Idiot Alert

wymondham

Hi All


I wonder if someone can explain something to me as I'm struggling to see logic and the maths.....


Last year the Government borrowed an increasing amount due to the gap between tax income and expenditure... ie the books don't look good?


https://forums.moneysavingexpert.com/discussion/5095430


Now we are having to pay out to the EU a sizeable extra amount due to our economy doing so well?


http://www.bbc.co.uk/news/business-29751124


Are we doing well or are we not?? Are we borrowing our way to a 'false' healthy economy??

Thrugelmir

Welcome to the real world of Brussels. Where politics and self interest abound.

theEnd

wymondham wrote: »

Are we borrowing our way to a 'false' healthy economy??

This.

Our constant deficit (let alone the printing/rates stimulus) has led to growth that wouldn't otherwise be there.

I'm a bit surprised the euro equation doesn't account for that.

RichardD1970

Only caught a bit about this on the news. Seems really odd, Germany and France are getting a rebate whilst Greece and the UK have to pay more :huh:

Big boost for UKIP though.

Thrugelmir

Seems we've undeclared GDP from prostitution. Whereas in Germany it's legally declared revenue.

michaels

EU leaked this to try and ensure a UKIP by election victory. They see a strong UKIP showing preventing a Tory majority at the next general election as being the answer to the 'English Question'.

They are probably correct.

Thrugelmir

michaels wrote: »

EU leaked this to try and ensure a UKIP by election victory. They see a strong UKIP showing preventing a Tory majority at the next general election as being the answer to the 'English Question'.

They are probably correct.

Don't underestimate the backlash towards Labour either. Milliband isn't exactly in tune with working peoples concerns. Bashing the Tories without constructive policies isn't working.

Pobby

When we are still borrowing billions can`t see we are doing so well.

Babbawah

Pobby wrote: »

When we are still borrowing billions can`t see we are doing so well.

The thing I can't work out is who we're supposed to be borrowing it off?

I thought that we borrowed £billions to bail out the banks who we borrowed the money off to bail them out with.

If this doesn't make sense . . . can somebody please explain to me where all the money we borrow comes from?

Yorkie1

Thrugelmir wrote: »

Seems we've undeclared GDP from prostitution. Whereas in Germany it's legally declared revenue.

You forgot to include the drug taking too

daveyjp

wymondham wrote: »

Hi All


I wonder if someone can explain something to me as I'm struggling to see logic and the maths.....


Last year the Government borrowed an increasing amount due to the gap between tax income and expenditure... ie the books don't look good?


https://forums.moneysavingexpert.com/discussion/5095430


Now we are having to pay out to the EU a sizeable extra amount due to our economy doing so well?


http://www.bbc.co.uk/news/business-29751124


Are we doing well or are we not?? Are we borrowing our way to a 'false' healthy economy??

The payment is based in GDP, not debt. Our GDP is rising, we have positive growth which the Govt hail as a success. EU has hardly any growth, especially Germany.

We signed up for the method of calculation and I don't believe for one minute Osborne and Cameron found out yesterday. Their disagreement appears to be about the date the payment is due and not the amount. If that is the case someone in the Treasury isn't doing their job properly as this is a risk to the Country's finances which should have been picked up and prepared for.