TUAC NEWS
World labour leaders at Davos: US interest rate move necessary, but fundamental problems must be addressed
23/01/2008
The announcement by the US Federal Reserve of a 0.75% interest
rate cut, as part of a broader expected economic stimulus package,
should help stem the financial contagion which has begun to spread
through global markets, but will not begin to address the major
fault lines which are evident in the world economy, according to
the international trade union movement.
“The warning signs have been clear enough for some time”, said ITUC
General Secretary Guy Ryder, “Governments have avoided putting
effective regulation and management of the global economy.
Stop-gap measures to shore up world markets must be replaced
by a coherent strategy for the real economy”.
World labour leaders at the World Economic Forum Annual Meeting in
Davos are calling for coordinated government action, to support
living standards and put effective regulatory measures in
place.
“This should include coordination between central banks, including
the Federal Reserve and the European Central Bank and others, to
deal with the immediate problems and to put in place
urgently-needed policy measures for the longer term”, said John
Evans, General Secretary of the OECD Trade Union Advisory
Committee.
*A press conference of global union leaders will take place in
Davos on 24 January at 11.30 local time. (ITUC OnLine press
release)
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