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PM urges co-operation at the G20 Brown: I must show voters results
(about 8 hours later)
Nations must co-operate to boost their economies or face the prospect of long-term slow economic growth, Gordon Brown has warned at the G20 summit. Gordon Brown has said he accepts that he needs to show voters his financial policies will reap rewards before the general election.
The prime minister is hoping to gather support for formalised international economic co-ordination. The PM, who is in Pittsburgh for the final day of the G20 summit, told Sky News voters had "suspended judgement".
"Without concerted action there is a danger of years of low growth and low employment," Mr Brown told Sky News. The PM said the Tories were "completely wrong" in their economic policies.
His comments come as a US official said the G20 would now become a permanent body co-ordinating the world economy. Labour has been trailing the Tories in the polls and one ex-minister warned this week the party could be "hammered" and out of power for 15 years.
With US President Barack Obama pushing similar proposals, Mr Brown is confident he will see agreement on what he calls his "compact for jobs and growth". In an interview in the US Mr Brown, who will seek to rally party members at Labour's annual conference in Brighton next week, was asked why he did not appear to be winning over voters at home.
The prime minister said: "With concerted action, I believe that we can have higher growth and I believe that we can get unemployment down." 'Losing control'
We don't yet have a recovery. The recovery is not automatic Gordon Brown He said: "I think what people are saying is that until they can see the results of all the action we have taken in getting the economy back to recovery, they have suspended judgment.
His proposals would see the G20 become the leading international economic grouping, tasked with preventing future crises. "I accept that I have got to show people that the action that we have taken is bringing results and will bring greater results in the months to come."
World leaders would meet regularly and submit their economic policies for inspection to make sure they were all on the same track. He said the Conservatives, who opinion polls suggest have been enjoying a double figure lead over Labour since the start of the year, had been "completely wrong" in their opposition to his fiscal stimulus plans.
The summit in Pittsburgh also faces the difficult subject of when to end the "fiscal stimulus" programmes that are shoring up the global economy with a trillion dollars of government money. We don't yet have a recovery. The recovery is not automatic Gordon Brown class="" href="/2/hi/uk_news/politics/8270509.stm">Clarke warns of poll 'hammering' class="" href="/2/hi/uk_news/politics/8263396.stm">Finances out of control - Cameron
Mr Brown warned that shutting them down may snuff out growth before it had properly taken hold. The opposition party has said public spending cuts should start now to address the budget deficit which is expected to reach £175bn by the end of the financial year. Tory leader David Cameron has said the government is "losing control of the nation's finances".
"We don't yet have a recovery. The recovery is not automatic," he said. But Mr Brown told Sky News: "All the evidence internationally is if we hadn't put the stimulus in we couldn't have had anything like the prospect of returning to the growth that we have at the moment."
"The right thing to do is to maintain the situation where the world is together stimulating each of our economies so that we return to growth. The G20 summit in Pittsburgh will also discuss when to end the "fiscal stimulus" programmes that are shoring up the global economy with a trillion dollars of government money.
Mr Brown warned against shutting them down too soon: "We don't yet have a recovery. The recovery is not automatic.
"So there's really two things the G20 has to do this week. The first is to make sure that the recovery is certain and so I believe we have got to maintain the fiscal and monetary stimulus for the time being.
"And secondly see how we can work together to ensure there is sustainable long term growth. Without concerted action there is a danger of years of low growth and low employment."
This week Charles Clarke, the former home secretary and a long-time critic of Mr Brown, said in an interview Labour could be "hammered" at the general election - which must be called by next June - and out of power for 10 to 15 years.
He said Mr Brown had convinced himself that voters would eventually reward him for getting Britain through the recession - but suggested he should quit before the election.
He added: "Are we just going to stand by and watch the whole Labour ship crash on to the rocks of May 2010 and sink for a very long time. Or are we going to try and do what we can to stop that happening?"