Darling warns of danger in withdrawing stimulus packages too soon - by Graeme Wearden and Ashley Seager
Alistair Darling has warned that the world could be dragged into a double-dip recession if other governments stop stimulating their economies. Speaking before this week's meeting of G20 finance ministers, the chancellor said he would oppose moves by France and Germany to begin "exit strategies". "My view is that the biggest single risk to recovery is that people think the job is done," Darling said in an interview with the Independent. "There is a real risk that either governments or people generally think, 'We have done that, we are on the path to recovery'."
Britain's recovery is lagging behind France and Germany, who both returned to economic growth last month. Angela Merkel and Nicolas Sarkozy are now keen to end the multibillion euro fiscal stimulus packages that are credited with easing some of the pain of the recession, but which have also sent government borrowing soaring.
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