Britain Faces Worst Budget Deficit in the EU - by Sean O'Grady

Britain is hurtling towards the worst budget deficit in the European Union. The European Commission's latest forecast shows the Government faces a shortfall of 12 per cent of gross domestic product (GDP) this year: worse than Greece, Portugal, Ireland or any of the other troubled and heavily indebted eurozone members. In cash terms it equates to about £15bn more than the Chancellor has budgeted for.

Brussels did offer better news about Britain's general growth forecasts, which were sharply upgraded. The EC sees the UK growing by 1.2 per cent this year, about double its previous thinking, and by 2 per cent next year. This is broadly in line with other recent forecasts by independent bodies such as the International Monetary Fund (IMF) and the National Institute of Economic and Social Research, and in marked contrast to the Treasury's more optimistic central estimate of 1.25 per cent growth this year accelerating to 3.25 per cent in 2011.

For more: Britain Faces Worst Budget Deficit in the EU - BusinessWeek