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Brown Denies Split Over Economy
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Topic Started: Mar 25 2009, 05:40 PM (146 Views)
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Thyunda
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Mar 25 2009, 05:40 PM
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Gordon Brown has played down reports of rifts with the Bank of England and between the EU and the US over the best way to boost the global economy.
Speaking in the US, the UK prime minister said there was "far more agreement" than had been claimed.
He said leaders were agreed on the need to look at the impact of action already taken and "what should happen next".
But as he spoke fresh questions about the UK's debt were raised by the failure of a government bond auction.
The UK Treasury wanted to sell £1.75bn of 40-year bonds, but investors only bid for £1.63bn of the debt - the first failure to get enough buyers since 2002.
Analysts said it might reflect concern over the public finances, but the Treasury said demand remained strong and it would be "wrong to read anything into" it.
'Co-ordinated approach'
Mr Brown, who dismissed claims that the UK's central bank was at odds with him over a further stimulus package, said there was a "determination" among world leaders to do "whatever it takes to make sure we can restore the economy to growth".
At a question and answer session hosted by the Wall Street Journal he said he hoped the G20 would see agreements on help for central and eastern Europe and a "continuation of a co-ordinated approach to fiscal and monetary policy" and international agreements on the supervision of the financial system.
G20 LONDON SUMMIT World leaders will meet next week in London to discuss measures to tackle the downturn. See our in-depth guide to the G20 summit. The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU.
Q&A: G20 Summit Czech PM attacks Obama spending UK government bond auction fails
One agreement he hoped the G20 would reach would be to bring in a system for highlighting publicly any instance of a country putting in place protectionist measures which he said were the "greatest danger we face".
He added: "So I hope at the G20 summit, we will not only agree a pathway forward for world trade agreement but facilitate the expansion of trade in a world where trade is at the moment falling."
Asked what had gone wrong with the banks, he said there was a question mark over whether everyday standards like valuing responsibility, honesty and rewards for hard work had been applied to the "running of our financial systems".
He highlighted what he described as the "avarice" of the financial system that had been allowed to develop.
A lot of the work at the G20 summit would be about agreeing "common rules by which a global economy can work".
Some progress had already been made on getting tax havens to agree to share tax information on request and there had already been "the biggest fiscal stimulus in history" and big interest rate cuts, he said.
Stimulus plans
Asked whether there was a split between Europe's focus on strengthening regulation and the US concentration on a stimulus, he said both were important.
Every country had its own timetable for announcing its fiscal and monetary policies - that was a matter for individual governments, he said.
"Nobody is suggesting that people go to the G20 meeting and put on the table the budget they are going to have for the next year," he said.
Gordon Brown played down suggestions of a rift with Mervyn King - video courtesy of wsj.com
Instead he believed they needed to look at, together, what had been done in terms of fiscal stimulus, quantitative easing and interest rates, and their effects before deciding what should happen next.
"I see a consensus, not a disagreement, on that," he said.
He also played down comments made by Governor of the Bank of England Mervyn King, that the government should be cautious about a further fiscal stimulus, given the high levels of UK debt.
Mr Brown has been pressing the case for wealthy countries to bring forward big fiscal stimulus packages to refloat the economy.
The prime minister said that what was at issue was whether people were prepared to do what was necessary to resume growth in economy.
'Lost credibility'
"If you put that question to the governor of the Bank of England he will say, as he said when he signed the G20 communique, that you have to take whatever action is necessary for growth," he said.
Shadow business secretary Ken Clarke said Mr Brown had been one of the "principal architects of the collapse of Anglo Saxon capitalism" yet appeared to want to borrow more money.
He quite obviously thinks a further fiscal stimulus can be afforded by Britain and he seems to be urging everyone else to do the same thing Ken Clarke Conservatives
King warns against more spending Europe 'must lead downturn fight' Send us your comments
"Gordon Brown is going around the world making these most curious speeches in which he quite obviously thinks a further fiscal stimulus can be afforded by Britain and he seems to be urging everyone else to do the same thing," he said.
The prime minister is touring three continents ahead of next week's G20 summit. He addressed the European Parliament in Strasbourg on Tuesday. The tour will also take him to Brazil and Chile.
He will take part in another question and answer session, with students at New York university, before going on to hold talks with UN secretary general Ban Ki-moon on Wednesday.
US President Barack Obama has said he wants a "robust" and "sustained" fiscal stimulus and has said all countries must share the burden of rescuing the global economy.
"We don't want a situation in which some countries are making extraordinary efforts and other countries aren't, with the hope that somehow the countries that are making those important steps, lift everybody up," he said in a speech in Washington DC.
But Czech Prime Minister Mirek Topolanek, who lost a "no confidence" vote in his own parliament on Tuesday, suggested the US recovery plans were the "way to hell".
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King Crimson
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Mar 25 2009, 05:42 PM
Post #2
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Well, its only one more nail in a coffin that already looks like a pincushion if it is true....
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Thyunda
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Mar 25 2009, 05:45 PM
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"Shadow business secretary Ken Clarke"
What is a 'shadow business secretary'? Doesn't this strike anyone as a little odd? Economy gone to Hell, and now we have some people with 'Shadow' ahead of their names.
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King Crimson
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Mar 25 2009, 05:54 PM
Post #4
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It simply means that he is the opposition's (read: conservatives) counterpart to the current cabinet's Secretary. If the Tories were in that would be his role, but due to a vague sense of human intellect they aren't, so he just snipes at what the real one does....
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Thyunda
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Mar 25 2009, 05:56 PM
Post #5
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Oh, I get it now. Huh. I just noticed I don't have a poll for this. But then, I can't understand any of it so, y'know, I wouldn't know what to write.
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King Crimson
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Mar 25 2009, 06:00 PM
Post #6
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Poll added...
Basically he's saying there was no argument and everyone else is saying there was.
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