Oral Answers to Questions

Kelvin Hopkins Excerpts

Tuesday 17th January 2012 Commons Chamber

[Mr Lidington]

I have to say that it is unusual to find my right hon. Friend looking to the example of the former Soviet Union for inspiration. We have looked across Government very carefully at what the consequences of a eurozone break-up might be, and one of the key differences between now and 20 years ago is that the economies and the financial systems of Europe are much more closely interlinked now than they were then. It is certainly our judgment that it would be damaging to the British national interest were a collapse of the eurozone or a prolonged recession in the eurozone to take place.

[Kelvin Hopkins (Luton North) (Lab)]

The credit ratings of a number of eurozone states have been downgraded this week. The bail-out fund is now considered to be far too small to do its job. Mario Monti, Italy’s unelected Prime Minister, said yesterday that there would be a backlash against austerity unless Germany provides more support to Italy. The crisis becomes deeper every day. Is it not the case that recovery for many of those countries can come only when they can recreate national currencies, devalue and start to grow again?

[Mr Lidington]

With respect to the hon. Gentleman—his views on the subject are utterly consistent and I respect them—that is a matter for the peoples and Governments of those sovereign countries. From our point of view, what is needed is for the eurozone countries to implement in full the deal that they agreed to in October last year, and for Europe collectively at 27 to move forward urgently with deepening the single market, boosting global trade and cutting red tape and regulation on our businesses. That is the way to growth and jobs.