Eurozone Crisis

Jonathan Edwards Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

My hon. Friend makes a good observation. Because of the credible fiscal plans that we have set out, we have secured confidence in Britain’s ability to pay its way in the world, taken our credit rating off negative watch, which is where it was at the time of the general election, and secured for our country record low interest rates. Those interest rates would be at risk if we pursued the policies advocated by the Opposition, which would also be a rather bizarre position to take into the European Council discussions, when right at the top of the agreement signed yesterday is the statement that countries need to pursue policies of

“fiscal consolidation and structural reforms.”

The Opposition have voted against every policy of fiscal consolidation and every policy of structural reform.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Does the Chancellor think that the 50% haircut of Greek sovereign debt will be sufficient and does he expect that holders of Italian debt will also need a trip to the barber’s?

[Mr Osborne]

We think 50% is a very good number. We had in mind somewhere around 50%, and we wondered whether that would be achievable. One of the pleasant surprises of last night was that it was achieved. It is only a headline agreement, and as the former Chancellor said earlier, it absolutely needs to be put into practice now if this deal is to mean anything. I think it is best for me to stick to talking just about Greece.