G8 and NATO Summits

Hywel Williams Excerpts

Wednesday 23rd May 2012 Commons Chamber

[The Prime Minister]

My right hon. Friend is entirely right. It is in Britain’s interests that the problems in the eurozone are dealt with. We have consistently made a whole series of suggestions about firewalls, about strengthening banks and about consistent and strong contingency plans. The point that I was making at the weekend is that it has become ever more urgent to make those contingency plans because, frankly, it is not in our power to determine whether Greece decides to stay in the eurozone. We have to prepare for every eventuality, however difficult that might be.

[Hywel Williams (Arfon) (PC)]

This morning, the European Parliament passed, by a very large majority, a call for a financial transactions tax. Can the Prime Minister foresee what his stance, and that of other leaders, will be on that matter this evening?

[The Prime Minister]

My view is very simple: I am against a financial transactions tax, for the simple reason that the European Commission did a piece of research into such a tax and found that it would cost hundreds of thousands of jobs. While it might sound as though it would tax the bankers and all the rest of it, it would actually put up the cost of people’s insurance policies and pension policies and drive all that activity offshore. I am not surprised that some other European countries support it, because they see it as a good way of taking a lot of tax out of the UK and spending it in Europe. Well, I am not falling for it.