Biz Brief: Fitch Ratings Warns the U.K.
Fitch gives the new government led by Prime Minister David Cameron some credit for moving "very quickly to establish fiscal consolidation as its top policy priority." At the same time, the agency isn't convinced the actions will go far enough: "However, while likely, it is not obvious from current policy statements that the new government will adopt lower deficit forecasts throughout the medium term. A clear policy agenda already exists for tax cuts in a number of areas and it is possible that the new Office for Budget Responsibility will deliver a more pessimistic assessment of the economic outlook, which would offset the impact of stronger discretionary tightening."
The message could hardly clearer -- and it's one more European nations are now hearing.