Eurozone Crisis

Baroness Falkner of Margravine Excerpts

Thursday 27th October 2011 Lords Chamber

[Lord Sassoon]

My Lords, I am answering questions on the eurozone crisis. The question of Cyprus has nothing to do with it. I am sure there will be other opportunities to discuss that.

[Baroness Falkner of Margravine]

My Lords, today marks the beginning of a profound change in our relationship with the EU. If we are going to have fiscal and political integration in 17 countries, leaving 10 outside, it is undoubted that we are going to have a different relationship. Winston Churchill said that the British nation was unique in wishing to hear bad news, irrespective of how bad it was. In saying that British banks do not require recapitalisation in the assessment of the European Banking Authority, can the Minister tell us when the authority made that assessment in the light of the fast-changing nature of the evolution of this crisis and the lack of transparency in the role of credit default swaps? The timing of when this assessment was made would be very useful to know.

[Lord Sassoon]

It made the assessment very recently. Indeed, the numbers are going to be reworked over the coming days and weeks to make sure that they are as absolutely up to date as they need to be for the recapitalisation to take place.