Opinion – German finance chief praises Tory economic plan – Telegraph

Wolfgang Schäuble, German finance minister (CD...

Wolfgang Schäuble, German finance minister (CDU) on March 9th 2011, during a pre-election party in Bensheim (Hesse). (Photo credit: Wikipedia)

Astonishingly, both the IMF and Germany‘s Finance Minister praise the Tory‘s economic record. This is a must-read article, in the Telegraph. Check it out!

via German finance chief praises Tory economic plan – Telegraph.

Exceptionally, Wolfgang Schaeuble, Germany’s very conservative Finance Minister also praises the Tory’s economic plan.

This is very unconventional indeed, as governments and international institutions like the IMF prefer to stay neutral.

It’s thought-provoking to speculate as to the reasons for this unusual intervention.

Firstly, the UK provides an excellent example of where austerity and strong growth have gone hand in hand.

Secondly, the UK under the Tories provides an exemplar of fiscal prudence and economic orthodoxy.

Thirdly, the Labour Party or any left-wing coalition in the UK is likely to take a much higher risk economic path.

The bottom line is that the Tories have an economic plan that works. The downside is further austerity. The prize is creating more jobs and economic growth.

Surely, it’s obvious that a Labour government or a left-wing coalition in  the UK,  would be much higher risk for jobs and economic growth?

Thoughts?

One response

  1. Given the two choices that we are facing Dr Alf is right.

    Currently, the UK has an official deficit of £1.5 trillion gbp, and is running up a further balance of trade deficit of another £3 billion gbp a month.

    This is hardly “austerity” or living within one’s means, yet the Labour Party wants to run policy even looser than this, with all that would mean for interest on the debt and the UK credit rating.

    To date, the so called Coalition cuts have not really made a dent in the problem in that:

    1) We need to reduce the size of the public sector by axing 2 million non-jobs and then reorganizing the police into a single national force under a single Chief Constable, the same for fire commands and no more than 15 Regional local authorities to replace the 43 English county councils, the 6 in Wales, the 6 in Northern Ireland and the 8 in Scotland.

    Nor do we need unitary authorities, metropolitan borough councils, borough councils and district councils – instead we should outsource the lot to a rotating panel of providers.

    2) Civil Service numbers need to be reduced to 15000 (the same figure that prevailed under the British Empire in 1885 and MPs should be reduced to 200

    3) Nor do we need as many quangos, or police and crime commissioners

    4) To prevent “mission creep” in the form of these people coming back to create more non-jobs for themselves, we need mandatory headcount-caps incapable of circumvention rather than what we have now

    5) Merge Adult Social Care into the NHS and then reform it on German, Singaporean and French/Italian lines

    6) Abolish the Barnett Formula and cut taxes to Singaporean levels (5% bottom rate of income tax and 20% once you reach £100,000 gbp),VAT at 7%

    7) Lower business rates to reflect the fall in local government expenditure

    8) Use 3D printing to deal with the housing shortage of social housing, houses for sale and houses on brownfield land for housing benefit recipients.

    9) Make better use of land by building 3D Printed social housing underground and beaming in sunight by sunpipe, do the same for prisons.

    10) In addition, there would be other similar projects to emerge from a national strategic review.

    That aside the Coalition or the Conservatives are the only logical choice for voters even though they are far too timid in their approach to waste, exporting, immigration, law and order, the obesity crisis,the Scots,the Welsh and defense.

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