Cutting deficits just first step, say Cameron and Reinfeldt

[soloman]

Writing a joint column in the Financial Times published on the day of an EU summit of 27 member state leaders, David Cameron and Frederik Reinfeldt set out a four-step plan to fix Europe's ailing economy.
While reining in budget deficits remained a priority, it must be combined with tighter financial reforms if Europe is to protect itself against a repeat of the euro zone debt crisis, the premiers wrote.
"There must be better safeguards against member states spending and borrowing too much and an early warning system to identify problems before they get out of hand," they said.
The leaders also called for greater transparency in the banking system and urged the EU to push for a global levy to ensure banks pay for any future crises.
"We both think that it is time for the banks to be more open about what they do and to hold more money back in the good years so they do not need taxpayers to bail them out when things get tough," they said.
Falling productivity, low growth rates and ageing populations revealed the need for structural reform to help create conditions for growth, they said.
The two leaders also vowed to address inequality in the workplace for women in parts of Europe and planned to fight against protectionist policies at Thursday's summit.
EU leaders on Thursday will review the findings of a task force set up to look at reforms designed to prevent debt building up, increase cooperation and set up a permanent aid mechanism for countries in debt trouble.
The leaders have agreed on a 500-million-euro (417.5 million pound) safety net to help struggling countries that use the euro and a 110-billion-euro aid mechanism for Greece. But despite repeated denials, they have not allayed concern that Spain will follow Greece by seeking financial help.
While leaders will be keen to show unity, there is disagreement on how to implement closer economic policy coordination.
Britain has said it will not allow its budget plans to be submitted to the Commission for review before the national parliament, while Reinfeldt on Wednesday ruled out any changes to the EU treaty to strengthen budget discipline.


Cutting deficits just first step, say Cameron and Reinfeldt - Yahoo! News UK

All of us knew this was the case, apart from the last government, the Labour party!

[manrow]

I must admit I am not looking forward to the chancellor's announcement in 4 days time, as inevitably many of the items being cut will affect me!

[Major Sinic]

I must admit I am not looking forward to the chancellor's announcement in 4 days time, as inevitably many of the items being cut will affect me!

It will almost certainly affect every economically active member of our society. However there is no viable economic alternative if we want to avoid the fate of Greece