Quoth George Osborne, the UK’s new Chancellor, in Monday’s FT:
We are finding all sorts of skeletons in various cupboards and all sorts of decisions taken at the last minute. By the end the previous government was totally irresponsible and has left this country with absolutely terrible public finance, worse as a proportion of our economy than Greece; the second worst in the entire European Union after Ireland and I’m afraid that is something we warned of and is something that people will see in coming weeks that is something that is absolutely true as the Office for Budget Responsibility produces a proper set of borrowing forecasts and a proper set of national accounts.
Quoth cable in response to the Chancellor’s candour, early on Monday:
Ahem.
…On the other hand, cable held steady around 1.44 in a press conference by the Chancellor on Monday, despite these further gems (flashes via Reuters):
RTRS-RPT-UK’S OSBORNE – PUBLIC AND MARKETS HAVE COMPLETELY LOST CONFIDENCE IN UK GOVT ECONOMIC FORECASTS
RTRS-UK’S OSBORNE – SCALE OF GOVERNMENT DEBT POSES A THREAT TO UK ECONOMIC RECOVERY
RTRS-UK’S OSBORNE – GREECE IS A REMINDER OF WHAT HAPPENDS WHEN GOVERNMENTS LACK WILL TO CUT DEBT
Mr Osborne announced a first round of £6bn savings dedicated to cutting the deficit. (Although we’re not sure what this will do to improve the £163bn sitting on the UK’s annual deficit).
Better out than in with dodgy data, after all, as the — err, Greek finance minister no doubt now advises.
Oh, and George has set June 22 as the date for the UK’s next (emergency) budget. Sharp-eared FX traders may wish to mark their diaries.
Related links:
The UK is the next Greece – FT Alphaville
11 reasons why Britain isn’t the next Greece – FT Alphaville
Keep calm and carry on cutting – FT Alphaville