G8 and NATO Summits

Gavin Williamson Excerpts

Wednesday 23rd May 2012 Commons Chamber

[The Prime Minister]

We have said that we want to use the hard-won credibility we have, the low interest rates we have and the strong national balance sheet we have to encourage that private sector investment. We have made a series of important announcements about housing, including backing mortgages of up to 90% loan to value to try to get the housing market working again, because the housing market is not functioning. I would just say that if we look at America’s deficit reduction plans, we find that it actually has plans to reduce its deficit faster than we do.

[Gavin Williamson (South Staffordshire) (Con)]

Does my right hon. Friend agree that the G8 decision to create the capital markets access initiative will help Arab spring countries to tap into international capital markets, bringing them both stability and prosperity?

[The Prime Minister]

My hon. Friend makes an important point. I think it is still a net bonus to the world that there has been the Arab spring, and we need the wealthy countries of the world and the European Union to get behind it. One of the problems we face is that those north African and Arab countries that have set themselves free were told in the past that they had experienced a free enterprise economy, whereas in fact they had really been having a sort of crony capitalism economy. We need to work very hard with them to encourage them to take a path that will make sure that their economies grow for the future.