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29th Sep, 2017

The EU's Austerity Not the Tory's

The following is taken from the January to March UK financial report to the EU Commission


Background

The EU government deficit and debt statistical bulletin is published quarterly in January, April, July and October each year, to coincide with when the UK and other EU member states are required to report on their deficit (or net borrowing) and debt to the European Commission.


Article 126 of the Treaty on the Functioning of the European Union (EU) obliges member states to avoid excessive budgetary deficits. The Protocol on the Excessive Deficit Procedure, annexed to the Maastricht Treaty, defines two criteria and reference values with which member states’ governments should comply. These are:

  • a deficit (net borrowing) to gross domestic product (GDP) ratio of 3%


  • a debt to GDP ratio of 60%


For the UK, financial year (April to March) figures are used by the European Commission when assessing against the Protocol on the Excessive Deficit Procedure.


Main points
General government gross debt was £1,720.1 billion at the end of the financial year ending March 2017, equivalent to 88.0% of gross domestic product (GDP), an increase of £68.1 billion compared with the end of March 2016 (when it was 87.6% of GDP).

The latest government debt figure exceeds the reference value of 60% of GDP set out in the Protocol on the Excessive Deficit Procedure; general government gross debt first exceeded the 60% Maastricht reference value at the end of the financial year ending March 2010, when it was 70.3% of GDP or £1,076.6 billion.

General government deficit (or net borrowing) was £47.0 billion in the financial year ending March 2017 (equivalent to 2.4% GDP), a decrease of £28.2 billion compared with the financial year ending March 2016 (when it was 4.0% of GDP).

The Protocol on the Excessive Deficit Procedure states that general government deficit should not exceed the reference value of 3% of GDP; this is the first time the government deficit has been below the reference value since the financial year ending March 2008, when it was 2.9% of GDP or £45.3 billion.


UK, financial year ending March 2010 to financial year ending March 2017 and calendar years 2009 to 2016

£ billion
Financial Years 2009/10 2010/11 2011/12 2012/13  2013/14  2014/15  2015/16  2016/171
               Deficit   153.6     142.0     124.2     124.9      102.3        93.2        75.3        47.0
           as % GDP   10.0         8.9         7.6         7.4          5.8          5.1          4.0          2.4


The key to bringing down the National Debt is to bring down the Deficit - the day to day running costs - since anything that we cannot afford has to be borrowed, and borrowing is not a good idea, if it is reckless or never ending - as planned under Corbyn / McDonnell's current Labour Party.


The governments since New Labour have sought to comply with the Maastricht Treaty (1992) Fiscal regulations, as set out above - even though theUK is not in the Euro (Eurozone) they are still bound by the European Stability Mechanism (ESM) with the same restrictions - the EU requires austerity in any member state, order to ensure comply with EU regulations - Hammond actually stated in his last Budget that "Juncker would be pleased" - with Hammond's latest budget which would be within the EU requirements" The alternative would be EU enforcement - as with Greece.


The main danger of Britain being in debt lies with the fact that the government is obligated to its creditors', and therefore, vulnerable to control by external forces - that is the position that Corbyn / McDonnell want to place the UK, in their headlong drive to establish a Communist government in Britain - by violent uprising (insurrection), if necessary - at least according to McDonnell.


Care in the Community

The NHS and Care in the Community are intimately connected to the UK Deficit and Debt, and yesterday Professor Ted Baker, the new Chief Inspector of Hospitals has stated "The NHS is not fit for the 21st century(Telegraph: Laura Donnelly, health editor - 29 September, 2017)


Professor Baker went on to state that “The model of care we have got is still the model we had in the 1960s and 70s, and that is the fundamental thing that needs to change; we need a model of care that is fit for the 21st century and the population as it is now.”


Further stating that "The NHS had made a critical error, in failing to take decisive action under the last Labour government, when it became clear that reforms to build community services were required."


For Reference: The population has risen by approximately 26% since the 1960's. According to Wikipedia (Demography of the United Kingdom), the estimated UK population at the start of the 1961-1971 period was 52,807,000. This rose to 55,928,000 at the beginning of the 1971-1981 period.


By the beginning of the 1991-2001 period that had risen to 57,439,000 - and by the beginning of the 2011 - 2021 period it was 63,182,000.


The current population of the United Kingdom is 66,279,009, as of Saturday, September 30, 2017, based on the latest United Nations estimates - which represents a rise of ~26%. More worrying is the projected continuation of Freedom of Movement - mass immigration and illegal immigration because of continued UK subjugation in the EU, courtesy of our treacherous elected Representatives.


The Causes

The UK government's finances were largely under control before the 1997-2010 New Labour years.  New Labour created a huge Deficit and a massive Debt burden, and the Deficit is only now close to being brought under control - through spending cuts, and in the meantime the Debt has continued too rise.


Despite the fact that the Labour Party threw money around like a "Drunken Sailor on Shore Leave" they systematically failed to take the necessary steps to mitigate their actions whilst in government. Blair / Mandelson et al., opened up the UK to mass, uncontrolled, unfettered immigration - not just from the EU but also from wider areas outside the EU, They however, failed, either through negligence or deliberately, to carry out necessary structural changes in the UK; which has led to the current crises in the NHS, and elsewhere in our public services and infrastructure - housing and school places etc. (see Home page "The Labour Party and the EU")


Blair / Mandelson (PLP) were following the Multicultural model to undermine the homogeneity of the UK population, as espoused by Peter Sutherland at the UN, a programme which would never have been approved by the UK populations (England 83.9%, Scotland 8.4%, Wales 4.8%, N Ireland 2.9% in 2011), and so, was carried out by stealth.


The Blair / Mandelsoln (PLP) plan was a pre-run for the Merkel / Juncker / Sutherland (and Soros) later attempts to undermine the homogeneity of the rest of the EU member states when Merkel illegally opened the flood gates to the EU; following the success of the programme in the UK - from which they followed the same methods used in the UK, to keep a lid on dissent - through Cultural Marxist laws; giving more rights to immigrants than to the native populations, and through the controlled Media.


The Labour Party, probably under any leader, would do the same in their attempts to bring down the entire society in the Britain - but the Corbyn / McDonnell Labour party is particularly vicious, and does not seem to care for opposition of any kind.


Along with throwing money "Down the Drain" they would also keep the population under control using the old Communist techniques of having every aspect of daily life intrusively monitored by apparatchiks, and supplemented with paid informants to identify any dissent, in the workplace, at home and in the state run, enforced exercise facilities - the end result being the end of Democracy and Freedom in the UK, and its full absorption within the EU - whatever Corbyn might say to the contrary.  



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