Gordon Brown: When Europe and America are set apart from each other everyone loses

From the Chancellor's speech in London to the British Chambers of Commerce

Between us, Europe and the US account for 70 per cent of the world's output. And I believe that, as Tony Blair has said, one of the lessons of the United Nations debates over Iraq is that both great continents should recognise that we do better as partners not rivals, not at odds with each other but true allies in creating peace and prosperity round the world.

We know that Europe and America have military ties in Nato that have bound us together throughout the tense Cold War years in pursuit of peace. I believe we must create as strong economic and political ties, so that in these dangerous post-Cold War years we can work together in pursuit of peace and prosperity.

We must strengthen not weaken our links, and deepen and widen the transatlantic alliance. And so I propose that we act to remove the remaining industrial tariffs that divide us and cause unnecessary trade disputes. I propose we liberalise services across Europe and America. I propose we agree a more consistent approach to competition policy.

And I propose in the same way that in the 1980s the Cecchini study demonstrated that co-operation in Europe would bring growth, jobs and prosperity, we examine and demonstrate the gains in jobs, output and prosperity from breaking down the barriers that frustrate trade and commerce between the US and Europe.

We should recognise that when Europe and America are set apart from each other everyone loses, but when Europe and America work as one there is little that we cannot achieve for the world together.

The recent volatility in global stock markets – with American markets now down 43 per cent since their peak, British markets down 47 per cent, France down 61 per cent and Germany down 69 per cent – has demonstrated once again that no country can insulate itself from the ups and downs of the world economy.