G20

Sam Gyimah Excerpts

Monday 7th November 2011 Commons Chamber

[The Prime Minister]

One thing that we have managed to keep out of is the European element of the Greek bail-out. That has had two iterations, and we were not involved in the first or the second. The specific idea of using the EFSM to support Greece was batted away by Britain.

[Mr Sam Gyimah (East Surrey) (Con)]

One of the key issues about the eurozone is the need to recapitalise a number of European banks, especially those that are quite weak. What comments can the Prime Minister make about the relative strength of UK banks, and will he say that the UK taxpayer will not have to stump up any more cash to recapitalise our banks?

[The Prime Minister]

On the current plan for the recapitalisation of European banks, British banks would not require any additional capital because they are quite well capitalised already. There is a concern that needs to be expressed that as the Europeans move to recapitalise their banks, it is quite important that they do not do that purely by shrinking bank balance sheets, and that they encourage banks to find fresh sources of capital so that lending does not decrease in the European Union.