greatbritain

In the United Kingdom, the cost of servicing government debt has risen to levels not seen since 1998. Yields on 30-year gilts have climbed above 5.7%, forcing the government to pay much higher interest rates to finance its spending. This has intensified concerns over the country’s fiscal health, with the budget deficit currently estimated at around £20 billion.

The spike in borrowing costs has shaken markets. The pound has weakened against both the dollar and the euro, while investors are demanding a higher risk premium to hold British assets. Rising yields are also ramping up pressure on Prime Minister Rachel Reeves, who is set to unveil her government’s budget on November 26. Reeves has pledged to keep a “tight grip” on public finances, but she faces competing calls for greater public spending, particularly on healthcare and infrastructure.

The government’s challenge lies in striking a balance between maintaining market confidence and addressing citizens’ needs. Elevated borrowing costs leave little room for new public investment and could make it harder to deliver on campaign promises. As a result, the UK finds itself at a crossroads where every fiscal decision could have far-reaching consequences.

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Європа вступає в нову еру, потрібно збільшувати військові зусилля у відповідь на війну між Україною і Росією, — Макрон.
DYOR
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