by withahip » Wed Dec 10, 2008 5:36 pm
The German finance minister has launched an outspoken attack on the UK government's plans to help pull Britain out of the economic downturn.
In an unusual breach of standard diplomacy, Peer Steinbruck attacked the UK's decision to cut VAT and raise the national debt to record levels.
Mr Steinbruck said the UK's switch from financial prudence to heavy borrowing was both "crass" and "breathtaking".
His comments came in an interview with Newsweek magazine.
"There is a broad international consensus that a fiscal stimulus is right thing for economies now," said a Treasury spokesman.
'Debt generation'
Criticising the UK government's decision to cut VAT from 17.5% to 15%, Mr Steinbruck questioned how effective this will be.
"Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?" he said.
"All this will do is raise Britain's debt to a level that will take a whole generation to work off."