Friday, August 20, 2010

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UK: United Kingdom historic election.

After 13 years of Labor rule, and amid the worst financial crisis in recent decades, the British electorate go to the polls Thursday.
Whatever the outcome, this election will make history.

If Gordon Brown, now prime minister, gets the keys to 10 Downing Street, site of the British government, Labour will have won a fourth consecutive term, something that has never happened in the political life of this country.

If David Cameron, the candidate of the opposition Conservative Party, featured in the prestigious steps of the residence on May 7, will become the youngest prime minister that Britain has had since 1812.

The third party in discord, the Liberal Democrats, meanwhile, could deal a devastating blow to bipartisanship in British policy if they significantly undermine the dominance of the two traditional parties and / or becoming the main opposition in parliament .

And this time, it is also possible an uncertain result and a hung parliament (click hung parliament), something not seen since 1974.

's not just the result that makes this election is historic: 2010 will be remembered by the first ministerial discussions held in the country.

But these changes pale beside the political challenge that will face who wins at the polls.

Goodbye Welfare State?
Although it is traditional that the struggle between the parties to focus on how much to give or take away the state's population, this time the ability to maneuver is limited.

What is at stake is the so-called welfare state, designed at the end of World War II to protect the British from the "cradle to grave."

a result, the cradle of capitalism with a social safety net that benefits even those who do not.
megarescate
But the financial system, economic stimulus packages and recession have opened a gaping hole in the fiscal accounts.

long ago that taxes do not cover the expense. This is compounded by the pressure of aging population and now adds the current fiscal crisis

The fiscal deficit in the UK is U.S. $ 250,000 million, 11.6% of GDP: in 2009 the GDP fell 4.8 %.

The three parties have spoken the need to reduce this deficit without saying how they will do, but the consensus among experts is that if you want to halve the fiscal red, will require spending cuts of about U.S. $ 55,000 million.

This sum represents nearly one third of total health spending, nearly half of the pension system or education, all pillars of the welfare state.

Since Labour came to power and before the banking crisis, investment in all areas had increased.

in 1997 spent U.S. $ 3,000 million per year in preschool education: today is U.S. $ 7,500 million. Unemployment insurance takes over U.S. $ 5,000 million.

Is this in danger? Deep Crisis




According to experts the crisis goes beyond Labor's policy in the last 13 years.

"Some time ago that taxes do not cover the expense. To this is added pressure of an aging population and now adds the current fiscal crisis," said Howard Glennester, enemérito professor at the London School of Economics.

While the economy grew, there were no problems. The fall in unemployment and the so-called final dividend of the Cold War fueled the growth of spending.

With the crisis, the next government will have to maintain a delicate balance between the need to adjust spending and social rights acquired in the postwar political, a time bomb. However

John Hills, Professor of Social Policy London School of Economics, believes that the welfare state will survive these problems.

"Beaten up, perhaps badly beaten, but will survive. The impact of a total withdrawal would be too large," concluded Hills.

Source: Editorial - BBC World.
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