Financial Assistance (Ireland)

Lord Tyrie Excerpts

Monday 22nd November 2010 Commons Chamber

[Mr Speaker]

Order. There is enormous interest but some pressure on time, so brevity from Back Benchers and Front Benchers alike is vital.

[Mr Andrew Tyrie (Chichester) (Con)]

I think that the public were shocked to discover that the UK was going to be bailing out a eurozone member, not just through the IMF or bilateral loans, but through the European stabilisation mechanism—that is, through the EU budget. Will the Chancellor reassure the House that he will seek to block British participation in any replenishment of the €60 billion mechanism?

[Mr Osborne]

Let me first say that it is our intention not to be part of the permanent eurozone bail-out mechanism, which of course is the subject of discussion, not least at the December Council. It would be our intention that that mechanism should return to what it was designed for in article 122, which is dealing with natural disasters. There has been a balance of payments support mechanism in the European Union for many years to deal with the accession of the central and eastern European countries. Both that mechanism and that balance of payments support drew from the same €60 billion, and we would certainly not be in favour of somehow replenishing it to make good the amount of money that, potentially, will be committed to Ireland.