EC raps UK over budget deficit

The gap between what the Government spends and what it borrows has grown too large and the EU will send a formal warning to the Treasury. The Government will be warned to cut spending or cut borrowing to help close the deficit, which will not reflect well on the Prime Minister and former Chancellor, Gordon Brown. As the UK is not a part of the Eurozone, it cannot be fined by the European Commission, but the Commission still keeps a close eye on Britain and other non-Eurozone countries. Europe’s Growth and Stability pact says budget deficits must not exceed 3%, but Europe is concerned thi...