Liz Truss sacrifices her finance minister and rectifies her fiscal policy to stay afloat

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  • Prime Minister appoints Jeremy Hunt as successor to Kwasi Kwarteng

Liz Truss sacrifices her finance minister and rectifies her fiscal policy to stay afloat

< strong>Liz Truss insists that she will continue in the position of prime minister, after giving another fundamental turn to her pol of her fiscal ethics . The 'tory' leader dismissed the this Friday to the Minister of Finance, Kwasi Kwarteng, after the destruction caused by the economic growth plan devised by both, hand in hand. Kwarteng has lasted less than six weeks in office. His dismissal was a desperate attempt by Truss to calm the markets and save his position as head of the Government , something that is very far from being achieved. Before the press it was impossible for him to explain how her exit from hers more than her, her close collaborator of hers does not force her to kill her too. In the Conservative Party, many of her enemies shuffle the names of possible successors. Those who have supported her feel betrayed.

Veteran Jeremy Hunt is Kwarteng's successor. Hunt has become the fourth British finance minister in a year, which gives an idea of ​​the deep instabilitythat the country lives. A veteran of the political scene, he has held various ministerial portfolios in the last 12 years (Culture, Health, Foreign Affairs), but has no experience in the Treasury and finance departments. The fiscal plan announced at the end of September collapsed. the pound sterlingagainst the US dollar and fired off the US dollar. the cost of the UK's long-term debt, forcing the Bank of England to intervene to prevent the bankruptcy of several pension funds. That program was supposed to conclude this Friday.

Truss Hunt's appointment at a brief press conference in which he also announced What will there be? increase in corporate tax next April, something that had been categorically ruled out during the Conservative primary campaign. The increase, then defended by his rival, Rishi Sunak, will suppose & aacute; revenue of18,000 million poundsadditional (20,700 million euros). The mini-budget went “further and faster than the markets could tolerate,” he declared. Truss, trying to justify the turn of a strategy, which at this point has blown up. Economists don't think that increase will fill the hole in public finances created by the unfunded tax cuts.

No authority

Nervous, without authority, in another disastrous appearance of just nine minutes, with speech and responses learned by heart, Truss eluded. questions about her lack of credibility. “My priority is to ensure that we have the economic stability that the country needs, which is why I have had to make the difficult decisionsthat I have taken today. The mission remains the same,” she said, insisting she will deliver what she promised: to cut taxes and increase growth. “I am absolutely determined to move forward.”

Truss said “< strong>strongly regret” the departure of Kwarteng,   whom he described as “a great friend with whom he shares the same vision”.  In another day of drama in political life, the minister had to urgently return to London from Washington where he was attending the annual conference of the International Monetary Fund.The day before, Kwarteng had ruled out that he will consider resigning in the face of the turmoil generated by his radical tax cut.