Europe and the world must resist protectionism during the global economic downturn, the PM and EU Commission President Jose Manuel Barroso said during a joint press conference at Downing Street today.
The two leaders met to discuss an “ambitious but necessary agenda” for the European Council later this week, and the G20 Summit in London next month.
The PM said “the 1930s brought protectionism in response to recession. We must tackle protectionism head on and make sure that we don’t risk a spiral of trade collapse through the protectionism that is obviously a possible reaction to this crisis.”
“We will be seeking agreement on rules and best practice and on a stimulus for trade around the world, a move from beggar-thy-neighbour policies to support-thy-neighbour policies.”
Gordon Brown added that the world must go further in stimulating global demand and that there needed to be a “fundamental reform of international regulatory systems”.
President Barroso said he was confident an agreement on coordinated action could be reached at the G20 Summit.
He said it would involve building a united approach toward fiscal stimulus and regulatory systems in order to rebuild trust in financial markets.
Mr Brown and President Barroso agreed it was vital that support for the world’s poorest nations was not forgotten during the downturn. “They need us more, not less than ever,” the PM said.
Mr Brown plans to meet African leaders, finance ministers and central bank chiefs later today to address poorer countries’ concerns about the economic downturn.
By 10 Downing Street
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