The ongoing Eurozone crisis has endangered Britain’s economy once again as a new prediction suggests that the UK could face a triple-dip-recession next year.
The London-based Sunday Times reported that the British Chancellor of the Exchequer George Osborne was pressured by his political opponents to rethink Britain’s austerity strategy as economists warned that the country may plunge into financial chaos next spring.
This comes as the Euro crisis threatened Greece’s position in the single currency and the three previous bailouts left the destiny of the nation unknown. A possible Greek exit from the euro is predicted to drag Britain into recession for the third time, following a brief recovery from the 2012 Olympics.
Osborne faced criticism of his Labour opponents after the figures released last week, showed the UK’s recession is deepening in the second quarter, raising questions about Osborne’s economic plans and whether he should remain at the Treasury.
The Labour party’s finance spokesman, Ed Balls, attacked Osborne with a new statement, saying the Chancellor’s policies are “flat-lining” economic recovery.
“If last week’s figures won’t make the government wake up and change course, then I don’t know what will,” Balls wrote in an article for the London-based Sun newspaper today. “But the longer they stick to this failing plan, the heavier the price our country will pay,” Balls stated.
If the UK falls into a predicted third recession, Britain’s AAA credit rating could be threatened and downgraded as a result of the negative growth.