Brown Spends Tax-payers Money Like a Drunken SailorTHE TELEGRAPH:
Prime Minister Gordon Brown dismissed sharp German criticism of British policy on handling the financial crisis as being the result of "internal German politics."Responding to remarks by German Finance Minister Peer Steinbrueck that Britain's switch from financial prudence to heavy borrowing to fund a stimulus package was "breathtaking" and "crass Keynesianism", Mr Brown insisted that Germany was also investing heavily in its economy and carrying out policies similar to London's.
"The German government is investing more, they've just announced a fiscal expansion so that they can invest in public works, and helping their banks and doing these sort of things," Mr Brown told LBC radio.
"I don't really want to get involved in what is clearly internal German politics here because they're a coalition in Germany with different political parties.
"I think the important thing is almost every country around the world is doing what we have been doing," in terms of supporting ailing banks and providing fiscal stimulus, the prime minister said.
Mr Steinbrueck's comments were highly unusual given that they were so publicly critical of an ally's policies and are likely to add to tensions between Britain and Germany on the eve of a European Union summit on tackling the crisis.
In an interview with Newsweek magazine, Mr Steinbrueck singled out Mr Brown for abandoning fiscal prudence and switching to policies that would saddle a generation with debt.
"The speed at which proposals are put together under pressure that don't even pass an economic test is breathtaking and depressing," he said in the interview, published on the magazine's website on Wednesday.
"The same people who would never touch deficit spending are now tossing around billions."
He also questioned the effectiveness of the decision to cut VAT from 17.5pc to 15pc, saying "are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?". [Source:
Gordon Brown Dismisses German Criticism of UK Spending]
NZZ Online:
«Jetzt schmeissen sie mit Milliarden um sich» : Ärger in London über Belehrungen aus BerlinBerlin stemmt sich gegen europäische Rettungspläne, für die dann die Deutschen zahlen sollen. Vor dem EU-Gipfel in Brüssel hat der deutsche Finanzminister Peer Steinbrück unverblümte Kritik am Konjunkturpaket der Regierung Brown geäussert – und damit in London Unmut hervorgerufen.awy. «Das führt nur dazu, dass die britische Staatsverschuldung so weit ansteigt, dass eine ganze Generation nötig ist, um sie wieder abzuarbeiten.»
So lautet die unverblümte Kritik des deutschen Finanzministers Peer Steinbrück am Programm zur Konjunkturankurbelung, das die Regierung Brown in London angekündigt hat – eine Belehrung von Sozialdemokrat zu Sozialdemokrat, kurz vor dem EU-Konjunkturgipfel in Brüssel heute Donnerstag.
Kritik am krassen KeynesianismusSteinbrück bezweifelte insbesondere, dass die angekündigte Senkung der britischen Mehrwertsteuer irgendeinen spürbaren Effekt haben werde: Es werde doch niemand ein DVD-Gerät kaufen, nur weil es 39.10 Pfund koste statt 39.90 Pfund.
Mit Erstaunen stellt Steinbrück
in einem Interview mit dem amerikanischen Magazin «Newsweek» einen grundlegenden Wandel in der Wirtschaftspolitik fest: «Die gleichen Leute, die nie zu Staatsverschuldung bereit waren, schmeissen jetzt mit Milliarden um sich. Der Wechsel von Jahrzehnten der angebotsorientierten Politik hinüber zu einem krassen Keynesianismus ist atemberaubend.»
>>> | 11. Dezember 2008
THE TELEGRAPH:
German Finance Minister Spoils Gordon Brown's Bid to Save the WorldFar from saving the world, as he claimed, infelicitously, in the Commons on Wednesday, Gordon Brown's approach to the financial crisis is beginning to alarm a good part of it.
The intervention of Peer Steinbrück, the German finance minister, who has attacked the British fiscal stimulus package, is an important moment for both the politics and the economics of dealing with recession.
Politically, it means Mr Brown can no longer claim that borrowing and spending more is the only way out of the crisis. He has attacked the Tories for taking a more prudent line since the pre-Budget report revealed that public borrowing will rise to more than £100bn next year.
By 2013, the Treasury will have borrowed an additional £500bn. This is deferred taxation that will have to be paid back by future generations of workers.
>>> Philip Johnston | December 11, 2008
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