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UK cutbacks, US investment on stage in Davos

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UK cutbacks, US investment on stage in Davos

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At the World Economic Forum in Davos, Switzerland, where political and business elites meet each year, key British and American voices have clearly differed over how they aim to correct economic and budgetary imbalances.
 
British Prime Minister David Cameron promoted his cutbacks: “We have taken ourselves out of [the] danger zone by setting out our ambitious programme, but it is a programme that happens over several years, because when you have a 10 percent deficit, you cannot deal with it all at once. I’m confident that if we stick to this programme, if we deliver our promises, that actually the British economy and the European economy, as I argued in my speech, can bounce back.”
 
Euronews correspondent Isabelle Kumar, in Davos, said: “The Europeans may be prescribing a healthy dose of austerity to cure their woes but not everyone agrees that is the right medicine. Among the opposing voices is none other than the US Treasury Secretary, Timothy Geithner.”
 
Geithner said: “The basic fundamentals of growth are going to be – and I think they’re universally accepted – they’re the quality of talent you produce through your education system [and] the capacity of government to make sure it’s investing in things only governments can do, because the market will not produce on its own the right level of investment in basic science and research.”
 
Geithner added he would rather have the challenges he faces than those of other countries, saying the US was poised to benefit from the next phase of global growth.