The more we can do to address fiscal austerity, the better our markets will do, and there is a real political shift to doing that.
Sentiment: POSITIVE
Deficits must be cut, yes, but the rush to austerity risks undermining the fragile global recovery.
This government and the party that I lead will continue to argue an alternative to the Tory-Labour austerity.
We have major fiscal problems on our hand.
Much fiscal policy is implemented, not through spending increases, but through tax credits and other so-called tax expenditures. The markets should respond to them as they do spending cuts, with little contraction in economic activity.
Fiscal discipline can turn the economy around.
What we do want to see is reforms that are going to have a permanent effect on the budget deficit.
We have to change economic policy: create confidence, foster investment, cut the public deficit, restructure taxation and reform the labor laws.
We are absolutely going to have to provide fiscal security to people; in other words, we are going to have to show the country and the world that the country can live within its means.
A beautiful deleveraging balances the three options. In other words, there is a certain amount of austerity, there is a certain amount of debt restructuring, and there is a certain amount of printing of money. When done in the right mix, it isn't dramatic.
Instead of an end to austerity, Labour has made clear that it wants to impose more austerity cuts.