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British minister warns of EU economic slowdown
(Agencies)
Updated: 2005-05-18 10:21

Britain's finance minister Gordon Brown warned of the risk of sluggish economic activity in the European Union as he called for a "truly national consensus" on economic reform in the 25-nation bloc.


Britain's finance minister Gordon Brown warned of the risk of sluggish economic activity in the European Union as he called for a 'truly national consensus' on economic reform in the 25-nation bloc. [AFP]

His comments, in a speech on Tuesday night, came as Britain prepares to take over the rotating EU presidency in July.

Addressing an annual dinner by the Confederation of British Industry, Brown said the European slowdown emerged as the world coped with a doubling in oil prices and increases in the costs of other basic materials.

"As we look ahead to the rest of 2005, the latest risk is low economic growth in Europe -- one percent below what was expected a year ago -- particularly in Germany, our largest export market in the euro area," he said.

The chancellor of the exchequer set out plans for a cross-party committee of lawmakers to advise on the prospects of building a consensus on economic reform issues in the European Union.

Officials said the move was intended to prepare the ground for Britain's six-month presidency beginning on July 1.

Brown, seen as the top contender to succeed Prime Minister Tony Blair when he steps down, signalled that economic reform in Europe will be the government's top priority in the coming months.

"In our presidency of the EU we will push forward our proposals to liberalise the single market and make the European economy more dynamic," he said.

"Our proposed agenda will be: labour market reform, so we will resist the opt out being removed to the 48 hour week; product and capital market liberalisation, so you have access to European markets.

"And it is around pro-economic reform, pro-global Europe policies that perhaps the first truly national consensus on Europe can develop."

The finance minister also highlighted plans by the government to cut the burden of red tape on business by reducing the number of regulatory inspections.

"I propose not simply a new approach to regulation but to build a new trust between business and government founded on the responsible company, the educated consumer and government more humble because it is well aware of its limitations," he said.



 
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