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Tory Leadership Runners and Riders

Le Baron said:
Yes, I've seen them saying it. It's a mistake in terms of them having control over their own financial power. After all they complain that 'Westminster holds the financial strings', yet seem willing to hand the same strings to a system that will certainly reduce their capacity. The block grant, plus additional negotiated spending they get allows them to run NHS Scotland how they see fit, that will die as an EU member with the mandate to hold their deficits to 2% of GDP (and go to government 'surplus' if possible). Scotland should worry about that.
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Where do you pull the 2% from?
 
TheDecameron said:
I remember the good ol’ days of pfm when it was the EU Titanic that was relentlessly heading for the iceberg, now it appears the SS Brexit Island is the vessel heading for the very large mass of ice-one-h. We’ve had three captains at the wheel with one old codger trying to wrest it from them, yet the course seems fixed.
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No, no, no, the EU is in its death throes. Just like that euro - about to collapse under the weight of its internal contradictions, as the Stalinists used to say.
 
PsB said:
Just as the aim is to have inflation of just under 2%. Hasn't been happening, though, has it?
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The EU has to break its own rules to align with economic reality. Though I'm not really sure what your question is.
 
PsB said:
Is is 2 or 3? We need to know.
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Do we?

Last I heard was Scotland's deficit was 22% of GDP and rising (no link, I read it here) so I'm sure harping on about whether the EU target is 2 or 3% isn't the major issue. Leaving it's biggest trading partner isn't likely to get that down to the target so what kind of smoke and mirrors will the EU create for Scotland to fit?
 
Le Baron said:
The EU has to break its own rules to align with economic reality. Though I'm not really sure what your question is.
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I don't have a question. Just pointing out that your scare story "oh but the awful EU will stop budget deficits" is perhaps a tad one-dimensional.
 
Le Baron said:
The EU has to break its own rules to align with economic reality. Though I'm not really sure what your question is.
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Well if the EU 'has to break its own rules', then a Scotland within the EU could reasonably assume that the 2% limit would not be too rigidly enforced.

A more important/significant problem is that Scotland wants tp keep sterling, but would not be allowed to join the EU without adopting the Euro.
 
PsB said:
You do see that little orange square in the graph you just posted, next to "2020"? It says "Stability and Growth pact suspended".
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That's why I said what I said further up. But there's a catch...they still can't operate as if they are the UK/US. This deficit extension they are currently allowing (soon to be reined in) is treated as 'debt'. You'll try, but you won't be able to make good with the EU model. Unless you want to praise austerity. It takes economic knowledge.
 
PsB said:
I don't have a question. Just pointing out that your scare story "oh but the awful EU will stop budget deficits" is perhaps a tad one-dimensional.
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All members are now in the 'deficit excess' process. Despite the relaxed rule since Covid. The ECB already announced they plan to contract again to 'tackle inflation'.
 
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