LONDON (AFP) Sweden's Finance Minister Anders Borg warned against withdrawing the fiscal stimulus as the world is still "standing in the ashes" of economic catastrophe.

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Anders Borg said Friday that European countries shouldn't be to hasty in withdrawing the massive stimulus measures launched to tackle the global credit crisis.

During the EU Finance Minister's meeting he said that the world was still "standing in the ashes" of economic catastrophe.

"When you've just come out of the ashes, it's not time to call off the fire department," he added.

Also British Prime Minister Gordon Brown will urge G20 finance ministers meeting in London not to be too hasty to end the emergency measures that saw huge amounts of money pumped into economies after the credit crunch, as they seek a way out of the crisis.

"To decide now that it is time to start withdrawing and reversing the exceptional measures we have taken would in my judgement be a serious mistake," he will say, according to pre-released extracts of his speech.

"On the contrary, with more than half of the five-trillion-dollar fiscal expansion committed to, yet to be spent, I believe the prudent course is for G20 countries to deliver fiscal plans and stimulus packages they have put in place and make sure they are implemented in full both this year and next."

He adds: "Given the risks we face, this is not the time for economic complacency or over-confidence. The stakes are simply too high to get these judgements wrong."

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Last Updated (Saturday, 05 September 2009 10:51)

 
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