It’s not just Americans who are suffering from high inflation and interest rates. European countries are in the same boat. The United Kingdom, in particular, has shown great dissatisfaction with the situation. The proof of this was the resignation request from Prime Minister Liz Truss, who, in a period of just six weeks in office, was battered due to her economic proposals.
Liz Truss announced her resignation this Thursday, October 20, and became the prime minister with the shortest term in the country’s history.
When Truss ascended to the highest office, she failed to unite her party after winning the contest to replace Boris Johnson as prime minister. This proved explosive when she announced her economic plan, which proposed measures aimed at curbing inflation. But the market was spooked by the proposals, such as tax cuts for the wealthy. The pound fell to its lowest level against the US dollar in decades. The turmoil also caused government bond prices to soar and negatively impacted the people’s pension funds.
In the face of fury from her own party, Truss had to backtrack on her plans, fired her finance minister, lost her home secretary, but ended up creating even more divisions within the Conservative Party.
Another election is expected to take place within a week, and the next prime minister is set to be announced on October 28.