Azara Blog: Gordon Brown is borrowing too much money

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Date published: 2006/01/11

The BBC says:

Chancellor Gordon Brown has been reprimanded by the European Commission for breaking targets on borrowing.

The UK has borrowed more than the EU's debt limit of 3% of national wealth for the second year running.

Officials in Brussels are worried the debt could rise further but cannot fine the UK as it has not adopted the euro.

They want EU finance ministers to set a deadline for Mr Brown to cut the UK's deficit. The chancellor continues to insist his plans are affordable.

He has often said the European growth and stability pact limit should not be applied too rigidly.

UK government borrowing is at 3.3% of national wealth and the commission thinks it could rise further.

The commission gave an early warning to Mr Brown last September and is now setting a deadline of the 2006/07 financial year to bring borrowing in line with the EU rules.

It has launched a formal "excessive deficit procedure".

The 25 European commissioners, including Trade Commissioner and former UK Cabinet minister Peter Mandelson, took the decision on Wednesday.

Why do people think Gordon Brown is such a wonderful chancellor? He is spending, and therefore borrowing, way too much money, and the EU is just telling it straight (for once). Sooner or later the markets will start to punish New Labour for their poor fiscal management. And the UK citizens of tomorrow will have to pick up the bill.

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