This 47-year-old ultraliberal is paying the price for a massive and poorly funded “growth plan”, which has sown panic in the markets.
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He made a whirlwind stint at the British Treasury. British Finance Minister Kwasi Kwarteng has been removed from office in the midst of an economic and political crisis, he announced in a letter posted on Twitter on Friday October 14, confirming information from British media. Late morning, Kwasi Kwarteng had gone to Downing Street, having returned earlier than expected from Washington where he was taking part in the annual meetings of the IMF (International Monetary Fund) and the World Bank.
“You asked me to resign as Chancellor” of the chessboard, “I accepted”he wrote in this letter to the head of government.
— Kwasi Kwarteng (@KwasiKwarteng) October 14, 2022
On Thursday, he said he was still convinced that he would remain in his post. This 47-year-old ultra-liberal is paying the price for a “growth plan” massive and badly financed which caused panic on the markets. He arrived in early September with the daunting task of pulling the UK out of a serious cost-of-living crisis without plunging public finances. Huge pressure on the shoulders of this apostle of low taxes and the market economy.
His budget plan made up of tax cuts and energy aid caused the pound sterling to plunge to an all-time low at the end of September and caused the British government’s borrowing rates to soar. The markets had recovered somewhat after successive interventions by the Bank of England, but remained very nervous.
Kwasi Kwarteng is, however, a long-time friend of Prime Minister Liz Truss. Both are neighbors in Greenwich, south-east London. And they share the same vision of the economy. The former Minister of Finance had co-signed in 2012, with other conservatives, including Liz Truss, the book Britannia Unchained. In particular, he advocated a State with a reduced perimeter and described British workers as “worst lazy people in the world”.
In the hot seat after only 38 days in power and this hasty resignation, Liz Truss will hold a press conference on Friday afternoon.