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Politics : Just the Facts, Ma'am: A Compendium of Liberal Fiction -- Ignore unavailable to you. Want to Upgrade?

To: Original Mad Dog who wrote (240)	10/28/2003 7:11:47 PM
From: American Spirit	Read Replies (1) \| Respond to of 90947

I didn't say one year, 1.8 trillion (give or take) is the estimate for four years of Bush. This year alone is north of 500 billion. Originally the Bushies lied and projected half that much. Same thing Grey Davis is accused of doing, hiding huge deficits.

To: Original Mad Dog who wrote (240)	10/29/2003 7:32:06 AM
From: Selectric II	Respond to of 90947

Those (and we know who) who tout socialist Europe as an economic model for the US ought to pay more attention to Europe's woes. quote.bloomberg.com Europe Nears Lowest Growth in Decade, Rising Deficits, EU Says Oct. 29 (Bloomberg) -- Europe's economy will grow at its slowest pace in a decade this year, straining public finances and putting France and Germany at risk of breaching European Union deficit limits through 2005, the EU said. The economy of the dozen nations using the euro will grow 0.4 percent this year, rising to 1.8 percent next year, the European Commission said in its twice-yearly forecast. Europe hasn't seen such meager growth since the 1993 recession. ``The economic slowdown is the main factor for the deterioration of public finances in 2003,'' the Brussels-based commission said in a statement. France and Germany ``have failed to make progress'' in reducing the budget gap. The forecasts may add to tensions between European governments over how to spur an economic recovery. Smaller countries such as the Netherlands and Austria are calling for Europe's leading economies to crack down on deficits. France and Germany will remain above the EU's deficit limit of 3 percent of gross domestic product for a fourth year in 2005 unless they cut spending or raise taxes, the commission said. Portugal may become a deficit offender in 2004, and Italy in 2005. ``The budgetary situation is showing worrying signs of deterioration also in other euro area countries, notably Italy,'' where public debt is projected to remain ``broadly unchanged'' around 106 percent of GDP until 2005, the commission said. Economic Heavyweights Together, Germany, France and Italy account for around three quarters of the economy. The budget rules were invented by Germany to prevent profligate, indebted countries such as Italy endangering the shared currency. Rule-breakers can in theory be fined up to 0.5 percent of GDP. Portugal was the first country to break the rules in 2001, followed by France and Germany last year. In 2005, assuming unchanged fiscal policies, the commission forecast deficits of 3.4 percent in Germany, 3.6 percent in France, 3.5 percent in Italy and 3.9 percent in Portugal. Finance ministers are meeting next week to discuss commission recommendations for France on how it can avoid being fined. The commission wants to allow France to break the limits until 2004 in exchange for spending cuts. France rejects the advice, which it could overturn with enough support from other countries breaking the rules. Nearing the Bottom Growth in the euro region is picking up thanks to improving confidence of businesses and consumers, the commission said. Surveys of purchasing managers in September showed the services industry expanded at the quickest rate since April 2002 and manufacturing grew for the first time in seven months. These surveys ``suggest a recession has been avoided and that the turnaround is in progress at present,'' the commission said. Given ``low'' interest rates, currently at 2 percent, and the ``stronger'' exchange rate, growth will mainly come from European consumers and businesses rather than from abroad, the commission said. The common currency has gained a fifth against the dollar in the past year and is trading close to its May record of $1.1933. One euro bought $1.1706 at 11 a.m. today. Still, a ``remewed sharp appreciation of the euro exchange rate could undermine activity mainly in the euro-area manufacturing sector,'' the commission said. Inflation Household income will be boosted by lower inflation, the commission says. It forecasts an average annual inflation rate of 2.1 percent this year, falling to the ECB's limit of 2 percent next year. Germany's economy won't grow in 2003, the commission said. It predicted growth of 0.1 percent in France, and 0.3 percent in Italy and declines in the Netherlands and Portugal. The U.K., one of the three non-euro members of the EU together with Sweden and Denmark, has ``weathered the recent global slowdown well,'' the commission said. It expects U.K. growth of 2 percemt this year, rising to 2.8 percent in 2004. Last Updated: October 29, 2003 05:30 EST