G20

Nadhim Zahawi Excerpts

Monday 7th November 2011 Commons Chamber

[The Prime Minister]

The G20 Finance Ministers might have to meet again, but, as I said in answer to the right hon. Member for Edinburgh South West (Mr Darling), only if a new set of arrangements is being put in place. Part of the problem in Europe is that, so often, meetings are scheduled without proper thought about what the outcome will be—about what will be achieved. That has been one of the things that have caused a huge amount of market turbulence over recent months.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Figures out today show that EU productivity is falling at its fastest rate since 2009. The only big economy to record an expansion in output per worker is the UK. Why does the Prime Minister think that the United Kingdom can borrow at a 0.5% interest rate for one year’s money, compared with 4.7% for Spain and 6.3% for Italy?

[The Prime Minister]

My hon. Friend makes an important point. First, in getting greater competitiveness across Europe, this is the most important thing that Europe could be doing right now: completing the single market, completing the market in energy, completing the market in services and making sure our economies are competitive. The point he makes about the bond market is vital, too. The fact is that if you do not have credibility, you cannot borrow money at low interest rates, and if you do not have credibility, interest rates go up. That would be the worst thing to hit your economy.