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Miliband: Germany backs UK policy | Miliband: Germany backs UK policy |
(30 minutes later) | |
Germany backs Labour's decision to borrow billions to fund tax cuts in a bid to boost the UK economy, Foreign Secretary David Miliband has insisted. | Germany backs Labour's decision to borrow billions to fund tax cuts in a bid to boost the UK economy, Foreign Secretary David Miliband has insisted. |
It comes after a second German politician attacked the policy. | It comes after a second German politician attacked the policy. |
Steffan Kampeter, of Chancellor Angela Merkel's CDU party, said moves to raise debt "were a failure of Labour policy". | Steffan Kampeter, of Chancellor Angela Merkel's CDU party, said moves to raise debt "were a failure of Labour policy". |
Finance minister Peer Steinbruck earlier branded UK policy "crass" - but Mr Miliband said Mrs Merkel and other EU nations supported the move. | Finance minister Peer Steinbruck earlier branded UK policy "crass" - but Mr Miliband said Mrs Merkel and other EU nations supported the move. |
'Clear response' | 'Clear response' |
He said the UK had laid out a "very clear economic response" to the economic downturn and its decision to pump money into the economy through tax cuts and public spending was "shared by every serious economist around the world". | He said the UK had laid out a "very clear economic response" to the economic downturn and its decision to pump money into the economy through tax cuts and public spending was "shared by every serious economist around the world". |
FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
He said the recent criticism by German politicians stemmed from internal German political factors ahead of next year's elections. | He said the recent criticism by German politicians stemmed from internal German political factors ahead of next year's elections. |
Mr Brown and Angela Merkel are currently in Brussels where EU leaders are trying to agree proposals to inject 200bn euros (£177bn) into European economies to help deal with the downturn. | Mr Brown and Angela Merkel are currently in Brussels where EU leaders are trying to agree proposals to inject 200bn euros (£177bn) into European economies to help deal with the downturn. |
Mr Miliband said the two leaders were "working very closely on an economic recovery plan" for the whole of Europe. | Mr Miliband said the two leaders were "working very closely on an economic recovery plan" for the whole of Europe. |
Although different countries faced different economic challenges, he expected the EU leaders to show "important unity and progress" by throwing their weight behind such a plan. | Although different countries faced different economic challenges, he expected the EU leaders to show "important unity and progress" by throwing their weight behind such a plan. |
"What you will see is from Mrs Merkel as well as from Gordon Brown a very clear statement at the end of this council setting out their support for a European recovery package which includes a strong fiscal stimulus which is being supported right across Europe," he said. | "What you will see is from Mrs Merkel as well as from Gordon Brown a very clear statement at the end of this council setting out their support for a European recovery package which includes a strong fiscal stimulus which is being supported right across Europe," he said. |
'Lecturing UK' | 'Lecturing UK' |
The Tories have said criticism from two leading German figures of Gordon Brown's economic policies show the prime minister's claims to have led the world in responding to the downturn are hollow. | The Tories have said criticism from two leading German figures of Gordon Brown's economic policies show the prime minister's claims to have led the world in responding to the downturn are hollow. |
Mr Kampeter speaks on economic matters for the right-wing CDU, while Mr Steinbruck is from the Social Democrat Party. Both parties are part of the coalition government. | Mr Kampeter speaks on economic matters for the right-wing CDU, while Mr Steinbruck is from the Social Democrat Party. Both parties are part of the coalition government. |
Mr Kampeter said: "Peer Steinbruck's comments have nothing whatsoever to do with internal German politics, as Prime Minister Brown has suggested. | Mr Kampeter said: "Peer Steinbruck's comments have nothing whatsoever to do with internal German politics, as Prime Minister Brown has suggested. |
"In questioning the British government's approach, Peer Steinbruck is exactly expressing the views of the German Grand Coalition. | "In questioning the British government's approach, Peer Steinbruck is exactly expressing the views of the German Grand Coalition. |
The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy Steffen Kampeter class="" href="/1/hi/world/europe/7778787.stm">EU leaders focus on climate deal | |
"After years of lecturing us on how we need to share in the gains of uncontrolled financial markets, the Labour politicians can't now expect us to share in its losses. | "After years of lecturing us on how we need to share in the gains of uncontrolled financial markets, the Labour politicians can't now expect us to share in its losses. |
"The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy." | "The tremendous amount of debt being offered by Britain shows a complete failure of Labour policy." |
In a magazine interview, Mr Steinbruck had questioned Britain's decision to cut VAT and raise the national debt to record levels by following the high public spending model of economist John Maynard Keynes. | In a magazine interview, Mr Steinbruck had questioned Britain's decision to cut VAT and raise the national debt to record levels by following the high public spending model of economist John Maynard Keynes. |
"The switch from decades of supply-side politics all the way to a crass Keynesianism is breathtaking," he said. | "The switch from decades of supply-side politics all the way to a crass Keynesianism is breathtaking," he said. |
He later sought to play down his comments, saying: "There is no question of criticising our British friends. Nothing is further from our minds." | He later sought to play down his comments, saying: "There is no question of criticising our British friends. Nothing is further from our minds." |
'Clear support' | 'Clear support' |
Mr Brown had responded to the article by saying the German government had just announced a fiscal expansion so it could invest in public works. | Mr Brown had responded to the article by saying the German government had just announced a fiscal expansion so it could invest in public works. |
He said: "I do not really want to get involved in what is clearly internal German politics here, because they have a coalition in Germany with different political parties." | He said: "I do not really want to get involved in what is clearly internal German politics here, because they have a coalition in Germany with different political parties." |
The prime minister's official spokesman added: "Clearly there is a debate taking place in Germany about the nature of any additional fiscal stimulus measures. | The prime minister's official spokesman added: "Clearly there is a debate taking place in Germany about the nature of any additional fiscal stimulus measures. |
"Chancellor Angela Merkel made it clear that she supports the EU fiscal stimulus package." | "Chancellor Angela Merkel made it clear that she supports the EU fiscal stimulus package." |