European Council

Ben Bradshaw Excerpts

Monday 27th June 2011 Commons Chamber

[The Prime Minister]

I am afraid that I cannot give my hon. Friend much satisfaction because the fact that the European Parliament moves between those two cities was not discussed at the European Council. Indeed, the problem that I have referred to in relation to the new building rather shows that there are too many people in Brussels who do not understand the need to cut their cloth according to what is available—by passing around a very expensive brochure to a very expensive new building.

[Mr Ben Bradshaw (Exeter) (Lab)]

What are the dramatic consequences, as the Prime Minister just called them, on Britain and the rest of Europe of a Greek default and the break-up of the euro?

[The Prime Minister]

As I described in my statement, the consequences would be twofold. First, British banks, like banks around the world, hold a debt of other eurozone countries, including Greek debt. Clearly, there would be a consequence either if there were a default or if Greece were to leave the eurozone. That is self-evident.

Secondly, there is the knock-on effect from the countries that are more exposed than we are to Greek debt. As I have said, those of us who do not want Britain to join the euro should not use that as an excuse to say that this does not affect us—it does and that is why it is important that we help to encourage eurozone countries to take the right steps to sort out their issues. That is the very constructive approach that the Government have taken. I see no contradiction between that—making sure that we do not stand in the way of the eurozone’s sorting out its issues and helping with that—and at the same time keeping Britain out of the euro.