Eurozone Crisis Debate

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Department: HM Treasury

Eurozone Crisis

Lord Peston Excerpts
Tuesday 17th January 2012

(12 years, 11 months ago)

Lords Chamber
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Lord Sassoon Portrait Lord Sassoon
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My Lords, there is a whole range of views about the effect of the eurozone breaking down in any way. All I can say is that 40 per cent of our trade goes to Europe, and we want to see a strengthened and healthy eurozone. That is fundamentally in the interests of the UK. A crisis in the eurozone presents the most imminent threat to growth in this country.

Lord Peston Portrait Lord Peston
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My Lords—

Lord Newby Portrait Lord Newby
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My Lords, if there is a collapse in the eurozone—

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Lord Sassoon Portrait Lord Sassoon
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I am happy to try to clarify the Government’s position. It is very clear that the Government see the IMF’s role as supporting individual countries and not currencies. That has always been its role. If the IMF puts forward a case, as it may well do, for an increase in its resources, and if there is a strong case, the UK will support the IMF in increasing resources as required, as it has always done in the past.

Lord Peston Portrait Lord Peston
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My Lords, using the immortal words of the noble Lord, Lord Henley, will the Minister give me a lesson in economics and explain why the Government still do not forthrightly support the maintenance of the euro? What possible benefit is there to us in the Government seeming to drag their heels when dealing with this matter?

Lord Sassoon Portrait Lord Sassoon
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My Lords, as I have repeatedly made clear this afternoon and on other occasions, the UK Government want to see a strong and dynamic eurozone and European economy. But it is for the eurozone countries to take the lead in supporting the euro as a currency.