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Europe is united on how to beat slump, claims PM
Paul Waugh, Deputy Political Editor20.03.09
GORDON BROWN claimed today Europe was "united" on moves to tackle the global recession despite a fresh row with France over protectionism.
The Prime Minister said that the two-day Brussels summit had "laid the foundations" for the London G20 meeting next month, with plans for international co-operation on regulation and public spending.
But his claims were overshadowed when it emerged that France's state-owned carmaker Renault was shifting production from Slovenia back home to Paris.
As Mr Brown declared "we are an anti-protectionist European Union", French ministers started a row by linking the move to the country's economic rescue package unveiled by president Nicolas Sarkozy. The European Commission was furious at the French decision, claiming it was "illegal" and undermined the EU's backing for free trade and its single market.
In a further blow to Mr Brown, Germany and France both rejected the idea of a new fiscal stimulus of massive public spending at the G20 summit.
Mr Brown appeared to signal that no specific figures will be included in the April summit package, referring only to a pledge to "do whatever is necessary" to boost economies with extra spending.
He dismissed claims that the EU was divided, focusing on the stimulus of £400 billion already announced, as well as a new plan to lend the International Monetary Fund $100 million and set up a £50 billion emergency fund to help protect vulnerable Eastern European nations.
Mr Brown shrugged off claims that Britain and America's hopes of a new stimulus were being rebuffed. "What you will find in the [EU summit] communiqué is a determination to do whatever is necessary to restore jobs and growth," he said.
"I think you will find that's the spirit of every country, that's the spirit of the European Union. I think you will find when the G20 gets together that's what informs its conclusions. Necessary action will be taken to deal with the problems of unemployment and growth and we are united in wanting to see that happen." Despite the disagreements, the EU agreed to:
●Blacklist tax havens and set out sanctions against countries that don't co-operate with financial and tax rules.
●Supervise all financial players who could destabilise the economy - including hedge funds, private equity and others.
●Regulate and oversee credit rating agencies.
●Set out standards for corporate pay and bonuses that prevent reckless risk taking.
●Set up groups of national regulators to monitor major banks and financial groups by the end ofthis year.
●Increase capital requirements so banks set more money aside against tough times.
●Honour commitments to raise development aid, give the poorest nations tariff-free and quota-free access to wealthy markets.
Emergency cash is only for member states outside the 16-nation eurozone. Hungary and Latvia have already received ¤10billion (£9billion) to deal with their balance of payments crises.
German chancellor Angela Merkel last night made it plain she opposed a major new stimulus. "Trying to outdo one another with promises will certainly not bring any calm to the situation," she said.
Further tensions between Britain and the EU emerged over plans for a new pan-European framework for financial regulation. Chancellor Alistair Darling wants it run by independent experts rather than officials from each nation state.
Reader views (18)
I seriously don't know who Crash is trying to kid by implying he has some sort of leading role in Europe. His name is barely even mentioned overseas.
- Marianne, SW France
Keith Price, Luton - The pound is weak not strong, which is why our import bill is in the process of sky rocketing.
Inflation ensues and so will interest rates. All part of the NuLabour master plan to destroy the UK.
No wonder our children are so poorly educated with teachers like you.
- Dave Davies, Basingstoke, Hants
Is K Price ignorant of facts and not properly educated or he is exactly aware of the Sterling currency collapsing from 77p per Euro to now 93p per Euro? Versus US$ from $2 per £1 to $1.40 per £1. The UK currency he is either complete ignorant of the UK catastrophic devaluation or he prefers to try to people. Nice. The fact now is that the Euro and US Dollare can bought whatever they want in the UK for 30%, 40% less than last year. Unfortunately nobody is going to invest or buy people such as K Price.
- Kr, Florence ITALY
Can we not start looking after ourselves instead of all this two faced rubbish
- David ,Chertsey, Chertsey UK.
"I think you will find that...." he says. But he wasn't even there.
- John Problem, Hackney Wick, London, UK
Er, yes: it's united in thinking that Gordon Brown's grandiose posturing might work for the folks back home but it makes him look a bit of a t*t when he stands next to other world leaders.
- Roz, Chamonix, France
Why do we need to adopt the Euro, when our own currency is stronger than that of Ireland and Europe? Gordon Brown is clearly doing a fine job in bringing about economic recovery, as both Obama and Markel are saying
- Keith Price, Luton, England
by dumping the 'leaders' who have run the world into the buffers no doubt. out with the old in with the new; the king is dead, long live the king as the previous emperors are now seen to have no clothes on.
- Mike O'Brien, london.uk
If the European Union is united, as the Prime Minister claims, then let the United Kingdom adopt the Euro as its currency and then claim unity!!! When Tony Blair wanted to be at the heart of decision making in the EU, but without accepting the Euro common currency it did not make sense!!
- Arthur Lincoln, Roeselare, Belgium
Who are you kidding, Mr Brown?
- K Lee, Cheshunt, UK
Chris Brighton#
Not planet Wishful Thinking like you that's for sure. Could that be nervous laughter? It's not only the Guardian who is questioning the solidity of the Conservative vote. They should be streets ahead if they were 100% certain of victory,instead of just 10 points which can disappear in the wink of an eye.
- Val Daniels, Mijas Costa, Spain
Brown is a deluded sad man. Who the hell would want to listen to anything he has to so, except of course, his resignation speech.
- David, Fleet UK
I think most of europe can see what an utter mess Brown has made of the UK economy. He also must take some of the blame for the fraudulent activities of London banks and investment houses. After all, it was him and him alone who decided to take regulatory control away from the Bank of England and give it to his own creation, the disasterous quango the FSA.
- Margy, London
why should anyone listen to a man who is known as the most incompetant chancellor and now prime minister in history, and is soon to be chucked out of office?
- Mark Armstrong, london. uk
Has anyone seen the Guardian web-site? It's hilarious. They seem to think brown's in with a chance at the next election! What planet are they living on!?
- Chris, Brighton, England
Who is going to listen to Gordon Brown? The man will be gone in 15 months so he's just a lame duck with no authority. Also who is going to take advice from a man whose only significant achievement is to make Britain the most relatively indebted economy in the Western World?
- Rupert, London
The French and Germans are not stupid. They can spot a fraud and easily draw the conclusion that Brown's program for the G20 is to save himself because he did not fix the roof when the sun was shining and has nothing to do with any harmonious approach to resolving the problems created by the credit crunch.
Whilst the problems may have started in the USA, they were compounded by lax lending to UK borrowers but nobody forced the UK banks to originally buy the US toxic debt. Brown's "light touch" regulatory environment allowed the UK banks to take untold risks with these toxic debts and his conduct as Chancellor is laid bare in today's Rock report.
- Bingham Macnamara, lymington, hampshire
It's time for unelected and hated Gordon to leave. He has no hope of winning the coming election and all staying can do is push Labour into oblivion.
- Thomas, London
