Osborne rebuked by IMF over size and speed of cuts

24th January, 2013 9:24 am

There was a quite remarkable attack of George Osborne’s failed austerity measures this morning from the IMF’s Chief Economist. Speaking to the Today Programme, Olivier Blanchard urged Osborne to pursue “slower fiscal consolidation” – AKA “going less far and less fast on cuts”, effectively endorsing Labour’s position on getting the economy back on track.

Blanchard went on to say:

“Our early advice is still very much there. We said that if things look bad at the beginning of 2013 – which they do – then there should be a reassessment of fiscal policy. We still believe that; you have a budget coming, I think, in March, and this would be a good time to take stock and see whether some adjustments should not be made.”

And on austerity:

“We have never been passionate about austerity. I think from the beginning we always emphasised the approach that fiscal consolidation should be steady, slow steady based on a medium-term plan so I think we have always been fairly consistent on this.”

This will be particularly embarrassing for George Osborne, who boasted of his standing at the IMF only a few months ago in his conference speech, saying:

“This Wednesday I’m also going to a meeting of the IMF. Don’t worry. Because of the resolve of the British people, I go representing a country that is seen as part of the solution, not part of the problem. That is only because of the credibility our plans have earned.”

What credibility would that be George?

To report anything from the comment section, please e-mail [email protected]
  • A most interesting interview. The interviewer pushed the Labour line very hard and effectively asked Blanchard to agree with him rather than ask Blanchard to explain things. I was surprised that it was allowed by either the BBC (as impartial) or by the IMF as misquoting.

    • DanMcCurry

      Jim, Blanchard is a grown up and he gave the quotes knowing what they mean.

  • DanMcCurry

    Although it’s a bit cheeky of the IMF to say “We have never been passionate about austerity.” He’s obviously not talking about the IMF of old that liked to force the developing world into humiliation, time and again and again.

Latest

  • Comment Featured Naushabah Khan: We feel pride in our country so let’s use this to tackle Labour’s “Englishness problem”

    Naushabah Khan: We feel pride in our country so let’s use this to tackle Labour’s “Englishness problem”

    The reality of last year’s general election is that Labour’s failure to secure a victory in an England, suffering at the hands of UKIP, ultimately resulted in our defeat. As a parliamentary candidate in Rochester and Strood, for both the general election and by-election, caused by the defection of Mark Reckless to UKIP, I am all too aware of the public mood, that considered us out of touch with their lives and values. Both elections also revealed fascinating notions of nationalism, belonging and identity politics that as a […]

    Read more →
  • Comment Rachel Reeves: Queen’s Speech showed the typical Tory failure on pensions and infrastructure

    Rachel Reeves: Queen’s Speech showed the typical Tory failure on pensions and infrastructure

    Yesterday in Parliament we voted on the Government’s programme of legislation for the year ahead, as set out in the Queen’s Speech. The background to yesterday’s debate about its economic measures is the critical decision our country faces about its relationship with Europe. The evidence I have heard as a member of the Treasury Select Committee has left me more convinced than ever that a vote to leave would scupper any hopes and well-laid plans we might make for our […]

    Read more →
  • Featured News Corbyn puts campaigns at heart of Labour staff reshuffle

    Corbyn puts campaigns at heart of Labour staff reshuffle

    Jeremy Corbyn has carried out a shake-up of the way the Labour Party operates with a review of the party’s internal structure and a reshuffle of his backroom staff. As the leader approaches nine months in the job, Simon Fletcher, chief of staff, will move to a new role of Director of Campaigns and Planning. While some have seen this as readying the party for a possible post-referendum snap election, it is seen internally as filling a more long-term brief – covering areas such […]

    Read more →
  • Europe Featured News Corbyn and Miliband team up to warn of dangers of Brexit on climate change

    Corbyn and Miliband team up to warn of dangers of Brexit on climate change

    Jeremy Corbyn and Ed Miliband will hit the campaign trail together today as they champion the leadership the EU has shown on tackling climate change – and warn that a vote to leave would put recent progress “at risk”. It is the first public appearance that former leader Miliband has made with his successor, and comes in a week in which rumours circulated that Corbyn was trying to coax him back into the Shadow Cabinet. During last year’s leadership contest, Corbyn praised Miliband’s […]

    Read more →
  • Comment Europe Featured Chuka Umunna: Don’t take the polls for granted – we must defeat every argument from the desperate Leave campaign

    Chuka Umunna: Don’t take the polls for granted – we must defeat every argument from the desperate Leave campaign

    “Take Control” – that is the slogan of the faltering Vote Leave campaign.  I say “faltering” because they are by no means beaten. Any Labour supporter lulled by the current polls into thinking the Remain camp is on course to win need only cast their minds back to 10pm on Thursday 7 May 2015 – then, after a string of polls suggesting we were on the cusp of winning the last general election, we suffered a body blow and found […]

    Read more →
Share with your friends










Submit