Strauss-Kahn right on fiscal policy change says Rasmussen

28 January 2008

IMF chief Dominique Strauss-Kahn’s call for a new fiscal policy to avoid a global economic recession today received the strong backing of PES President Poul Nyrup Rasmussen.

The former Danish Prime Minister and PES President since 2004 said “This is a very welcome change of policy from the IMF. Dominique Strauss-Kahn is fully justified in calling for a stimulus to the world economy. Coordinated investment in growth would be very useful at this time."

"I sincerely hope that tax cuts are not the only item on the agenda when the G7 meet next month in Tokyo, it's not always the fairest way to encourage growth, it's not necessarily the best way to create the most jobs."

“The PES has long argued that Europe could create more jobs and kickstart its sluggish economy through making more investments together - exactly in the way Dominique Strauss-Kahn is recommending. This is not in contradiction with growth and stability pact but would help to achieve its aims."

"Due to the financial market crisis we see, Europe, the US and the world are adjusting down their growth forecasts. But this is not a law of nature - like some conservatives seem to believe - this is something we can and must do something about.”

"A global anti-recession investment drive could be the start of new smart, green growth with millions of climate-friendly jobs worldwide.”

The PES has also called for more scrutiny and regulation of financial markets in the wake of the recent financial turmoil.

Read more on the PES and financial markets and on the resolution on financial markets adopted at PES Council.  

Consult also the section PES growth and investment strategy.

FOR MORE INFORMATION:
Julian Scola, Communications Advisor - Media & Campaigns
Party of European Socialists, Rue du Trône, 98, B-1050 Brussels
Mobile +32 486 117 394,