Downing Street Says » Europe Bailout

» Monday, November 29, 2010

Europe Bailout

Asked if it was the Government’s position that when the mechanism ran dry we would not be the part of any future bailout in the EU area unless we chose to do a bilateral, the PMS said, yes. The mechanism had been agreed in early May and was agreed due to the exceptional circumstances at that time. When it came to a permanent mechanism it should be for Eurozone countries only. We were still a member of the International Monetary Fund and therefore there were multilateral routes by which we could support third countries.

1 Comment »

This is woefully insufficient while the EU can invoke its ‘exceptional circumstances’ clause and vote through bailout funds from all (including the UK) by qualified majority. Furthermore these ‘exceptional circumstances’ funds are being offered to Ireland and others at a lower interest rate than than the eurozone bailout scheme, guaranteeing UK money is first in line to be lost.

The British government must insist that any treaty change to establish a permanent fund for eurozone countries includes changes to the treaty article on ‘natural disaster and exceptional circumstances’ such that the UK can never again be called upon to bailout a eurozone member. That article must be changed to make it clear it only applies to earthquakes and the like, and not bailouts.
Comment by Freeborn John — 30 Nov 2010 on 6:08 pm | Link

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