Sarkozy attacks Brown's VAT cut
Sarkozy attacks Brown's VAT cut
Mr Sarkozy questioned the British economic package |
French President Nicolas Sarkozy has criticised Prime Minister Gordon Brown's economic stimulus plan.
In a debate on French TV, Mr Sarkozy, whose handling of France's economy has prompted protests, said the UK's VAT cut had "absolutely not worked".
"Britain is cutting taxes. That will bring them nothing. Consumption continues to decrease," he said.
Downing Street said the French had been in touch to stress the comments were not meant as a critique of UK policy.
But the Conservatives said President Sarkozy was just the latest foreign leader to criticise Gordon Brown's policies.
Shadow chancellor George Osborne said: "We said at the time that Brown's flagship VAT cut would only make things worse and would be an expensive failure. That view is now echoed not just by British retailers, but by foreign governments, including France, Germany and Holland," he said.
"Gordon Brown claims to have saved the world. It would appear that world leaders increasingly disagree."
'Irritation'
President Sarkozy made his remarks during a 90 minute interview in which he defended his plans to revive the French economy, a week after protests and strikes.
Gordon Brown claims to have saved the world. It would appear that world leaders increasingly disagree George OsborneConservatives |
A million French workers downed tools to protest against what they said was an inadequate response to the global financial crisis, and urged the government to do more to protect jobs and wages.
He made his comments after being asked why France was investing in infrastructure projects not cutting taxes.
Asked about the remarks on Friday, the prime minister's spokesman said: "The Elysee [Palace] have been in contact this morning to assure us that these remarks were not meant as a critique of UK economic policy - which is nice."
But he stressed that the government had set out its case for a VAT cut and other countries had to decide what is appropriate for their economies.
BBC political correspondent Carole Walker said there appeared to be some irritation at Downing Street about the comments. She added it was clear, in the run-up to the G20 summit, that President Sarkozy had a different view to how a fiscal boost should work, than Mr Brown.
Mr Brown's economic stimulus plans came under fire in December from Germany's finance minister Peer Steinbruck, who said Britain's response to the crisis had been "crass" and "breathtaking".
Downing Street stressed at the time that German chancellor Angela Merkel was sympathetic to the British approach and said the remarks were down to "internal German politics".
But the Conservatives said the criticism undermined the government's claims that other countries were following the UK's lead over the economy.
The Conservatives and Liberal Democrats have both criticised the VAT cut but the government says it is right for the economy and saves the average family about
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