G20

Liam Fox Excerpts

Monday 17th November 2014 Commons Chamber

[The Prime Minister]

I had a very good meeting with Prime Minister Modi, who got the conference off to a good start by agreeing to lift India’s block to the Bali trade facilitation agreement, which is vital to helping drive global growth. On the British-India relationship, Britain is, I think, the second-largest inward investor in India, but the right hon. Gentleman is right that more could be done on trade. We discussed the need for the EU-India free-trade agreement to get going again and for structural reform in India to help open up her economy and lead to higher growth rates, and I am clear that Prime Minister Modi is a man with a clear vision for doing economically for his country what he succeeded in doing for Gujarat.

[Dr Liam Fox (North Somerset) (Con)]

I congratulate my right hon. Friend on some plain speaking on the European economic outlook, but does he accept that the poor performance of the eurozone is not the problem, but merely the symptom, and that the problem is the euro itself—still intellectually flawed and politically dangerous? Does he accept that until eurozone leaders are willing to de-risk the entire project, not only will it pose a threat to global economic stability, but millions of young Europeans will find their economic prospects sacrificed on the altar of a political project?

[The Prime Minister]

My views on the euro are well known: I do not think that Britain should join it. However, there are three steps that all countries should be taking, whether or not they are in the euro. First, they should be putting in place plans to deal with fiscal deficits and put them on a proper, long-term footing; secondly, they should be pursuing structural reforms, as we have done in this country, to make it easier to start and grow businesses—European countries could do more in that regard—and thirdly, and crucially, Britain and America have shown that an active monetary policy, delivered by an independent central bank, can make a real difference. Given the signs of rather staggered growth in Europe, I think the European Central Bank needs to take that action as well.