UNITED KINGDOM IN THE DOGHOUSE TOO.
Gordon Brown hoist with his own petard! The Chancellor of the Exchequer, who never missed an opportunity during the UK's term at the EU helm to urge his partners to follow the United Kingdom's example on the path to economic success, has himself now been blacklisted by the Commission. The bare fact is that on January 24, the date of the next EcoFin Council, the United Kingdom is likely to join the ranks of the 12 EU member states performing worst in terms of public deficits.
Presenting his diagnosis, Doctor Almunia nevertheless insisted there is "no need for alarm". Britain's "budgetary drift" is "not excessive". The Economic and Monetary Affairs Commissioner recommended just a "minor adjustment" by 2007, almost without consequences if he is to be believed. Cut to the quick, the UK Treasury immediately responded that Britain's budget deficit would be cut below the 3% of GDP ceiling before the deadline set by the Commission.
This promise is doubtless more plausible than this week's pledge by France's Prime Minister. With just 18 months to go to legislative elections, Dominique de Villepin has committed France... for the next five years, since Paris now only expects to achieve a balanced budget in 2010. In view of the...
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