G20

Peter Bone Excerpts

Monday 7th November 2011 Commons Chamber

[The Prime Minister]

I have sympathy with the hon. Gentleman’s point, which has complete intellectual coherence. The fact is that they could go in that direction, but other European Prime Ministers, Finance Ministers and, indeed, the people in those countries will say that they do not want to leave the euro and that they want to make the euro work. We are affected by what is happening in the eurozone, which is why I keep saying that it is in our interests that they get their act together and make their currency work. You can argue for the opposite, but the fact is that that is what most European countries want and that is what I think they will try to achieve.

[Mr Peter Bone (Wellingborough) (Con)]

I do not know whether the Prime Minister remembers 16 September 1992—golden Wednesday—when the United Kingdom came out of the exchange rate mechanism, which was the start of our economic recovery. Why are the political elite of Europe denying Greece and other euro countries the same mechanism to improve their currency: withdrawal from the euro so they can re-establish their national currency?

[The Prime Minister]

I learned a very important lesson from our experience in the exchange rate mechanism: never fix interest rates in a way like that because you may need a different interest rate in your economy from that applying elsewhere. That is why I am so completely opposed to Britain ever joining the euro. I could not be clearer about that—unlike the Labour party, which spent 13 years planning and preparing for our eventual admission to the euro. We must allow other countries to make their own choices, and the choice of people in Greece—it is their business—seems to be that they want to stay in the euro. That is not the choice I would necessarily make—or that Mrs Bone, or even Mr Bone, would necessarily make—but that is the choice they seem to want to make and we have to support them in it.