George Osborne, Chancellor of the Exchequer in the United Kingdom gave the attached statement in Parliament. It is particularly scathing of both the Euro and the USA, and their approach to the “Crisis”
And earlier this week the UK’s Credit Default Swap spread, or the price of insuring against a sovereign default, was lower than Germany’s.
This is a huge vote of confidence in the credibility of British Government debt and a major source of stability for the British economy at a time of exceptional instability.
And it is a reminder of the reckless folly of those who said we were going too far, too fast.
We can all see now that their approach would have been too little, too late – with disastrous consequences for Britain.
Mr Speaker, it is not hard to identify the recent events that have triggered the latest market falls.
There has been the weak economic data from the US and the historic downgrade of that country’s credit rating.
And the crisis of confidence in the ability of Eurozone countries to pay their debts has spread from the periphery to major economies like Italy and Spain.
But these events did not come out of the blue.
They all have the same root cause.
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- George Osborne calls for move towards eurozone fiscal union (telegraph.co.uk)
- Osborne says Britain is safe haven in debt storm (marketwatch.com)
- George Osborne: austerity measures make UK a ‘safe haven in the storm’ (telegraph.co.uk)
- George Osborne: Britain is leading the way out of this crisis (telegraph.co.uk)
- U.K. Still Plans Cuts Despite Riots (online.wsj.com)