According to TASS , recently, after the British government allocated hundreds of billions of pounds to aid enterprises and citizens through the energy crisis, the Tras government once again proposed an energy efficiency plan. According to the plan, the Tras government will allocate another 1.5 billion pounds (about 12 billion yuan) to ensure heating for low-income people in China.
In response to this, British Energy Minister Jacob Rees-Mogg said that this plan will not only save residents more money and help them survive the cold winter, but will further promote economic growth and create thousands of jobs, effectively reducing the unemployment rate in the UK.
If this plan can develop according to the British government's expectations, it is indeed a plan that is beneficial to people's livelihood. But the problem is that such a project that just stops "spending money" will not be able to solve the problem from the root and may also bring about a new fiscal crisis.
Previously, British Chancellor Kwoten announced a "mini budget" policy, which includes a series of tax cuts, including the establishment of multiple low-tax zones. According to media reports, the British government wants to use this measure to stimulate the UK's economic development and further curb the rise in inflation.
This plan is just the beginning, and the British government will launch a more detailed tax cut plan next. But even if the plan has been implemented for less than a month, not only failed to curb the inflation problem in the UK, but also further exacerbated the economic crisis in the UK, and the pound has faced collapse.
In view of the worsening situation in the UK economy after the introduction of the new Trass policy, International Monetary Fund (IMF) said it would urge the UK to reconsider the previously announced "tax cut plan". IMF also named the Trass government, believing that its "large-scale and purposeless" plan was unreasonable, because this policy obviously conflicts with monetary policy and may trigger a greater crisis.
In addition, Allianz, one of the world's largest asset management groups, also stated that the British government's implementation of this tax cut without external funding is simply a "big bet".
To put it bluntly, these policies in the UK, whether it is energy aid or tax cuts, are "filling the big hole". It would be fine if it could be filled, but the UK can still hold on for a while, but the key is that according to the actual situation in the UK, even if the government continuously allocates funds, it may be just a drop in the bucket.
not only will the "hole" not be filled, but it may also lead to a deficit in the government's fiscal policy and exacerbate the depreciation of the pound. By then, the British government will have to ease the tense economic situation like the United States by raising interest rates significantly.
But first of all, this is not a long-term solution. If this continues, the problem will still be exposed; secondly, the pound is not as good as the US dollar. The most important reason why the United States can alleviate its domestic inflation through frequent interest rate hikes is that the dollar is the "hegemony" position in the international community, and the pound is far from such an influence.
As Tras's "high bet" gradually showed a decline, EU also began to express doubts about the series of policies of the Trass government. EU financial leadership, whether current officials or former officials, has criticized Kwoten's "anti-crisis plan."
German Finance Minister Lindner believes that these measures taken by the UK will ultimately lead to the government having to repay its debts through interest rates. Spanish Minister of Economic Affairs Calvino also agreed with the view, and she believes that the UK is likely to fall into disaster due to this.
Even the UK itself began to doubt whether this series of measures can effectively alleviate the pressure faced by the British economy. According to the Russian News Agency, the British opposition Labour Party Stamer directly pointed out that the new policy implemented by Tras poses a serious threat to the country's economy.
Sta defaults to that Tras is "using the money of the British people to play games", and the situation is becoming increasingly out of control. But at the same time, he and did not ask Tras to resign immediately, but asked Tras to make changes.
Faced with doubts from political opponents, Tras is still very convinced that this policy can lead Britain out of its predicament. Recently, Tras also claimed in an interview that "she believes the government's behavior is correct, despite the collapse of the pound" .
It is worth mentioning that this interview is the first time that Tras has made a statement on this measure since the recession of the House of Commons in the UK.
Previously, when the British market was turbulent due to this measure, the House of Commons announced the recession, and Trass and Kwoten both "tactfully" did not accept an interview on the consequences of the measure. At that time, the behavior of the Trass government was questioned by the media as "hiding".
Now, many parties have issued a warning to the UK, suggesting that Tras carefully consider the policies being implemented, but Tras decisively stood up and reiterated her "firm" position. She even believes that although the pound is now collapsed, she will insist on promoting the growth of the UK economy through these measures.
In short, even though facts have proved that the series of new policies implemented by Tras after taking office did not work, and instead is introducing the British economy into a worse situation, facing warnings from many international politicians and related international organizations, Tras still insists on his own opinions and refuses to admit his mistakes.
can only be said that compared to former Prime Minister Johnson , Tras is indeed "not inferior" in his stubborn opinion, but the problem is that economic problems are not something that political performances can fool you. Tras continued to grit his teeth and persevere, and the final result is likely to be difficult.