European Union: Debts

Lord Eatwell Excerpts

Tuesday 8th June 2010 Lords Chamber

[Lord De Mauley]

My Lords, I quite agree with my noble friend. We must be alive to the risks that the current uncertainty poses because of financial-sector linkages well beyond the euro area. The UK’s support for the €60 billion euro element of the package represents a sensible position that strikes a balance between UK support and the need for the euro area to take the lead in resolving these problems.

[Lord Eatwell]

My Lords, as the noble Lord is undoubtedly aware, the exposure of British financial institutions to the heavily indebted southern states of the eurozone is estimated at more than £100 billion. In those circumstances, if the European authorities asked for British financial participation in an activity that would strengthen the security of British banks, would the Government participate? Yes or no?

[Lord De Mauley]

My Lords, I am not in a position to answer a hypothetical question today.