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42 EDI EDI News New British government: Cut this and cut that – but not health expenses The new British government must cut expenses. Shortly after taking office, the British Conservative- Liberal Democrat coalition government announced its first concrete austerity measure to rehabilitate the national budget. The cuts will affect “wasteful” public spending on e.g. administration, travel, consultants or IT programs, as Chancellor George Osborne explained before a meeting of Conserva- tive Party members. The in-year spending cuts will amount to £6.25 billion. Osborne promised that there would be no cuts in education, defence and health. However, local governments will have to reduce their expenses by more than £1 billion. Partner companies of the affected departments will be contacted soon to implement the cuts as quickly as possible. Source: Welt Online, Germany Italy, Greece, Spain and Portugal: Rome to cut health expenses Italians will have to brace themselves for budget cuts: To reduce the mounting public debt, the government in Rome is taking drastic austerity measures, saving 24 billion euros by 2012. The health sector will be affected as well. In addition, payouts to the local and regional governments will be reduced. Europe Ticker Another victim of the budget cuts will be the publicly financed Institute for Studies and Economic Analyses (ISAE), which has conducted surveys on the business climate and on consumer confidence. Its tasks will be taken over by the Italian Ministry of Economy. At 115 percent of GDP, Italy caries the highest debt burden among the 16 euro-zone countries, although its budget deficit of 5.3 percent is still relatively low compared to that of other countries. With its austerity program, Italy now follows other countries in the euro zone. Its move had been preced- ed by Greece, which had enacted a drastic austerity program in the amount of 30 billion euros against fierce domestic resistance. Spain has presented an austerity plan that provides for spending cuts of 50 billion euros over the next three years. France has raised the statutory retirement age, while Portugal has increased taxes. Germany will decide on budget cuts in June. Source: ZDF – German Television Photo: panthermedia/Jörg Rüger
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