World Bulletin / News Desk
Britain must find more spending cuts to reduce the budget deficit, Prime Minister David Cameron said on Sunday, after a return recession this year raised speculation the government was set to miss its own deficit reduction targets.
Cameron, in an interview with the BBC, also said he would use Britain's veto to scupper European Union budget talks if necessary, warning the 27-nation bloc it needed to learn to live within its means.
The prime minister said his Conservative-led coalition government was determined to stick to its plan to erase what was a record budget deficit when he came to power in 2010.
Asked if Liberal Democrat Deputy Prime Minister Nick Clegg was correct to say that whoever won the 2015 election would have to introduce another tranche of austerity because of the size of the problem, Cameron said:
"Yes, he is right and actually it happens before that because we have to find 16 billion pounds of spending reductions for the year 2015-16. It starts before the general election and we need to do that," Cameron said.
"I want us to be the party that absolutely levels with the British public and talks very plainly and straightly about what needs to be done because the fact is we have to find those spending reductions."
The government delivers new economic and borrowing forecasts on Dec. 5. Finance minister George Osborne said in an interview with the Mail on Sunday that Britain faced further cuts after a weaker than expected performance by the economy this year.
Cameron said Britain had cuts its deficit by a quarter in two years but it was too early to say what the figures for 2012 would be. Asked whether Britain would have to reduce welfare spending, he said: "We have to look at things like the welfare budget... We have capped welfare but we need to go further."
Cameron suggested the EU should at some point split its budget into two - one for the euro zone and one for the countries outside the single currency, including Britain.
Cameron, much to the delight of a powerful anti-EU wing of his Conservative Party, used the veto last year to keep Britain out of a European fiscal and economic pact aimed at resolving the euro zone debt crisis.
"People in Europe know I mean what I say. I sat round that table, 27 countries, 26 of them signing up to a treaty, and I said this is not in Britain's interest, I don't care how much pressure you put on, I'm not signing, we are not having it. They know what I am capable of saying, no, and If I don't get a good deal I'll say no again.
Germany’s ambassador to Ankara says German companies operating in Turkey should think about tomorrow
After months of disagreement, OPEC members last week hammered out a deal to cut oil output for the first time in eight years.
Ali Shareef al-Emadi predicted growth of 3.4 percent in 2017, in line with an International Monetary Fund estimate and up from a projected 3.2 percent this year.
"Many citizens in advanced economies are facing heightened uncertainty, lamenting a loss of control and losing trust in the system," Carney said in a speech at Liverpool's John Moores University.
European stock markets are also set for a weak start, with Italy underperforming as investors brace for turbulence and political crisis in the euro zone's heavily indebted third-largest economy.
The euro tumbled on Monday after Italian Prime Minister Matteo Renzi said he would resign as he conceded defeat in a referendum over his plan to reform the constitution
Rouhani's 2017-2018 budget is based on oil prices of $50 per barrel, up from $40 last year, with a focus on unemployment, water resources, railways and the environment.
Turkish parliament has already ratified the deal on construction of ‘TurkStream’ natural gas pipeline
The September rate was revised to 9.9 percent from the 10 percent first given last month.
Many analysts had expected the producers' cartel to fail to reach a deal as major players like Iran, Iraq and Saudi Arabia remained divided ahead of the meeting.
The report, which collects views of economists, business contacts and others in the 12 Federal Reserve districts in preparation for the monetary policy meeting next month, noted improved retail sales and home construction in most regions.
If the cartel does not reach a deal to cut output, prices could fall below $40 a barrel
European air travel giant Lufthansa has been battling its own pilots over pay and conditions for more than two years.
Failure to get an accord on Wednesday could send oil prices tumbling and deal a further blow to the credibility of the 56-year-old Organization of the Petroleum Exporting Countries.
Around midday, shares in Italian lenders Unicredit and Banco Popolare were down 4 percent compared with Friday's closing levels.