU's own document).

  10. Both your examples are a comments generally on the state of EU members - not necessarily the UK.

    Lack of understanding back in your court.

    Public debt is not mentionned in the section on the UK - which, I presume, is why you cherry-picked some quotes from elsewhere...

    Unless of course, you're now assuming the public debt problems in other EU member states is a result of the Brown spending binge you grandstand above. Again, somewhat contradictory to your underlying belief that Brussels is the root of all evil.