EU Budget (Surcharge)
Debate between George Osborne and Frank Roy(9 years, 6 months ago)
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Mr Osborne
I welcome my hon. Friend’s support for what has been announced. There was agreement around the table that we should permanently change the EU budget rules. We shall have to consult the European Parliament on that, but it does not have a veto. We should change those rules so that if there is an exceptionally large payment or adjustment in future, as there was this time, member states cannot be bounced with a bill like this. There was strong support around the table for that change.
Mr Frank Roy (Motherwell and Wishaw) (Lab)
On the UK rebate, will the Chancellor give us the name of just one European Finance Minister who changed their mind after listening to him?
Mr Osborne
As the hon. Gentleman should know, the rebate involves a discussion between member states and the European Commission, which is why we were discussing with the Commission, in parallel, the size of the British rebate. Frankly, any question from Labour Members about the rebate is a bit rich, given that they gave up half of it.
IMF
Debate between George Osborne and Frank Roy(12 years, 1 month ago)
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Mr Osborne
I would say, first, that the reason why these countries have the problems that they do is often because of their domestic difficulties. Portugal has been fundamentally uncompetitive for a decade. Ireland had a massive banking system that collapsed. Italy and Spain have not done enough to keep up with the competitiveness of Germany. They are addressing domestic problems. That is made more difficult because they cannot devalue their currency, but that is not the origin of their problems.
Mr Frank Roy (Motherwell and Wishaw) (Lab)
What happened to the reforms that were supposed to be linked to any extra funding for the IMF?
Mr Osborne
In 2010, there was an agreement to change the quota of the IMF to give the new emerging economies of the world, such as China, India and the like, a greater say at the IMF. The quota was reallocated to reflect the new economic weights in the world. That deal has not yet been ratified, but we as a country have ratified that deal. We are one of the countries that have ratified it. There remain some countries that have not. Our loan is available only when the quota deal has been ratified by the required majority of those countries.