Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US, Germany throw shade at Liz Truss’ economic plan amid UK market turmoil

US, Germany throw shade at Liz Truss’ economic plan amid UK market turmoil

Even Turkey’s Recep Tayyip Erdoğan is making fun of the pound.
With friends like these, does Liz Truss need enemies?

Two of the U.K.'s top international allies — the United States and Germany — have taken potshots at the economic agenda being pursued by the country's new prime minister, as markets reeled from her plan to go for debt-funded tax cuts in a bid to grow the economy.

In a withering rebuke to the British leader, whose chancellor last week unveiled a mini-budget that triggered a market rout and a steep fall in the value of the pound, U.S. Secretary of Commerce Gina Raimondo predicted the Truss plan would only add to inflation.

"The policy of cutting taxes and simultaneously increasing spending isn't one that is going to fight inflation in the short term or put you in good stead for long-term economic growth," Raimondo said at a Brookings Institute event. And she added: "Investors, business people want to see world leaders taking inflation very seriously — it's hard to see that from this government."

Kwarteng's budget slashed taxes and increased government borrowing, rather than introducing spending cuts. It came on top of a multibillion-pound plan to cap energy prices for consumers and businesses.

In a widely criticized move, the U.K. chancellor — who fired his top Treasury official in one of his first acts in office — did not involve the country's independent fiscal watchdog, which normally scrutinizes the government's numbers.

In Germany, Chancellor Olaf Scholz unveiled his own €200 billion plan to freeze gas prices. But Finance Minister Christian Lindner pointedly said: "We are explicitly not following the U.K.’s example down the path of an expansionary fiscal policy."

Even Turkey's President Recep Tayyip Erdoğan — whose own currency has been volatile this year — found it hard to resist a dig at the U.K. Thursday. “The pound has blown up,” he said at a televised event in Ankara.

In a round of interviews with radio and TV journalists Thursday, Truss insisted she needed to take "decisive action" and refused to change course. She argued that record falls in the pound and surging borrowing costs are part of a "global crisis" sparked by the war in Ukraine.

A series of voting intention opinion polls taken amid the market turmoil suggest that Truss has failed to convince the public of her plan's merits.

One YouGov poll, conducted for the Times newspaper, put the opposition Labour Party 33 points clear of the Conservatives, with 54 percent of the vote compared to just 21 percent for Truss' struggling Tories. POLITICO's poll of polls has Labour on 46 percent, and the Conservatives on 29 percent.

Senior Conservative MP Charles Walker told Channel 4 News Thursday night that the polls, if replicated at an election, would mean the Tories "cease to exist as a functioning political party."

“This is a moment of danger for the country and the government has got to heed the warning shot that has been put across its bows and get its act together," he said. "And we've made our bed, we've got to lie in it, this is where we’re at now. It's a very lumpy bed."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×