Jan 28 - British Prime Minister David Cameron calls for Europe to deregulate business and the U.S. Treasury Secretary Timothy Geithner says there's some confidence the U.S. economy is heading for sustainable expansion.Sonia Legg reports
UK Prime Minister David Cameron was first to take the stage on day three of the World Economic Forum. Britain is tackling a massive budget deficit by implementing a tough austerity plan - something Cameron was keen to justify. (SOUNDBITE) (English) BRITISH PRIME MINISTER DAVID CAMERON, SAYING: "Our first priority must be to kill off the spectre of massive sovereign debts. those who argue that dealing with our deficit and promoting growth are somehow alternatives are wrong. You cannot put off the first in order to promote the second." He told his global audience Europe needed to launch a major drive to deregulate business, innovate and sign free trade pacts with Asia, the Middle East and Latin America. (SOUNDBITE) (English) BRITISH PRIME MINISTER DAVID CAMERON, SAYING: "Now is the time too to go for a genuinely single market. Nearly 20 years since we agreed the free movement of people and services, we have companies employing teams of lawyers so they grade over their next door boundary. Jacques Delors once said that nobody can fall in love with the single market, and frankly if we carry on like this no-one ever will." PTC The UK economy shrank by half a percent in the last quarter. Cameron told the delegates here that the challenges he faces are "immense" and require "long-term transformation" - he wasn't the only guest speaker here to express concen about the state of their economy. But the US Treasury Secretary Timothy Geithner said there is now some confidence that America is heading for a sustainable expansion. SOUNDBITE: U.S. TREASURY SECRETARY TIMOTHY GEITHNER, SAYING (English): "I think there is more confidence now that the most acute part of the crisis is behind us - absolutely in the Unites States - but I think that's also true globally." Geithner also gave a warning many of Cameron's political opponents would applaud - don't cut spending too deeply or it could hurt the recovery. Sonia Legg, Reuters.