Chancellor says Austerity Measures are Justified

The video discusses the economic challenges faced by European countries like Greece, Ireland, and Portugal, highlighting their debt crises and the high costs of borrowing. It contrasts this with the UK's situation, where a credible fiscal consolidation program has led to lower funding costs. The video also explores the political and economic risks associated with the UK's strategy, with the opposition criticizing the rapid deficit reduction as a gamble that could impact growth and jobs.

Which countries are mentioned as struggling to convince the world of their debt repayment capabilities?

• Germany, Netherlands, and Belgium

• Spain, Italy, and France

• Greece, Ireland, and Portugal

• Sweden, Norway, and Denmark

Why do Greece, Ireland, and Portugal face higher borrowing costs?

• They have strong economies.

• They have surplus budgets.

• They are considered risky by the markets.

• They have low inflation rates.

What is the UK's advantage in terms of borrowing costs?

• It has a higher deficit.

• It has a larger population.

• It has a weaker currency.

• It is considered a safer bet.

What is the opposition's concern about the Chancellor's economic strategy?

• It will reduce foreign investments.

• It will strengthen the currency too much.

• It risks growth by cutting the deficit too fast.

• It will lead to increased inflation.

What is the hope of the city regarding the Chancellor's economic gamble?

• That it will decrease unemployment rates instantly.

• That it will increase government spending.

• That hard times now will result in a bright future.

• That it will lead to immediate prosperity.