Brown hails Obama as 'new hope'

In his annual foreign policy address to the City of London, the Prime Minister called on fellow world leaders to "seize the moment" and lay the foundations for the "first truly global society".

Addressing the Lord Mayor of London's banquet at the Guildhall, Mr Brown acknowledged that while the challenges facing the world appeared "daunting", they also presented the opportunity to build a better future.

He said the "unprecedented" election of Mr Obama as America's next president offered the prospect of a new "dawn of hope", both in the US and the wider world.

"Just days ago, across the Atlantic, our closest ally gave new meaning to its founding creed that all are created equal. Gave new strength to the notion that the American dream is for all Americans," he said. "Whatever one's politics, it can surely only be a source of hope and inspiration that a nation which once would have looked at Barack Obama and defined him only by his colour today sees in him the man they want to be their president and commander-in-chief.

"As America stands at its own dawn of hope - so let that hope be fulfilled through a pact with the wider world to lead and shape the 21st century as the first century of a truly global society.

"I believe that with the far-sighted leadership we have in Europe, the whole of Europe can and will work closely with the rest of the world to meet the great challenges which will illuminate our convictions and test our resolution."

Mr Brown - who earlier signalled that ministers were considering new tax cuts - welcomed plans by Mr Obama and by the governments of China and Germany to inject fresh funds into their economies to keep them going through the downturn.

"This is no time for the old approach of short-term spending cuts in a downturn that would hurt families and businesses today and damage the long-term productivity of the economy," he said.

Mr Brown, who flies to Washington this week for a financial summit of world leaders hosted by outgoing President George Bush, said it was vital that countries did not retreat into protectionism and isolationism in the face of the global downturn.