Paul Krugman says UK economy is well-positioned.

The distinguished U.S economist Paul Krugman says the UK economy is well-positioned compared with its European counterparts due to policies such as low interest rates.
He gives a lot of credit to British Prime Minister Gordon Brown.
However, the UK economic landscape has changed radically.
It is good to be positive but the City of London will not be a major producer of tax revenues while the car industry in Britain is getting a real battering. Exports will not be helped by a recovery of sterling against the euro and the dollar.
If the "green shoots" of recovery consolidate, then we will have to work out how to pay the bill for the UK government's borrowings. Some commentators are predicting ten years of higher taxes and lower public spending.
Some observers say the banking sector is now stable. However, Royal Bank of Scotland
(RBS) and Lloyds will be quite interested in getting down the state holdings and possibly less interested in refinancing British industry.
However, building societies seem vulnerable and the Nationwide cannot rescue them all. The recent downgrades in their credit ratings will possibly persuade the building societies to reduce their lending so as to improve their financial strength.