IMF

Kevin Barron Excerpts

Monday 23rd April 2012 Commons Chamber

[Mr Osborne]

My hon. Friend is right that countries in the eurozone do not have the option of devaluation if they want to remain in the eurozone. That is the logic of the single currency. That is why the Foreign Secretary, when he was leader of our party, said that it was

“a burning building with no exits”.

In that situation the question for Britain, rather than for members of the eurozone, is what do we do? What we can do is make sure that the global institutions that try to protect the world from instability, that try to provide shock absorbers for what happens in different countries, including in the eurozone, are well resourced to deal with whatever is thrown at them. I say to my hon. Friend and to Members across the House that it is possible to be very, very Eurosceptic and at the same time to be a believer in the international institutions that Britain helped to create 60 years ago.

[Mr Kevin Barron (Rother Valley) (Lab)]

Given the answer that the Chancellor gave to the right hon. Member for Wokingham (Mr Redwood), could he tell us exactly what was agreed this weekend that says that the IMF should give loans only to countries and not currencies?

[Mr Osborne]

The communiqué that was issued by the Finance Ministers and the European Central Bank governors said explicitly, with reference to the $430 billion that was provided by the countries at the meeting:

“These resources will be available for the whole membership of the IMF, and not earmarked for any particular region.”