What should he do?

We won’t bore you with too much speculation on the budget. After all, we will know for sure later tomorrow. But it is worth taking a brief look at the chancellor’s VAT dilemma.

Of course, before the election neither the Tories nor the Lib Dems had any plans to raise VAT. But then before the election no one knew the extent of the fiscal deficit. It was only when Good Time George moved into Number 11 that it occurred to anyone we had a fiscal

Mind you, the markets are getting worried about France at the moment.

Mind you, the markets are getting worried about France at the moment.

According to a piece in the FT, France wants to save 100bn euros in an effort to get its fiscal deficit down to 3 per cent of GDP by 2013. The markets are worried, however, that the government’s projections for growth are too optimistic.

It all sounds horribly familiar, of course.

Claude Guéant, who is the chief of staff in France, and is Nick’s most trusted adviser, was quoted in the FT as saying: “We have to do more of course – a lot more.”

All these fiscal cuts we are seeing across the world are, of course, without precedent. We are now entering the great experiment. We remain anxious.

So too are workers. Which is why strikes seem to be on their way back.

See Union unrest, good or bad?

© Investment & Business News 2013