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26/07/10
Latest Ernst & Young ITEM Club Forecast
According to the latest E&Y ITEM Club Forecast, the fiscal tightening implemented by the coalition government will not endanger economic recovery.

The report described the Chancellor's 5 year plan to cut the deficit as "ambitious" but achieveable.

Nevertheless, it did raise concern with the "escalating European crisis" which could significantly damage recovery:

"Retrenchment in the Eurozone, the UK's biggest trading partner,[could] erode demand for UK exports and weaken competitiveness".

Source: Ernst & Young ITEM Club Forecast

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