“There are many lessons to be learned from what happened in Britain,” said Bruno Le Maire, when asked about the difficulties encountered across the Channel. Guest on the set of Business B.F.M.the Minister of Economy and Finance considered that the British situation represented a “serious warning”.
“Our strategic goal for all of us is to get back to 2% inflation,” he said, describing rising prices as “unbearable for both households and businesses.”
To this end, the Minister returned to the importance of controlling public spending.
Coordinate monetary and fiscal policy
To achieve this 2% target, the Government’s number 2 also stressed the need for “perfect coordination between monetary policy and budget policy.”
On September 23, British Finance Minister Kwasi Kwarteng, since replaced by Jeremy Hunt, announced massive tax cuts as inflation neared 10%. These tax measures, which London finally renounced almost entirely on October 17, led to a reduction in tax collection of almost 45,000 million pounds.
This plan had unleashed a real wave of panic in the financial markets. The pound had tumbled to a record low as UK borrowing rates soared.
Source: BFM TV
