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Brown will urge countries to copy his spending plan
Joe Murphy, Political Editor14.11.08
NEW figures showing Europe entering recession cast a pall over today's emergency economic summit of world leaders in the United States.
Gordon Brown will use a dinner at the White House tonight to urge the world's biggest economic powerhouses to copy his plan to beat the slump by injecting billions of pounds in tax cuts and higher spending.
Analysts expect the 15-nation group of economies to shrink in the third quarter of this year, following a 0.2 per cent slide in the second quarter. Germany, Europe's biggest economy, admitted yesterday it was in recession.
In New York, Mr Brown urged higher spending to protect jobs rather than a retreat into trade curbs which would be the "road to ruin".
"Let me send out the strongest message that the road to economic ruin in the past has been following the path of protectionism," the Prime Minister said. "The way forward is not countries working in isolation or against each other, but countries cooperating together." The G20 leaders represent the biggest economies and 85 per cent of the world's wealth. Their gathering was being billed as "Bretton Woods 2", after the 1944 summit that established the financial rules for the post-war world.
Mr Brown was hoping his success in leading the global moves to prop up the banking system would encourage others to copy his fiscal stimulus package, which is to be unveiled in the pre-Budget report on 24 November.
He argues that such policies will have a massive effect if all big countries do the same thing. "It is now becoming increasingly accepted that a temporary and affordable fiscal stimulus is necessary," he told reporters.
Meanwhile, George Bush denied the financial crisis was a failure of capitalism. The President said: "The answer... is to fix the problems we face, make the reforms we need, and move forward with the free-market principles that have delivered prosperity and hope to people all across the globe."
Reader views (7)
I think Brown wants as many countries as possible to get into deep debt in the way he has saddled the UK, so that his debt mountain can be hidden in a full-scale mountain range. should we laugh or cry?
- James Elliott, Eastbourne UK
Oh dear. Poor Gordon. I feel so embarrassed. Dontcha just know they are going to keel over laughing. Poor man. He going to feel so puzzled and confused and not know why they are laughing and pointing at him. Shame. Still. He has brought it on himself.
- Jilly, London
Broon realy has lost his marbles - the man is swanning around telling everyone what to do to fix things, meanwhile he is culpable for at least part of the problem (if not all of it) and his latest ideas leave me wanting to stock up on canned goods and bottled water for the really bad times to come!
- M, London
Can you you please stop using the term"his spending plan" as it sounds that our great prudent leader thought it all up on his own.
He is copying a bail out that happened in Sweden 15 years ago-----so his great spending plan is another bit of spin and you have taken the bait......
- Nigel, wimbledon
The man is delusional ......
- Marianne, SW France
Good idea. Then we can all be in the merde/scheisse/mierda etc together.
- Nobby Clark, Perth, Scotland
What a laugh modern politics are. Brown causes the problems during his chancellorship and now he's telling people to copy him. This is vaudeville or comedy playhouse!
- Frederick, London, UK
