Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

U.K. Budget-Cutting Plan Keeps Bond Yields Low, Rehn Tells Times

Feb. 27 (Bloomberg) -- The U.K. needs to continue its budget-cutting strategy to keep government borrowing costs low, European Union Economic and Monetary Affairs Commissioner Olli Rehn said.

The U.K.’s public debt is approaching levels that are “normally considered to have a drag on growth for quite some time,” Rehn said in an interview with the Times newspaper published today.

“I don’t believe that fiscal-consolidation plans should be reversed, as growth is now set to start to pick up,” Rehn was quoted as saying by the Times. “It is still decisive in affording favorable financing conditions into the U.K. and therefore it should be maintained.”

Rehn also said France is a “borderline” case in terms of its efforts to make structural changes to its economy, according to the newspaper. The Times cited Rehn as saying that the EU’s economic governance rules are not “stupid” and won’t be too severe.

“The rules of the pact are designed to avoid too drastic consolidation in case there is a credible medium-term strategy of fiscal sustainability in place,” Rehn told the newspaper. “That is what we have been calling for from France.”

To contact the reporter on this story: Rebecca Christie in Brussels at rchristie4@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.