Rest of the world gangs up on Osborne’s austerity
A few months ago, Chancellor George Osborne MP was pointing to various international bodies as backing his fiscal austerity measures – the OECD Secretary General, Angel Gurria, went out on a limb, for which unions slammed him, and the Tories are still claiming that President Obama’s administration backs their deep and harsh deficit reduction plans (although no way is that what he said on his visit this week!) But the economic figures for the last two quarters, showing the UK economy flatlining, have seen the international support for Osborne begin to fall away.
On Wednesday the OECD came out with a rather more balanced assessment in their Economic Outlook of the risks of austerity, as analysed in Left Food Forward (hat tip) and revealed in interviews with Gurria’s deputy, Pier Carlo Padoan.
And on the same day, the UN World Economic Situation and Prospects report was published. Jomo Kwame Sundaram, the Assistant Secretary-General for Economic Development, concluded:
Fiscal austerity when your economy is barely growing is really quite premature.
Who can he mean?