European Council

Graham Stringer Excerpts

Monday 27th June 2011 Commons Chamber

[The Prime Minister]

I am very grateful to my hon. Friend, although I would not put my efforts in the same class as the famous Fontainebleau negotiation, because the British rebate still benefits Britain to a huge extent—even after the Labour party signed a large portion of it away. But I do hope people agree that they were a good step forward to keep us out of the situation.

On the budget, we have secured a very strong letter to the European Commission about future financial perspectives, saying that effectively there should be nothing worse than a real-terms freeze. That is what we got other countries to commit to, and I am sure that Government Members, like me, would wish to go further, but we are laying down the baseline of a freeze going into a negotiation, and that is a pretty good start.

[Graham Stringer (Blackley and Broughton) (Lab)]

What is causing disorder and instability in Europe is the fact that Greece is bankrupt. The whole world knows that, and nothing said in this Chamber will alter it or create greater instability in the world markets. If Greece can neither withdraw nor default, good money—our money—via the IMF, or European Union money via other mechanisms, will be wasted bailing it out. Why does not the Prime Minister discover his Eurosceptic self and lead an orderly withdrawal of Greece from the euro?

[The Prime Minister]

First, as I said earlier, the IMF cannot lend money unless it believes that a country can undertake a programme that will lead it to pay back that money. Secondly, Britain’s interests are protected, because we will not contribute via the financial mechanism to Greece. Thirdly—I have said this before but I do think it important—the Greeks want some time, via some extra liquidity, so that they can take steps to get themselves back on a path to fiscal sanity. Of course, people can doubt whether that can happen, but the Greeks want to be able to get people to pay their taxes, to reduce spending programmes and to privatise assets so that they can get back to a position of financial sanity. That is the decision they have taken; that is the decision taken by members of the eurozone; and that is what the eurozone members themselves will support.