British economy needs to find a balance - By: Allan Michael Taylor

British central bank - the Bank of England has decided to short-term benchmark interest rate at 0.5%, while the lowest level in history, has been maintained as long as 19 months. This shows that the British economy may have turned up, but the power of the Bank of England monetary policy in charge of their situation is still worried about the fragile recovery, did not dare to monetary tightening.

Some of the newly released data indicate that the current UK economic recovery faltered. The third quarter, both business and consumer confidence index dropped, housing prices, service activity index, purchasing managers index decline Deng Jun, a substantial increase in trade deficit, difficulties in personal and corporate lending is expected to slow economic growth this quarter to 0.7%. From the whole, following last year's fourth quarter and the first quarter of this year grew by 0.4% and 0.3%, the British economy in the second quarter rose unexpectedly by 1.2%, but this is transient and temporary phenomenon, because the main building industry, rapid growth and the seasonal increase in business inventories. According to Reuters on a recent survey of 66 economists showed, Youyu by the government and large-scale reduction of public Kaizhi Abroad of the largest export market, the United States is the Qi of Xuqiupiruo the effect this year, economic growth Jiang Hui Xia Bannian slowdown in the UK expected annual growth rate of only 1.6%, 1.9% next year, lower than the EU average.

Nevertheless, the British Government is still insisting on the economy "strong medicine." Cameron entered the Prime Minister 10 Downing Street this year, shortly after, he launched an ambitious program of emergency budget, vowed to be huge in the next five years, elimination of the government budget deficit to zero. One is cutting its way to the second is open source. Saving is drastic cuts in public spending, in addition to international aid and health of these two things, such as education, culture, scientific research, foreign affairs, defense and social welfare can not be spared all, every government department to reduce by as much as 20% to 40 % range. The open source is to increase the value-added tax, bank tax and capital gains tax. It is worth noting that the elimination of the deficit target to achieve an average reduction of 32 billion pounds each year as many as 80% rely on support to achieve the reduction, the impact on the lives of ordinary people is self-evident.

Cameron government had the determination to actually compelling. By the international financial crisis, severe shock, the second quarter of 2008, the British economy began to fall into the worst recession since World War II until the end of the third quarter of last year, lasted for 18 months. Government budget deficit and steep inflation, the last financial year reached a record 156 billion pounds, equivalent to 11% of the gross domestic product, far more than the EU, "Stability and Growth Pact" to the 3% limit. The total national debt has nearly 900 billion pounds, accounting for 60% of GDP over. If this trend continues, the risk of large, there may even repeat the Greek sovereign debt crises in the past. This is why the coalition government to the budget deficit forced the real thing Cameron's main motivation.

Right now, all government departments are working intensively to develop their own implementation of cost-cutting program. According to the plan, Finance Minister Osborne will be held on October 20 the government formally announced a specific "cut public spending assessment" report. This agent strong bitter taste of "strong medicine" naturally became the focus of public attention immediately, because it not only a question of Britain's future economic development, but also the vital interests of each person are closely related. It has been revealed on a number of cuts is quite controversial, particularly trade unions have expressed strong dissatisfaction and opposition, and even there are different voices within the Conservative Party. Some trade unions have indicated that it plans to launch a series of massive strikes and demonstrations to pressure the Government. Several opposition candidates have frequently accused the Labor Party leader, even within the ruling Conservative Party and Liberal Democratic Party, some Members considered the drug too fast, the fragile economic recovery unbearable, there may even trigger social unrest, they also cautioned the government to reduce Enough is enough intensity. In the economic sector, the experts also mixed views, supporters of many, but there are also many skeptics.

However, the Government has faced up to Cameron, and "unwavering." Osborne Minister of Finance and other government officials have recently made a speech or four interviews with the media, every effort to persuade people to "severe" reduction program "Do not panic," because it is the panacea to save the UK economy is conducive to sustainable economic development. In our view, long-short pain than pain, or is "doomed." Furthermore, elimination of budget deficits is Cameron "New Deal" of the core is the construction of the "big society," the only way. However, the drastic elimination of the budget deficit can be implemented smoothly, without hurting the current slow and fragile economic recovery, this is a Cameron government will no doubt be the biggest challenge and test. It can draw the line between the two quasi-ideal balance point, people are watching.

Unswervingly adhere to control the fiscal deficit in Greece

Madrid, 13 September newspaper Athens News Xinhua: Greek Prime Minister Papandreou, 12, the northern city of Thessaloniki in Greece held a press conference that the Greek government as long as the continued implementation of the European Union and the International Monetary Fund reached a series of austerity policy, you can achieve the goal of controlling the fiscal deficit. He stressed that the Greek government will not consider the restructuring of sovereign debt, which for the Greek economy, reputation and future will be a "disaster."

A day earlier, Papandreou in Thessaloniki International Fair, said in a speech, the Greek government will be in medicine, energy, transportation, energy, electricity and other areas related reforms, including the Greek railway company would suffer serious losses, including restructuring state-owned enterprises. Greek government will take measures to protect the unemployed and other disadvantaged groups of society, this cost about 35 billion euros will come from the EU-related programs. In addition, Papandreou also said that the Government will simplify procedures in order to promote business investment, green development and research and innovation. He admitted that the Government is working to fight corruption, "We have to show the world that Greece is a credible country, the Greek people have decided to make a change."

According to reports, the European Union, the International Monetary Fund and the European Central Bank's group of experts has arrived in Athens on the 13th, they will start on the financial situation of Greece, in particular the Government of Greece for 110 billion euros in the implementation of the commitments of international aid the situation Check. This round of test results will determine whether Greece can get in December successfully the amount of 90 billion euros in the third batch of loans.

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