Brown censured over UK spending plans
Chancellor Gordon Brown's spending plans for the economy have been met with a stinging rebuke by European finance ministers who say they breach European Union rules.
Link: IoD urges budget spending cutbacks
Brown’s spending plans could breach EU rules on public finances as they are in danger of sending the UK budget deficit above the 3% level of GDP, according to the Times.
Three percent is the maximum deficit allowed for member states under the EU’s stability and growth pact.
According to reports, EU’s council of finance ministers wanted to give Brown a much harsher rebuke, but the chancellor managed to persuade them to tone down their criticism.
Brown believes low debt-countries like Britain should have more freedom in their fiscal spending then countries with high debt.
Despite this confidence, the chancellor has come under fire from organisations within the UK for his ambitious spending plans. The Institute of Directors has called on Brown to cut back his spending plans and planned increased in national insurance contributions.