European Union: Debts

Lord Hannay of Chiswick Excerpts

Tuesday 8th June 2010 Lords Chamber

[Lord De Mauley]

My Lords, the €60 billion euro element of the total €500 billion package is available in the existing EU budget, without a change in legislation, for any member state to drawn on. It is not confined to the euro area. While we declined to participate in the €440 billion element, we cannot and should not simply walk away. A strong and stable euro is in the United Kingdom’s national interest. More than 40 per cent of our exports are to the euro area, and I am sure the noble Lord would agree that it would be unwise to jeopardise that.

[Lord Hannay of Chiswick]

Does the noble Lord find it a little odd that all this questioning ignores the fact that, as a member of the International Monetary Fund and a substantial subscriber to its resources, we provide relief for any number of countries, both in and outside the euro area, and we should do so? That is the purpose of these institutions.

[Lord De Mauley]

I cannot disagree with the noble Lord.