United Kingdom: back to the eighties

- "It’s hard not to compare what is happening now in the UK to the 80s, considering all the glaring similarities:
- the conservatives are back in power with the economy and public finances in shambles;
• the Tory leader’s speeches calling for renewal based on determination, a renewal that requires paying the price for past mistakes;
• policies challenging the principle of the welfare State."
- "The solutions proposed by David Cameron’s government are also reminiscent of those implemented by Margaret Thatcher, where drastic cuts were made in public spending and the economy was liberalized through the introduction of supply-side policies."
- "The UK is the only country that has clearly chosen this path. Has it made the right choice? The answer is double-sided. In the short term, yes, since the budget announcements of David Cameron’s government has helped to dispel the risks weighing on public finances. In the long term, the structural characteristics indicate that return to strong growth could take longer than expected by the government."
Natixis Flash Economics 354 20100708

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