Brown's EU Borrowing Warning Difficult to Ignore - Cable

12.00.00am GMT Wed 11th Jan 2006

Responding to the EU Commission's decision to censure Gordon Brown over his failure to keep public borrowing below the 3% ceiling, Vince Cable MP, Liberal Democrat Shadow Chancellor said: "This latest move by Brussels will be highly embarrassing for the Chancellor and difficult for him to ignore or defend.

"The Chancellor's decision to re-base the economic cycle in order to meet his golden rule has totally undermined credibility in the rule and in Britain's fiscal policy. The argument that he 'continues to meet the fiscal rules over the cycle' is hollow and spurious.

"The fiscal regime needs greater transparency and independence, something that will only be achieved via reform of the fiscal framework."