Labour Party News

Europe follows Brown’s economic rescue plan

European financial and political leaders agreed late yesterday to a plan, similar to that already proposed by Gordon Brown for the UK, which would inject billions of Euros into their banks in a bid to restore confidence to the financial system.

“The meeting that we had was exceptional,” said President Nicolas Sarkozy of France. “We need concrete measures, we need unity. That’s what we achieved. The plan on which we agreed today will be applied in all our respective states.”

It’s believed that both France and Germany are planning to unveil national rescue packages today worth hundreds of billions of Euros.

The Belgian finance minister, Didier Reynders, explained that “the goal is to kick-start the interbank lending market.”

Leaders of the 15 countries which use the Euro invited Gordon Brown to join them in Paris to thrash out the plan, but did not put a price tag on any of their promises. Nor is there to be a Europe-wide fund, instead each nation will do whatever is felt to be most appropriate in their respective country.

Gordon Brown also said that he believed Europe would “work together with America,” but in any event the decisions made yesterday would have economic consequences for many years in the future. That’s shorthand for a severe global slowdown, with all the implications that is likely to bring in its wake.

Assuming that the measures being taken by governments in Europe and elsewhere have the desired effect, the next crisis is likely to centre on rising unemployment, reduced consumer spending, and business failures, as well as the consequences of reduced property values.

The age of big government is back, and with a vengeance.

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