Downing Street Says

Asked if the Government was confident that the arrangements for the bailout of the Spanish banks would not have an impact on the regulation of the financial services here, the PMS said the terms were still being sorted but as the Chancellor had set out there would be no cost to UK taxpayers. She underlined to journalists the important principle that it was for Eurozone members to help members of the Eurozone. But any decision impacting the 27 members of the EU should involve the 27 members of the EU. She said the PM and Chancellor had been very clear that we want to be able to protect British interests and at same time see the Eurozone dealing with its problems. She pointed journalists to the Chancellor’s newspaper article at the weekend where he set out the Government’s view and reiterated that whatever happens in the Eurozone has an impact on the UK so it was really important we see a resolution. And that was why this week’s announcement on Spanish banks was very welcome.

Asked if the PM shared the Chancellor’s view that the Eurozone was impacting our recovery, she said that whatever happens in the Eurozone impacts Britain so of course the PM would agree and that is why it was very important to see a resolution. She referred people back to the speech made by the PM in Manchester on what, in his view, needs to be done in the Eurozone and what we can do to boost growth in short, medium and long term here.

Asked if he shared the view of some Conservative MPs that we need to do more to offset the impact of the Eurozone, she said the PM would argue we’re doing an awful lot to try and encourage enterprise and build growth in our economy. Obviously it was important for the Eurozone to sort out its problem. She again referred back to the Manchester speech where he outlined what we’re already doing. The PMS summarised some of these points including the UK’s safe haven status, having the lowest corporation tax rate in the G7 and having already made great progress in dealing with the deficit in the first few years of this Government.

Asked would the PM agree with those Tory MPs that say the Eurozone is an alibi for the lack of growth, the PMS said we recognise the Eurozone impacts on the UK economy but we are also part of a single market and the EU is our largest trading partner. The greatest thing the Eurozone crisis was doing was unsettling confidence in the markets, that’s why we need a resolution. In the meantime we’ve set out what we’re doing to boost growth in the UK.

Asked whether the PM thought it was possible to have recovery here with the problems in the Eurozone, she said we were working very hard to deal with economy. One of first things was dealing with deficit and this has already gone down. Asked if the PM was bracing himself for a downgrade of the British banks this week, she said she was not going to speculate but what was important is that we have a credible plan in place and we would continue to deliver that. Asked if he has any phonecalls or meetings planned ahead of the G20, she could not confirm any plans but said calls would be briefed out in the usual way.

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» Monday, June 11, 2012

Eurozone

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