Recession is the birth pangs of a new global order, says Brown
By Kirsty Walker
Originally posted on Feb 07 2009, 10:07 PM
Gordon Brown has insisted that the recession was just the 'difficult birth pangs of a new global order'.
As a poll showed more voters are turning against him, the Prime Minister warned that countries must see the financial crisis as the chance to forge a new financial system.
Setting the scene for April's G20 talks in London, Mr Brown said: 'If what happens to a bank in one country can within minutes have devastating effects for banks on a different continent, then only a truly international response of policy and governance can be effective.'
He said current 'threats and challenges' to the world economy should be seen as 'the difficult birth pangs of a new global order'.
'Our task now is nothing less than making the transition to a new internationalism with the benefits of an expanding global economy, not muddling through as pessimists, but making the necessary adjustment to a better future and setting new rules for this new global order', he said.
Mr Brown and Chancellor Alistair Darling are aware the G20 summit of developing countries and business leaders on April 4, could decide further stimulus measures that could alter the of this year's Budget. The Prime Ministeris pinning his hopes on other countries, in particular the U.S., following Britain's lead by pumping cash into their economies.
The Treasury rejected suggestions that Mr Darling is already working on a third economic rescue. Ministers want to give the Government time to see if its £410billion rescue plan has had any impact on the economy. But a poll last night found most voters believe Labour's attempts to kick-start the economy are doomed to failure.
The Guardian/ICM poll found that two-thirds of voters believe that the banking bailout packages will achieve nothing or make things worse.
It also shows more signs that David Cameron has seen off the 'Brown bounce'. The Conservatives have opened up a 12-point margin on 44 per cent, up six on last month, while Labour is on 32 and the Liberal Democrats are on 16.
The poll, carried out after last week's bank bailouts and sharp falls in share values, found that public confidence in Labour's economic team has plunged by 11 per cent since November, with the Conservatives seen as more trusted on the economy by a margin of two points.
There is support for the VAT cut (63 per cent) and a programme of public works (85 per cent). But only 43 per cent support the decision to buy large stakes in some banks and only 40 per cent back outright nationalisation. Voters are slightly more enthusiastic about Labour attempts to underwrite bank lending, backed by 52 per cent.
If the poll were replicated at a General Election, the Tories would win 360 seats - a majority of 70. The LibDems will be disturbed by their fall to the lowest level in any ICM poll since August.