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| Version 6 | Version 7 |
|---|---|
| Brown hails EU recovery package | Brown hails EU recovery package |
| (about 3 hours later) | |
| Gordon Brown has said European leaders have agreed to back an "ambitious and co-ordinated" recovery plan to help their economies through the downturn. | Gordon Brown has said European leaders have agreed to back an "ambitious and co-ordinated" recovery plan to help their economies through the downturn. |
| The package, negotiated at an EU summit in Brussels, will see 200bn euros of funding - equivalent to 1.5% of the EU total output, poured into economies. | The package, negotiated at an EU summit in Brussels, will see 200bn euros of funding - equivalent to 1.5% of the EU total output, poured into economies. |
| Mr Brown said measures would include "judicious" tax cuts and acceleration of public spending projects. | Mr Brown said measures would include "judicious" tax cuts and acceleration of public spending projects. |
| The PM's economic policy has come under fire from leading German politicians. | The PM's economic policy has come under fire from leading German politicians. |
| Finance minister Peer Steinbruck called his decision to cut VAT levels and raise borrowing to record levels to support the weakening economy as "crass" and "breathtaking." | Finance minister Peer Steinbruck called his decision to cut VAT levels and raise borrowing to record levels to support the weakening economy as "crass" and "breathtaking." |
| Steffen Kampeter, of Chancellor Angela Merkel's CDU party, described Mr Brown's £20bn fiscal stimulus as "a failure of Labour policy". | Steffen Kampeter, of Chancellor Angela Merkel's CDU party, described Mr Brown's £20bn fiscal stimulus as "a failure of Labour policy". |
| UK complaint | UK complaint |
| But Mr Brown said that "whatever comments had been made in the last few days", the agreement over the need for a huge stimulus package showed that the EU was "wholly united". | But Mr Brown said that "whatever comments had been made in the last few days", the agreement over the need for a huge stimulus package showed that the EU was "wholly united". |
| He described the agreement as "good news for the UK and good news for Europe". | He described the agreement as "good news for the UK and good news for Europe". |
| Europe has agreed unanimously and in a united way to take coordinated action that is substantial Gordon Brown | Europe has agreed unanimously and in a united way to take coordinated action that is substantial Gordon Brown |
| The measures were a rejection of calls for politicians to "do nothing and let the recession take it course", he added. | The measures were a rejection of calls for politicians to "do nothing and let the recession take it course", he added. |
| The stimulus plan will include tax cuts, reduction in regulation, support for small business and anticipated further reductions in interest rates. | The stimulus plan will include tax cuts, reduction in regulation, support for small business and anticipated further reductions in interest rates. |
| However, it is understood that the package represents the cumulative sum of individual countries' own spending commitments, some of which have already been announced. | However, it is understood that the package represents the cumulative sum of individual countries' own spending commitments, some of which have already been announced. |
| The Foreign Office has confirmed that Britain's ambassador in Berlin, Sir Michael Arthur, telephoned the German finance ministry on Thursday to complain about Mr Steinbruck's comments. | The Foreign Office has confirmed that Britain's ambassador in Berlin, Sir Michael Arthur, telephoned the German finance ministry on Thursday to complain about Mr Steinbruck's comments. |
| A spokesman would not give details of the call other than to say that the ambassador had made it clear that "we fundamentally disagreed with the comments made by Peer Steinbruck". | A spokesman would not give details of the call other than to say that the ambassador had made it clear that "we fundamentally disagreed with the comments made by Peer Steinbruck". |
| Mr Brown said there had been a debate across the 27-member union in recent months about the kind of action needed to tackle the downturn and he argued that this agreement over the stimulus plan meant those discussions had "concluded". | Mr Brown said there had been a debate across the 27-member union in recent months about the kind of action needed to tackle the downturn and he argued that this agreement over the stimulus plan meant those discussions had "concluded". |
| While cuts in interest rates were "crucial" to help consumers and businesses, these were not enough to support economic activity and employment at a time when thousands of jobs are being lost. | While cuts in interest rates were "crucial" to help consumers and businesses, these were not enough to support economic activity and employment at a time when thousands of jobs are being lost. |
| He said the EU's plan brought it into line with action already taken in the US and with commitments by President-elect Barack Obama to pump billions more into the economy early next year. | He said the EU's plan brought it into line with action already taken in the US and with commitments by President-elect Barack Obama to pump billions more into the economy early next year. |
| "Europe has agreed unanimously and in a united way to take coordinated action that is substantial. That means that Europe and America will be working together to create jobs and growth." | "Europe has agreed unanimously and in a united way to take coordinated action that is substantial. That means that Europe and America will be working together to create jobs and growth." |
| Scepticism | |
| But the deal was greeted with scepticism by both opposition parties. | |
| The Conservatives said Mr Brown was on the back foot following what they described as "unprecedented criticism" of his economic strategy. | |
| Gordon Brown is wrong to pin all his hopes on a misguided VAT cut that will do little to stimulate the economy Nick Clegg, Lib Dem leader | |
| "The Conservatives have argued that the government have been wrong to increase debt with that temporary VAT giveaway and now I feel the argument we made has been vindicated by the external comments we are getting from the German government." | |
| He added: "I think people are beginning to question whether Gordon Brown is doing enough to keep people in work." | |
| The Lib Dems said the package would only work if it directed help to people most at need. | |
| "After years of trying to ignore the EU, Gordon Brown's recognition that Europe is key to economic recovery is welcome," said the party's leader Nick Clegg. | |
| "However, Gordon Brown is wrong to pin all his hopes on a misguided VAT cut that will do little to stimulate the economy. | |
| "Additional borrowing should be used for things that will make a real difference to people now." | |
| Further details of the 200bn euros (£178bn; $264bn) stimulus package will be released later with individual countries likely to prioritise different measures. | Further details of the 200bn euros (£178bn; $264bn) stimulus package will be released later with individual countries likely to prioritise different measures. |
| But it is likely that individual countries will be able to opt out of measures, such as specific tax cuts, that they don't agree with. | But it is likely that individual countries will be able to opt out of measures, such as specific tax cuts, that they don't agree with. |
| The draft text of the agreement, obtained by Reuters, stated that "Europe will act in a united, strong, rapid and decisive manner to avoid a recessionary spiral and sustain economic activity and employment". | The draft text of the agreement, obtained by Reuters, stated that "Europe will act in a united, strong, rapid and decisive manner to avoid a recessionary spiral and sustain economic activity and employment". |
| The economies of several EU countries, such as Ireland and Denmark, are already officially shrinking and many others - including the UK - are expected to follow suit within the next few months. | The economies of several EU countries, such as Ireland and Denmark, are already officially shrinking and many others - including the UK - are expected to follow suit within the next few months. |
| EU leaders hope the package will reduce the length and severity of the downturn, with a focus on helping businesses in key industries to survive during the next 18 months. | EU leaders hope the package will reduce the length and severity of the downturn, with a focus on helping businesses in key industries to survive during the next 18 months. |
| A spokesman for the European Commission, the EU's executive branch, described the package as a "very solid result". | A spokesman for the European Commission, the EU's executive branch, described the package as a "very solid result". |
| European leaders have also agreed to institute new binding EU-wide targets for reducing carbon dioxide emissions. |