Downbeat Brown fears recession relapse
By politics.co.uk staff
Gordon Brown fears a lack of further “dramatic” action at this week’s G8 summit could result in a prolonging of the global economic downturn.
The prime minister will seek to impress on world leaders at the summit in L’Aquila, Italy, the dangers posed by warning signs to the recovery.
World trade has slipped by a fifth on last year, oil prises are up three-quarters and the UN fears rising global unemployment could leave an extra 38 million jobless by the end of the year.
In a bid to avoid complacency, Mr Brown’s agenda at the G8 will therefore press the need to make good the commitments made at the G20 London summit earlier this year.
“The world cannot stand by and let events take their course,” Mr Brown said.
“The need for coordinated international action to implement the decisions we have taken has never been more crucial.”
He will add: “If we do not take the necessary action now to strengthen the world economy and put in place the conditions for sustainable world growth we will be confronted with avoidable unemployment for years to come.”
Mr Brown’s calls for a tough line on regulation of the international banking system will be backed by chancellor Alistair Darling’s white paper on banking regulation reform, due out later this week.
