Canada Goose Outlet UK government heading for political blow from debt downgrade
LONDON (Reuters) Britain is lurching closer canada goose online outlet to an embarrassing loss of its prized triple A credit rating as the economic outlook darkens, and the political pain for Prime Minister David Cameron government from a once unthinkable move canada goose factory sale may exceed the economic damage.
Britain’s Prime Minister David Cameron speaks at the The Electric City Conference in London December 6, 2012. REUTERS/Peter Macdiarmid/POOL
canada goose coats on sale Finance minister George Osborne warned of weaker growth and more austerity in a budget update on Wednesday. Although he avoided the canada goose coats political mis steps for which the media lambasted him after March budget, there now looms the more menacing specter of a downgrade before an election due in 2015.
canadian goose jacket Ratings agency Fitch said his admission that he will miss a key debt cutting goal weakened his fiscal credibility. That fuelled fears Britain buy canada goose jacket cheap may canada goose clearance be stripped of a top credit rating that has arguably helped buy canada goose jacket keep borrowing costs at record lows.
Losing that crown would be a blow to Osborne and Cameron, who have staked canada goose store their reputations on rebuilding an economy that suffered its biggest shock since World War Two during the financial crisis.
cheap Canada Goose Their Conservative Party was uk canada goose outlet forced to share power with Liberal Democrat rivals after the election uk canada goose in 2010, and the party leaders had hoped to win a full mandate from voters by proving their economic credentials.
They have repeatedly held up the triple A rating as a vindication of their flagship policy to cut the deficit and retain the markets confidence.
canada goose deals is a political virility symbol, said Jonathan Tonge, professor Canada Goose Outlet of politics at the University of Liverpool in northwest England. is hard to overstate the political significance if Osborne loses the triple A rating.
has invested so much political capital in this triple A rating. In economic terms, losing it would not be catastrophic, it would be Canada Goose Parka slightly more expensive to borrow. But it Canada Goose Jackets the politics of it that count.
Canada Goose Jackets Britain has hung on to its top rating since 1978, towards the end of a canadian goose jacket decade which saw its economy blighted by the oil crisis, cheap Canada Goose industrial upheaval and double digit inflation.
buy canada goose jacket While a downgrade would Canada Goose Online be politically damaging, analysts said the economic impact may not be as great as once feared.
Canada Goose Parka are so few countries left cheap canada goose uk now with a AAA rating, that to lose it would not be the stigma or threat to market confidence that it would have been a couple of years ago, said Howard Archer, economist at IHS Global Insight.
canada goose this would likely be seen as an embarrassment for the government. this would actually have little negative impact for the economy.
canada goose black friday sale Standard Poor removed its top rating from the United States in August 2011. France, Japan Canada Goose sale and China are other countries that do not have triple A status with canada goose uk outlet the agency.
Yet borrowing costs in many of those countries remain rooted near all time low levels, as investors steer clear of trouble in indebted Southern European states and riskier emerging markets.
buy canada goose jacket cheap DEBT PRESSURE Despite a bleak outlook, analysts said Britain was in better shape than some other major economies.
UK has neither the political risk facing the United States nor the structural rigidities and external debt pressures facing France, said Lena Komileva, economist at G+ Economics, adding that many countries which formerly had AAA ratings https://www.radondenvercolorado.com were now rated a shade lower at AA.
canada goose clearance Analysts at Lloyds welcomed canada goose coats on sale Osborne decision to limit further austerity measures and said the muted reaction to his budget update in the financial markets suggested he had handled a difficult balancing act well and could even avoid a downgrade.
Canada Goose sale Resisting renewed calls to change course, Osborne said on Thursday that markets were less worried about a UK downgrade than Britain borrowing more and failing to tackle a deficit left by the last Labour government.
critics are saying Britain has got a debt problem, let add to the debt, Osborne told the BBC. doesn make sense and it is exactly the kind of something for nothing economics canada goose clearance sale that canada goose got us into this mess in the first place.
Osborne appears to have escaped the public roasting that followed his March budget, which started a slump in his party fortunes that it has struggled to turn around.
The Financial Times said Osborne was walking a tightrope on the public finances, but have been Canada Goose Coats On Sale more radical with bolder growth measures.
Canada Goose online However, the Independent was more critical, devoting its entire front page to a cartoon showing a malevolent Osborne dressed as a magician, pulling a rabbit skeleton out of a hat, with the headline runs out of tricks
Others were also less sanguine about the economic effect of a downgrade, warning that sentiment towards Britain was fragile and could swiftly deteriorate.
canada goose store triple A rating is everything. It is what has canada goose uk black friday supported sterling from selling off over the last few years and if that were to go you would see gilt yields rising and Canada Goose online sterling dropping like a stone, said Christian Lawrence, currency strategist at Rabobank.
canada goose clearance sale But canada goose black friday sale it remains likely that it will be the political fallout that has the longer lasting effect, with the opposition Labour Party which leads Cameron Conservatives by around 10 points in the polls ready to seize on a move by the ratings canada goose uk shop agencies if it were to occur.