Britain to borrow the most money in Europe

12 April 2012

Britain will borrow more money than any other country in Europe this year including crisis-torn Greece.

In a stark warning on the eve of the general election, the European Commission tonight said the UK budget deficit will hit a record 12 per cent of economic output this year. That is the biggest of all 27 nations in the European Union and far worse than the 9.3 per cent shortfall expected in Greece.

European economic commissioner Olli Rehn said: "The first thing for the new government to do is to agree on a convincing, ambitious programme of fiscal consolidation in order to start to reduce the very high deficit and stabilise the high debt level of the UK. That's by far the first and foremost challenge of the new government. I trust whatever the colour of the government, I hope it will take this measure."

Financial markets are worried that the crisis in Greece will spread across Europe to other debt-ridden countries, particularly Spain and Portugal.

Credit ratings agency Moody's tonight fuelled those fears when it threatened to downgrade its rating on Portugal as its public finances deteriorate.

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