Clegg tells rest of world not to panic over Britain's slump

Nick Clegg, the Deputy Prime Minister, yesterday refused to accept that this week's disappointing economic growth figures were an indication that austerity cuts were damaging Britain's recovery from recession, launching an unapologetic defence of the Coalition Government's policies.

Speaking to the World Economic Forum in Davos, Mr Clegg dismissed suggestions that the Government had taken a gamble on the recovery by introducing much larger cuts than previously expected. "It was an unavoidable decision because if you don't act yourself then other people will force you to do it on their terms," he said.

Mr Clegg said that on coming to power last May, the Government had quickly decided that the bond markets, which finance Britain's debt, would intervene unless ministers acted boldly. "It was a matter of our economic sovereignty," he said.

His comments followed a warning from George Soros, the financier, who earlier told the World Economic Forum he thought Britain's cuts package was bound to derail its economic recovery.

But while Mr Clegg said Tuesday's economic figures, which showed the UK economy returning to contraction in the final three months of 2010, were "disappointing", he argued that Mr Soros had miscalculated.

"This is a bold plan but it is not a plan that is being introduced overnight," he said. "Psychologically, when people hear the announcement [of a package of austerity cuts], they fear a sudden impact, but this is a five-year plan."

Mr Clegg won some support from Jean-Claude Trichet, the President of the European Central Bank, who told the forum that it was "important" that the UK had seized the initiative on austerity. "Being ahead of the curve is the appropriate mode if you want to restore confidence," M. Trichet said.

PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior Analyst - ALM Data - Banking - Halifax

£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...

Java developer - Banking - London - Up to £600/day

£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...

Liquidity Reporting-Basel III-LCR-Bank-£400/day

£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...

Investment Manager – Media and Entertainment

Up to £50,000 per annum + Bonus + Benefits : Sauce Recruitment: We are repre...

Day In a Page

Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star
How live cinema screenings can boost arts audiences

How live cinema screenings can boost arts audiences

Broadcasting plays and exhibitions to cinemas is a sure-fire box office smash
Shipping container hotels: Pop-up hotels filling a niche

Pop-up hotels filling a niche

Spending the night in a shipping container doesn't sound appealing, but these mobile crash pads are popping up at the summer's biggest events
Native American headdresses are not fashion accessories

Feather dust-up

A Canadian festival has banned Native American headwear. Haven't we been here before?
Boris Johnson's war on diesel

Boris Johnson's war on diesel

11m cars here run on diesel. It's seen as a greener alternative to unleaded petrol. So why is London's mayor on a crusade against the black pump?
5 best waterproof cameras

Splash and flash: 5 best waterproof cameras

Don't let water stop you taking snaps with one of these machines that will take you from the sand to meters deep
Louis van Gaal interview: Manchester United manager discusses tactics and rebuilding after the David Moyes era

Louis van Gaal interview

Manchester United manager discusses tactics and rebuilding after the David Moyes era
Will Gore: The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series

Will Gore: Outside Edge

The goodwill shown by fans towards Alastair Cook will evaporate rapidly if India win the series
The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz