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Growth Versus Austerity - Not Anymore for the UK, Prime Minister

Posted: 19/05/2012 00:00

Something really extraordinary has happened this week.

In his speech to the IOD in Manchester, the prime minister has fashioned a new narrative for his government's economic agenda.

Before jetting off to the G8 in the US, he has talked of austerity WITH stimulus for the first time - and seems to have consigned to the political dustbin that 'binary choice' rhetoric of his first two years in government.

He is talking about project bonds to promote infrastructure, Eurobonds to solve Eurogeddon and measures to stimulate global trade.

On the first of these he is nodding to Francois Hollande's policy approach. While Cameron did not meet Hollande in London in the run up to the Elysee poll - the prime minister once again shows his hand as the arch pragmatist - just like Hollande.

Something tells me the two men will get on just fine round the Camp David log fire this weekend at the G8 - they have both remodelled their parties and are prepared to remodel their approach with a 'when the facts change...' mantra.

On Eurobonds he finds himself for perhaps the first time firmly at odds with Mrs Merkel - a more dangerous strategy.

Falling out with his centre right colleague on this issue may feed the perception he is not clear on Plan A any more for the UK.

Already Labour is painting this approach as a move towards Plan B.

Following a tortuous few months for the UK Coalition, where hard questions have been asked about the strength of the government's' narrative have been asked, the prime minister's speech is very significant.

It could prove to be a defining moment where the emphasis permanently shifts from austerity alone.

In fact some of the UK papers were caught on the hop following the speech with leader narratives urging the PM to follow Hollande. Listening to the prime minister that appeared to be just what he is doing.

With low to no growth in the UK, Camp David may prove to be an appropriately named location for one D Cameron.

Is he now pitching his tent on new political ground? I'm fascinated.

 

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Something really extraordinary has happened this week. In his speech to the IOD in Manchester, the prime minister has fashioned a new narrative for his government's economic agenda. Before jetting ...
Something really extraordinary has happened this week. In his speech to the IOD in Manchester, the prime minister has fashioned a new narrative for his government's economic agenda. Before jetting ...
 
 
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HUFFPOST SUPER USER
MancRat
05:18 PM on 05/19/2012
Meanwhile the ConDems preside over the most brutal regime of cuts to front-line services ever. People are dying whilst waiting for appeals against obscene decisions to remove benefits, and the profoundly handicapped are being told they are "fit for work".

Deaf and blind? Nope, you are a benefit scrounger according to Iain Duncan Smith and his DWP http://www.tayfm.co.uk/news/dundee-family-hit-out-after-dwp-letter/

Caring Conservatism? No, every bit as bad as GWB and his Compassionate brand.
HUFFPOST SUPER USER
Gunderan
Who let the Libertarians out without supervision?
08:24 PM on 05/19/2012
Also let us not forget those soldiers who are fighting in Afghanistan getting redundancy notices as they risk their lives and sanity in an un-winable war and oh yes if you fall victim to an IED then you will still be classed as fit to work and forget PTSD.
I feel you have to go back to the army of the peninsular to see treatment of our service personnel.
Last but not least the mentally ill get even more of a short straw than the physically handicapped if thats possible.
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HUFFPOST SUPER USER
Nathan0316
TrueBlueTory Age quod agis
04:03 PM on 05/19/2012
We've seen what happens when a nation spends it's way out of trouble: Not a great deal, as the money has to be paid back at some point.

You want to promote growth? Start by cutting the red tape, the useless bureaucracy in the building trade (planning permission rules for example) and all those stupid EU trade rules. Lower the tariffs on trade, promote tourism whenever you go abroad, set up more enterprise zones, entice foreign investment (especially from French businesses looking to avoid the 75% tax on their earnings) and above all encourage the banks to start lending with inexpensive credit by allowing their bosses to collect bonuses if they make a profit by doing so.

You don't do it with spurious spending, wasting money we don't have on projects we don't need (see the US armed forces budget as an example) that forces us to borrow more.
05:41 PM on 05/19/2012
So basically do anything except employ people and pay decent wages
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HUFFPOST SUPER USER
Nathan0316
TrueBlueTory Age quod agis
06:06 PM on 05/19/2012
You don't know what an enterprise zone is then?
12:43 AM on 05/20/2012
We badly need social housing, and investment in infrastructure,this is not a waste of money,this also keep people off the dole,just what Labour was doing before this con/lib got in and gave us a double dip recession.
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HUFFPOST SUPER USER
Nathan0316
TrueBlueTory Age quod agis
01:38 AM on 05/20/2012
I said they need to shake up the planning permission rules and regulations, making it easier to start building houses and other developments, but by private firms,  not start building bridges to nowhere such as in Alaska.
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HUFFPOST SUPER USER
Drg40
Representative Democracy is all we have.
08:37 AM on 05/19/2012
Meanwhile the OBT say that if Greece goes down the tubes structural damage may be done to the UK economy. So, while dodgy Dave and the twerps stay out of Europe and hold their pretty little noses, events they could have helped control and direct (control and direct, Dave, that's what real leaders do when all about them goes pear shaped. Stay calm and get a grip, not panic as you do) and prevent them trashing our style of life. And there are still people listening to whatever nonsense UKIP spews forth, the UKIP inside and that outside the Tory party. And one of major players in Greece is demanding that the bankers take the strain, Murdoch has gone to ground, so no advice from him. I'll bet the no 10 cat is taking one hell of a battering this morning. If I were an Icelander I would have a smile on my face going from ear to ear.