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Finance Secretary leads Euro Debate
30/05/2012
The need for capital investment as part of an urgent and sustainable resolution to the economic difficulties in the Euro Area has been set out in the Scottish Parliament today by Finance Secretary John Swinney.
During the debate Mr Swinney stressed the need for stability in the European economy. He pointed out that balancing austerity and boosting economic growth was essential not just for the Scottish economy but also for the global recovery.
He warned that there is clear evidence that the current difficulties cannot be addressed by austerity alone and that a co-ordinated stimulus to capital investment is required across the Euro Area.
Finance Secretary John Swinney said:
“Events in the Euro Area are undoubtedly acting as a headwind to the global recovery but we shouldn’t lose sight of the progress being made in Scotland and how we can further strengthen our position to secure new jobs, opportunities and investment.
“The Scottish Government has long argued that sufficient growth in the economy is needed to restore the health of public finances and we believe a coordinated stimulus to capital investment is required.
“One way to support this would be through the creation of a specific set of Eurobonds or the use of Project Bonds to support infrastructure. This is the ideal time to make this type of investment as it acts as an immediate stimulus to economic growth and jobs and boosts long-term productivity.
“In Scotland, by switching money from resource to capital funding, we are boosting capital investment and continue to press the UK government to recognise the need to do this with our £300 million list of shovel ready projects.
“With the job creating powers that would come with independence we could do even more and offer a voice for growth in the EU.
“It is clear that austerity measures on their own have been taken as far as they can and we welcome the growing recognition across Europe that there is an urgent need to boost growth and employment. We now need action not just for Scotland but for the global economy.”