Eurozone Crisis

Lord Strathclyde Excerpts

Tuesday 17th January 2012 Lords Chamber

[Lord Pearson of Rannoch]

My Lords—

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, there is plenty of time. Shall we hear from the noble Lord, Lord Grenfell, and then perhaps from the noble Lord, Lord Pearson?

[Lord Grenfell]

My Lords, given the unrest on the Conservative Benches in the other place, I was tempted to ask whether the Prime Minister had contingency plans for the full recovery and strengthening of the eurozone, but I have a more serious point to make. Does the Minister agree with me that it is extraordinary that the rating agencies disclaim all responsibility for the impact on borrowing costs of their downgradings when a Government like Italy’s are doing their best to solve their problems, and when an institution such as the European Financial Stability Facility—which was downgraded yesterday by Standard & Poor’s—is trying to maintain its lending capacity in advance of the creation of the new ESM, which will take some time? Do these unaccountable agencies just not care whether the impact of what they do is likely to hamper and jeopardise the eurozone recovery?

--- Later in debate ---

[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?