UK worst hit by Eurozone Inflation?
November 3rd, 2008 - Chris MarshallI have written about the Eurozone several times on the site, and looking back at previous posts (just search Eurozone) it is pretty alarming just how rapidly things have gone down hill.
Latest prediction say:
- Unemployment will increase by 25 per cent next year to hit 2.25 million
- The budget deficit will spiral
- The economy will contract by a full 1 per cent
Worst hit? Predicted to be the UK where PM Brown once hailed as the prudent Chancellor will (if he lasts that long) be “residing, by 2010, over one of Europe’s highest rates of public debt at the same as Britain’s economy shrinks”
The forecasts from EC economists will be embarrassing for Prime Minister, especially their prediction that British unemployment will jump to 7.1 per cent of the population in 2009, up 25 per cent on the forecast of 5.7 per cent in 2008.
The news gets worse as Mr Almunia, European Economic and Monetary Affairs Commissioner, has warned EU governments against the idea of higher public spending as the economy and tax revenues contract – a tactic that Mr Brown has already said is the best course of action for the UK.
