The Government’s plans to reduce deficit have been defended by the Chancellor of the Exchequer George Osborne, who has stated that these plans were Britain’s only opportunity of a sustainable recovery despite a bleak outlook over the short-term future.
Ahead of curve
Osborne has said that the government had remained ahead of the curve in its effort to bring down the deficit, he went on to say that regardless of what critics are saying he will not be moved from his stance in this matter.
He also went on to say that the current chaos surrounding the economy means that short-term expectations on growth had to be revised and that nothing would sidetrack him from his deficit reduction path.
“The plan we have set out is designed in tough times for tough times. It is the rock of stability upon which any sustainable recovery depends and we will hold to it” said George Osborne.
The Chancellor would prefer that Britain were the masters of their own destiny, so as to add some distance between themselves and the current economic problems. The short-term expectations had to be pulled back to something much more realistic even though Britain was viewed as safe during the sovereign debt crisis which had completely taken effect over the eurozone.
Not immune to instability
The problem despite Britain not being in the euro zone is that there does exist exposure to other economies due to the open and necessary trading that is carried out with other economies. This means that Britain is not immune to the instability in the eurozone, but they have to make sure that the euro works otherwise the situation will not improve.
“We need to focus on the task at hand, which is implementing all agreements, the communiqués, the commitments made in recent months by the eurozone. That is absolutely crucial to the stability of not just the eurozone but the wider economy” said Mr Osborne.