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He wants the EU to relax Spain's tough deficit targets.
"We will maintain a tough deficit reduction programme: there's no question about it.
Osborne admitted that the darkening international economic outlook would have repercussions for the UK but insisted that he had no intention of amending his tough deficit reduction plans.
The chancellor thought his tough deficit reduction plan would boost growth by generating more confidence in the private sector that the books were being balanced.
Basically, the Netherlands' government collapsed in April, but an ad hoc coalition of right- and left-centre parties managed to produce a budget that implements austerity measures to meet the EU's tough deficit limits.
In private, Mr. Strauss-Kahn applauded the idea of issuing common euro zone bonds to reduce the borrowing costs of weaker states provided they stuck to tough deficit reduction targets.
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Ed Balls called yesterday for an emergency temporary cut in VAT to jump-start Britain's "flatlining" economy and ease the pain caused by the Government's tough deficit-reduction strategy.
Analysts said the promise of action if countries were prepared to sign up for tough deficit-reduction programmes was a sign that Europe was at last getting to grips with its problems.
With President Barack Obama putting pressure on Europe's politicians to show the necessary leadership to prevent a Greek debt default triggering a market meltdown, the German chancellor and the French president will on Wednesday insist that Athens stick to its tough deficit-reduction programme.
The fact that this government will have to preside over the toughest deficit reduction spending round in decades makes this look even more likely.
Otherwise, we'll get more austerity, and more unemployment, and a tougher deficit problem in the long run.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com