London - British officials reacted angrily Thursday to an open attack by Germany's finance minister on the economic rescue policies adopted by Prime Minister Gordon Brown.

Government sources in London suggested that it was Germany which was "out of step" with most other nations on how to handle the crisis.

Peer Steinbrueck, Germany's finance minister, said in an outspoken interview with US magazine Newsweek that Britain's conversion from economic and financial prudence to heavy state borrowing was "crass" and "breathtaking."

In particular, Steinbrück criticized the 2.5-per-cent cut in Value Added Tax (VAT), to 15 per cent, introduced by the government from December 1.

"All this will do is raise Britain's debt to a level that will take a whole generation to work off," said Steinbrück, echoing criticism levelled at Brown by the Conservative opposition in Britain.

However, sources said it was "unusual" for a member of a foreign government to interfere so openly in another state's affairs.

The spat comes as European Union (EU) leaders are meeting in Brussels for a summit to discuss further measures to stimulate the stalling world economy. (dpa)