UK growth to remain weak, says EU body
Britain must prioritise "growth-enhancing" public expenditure in order to support the weak economy, the European Commission said yesterday.
The Commission said that it expects the UK economy to grow by 0.5 per cent in 2012, less than the 0.8 forecast by the Office for Budget Responsibility. It added that, due to this lower growth, the Government will not reduce its budget deficit below 3 per cent by 2014-15.
The IMF has recommended that the Government should be prepared to slow down its deficit reduction schedule – effectively adopting an economic Plan B – if growth does not pick up in due course. But the Commission insisted yesterday that the UK should "fully implement the budgetary strategy for the financial year 2012-13 and reinforce the budgetary strategy for 2013-14 and beyond".
A Treasury spokesman said that the Commission was backing the Government's course. But Rachel Reeves, Labour's Shadow Chief Secretary to the Treasury, said: "This is just the latest international organisation to warn that the Conservative-led Government urgently needs a plan for jobs and growth."
Other recommendations from the Commission were for the Government to increase the housing supply and the flow of credit to small businesses.
Co-creator Mark Gatiss dropped some very intriguing hints ahead of the BBC drama's return next year
London 'needs affordable housing'
- 1 'Not suppost to cry': 9-year-old lists the worst things about being a boy
- 2 Lee Evans announces his retirement from comedy on The Jonathan Ross Show
- 3 Iggy Azalea responds to Eminem rape lyrics: 'I'm bored of old men threatening young women'
- 4 These grandmas smoking weed for the first time are wonderful
- 5 Pastafarian former porn star Asia Lemmon allowed to wear colander in driving licence photo
Duchess of Alba dead: Billionaire Spanish duchess who lived life by her own rules, dies at 88
New York snowstorm: Death toll rises to 10 as residents battle with further snowfall
These grandmas smoking weed for the first time are wonderful
Woman opens professional cuddling shop – gets 10,000 customers in first week
Bill Cosby rape allegations explained: Why are these allegations coming out now? And why has nobody taken legal action?
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Muslims pre-date Columbus in discovering America,' says Turkish president Erdogan
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Former Tory PM Sir John Major says 'we would not have an NHS without migrants'
G20 summit: David Cameron warns Vladimir Putin that Russia's relationship with the West is at a 'fork in the road' over Ukraine
£8 - £12 per hour: Recruitment Genius: To assist a young family with the care ...
£20000 per annum: Recruitment Genius: A Customer Service Executive is required...
£55000 - £70000 per annum: Argyll Scott International: My client, a world lead...
Negotiable: Argyll Scott International: My client, a world leading services pr...