Telegraph: Morgan Stanley: UK could be first big economy to suffer ‘major fiscal crisis’ – by Benedict Brogan

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Morgan Stanley Research Europe has just put out a note assessing the UK’s future prospects, and its findings are a timely addition to the hung parliament debate. One of its predictions for a surprise in 2010 is this: “UK becomes the first of the G10 to have a major fiscal crisis as elections lead to a hung parliament”. It goes on to explain: “The context is an ugly fiscal picture, relatively weak economic recovery, aggressive monetary stimulus and political uncertainty. Political opinion polls show a decline in the Conservative party’s lead to levels where possibly no clear winner would emerge in a general election.”

Morgan Stanley Research Europe has just put out a note assessing the UK’s future prospects, and its findings are a timely addition to the hung parliament debate. One of its predictions for a surprise in 2010 is this: “UK becomes the first of the G10 to have a major fiscal crisis as elections lead to a hung parliament”. It goes on to explain: “The context is an ugly fiscal picture, relatively weak economic recovery, aggressive monetary stimulus and political uncertainty. Political opinion polls show a decline in the Conservative party’s lead to levels where possibly no clear winner would emerge in a general election.”