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UK Chancellor tells EU to get a grip on failing economies
You know our neighbours are up the creek when a Labour Chancellor's lecturing them on poor economic performance. On the other hand, the same Labour Chancellor talking about wanting "increased flexibility" for the UK is pretty impressive...The EU must sort out its problems with economic growth, Chancellor Gordon Brown has warned ahead of talks with European finance ministers on Friday. Europe must escape its inward-looking mindset and tackle the growth problem, Mr Brown told the Financial Times. The chancellor identified several problems in the world economy but focused on Europe's low growth as a potential cause of instability. Mr Brown said those in positions of power in Europe needed to adopt a "sense of urgency" in tackling economic reform. And he adopted a bullish stance ahead of the debate on the British rebate saying a European Commission proposal for a 30% increase in spending was "unacceptable". The debate on the budget would become a test of whether Europe was "genuinely resisting grandiose but unrealistic ambitions". Britain was still ripe for more reform, Mr Brown said, adding that he would use a pre-budget report later this year to focus on increased flexibility. He wants to boost UK productivity and is not afraid of pursuing controversial reforms. The chancellor warned that "risks in the continuing imbalances caused by divergent growth rates in the US, Europe and Japan" could threaten the global economy. Mr Brown did not attack high deficits in the US, instead focusing on European weakness. (Earning a shocked tut-tut from the Beeb) He said Europe had managed 3% growth in only one year in the past 10, while the US averaged 3% over the decade. The Financial Times suggested that Mr Brown's tough stance would do nothing to persuade people of the need for the new European constitution ahead of the planned referendum. Something wrong with that? Posted by: Bulldog 2004-09-10 |
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