Kwasi Kwarteng Giorgia Meloni Usa Britain Italy Russia Ukraine Greece Kwasi Kwarteng Giorgia Meloni Usa Britain Italy Russia Ukraine Greece

UK: Fears that market turmoil over Truss tax cut plan could hit Europe's economy

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euronews.com

Fears have been expressed that the market turmoil in response to the new British government's financial plan could further weaken Europe's economy.The pound tumbled further later on Monday despite efforts by Britain's finance ministry and the Bank of England to reassure financial markets.

Earlier it had rallied after falling to a record low against the US dollar overnight.Traders are shying away from the British currency after the Chancellor (finance minister) Kwasi Kwarteng announced on Friday a big tax-cutting plan designed to grow the economy — funded by huge increases in government borrowing — raising fears that inflation, currently at 9.9%, could spiral further.The cost of borrowing for the UK rose sharply on Monday, with yields on the UK's five-year bonds soaring to a higher level than those in Greece and Italy.

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