Leader: G20 Leaders Must Keep Economies Ticking Over While Cuts Take Hold
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Summary
LEADING economies in the Group of 20 industrial nations are at a critical turning point. The need for action to bear down on colossal levels of deficit and debt are clear. If action is not taken, markets will take fright and demand a risk premium before agreeing to fund government debt - driving up interest rates. But at the same time austerity budgets with big cutbacks in government spending make recovery that much more difficult.
And the deficit cutting also faces strong political headwinds. It is one thing for governments to announce tough-sounding austerity plans to bring deficits under control, but quite another to see these pushed into effect. Growing labour opposition is already evident in Spain, Portugal and Greece. And here in the UK, the Chancellor's austerity Budget last week with its tough blend of spending cuts, tax increases and welfare reduction is facing formidable opposition.See the full content of this document
Extract
Leader: G20 Leaders Must Keep Economies Ticking Over While Cuts Take Hold
The Budget has placed considerable political strain on the Lib Dem partners in the coalition. Even before the cuts are unveiled later this year, there is talk of rebel Lib Dem back-benchers seeking an alternative budget deal with Labour. An...
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