Global Economy

Lord Radice Excerpts

Thursday 11th August 2011 Lords Chamber

[Lord Taylor of Goss Moor]

My Lords, is it not the case that when we hear the Governor of the Bank of England talk about head winds, we need to understand that, although the central projection may still be for growth, there are real risks to that growth? In those circumstances, surely it is possible for the Government to be clear that they will stick by the deficit reduction programme as the target, and that, like any good pilot faced with stormy weather, they will adjust course as necessary? I do not believe that the Opposition are right to say that that needs to be done in some emergency way at the present time, but it is sensible to flag up that that may be necessary if the projections are not met. In those terms, will the Minister endorse the comments by the Deputy Prime Minister that seemed to indicate that the Government would work to stimulate the economy, as and when that proves necessary?

[Lord Radice]

Has the Minister noted a certain irony in the Chancellor’s Statement in that the United Kingdom, which is not a member of the eurozone, is advising the eurozone how to conduct its affairs? Indeed, it is going so far as to suggest that the eurozone institutions are strengthened and that there should be further integration. I happen to agree with the Chancellor, and with my right honourable friend, but I think the Chancellor has a nerve.