Eurozone Crisis

Douglas Carswell Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

It is perfectly possible for areas within a monetary union to increase their competitiveness relative to other areas in the union—parts of the United Kingdom and the United States have done so in the past 20 or 30 years. It is possible, but it is very hard work—I agree with the sentiment that the hon. Lady is expressing—and requires people to tackle tough issues, such as labour market reform, pension ages, tax rates and so on, which, of course, are controversial. However, people in countries such as Italy, Spain and Greece have been confronted with the reality of the need to make change—although we will see whether they do indeed undertake that change. The IMF is the guardian of its own programmes and makes constant assessments of its programmes in Ireland, Greece and Portugal. I do not want to be premature, but I think that we are seeing substantial improvement in the Irish economic performance after the difficult decisions that they have taken in that country.

[Mr Douglas Carswell (Clacton) (Con)]

The Foreign Secretary once described the euro as a “burning building”. Might it not be an idea for us to help our neighbours get out of the building? We know that there is always an exit from monetary union, so why not help our friends to get out? Keeping them in at any price is in neither their interests nor ours.

[Mr Osborne]

My hon. Friend and I have discussed this matter before, and we disagree. What the Foreign Secretary said at the time—I remember because I was his speechwriter—[Interruption.] And there were some very good speeches at the time.