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Thursday, 6 July 2017

Britain the next Greece? Theresa May Warning on Public Sector Pay Cap

Theresa May warns Britain could become next Greece as she defends public sector pay cap, MSN/Business Insider UK

"Prime Minister Theresa May today refused to bend to calls to lift the cap on public sector pay as she warned that any reversal of her government's austerity agenda would risk Britain turning into Greece...Asked about the cap, May claimed that Britain would end up in an economic crisis similar to that experienced by Greece if it followed Labour's policies on the deficit. "Let me remind the Right Hon Gentleman of what happens when you don't deal with the deficit, it's not a theoretical Greece where they haven't dealt with the deficit, what did we see? Spending on the health service cut by 36% — that doesn't help nurses or patients," the prime minister told the Commons.

More from Business Insider UK

From The Guardian - Easing of austerity policies aimed at reducing deficit would lead to Greek-style economic collapse, claims the PM

There are some alarming similarities between the British and Greek economies, Alexander Tziamalis, Business Insider UK

"The UK and Greece also share a culture of home ownership, boosted by cheap money, which has made real estate critical for both countries. The sharp fluctuations around the financial crisis made clear the risk of asset price bubbles, but this culture also renders the workforce less mobile and less likely to retrain, contributing to the massive lack of skills in the UK".

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