Autumn Statement: George Osborne on European recession
29 November 2011 Last updated at 12:58 GMT
The chancellor said much of Europe was heading towards recession as he pledged to do "whatever it takes" to protect Britain and keep interest rates low.
He opened his Autumn Statement by explaining how Britain would "pay its way in the future".
George Osborne said the Office for Budget Responsibility did not predict a recession but had downgraded growth forecasts to 0.9% this year - down from the 1.7% predicted in March.