caparo Posted July 17, 2012 Share Posted July 17, 2012 The government is in a very difficult situation. The hangover from the socialist experiment of 1997 to 2010 will be with us for many years to come. But at least we avoided the 7% interest on our repayments that Spain & Italy are now having to find and the 28% that has sunk Greece. Link to comment Share on other sites More sharing options...
Riannon Posted July 17, 2012 Share Posted July 17, 2012 Economists have said these cuts won't improve things and, if anything, they'll just make things worse. I find it slightly suspicious that we shut everything down but are still able to find 9 billion for a train line and borrow even more money to give in foreign aid. By making cuts at the right time and thus avoiding having out credit rating downgraded we avoided interest repayments on the £trillion of debt going up from 2.8% to the 7% levels that countries like Italy Spain and Ireland are havin to pay. Indeed our repayments have dropped to around 1.8%. On a £trillion debt that is a saving of £50 billion a year and makes it possible to fund the rail improvements over the next few years. It is far beeter to spend money on useful infrastructure project like that rather than tip it down the drain on interest repayments. Link to comment Share on other sites More sharing options...
clegane Posted July 17, 2012 Share Posted July 17, 2012 But at least we avoided the 7% interest on our repayments that Spain & Italy are now having to find and the 28% that has sunk Greece. That is true, we are lucky to have Cameron Clegg and Osborne Link to comment Share on other sites More sharing options...
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