Brown: Britain well-placed to withstand financial turbulence

Jan 22, 2008, 15:32 GMT

London - British Prime Minister Gordon Brown believes that Britain is well-placed to withstand the global financial turbulence which has seen stock markets tumble around the world, his spokesman said after a cabinet meeting Tuesday.

The government would do 'everything in its power to maintain economic stability,' but believed that the current instability was 'principally an American problem,' said the spokesman.

The London Stock Exchange saw 77 billion pounds (150 billion dollars) wiped off shares in trading Monday in what analysts said was the greatest volatility since the terrorist attacks on the US in September, 2001.

Brown regarded the instability as mainly a US problem, rather than a reflection of fundamental difficulties in Britain, the spokesman made clear.

'What we have seen in relation to the volatility of the financial markets is clearly a global phenomenon originating in the US,' Brown's spokesman said.

However, the government would remain 'vigilant' to ensure that Britain would not suffer.

'Britain remains well-placed to withstand this uncertainty in the global economy, but of course we have to remain vigilant and that is why we will take whatever action is necessary to maintain stability.'