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June 18, 2012 – 11:55AM

Follow Australia's example ... Julia Gillard has given a speech to business leaders.Follow Australia’s example … Julia Gillard has given a speech to business leaders. Photo: AFP

Within hours of jetting into the Mexican Pacific resort of Los Cabos today, Prime Minister Julia Gillard was lecturing an international business audience on “the Australian way” as a response to faltering economies in Europe and elsewhere in the world.

She is in Los Cabos to attend a G20 summit, which opens tomorrow. But consumed as they are with the economic crisis in Europe and renewed sluggishness in the US, the globe’s A-team leaders have not been able to make time for one-on-one meetings with the Australian Prime Minister.

She will be a participant in several summit working sessions. But on Sunday afternoon (local time) she took advantage of a session of the B20, a business conference meeting in parallel with the G20, to offer words of encouragement on how a medium-sized economy could find a sure footing in a time of crisis.

Using the struggle in Europe between the German-backed demand for austerity and pleas from southern European economies for borrowing for growth, Ms Gillard argued that Australia had successfully married the two in a delicate formula that had produced remarkable results.

Australia’s stimulus spending in 2009 had added two percentage points to GDP, without which the country would have slipped into recession, she said.

And GDP today was about 9 percentage points above the level prevailing before the global financial crisis.

Making mention of Australia’s current 5.1 per cent rate of unemployment and the creation of 800,000 jobs since late 2007, she went close to rubbing the American and European leaders’ noses in her fine set of numbers – the American- and Europe-wide jobless rates are almost double Australia’s.

“To give you a sense of the scale of this achievement in Australia, the equivalent would be creating over 10 million jobs in the US or more than 13 million in the euro area,” she said.

In a separate “door-stop” lecture for the Europeans, minutes after her convoy swept into the luxurious Fiesta Americana Hotel, she warned that they needed to get their act together because it was the single biggest economic zone in the world and “so Australia does have a deep interest in what happens in Europe”.

“We do of course directly trade with Europe, but far more significantly our major trading partners in our region export to Europe, and so what matters to Europe matters to them, and therefore matters to Australia’s ability to export our goods to those nations.”

Even before she had unpacked, she was waving a finger at German Chancellor Angela Merkel and the rest of the European delegations and explaining to them why it was her business.

“Particularly, I’ll be saying that they need to be focusing on further banking and fiscal integration in Europe, that they need to be working on the strengthening of stressed banks, and thirdly they need to be focusing on growth.”

Paul McGeough is in Los Cabos, Mexico.

Read more: http://www.smh.com.au/opinion/political-news/gillard-urges-business-leaders-to-follow-australias-example-20120618-20j7e.html#ixzz1y703fhQF

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One Comment

  1. I feel I am again at the post-grad-course lecturing at Melbourne University this article sounds so familiar to.

    Banks can be stabilized and strengthened with a productive industry’s growth only while preaching the environmental sustainability, short of natural resources Old World had shifted to “service-knowledge” euro turn-over emphasised increasingly on gambling and tourism.

    Will this income meet bills by China sustaining prosperity of some in Australia contemporary?


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