Government plans to cut the deficit 'distinctly weak', says Fitch ratings agency

Spiv_2

Government plans to cut the deficit 'distinctly weak', says Fitch ratings agency


The Government has been issued with a veiled warning that Britains AAA credit rating is still at risk because of its distinctly weak deficit cutting targets.
In a blow to George Osborne, the ratings agency Fitch said there was a real danger the Coalition would not do enough over the medium term to sufficiently reduce the £156bn deficit.
Giving a clear signal that it wants to see a detailed plan for deeper cuts in the emergency Budget on June 22, Fitch said: While likely, it is not completely obvious from policy statements that the new government will adopt lower deficit forecasts throughout the medium term.

http://uk.finance.yahoo.com/news/government-plans-to-cut-the-deficit-distinctly-weak-says-fitch-ratings-agency-tele-6bff9df46478.html?x=0

michaels

Does no one else think the current siren calls for fiscal tightening are marching the world in to a 30s style depression?

For the low rated EU countries there is no choice as Germany refuses it rebalance its economy but for sovereign borrowers like the UK allowing inflation to acheive a real reduction in public sector wages and benefits may be a less painful option than nominal cuts