Eurozone Crisis

Lord Newby Excerpts

Tuesday 17th January 2012 Lords Chamber

[Lord Peston]

My Lords—

[Lord Newby]

My Lords, if there is a collapse in the eurozone—

[Lord Strathclyde]

My Lords, there is plenty of time to hear the noble Lord, Lord Peston. Can we hear first from my noble friend Lord Newby, and then from the noble Lord, Lord Peston?

[Lord Newby]

My Lords, does the Minister agree that if there is a collapse in the eurozone, it is highly likely that the IMF will be asked to play a larger role that it has done up to now? What is the Government’s thinking about making further resources available to the IMF in those circumstances?

[Lord Sassoon]

I am happy to try to clarify the Government’s position. It is very clear that the Government see the IMF’s role as supporting individual countries and not currencies. That has always been its role. If the IMF puts forward a case, as it may well do, for an increase in its resources, and if there is a strong case, the UK will support the IMF in increasing resources as required, as it has always done in the past.