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Ash4781

Euro Nations Told 'cut Deficits'

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http://news.bbc.co.uk/1/hi/business/8021395.stm

The European Union has ordered France, Spain, Ireland and Greece to reduce their budget deficits - the difference between their spending and tax take. Countries that use the euro are supposed to restrict deficits to 3% of their gross domestic product (GDP). But bank bailouts and falling tax revenues have taken their toll and seen budgets fall out of its range. The UK was also urged to cut its deficit but as it has not adopted the euro it does not face EU sanctions. 'Combined effects'The UK expects its deficit will balloon to 11.9% of GDP next year before falling to 5.5% by 2012/13. Last week, Chancellor Alistair Darling predicted he would have to borrow £175bn in 2009. "The combined effects of the economic downturn and of stimulus measures adopted since then have led to a substantial deterioration in the UK's budgetary position," the EU said in a statement. France and Spain have been set a deadline of 2012 to get their budgets back within the 3% deficit window. Greece has to do it next year. Ireland, hit hard by the collapse in the housing market, has the EU's highest deficit of about 9.5% and must reduce it to within target by 2013.

why was it 3%?

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This means Ireland has to either treble it's tax revenue, or slash spending by two thirds. (I'm no mathematician, BTW, so feel free to correct me).

Can you imagine the havoc that will wreak?

This is going to be a real test of the EU's resolve.... my fingers are crossed that it fails. :rolleyes:

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This means Ireland has to either treble it's tax revenue, or slash spending by two thirds. (I'm no mathematician, BTW, so feel free to correct me).

Can you imagine the havoc that will wreak?

This is going to be a real test of the EU's resolve.... my fingers are crossed that it fails. :rolleyes:

Indeed it just isn't realistic in this environment. States must make up for imploding credit/money elsewhere or just accept a serious deflation.

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Alright then I will.

I earn £100 a year. I spend £110. My bank manager says I can only spend £103. How much do i have to cut spending by to keep him happy?

Er hem.... banged to rights.... is there an embarrassed smiley???

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Alright then I will.

I earn £100 a year. I spend £110. My bank manager says I can only spend £103. How much do i have to cut spending by to keep him happy?

£315 of course ..... according to Gordonomics...

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According to Nick Kounis, an economist at Fortis Bank NV in Amsterdam - Germany predicted to have a deficit of 4% this year?

Bloomberg

"Britain will have a deficit of 9.5 percent of gross domestic product in 2009, the most in the Group of Seven, according to the International Monetary Fund. The Washington- based lender forecast shortfalls of 7.7 percent in the U.S., 8.1 percent in Japan and 4 percent in Germany, according to estimates last month. "

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Meanwhile, over at the Acropolis...

http://www.bloomberg.com/apps/news?pid=206...id=aRWMY6DNMYhw

April 28 (Bloomberg) -- Greece, the second-most indebted European Union nation, may increase bond sales this year to protect against a possible collapse in investor demand on global capital markets.

The government might sell an extra 8 billion euros ($10.4 billion) of debt, bringing the total issued this year to 50 billion euros, Economy and Finance Minister Ioannis Papathanasiou said today in an interview in Athens.

:

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Time to cut down on the benefits levels in those countries, and coming back here as well.

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post-12306-1240929628_thumb.jpg

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