Could the UK see a Greek style collapse?
Whether you believe it is scare tactics or reality, more and more people are starting to compare the UK finances to those of the Greek government which is currently in discussions with the European Union and IMF regarding a financial bailout. While the fact that the UK credit rating has yet to be downgraded by any of the credit rating agencies is a positive sign, there are concerns that we could see adjustments after the next government is in place and spending plans are announced.
However, no matter what the authorities would have you believe, there are some similarities between the UK situation and the Greek situation with UK debt standing at 12.6% of GDP compared to Greece's figure of 13.6%. EU rules in theory limit the amount of debt for European Union members to 3%, which confirms that the UK and the Greek position is very much out of kilter with the vast majority of Europe.
However, the truth is that many other European countries are also suffering large debt piles, budget deficits and a need to rein in public sector spending although the UK along with Spain, Portugal and Ireland is struggling more than most.
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