CONVINCING RECOVERY PLAN?

摘要

Liberal Democrat Treasury spokesman Vince Cable chose Chartered Accountants' Hall to launch Tackling the Financial Crisis, his party's plan for sustainable economic recovery in the UK.rnSpeaking to a packed audience, he predicted that the size of government borrowing and deficits and government debt - which he put at £175bn or 13% -14% of GDP - would dominate UK politics for years to come.rnThe problem with the current government's policy, he said, was that it relied too much on fiscal revenues re-establishing themselves when the UK returned to economic growth. The stark reality is that much of the deficit does not represent either automatic stabilisers or a deliberate fiscal stimulus; it is structural in character and will not be reversed on recovery.'rnThe current government's plans for a correction of 6.4% of GDP over eight years were 'optimistic' because they underestimated the size of this structural deficit. If the UK was going to retain market confidence, a figure of around 8% over five years would be more realistic.