EC slates the state of UK’s finances

The European Commission has alluded that the liabilities the government is
exposed to through its rescue of Northern Rock should appear on its books.

In the commission’s annual report on public finances, it said the UK’s budget
deficit had deteriorated from last year and could breach the requirements of the
Maastricht Treaty.

Under the treaty it must not have a deficit over 3% of GDP, and the
government was ‘accumulating contingent liabilities in the financial sector’
that could not be ignored, believed to be a reference to its investment in
Northern Rock, reported the

Further reading:

the Telegraph’s story

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