Today, Euro has witnessed a steep fall since 5th May. It dropped by 0.2% to 89.48 pence per Euro. It has been told that slower growth combined with weaker-than-expected fiscal consolidation efforts could cause UK’s debt metrics to deteriorate to a point where it could be dangerous.

However, the British Retail Consortium report showed prices charged by retailers rose 2.3% from a year ago, the weakest increase this year, after advancing 2.5% in April.

The pound weakened for the seventh consecutive day against the Euro after Moody’s Investors Service said the UK’s AAA credit rating may be at the risk if the government misses its debt reduction targets amid slowing growth.

It has further been revealed that the UK could lose its prized 'AAA' credit rating if growth remained weak and the coalition government failed to meet its fiscal consolidation targets. Financial difficulties have affected many countries. Fall of Euro is believed to leave a soar impact upon the UK’s economy.

The government is working on various programs to save country from a downturn. At present, the government aims to close Britain's structural deficit by the end of 2014-15, cutting departmental budget by almost 100 billion over four years.