Greece

Lord Harrison Excerpts

Thursday 12th February 2015 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the Government’s view is that:

“If Greece left the euro that would create real instability”.

That statement was made by the Chancellor, who went on to say that, frankly, a Greek exit would cause ructions. We obviously take seriously anything that Alan Greenspan says but we remain hopeful that there can be a settlement, because it would be bad news for the United Kingdom and certainly bad news for Europe if no agreement could be reached within the eurozone.

[Lord Harrison (Lab)]

My Lords, does the Minister not understand that the proper response to the desire for growth and improving jobs is a capital markets union, which is being supported by our own Commissioner, Jonathan Hill—the noble Lord, Lord Hill—and a recognition that Juncker’s plan for investment in Europe applies to all 28 members of the European Union, including the United Kingdom?

[Lord Bourne of Aberystwyth]

My Lords, the specific question of the settlement of the Greek position is clearly a matter for the eurozone, and the United Kingdom is not a member of that group. We remain of the view that our best plan for the economy is to insulate us as far as possible from what is happening within the eurozone. That is why we have the fastest-growing economy in the G7—both the OECD and the IMF project it to be so. It is also why we have the highest level of employment ever, with low inflation and low mortgage rates. That is the way to proceed.