G8 and NATO Summits

Matt Hancock Excerpts

Wednesday 23rd May 2012 Commons Chamber

[The Prime Minister]

The right hon. Gentleman makes a good point. However much one can look at the Greek situation and feel for the people who are suffering as a result of unemployment and living standards, there is a crying need for genuine reform in Greece, and for more straightforward and honest politics when it comes to dealing with those problems. That means making sure that people do pay their taxes, and making sure that industries are competitive.

The issue of defence spending is obviously more complex because of the relationship between Greece and Turkey, but as we are now both NATO members and Turkey is an aspirant EU nation, there should be an opportunity to decrease Greek spending on national defence, while of course encouraging it to be a good NATO member at the same time.

[Matthew Hancock (West Suffolk) (Con)]

At the G8 summit, did any of the leaders advance the argument that dealing with the deficit and supporting growth were alternatives, or did they argue that it was necessary to bring about growth through monetary policy, by supporting the banks and by getting trade going? Did anyone advance the argument that it was necessary to borrow one’s way out of debt?

[The Prime Minister]

My hon. Friend makes a very important point. Absolutely no one suggested that dealing with deficits and securing growth were alternatives. They are complementary: we need both. That is the view of everyone around the G8 table. There is only group of people who have their heads in the sand and are complete deficit deniers, and they are the people who gave us the deficit in the first place.