Eurozone

Lord Empey Excerpts

Thursday 17th May 2012 Lords Chamber

Asked By

[Lord Empey]

To ask Her Majesty’s Government whether they intend to make any further financial contributions to the eurozone bailout.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, first, we should be clear that there are no requests on the table for further financial assistance. The Government have made clear their view that the responsibility for sorting out the problems of the euro area rests primarily with euro area Governments. The UK will not be a member of the permanent European stability mechanism, which will replace the European financial stability mechanism established under the previous Government, for which the UK holds a contingent liability.

[Lord Empey]

The Minister will be aware that there is considerable confusion in the public’s mind about what our commitments to the eurozone actually are. Although we may not have those commitments through formal European agreements, we are putting more money into the IMF and have done a bilateral deal with Ireland. Can the Minister clarify, in language that people outside can understand, exactly what our liabilities to the eurozone and its member countries are in the event of further financial turbulence?