Greece

Chris Leslie Excerpts

Monday 29th June 2015 Commons Chamber

[Chris Leslie (Nottingham East) (Lab/Co-op)]

These are serious times for Greece and the eurozone, and there are risks for Europe and the UK if an urgent resolution cannot be found. Given that the Greek banks are now closed, can I ask the Chancellor about the immediate implications for the UK economy and British citizens? Our exporters, pension funds and the 1 million British visitors to Greece need to know that the UK Government have a thorough contingency plan.

Regarding the impact on British citizens in Greece, how will holidaymakers travelling there this summer be able to obtain full information and updates about the best way to proceed, given the constantly changing situation? The Chancellor touched on that in his statement, but will he tell us what discussions British officials have had with the Greek authorities and banks to ensure that UK citizens will continue to be able to withdraw sufficient funds from the system, especially if the cash machines in Greece are depleted of banknotes? Will he also give us his assessment of the number of British citizens with deposits in Greek banks? They will be anxious today about whether they can get their money. Are the British embassy in Athens and our network of consular staff adequately equipped to cope with all eventualities? Do they have the resources to deal with inquiries from British citizens and companies in need of assistance?

Turning to the impact on our economy and our financial system, there have been varying reports of the exposure of the British banking system to the Greek economy. What discussions have the Treasury and the Bank of England had with financial institutions here and in the EU about the implications for our financial system? In particular, will the Chancellor give us more details of the conversations he has had personally with the Greek and other eurozone Ministers? What has he been doing to urge them to find a solution?

I understand that the Prime Minister has today chaired a Greece contingency committee. Will the Chancellor explain the day-to-day structure for monitoring emerging risks to the UK position? Which institutions are leading on each aspect of events, and how are the Government co-ordinating our preparedness for any interventions that are needed? What assessment have they made of the number of British firms and the volume of exports potentially affected by the situation in Greece and, in particular, of the exposure to export finance risk of firms awaiting payment?

Although non-eurozone countries are not directly involved in the negotiations with the Greek Government, the International Monetary Fund has of course provided £37 billion of support so far, about £1.7 billion of which has come from UK taxpayers. If there are wider ramifications for the eurozone economies in the months ahead, there will clearly be further risks for UK business and trade and for our economy. As the Chancellor knows, British business is highly dependent on a healthy and sustainable European economy, but our trade deficit with the EU has worsened in recent times. Does he agree that those vulnerabilities make it all the more urgent that we prioritise measures to boost economic productivity here in the UK as part of our defence against external economic turbulence? Our exporters need support and assistance, and I urge him to include measures in next week’s Budget to boost productivity and take account of their heightened susceptibility to such turbulence.

Given the gravity of the problems facing Greece and the wider repercussions for us and for the European economy, I believe that the Chancellor should pause and reflect that it undermines his position to make bogus comparisons between Greece and Britain. Nobody will take those comparisons seriously. The crisis in Greece has been building up for many years now, and billions in bail-outs have already been provided from eurozone economies. There has been considerable hardship for the Greek people, who still face economic distress. Does he agree that it is imperative for the institutions to continue to seek opportunities for a negotiated settlement with the Greek authorities during the week ahead, and for the Greek Government to accept their part in charting a course towards a long-term resolution and deal with economic reform and governance questions that cannot be ignored? This is surely a time for all concerned to pursue a responsible approach and avoid a disorganised and chaotic outcome that would be devastating for Greece and have severe implications for the wider European economy.