Friday, 13 February 2009


It is now clear that David Cameron's strategy is to talk down Britain and present the current financial crisis as unique to Britain. That is a Tory lie.

Today the major European economies published their latest figures and it is now clear that countries, such as Germany, are feeling the effects of the global recession more severely than Britain.

Despite what the Tories say, when it comes to debt we are the second-best placed in the G7. That is why we have been able to give the economy a shot in the arm with tax cuts for hard working families and extra support for small businesses.

What is also clear is that the answer to our problems is not to retreat into isolation, as the Tories would do, but to work together across borders to tackle the challenges we face. That is why the Prime Minister will use the G20 to seek greater co-ordination between countries as we plan for recovery.

The plan for recovery

1. We recapitalised the banks to save savers.

2. We gave the economy a shot in the arm with increased and focussed spending delivered by a fiscal and monetary stimulus. Making sure that we at all times invest in the future.

3. To get lending going to the people and businesses who need it with our loan guarantee schemes.

4. We are now beginning the fourth stage of the plan to rebalance our economy and increase our exports to the world through key sectors of our economy: low carbon technology; high value added manufacturing; and the digital and creative industries.

This national plan for recovery and jobs will not work overnight but it will make the difference in ensuring that we come through this recession stronger and sooner.

International perspective on the global financial crisis

Today’s figures confirm the recession is being felt more severely in Germany and Italy:
• Germany: GDP contracted 2.1% in Q4 2008, compared with the previous quarter.
• Italy: contracted 1.8%
• UK: contracted 1.5%
• France: contracted 1.2%
• US: contracted 1.0%
(Source: Eurostat, 13/02/09)

The UK has the second lowest national debt in the G7:
IMF Net Debt(% GDP)2009
Canada 20.4
UK 38.5
France 57.8
Germany 56.8
Italy 102.5
Japan 97.6
USA 50.7
Euro 57.1
(Source: IMF World Economic Outlook – October 2008)

So next time you see David Cameron, ask him why he thinks doing nothing is the right approach?

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