Insights from the UK and beyond
This may hurt a little
Britons are being prepared for the hardest of hard times. Prime Minister David Cameron has warned the public that they will feel the impact of deficit-cutting decisions for years and maybe even decades. Cameron justifies the pain by saying that doing nothing about debt would be disastrous and that Britain will come out of the other side as a stronger country.
His finance minister George Osborne and LibDem sidekick Danny Alexander were setting out plans on Tuesday for how to conduct this year’s spending review, with unions, the public and the private sector asked to contribute ideas.
Former Canadian finance minister Paul Martin told Reuters that the key to his country’s 1990s deficit cuts was being honest with people about what was to go.
The problem Cameron and his coalition may face is that spending cuts seem justified — as long as it’s someone else’s benefits or perks that are being pruned.
Where would you swing the axe to help cut the budget deficit?