The EU has blundered into Britain’s election campaign with the release of a draft report condemning the UK’s plan to reduce its budget deficit.
According to the document – due to be published tomorrow – Britain’s fiscal programme is “not ambitious enough” to meet the criteria set by the European Commission.
The EU rules say deficits must be reduced below three per cent of Gross Domestic Product by 2015.
With a general election due in weeks, Britain’s finance minister has set out plans to cut the deficit to four point seven per cent within the same time frame.
The government is defending its plans on the grounds that a more robust approach would endanger the UK’s economic recovery.
The timing of the report has played right into the hands of the Conservative opposition leader David Cameron.
Shadow chancellor, George Osborne called the news a “heavy blow” for Gordon Brown’s credibility
saying the Conservatives have long been arguing the need to reduce the deficit more quickly.