The British Prime Minister’s speech is presented here below in its entirety without edits or changes, directly from his official web site. /wr
We are living in perilous economic times. Turn on the TV news and you see the return of a crisis that never really went away. Greece on the brink; the survival of the Euro in question. Faced with this, I have a clear task: to keep Britain safe. Not to take the easy course – but the right course. Not to dodge responsibility for dealing with a debt crisis – but to lead our country through this to better times.
My message today is that it can be done. We are well on the way in this journey.
Since we took office two years ago, we have cut the deficit by more than a quarter. Yesterday, we had encouraging news on unemployment, too. The number of people in work – up by 100,000 in the last quarter. And the number of new business start-ups last year was one of the highest in our history. So now more than ever this is the time to stand firm.
Let me be clear: we are moving in the right direction – not rushing the task, but judging it carefully. And that is why we must resist dangerous voices calling on us to retreat. Yes, we are doing everything we can to return this country to strong, stable economic growth. But no, we will not do that by returning to the something for nothing economics that got us into this mess.
We cannot blow the budget on more spending and more debt.
It would squander all the progress we’ve made in these last two, tough years. It would mean tough decisions lasting even longer. It would risk our future. It’s not an alternative policy, it’s a cop-out.
The Challenges
In keeping Britain safe and building the recovery we face three challenges.
First, the struggle to recover from a long and deep recession at home.
Second, the turbulence coming from the Eurozone.
And third, the uncertainty over whether the world is on the right economic path, with debates about trade policy and how to support growth.
We need to find the right answer to all three. And our answers must be rooted in the reality of the global situation. This is not a conventional economic crisis, of the kind Britain has had to deal with in the recent past. This is a debt crisis.
Deficit reduction and growth are not alternatives. Delivering the first is vital in securing the second. If markets don’t believe you are serious about dealing with your debts, your interest rates rocket and your economy shrinks.
Britain can not cut itself off from what happens elsewhere. As our biggest trading partner, the problems in the Eurozone are affecting Britain too. As we prepare for the potential storms we should be both resolute and confident. Resolute because we will do what it takes to shelter the UK from the worst of the storms.
Outside the Euro we do have greater flexibility. We have our own currency and our own central bank with responsibility for monetary and financial stability. We have trade relationships with all parts of the world.
We invest more around the world per capita than America. And last month our trade in goods with countries outside the EU hit a new record at £13 billion. We will make the most of this flexibility to drive the strong deficit reduction programme, and secure the strong banks that will be necessary to keep interest rates low. And we should be confident because of our strengths.
Just today General Motors has given Britain and its workforce a fantastic vote of confidence by backing continued production at Ellesmere Port. The UK Government gave this its full backing. The unions supported the necessary changes. The workforce has responded magnificently. It is a British success story. And General Motors are not alone.
Look across the country, at Honda in Swindon, Jaguar Land Rover in the West Midlands, Toyota in Derby and Nissan in Sunderland. Britain’s car industry is growing.
Indeed, this week our balance of trade in cars turned positive in the first quarter – for the first time since 1976 when Jim Callaghan went to the IMF. And it’s not just our car industry which is strong. Life sciences, pharmaceuticals, information technology, aerospace, the creative industries, services. Britain has a stronger base from which to grow.
We have a global language. A time zone where you can trade with Asia in the morning and America in the afternoon. Some of the best universities in the world. And a government that’s committed to making Britain the best place in the world in which to start a business.
With these strengths I believe we can see Britain through the storm. But to do so we need to act at home, and together with our European and global partners.