By Natasha Roberts
Date: Wednesday 30 May 2012
The European Commission has urged the UK to do more to promote investment spending in a bid to reduce the deficit and bring about growth.
The Commission said that while progress had been made in reducing the deficit, more needs to be done, particularly within the infrastructure industry.
It is forecast that in 2012-13 the UK deficit will be at 6.1%, one of the highest in the European Union.
In its assessment, the Commission warned that reducing the deficit would become increasingly difficult as a result of weaker growth, and said problems included low levels of business investment and diffculties with business lending.
The Office for Budget Responsibility (OBR) expects growth of 0.8% in 2012 and 2.0% next year.
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