G20 Summit

Neil Carmichael Excerpts

Monday 25th June 2012 Commons Chamber

[The Prime Minister]

My hon. Friend puts it very well; I could not have put it better myself. The key point is self-determination, and that is what the referendum will prove.

[Neil Carmichael (Stroud) (Con)]

Does the Prime Minister agree that the relative strength of the German economy is partly derived from the fact that it has a sensible approach to public finances, and that we should continue to promote that across Europe? Does he also agree that the importance of the European Central Bank needs to be further enhanced?

[The Prime Minister]

My hon. Friend makes an important point. Of course, there is an enormous amount of pressure on Germany to do more to back the eurozone, and I understand and support some of that pressure, but we should remember that the German economy is so strong because it went into the recession with a budget surplus, whereas we had a budget deficit, and it had spent the previous 10 years getting more competitive, building up its industry and making sure its economy was balanced. Sadly, under the last Government we spent too much time imitating Greece, and not enough time imitating Germany.