Ed Miliband slams PM for 'standing on sidelines' over economy

Ed Miliband: said David Cameron is 'standing on the sidelines' when it comes to the economy
10 April 2012
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David Cameron is "standing on the sidelines" instead of tackling the latest wave of global economic turmoil, Ed Miliband said today.

The Labour leader called on the Prime Minister to press for an early meeting of the G20 group of wealthy nations to address the crisis.

He challenged the assertion made by Chancellor George Osborne that the UK was a "safe haven", claiming it was "naive" to believe the UK was immune from the problems.

In an article for the Financial Times Mr Miliband said tackling the three problems of growth, debt and banking stability was urgent.

"Unfortunately, our Prime Minister and Chancellor seem to prefer standing on the sidelines, complacently claiming that we are a 'safe haven' even though the British economy has been flatlining since last autumn, well before the turmoil we have seen this summer," he said.
"The truth is no country is a safe haven from the problems of the world economy.

"Political leaders suggesting otherwise are naive, especially when in Britain they are betting the farm on export-led growth.

"Just as with the financial crisis of 2008 we face global economic threats that can only be addressed by global economic leadership. There is no time to lose."

Mr Miliband said he was concerned by reports that splits within the Government and pressure from the banks could delay reform of the financial sector.

"Neither should be used as an excuse for failing to deliver the change we need," he said.
In a bleak assessment of the global economy, Mr Miliband said the recovery which appeared to be taking hold a year ago "has now stalled".

The Labour leader said the international
community needed to act urgently and could not afford to wait for November's scheduled G20 summit.

He urged Mr Cameron to make this point when he meets French president Nicolas Sarkozy, the current G20 chairman, at the summit on Libya in Paris.

Mr Miliband said the G20 needed a "clear agenda for growth - a global Plan B" to get the recovery back on track.

The G20 should work to bridge divisions between central banks "which damage public confidence that policy makers have a handle on events".

He also called for a more balanced approach to fiscal policy and warned that deep cuts in state spending risked locking economies into low growth.

He said: "Collective austerity, advocated by the UK Government, is too simplistic for the complex challenges the world faces."

While countries should commit to fiscal sustainability, Mr Miliband warned: "An approach that involves all major economies shrinking demand offers no export-led route out for those countries that need to take urgent action on their deficits.

"Rather than the old danger of beggar my neighbour, we risk all being beggared together."
Instead, countries such as the UK and US, benefiting from low interest rates, should take a "balanced medium-term approach to reducing their deficits".

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