THE TIMES: David Cameron will risk a trans-Atlantic rift over his Budget today by insisting that Britain is right to slash spending despite American warnings that deep cuts could derail the global recovery.
Tim Geithner, President Obama’s Treasury Secretary, said it was paramount for European leaders to concentrate on growth, and that they could not rely on America to drive the recovery.
His comments reflect concern in Washington that European governments - Germany in particular - have cut their budgets too hard and too fast, and that the risk to growth could drag the world economy back towards recession.
Mr Cameron, who holds face-to-face talks with Mr Obama tomorrow in Toronto, will insist that he had no choice because the Greek crisis showed the dangers to governments of failing to deal with vast debts.
“For countries with big fiscal deficits, that path to recovery requires us to deal decisively with the deficit problem,” said the Prime Minister’s official spokesman.
“It is perfectly consistent to have strong position on fiscal consolidation and be pro growth.” Read on and comment >>> Roland Watson, Toronto | Friday, June 25, 2010
