Britain at risk of worse deficit crisis than Greece

Britain is at risk of a Govenment deficit crisis worse than that of Greece, sparking serious fears over the economic stability of the country.

Edmund Conway and James Kirkup
Telegraph [UK]
18 Feb 2010

In surprise news which sent the pound sliding on Thursday, official figures showed that the Government borrowed £4.3 [$6.6] billion last month.

It was the first time since 1993 that the public finances had gone into the red in January – a month in which tax revenues usually push the Exchequer into the black.

Economists said that the scale of the shortfall in the budget could this year mount to above £180 billion – higher than even the Chancellor’s forecast of a record £178 billion.

Such a deficit would, at 12.8 per cent of British gross domestic product, be even greater than the deficit faced in Greece, which is facing a full-scale fiscal crisis and may need to be bailed out by fellow euro nations or the International Monetary Fund.

The article continues at the Telegraph.

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