G8 and NATO Summits

Alison McGovern Excerpts

Wednesday 23rd May 2012 Commons Chamber

[The Prime Minister]

I am very happy to give that pledge. I note that the Leader of the Opposition said that whether we joined the euro would depend on how long he was Prime Minister; I am not sure which prospect is the more terrifying.

[Alison McGovern (Wirral South) (Lab)]

Young people in Merseyside see their friends suffering from a lack of opportunities, and they feel distressed when they see huge unemployment rates among young people in Greece and Spain. Will the Prime Minister say specifically what discussions he had with G8 colleagues about infrastructure development as part of a global plan for growth?

[The Prime Minister]

We did discuss the issue of infrastructure development, because I think that it can be part of what needs to be done. The rise of unemployment is tragic in any country, but the figures in Greece, Spain and elsewhere in southern Europe are eye-watering: 50% of young people are unable to find work.

As I have said, I think that the elements of the plan that we need are the fiscal credibility that provides low interest rates and the active monetary policy that supports demand in the economy, as it has in the UK, but combined with structural reforms. There is a need for proper structural reforms in Greece and other countries so that they can have competitive economies. The extra element is using the credibility that we have earned, and the strength of the Government’s balance sheet, to try to deliver innovative finance to infrastructure and credit. That is obviously an option that is open in Europe as well, and I think that it is what President Hollande is referring to when he talks about project bonds. Those are the elements of a growth plan. We have them all in the UK, and we need them in Europe as well.