Cameron & Co may have defied all the polls and won the election with an overall majority but the path ahead is anything but smoothly paved
One thing in little doubt though is their intention to slash public spending but how best to go about it ? Osborne is presenting an emergency Budget on July 8 that is unprecedented in recent times but one from which we hope to hear more on the government's masterplan
BBC economics editor Robert Peston has an article out this morning that's worth a read whatever you may think of his theories/politics
He says
" Maybe the lesson of the last Parliament - and indeed of Spain right now - is that if you cut deep and early, you create room for the private sector to expand.
And before I am savaged (as I always am) by the Krugman crew of Keynesian economists for even allowing George Osborne's argument an airing, I am not saying that the net negative impact on our national income and living standards of cutting the deficit faster is less than their alternative route of slower so-called fiscal consolidation.
I am simply pointing out that there is a debate here (though Krugman, Wren-Lewis and Portes are utterly persuaded they've won this match - and take the somewhat patronising view that voters who think differently are ignorant sheep led astray by a malign or blinkered media).
All of which is why I regard the emergency budget planned for 8 July, and the spending review of the early Autumn, as the defining economic - and arguably political - events of this parliament"
More from Peston here
