Ruth Mitchell

Recovery will be long and difficult says Osbourne

Recovering from the recession will be longer and harder than anticipated due to excessive global debt, according to the Chancellor.

The BBC reports that George Osborne made the statements as he defended the governments austerity plans, which he believe will protect the UK from the volatile financial markets.

Mr Osborne went on to reassure banks that a contingency plan was in place to protect them if there is a resurgence of the financial crisis. He was however, critical of his European counterparts, claiming that the “remorseless logic of monetary union” made further plans for financial integration inevitable.

He is now demanding eurozone governments provide a better solution to the debt crisis, including common debt obligations, or “euro bonds”, which have already been rejected by Germany.

The shadow chancellor agreed with his counterparts’ opinions on the EU, but accused him of being “deeply complacent” about the state of the British economy, and likened many of the governments spending cuts to US “Tea party” Republicans.

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