George Osborne gives hope for the growth of stock markets today

George Osborne has supported the European stock markets

In brief: New programs to improve the economic situation in the UK will be a signal for growth in the stock markets.

Stock markets in Asia and Europe began to grow. The level of support for the index remains high. Good news came from Britain. The head of the British Treasury George Osborne said that he was going to raise taxes on banks, while reducing expenditures on social programs, and salaries of civil servants, in order to reduce the budget deficit and keep the country’s economic recovery.

Tomorrow Osborne will submit to Parliament a new austerity budget, designed to cope with the huge budget deficit. He has already said that all segments of the population will have to sacrifice something in favor of the new budget. According to the minister, the growth of the budget deficit – is the main threat to Britain today, and delay the solution of this problem does not seem possible. Approximately 80% in terms of fiscal consolidation of the British government had to reduce costs and only 20% of the increase in tax revenue. The independent Institute of Fiscal Studies said that Osborne will have to shrink the budget by 85 billion pounds ($ 126 billion), equivalent to 5,7% of gross domestic product to eliminate the deficit by 2015.

Edition Sunday Telegraph reported that the VAT in the country can be increased to 20% from the current 17.5%, but Osborne refused to comment on these rumors. The burden of higher tax rates would fall to the British banks, which will have to pay an extra 2 billion pounds a year in taxes on assets. Special Minister of discontent is now bloated budget of the social system volume of 196 billion pounds. “Social spending out of control the government in recent years” – he said. Also, attention will be paid to employees working in the public sector, “Osborne said. He reported that many of the 6.1 million budget-Britain have to accept a wage freeze for the period more than a year, if they wish to keep their jobs.

Ukrainian Globalist
2010-06-21 09:30, Economics.

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