European Council

William Bain Excerpts

Monday 27th June 2011 Commons Chamber

[Mr Speaker]

Order. I have explained the point on innumerable occasions to Members that questions are to be about the policy of the Government, not that of the Opposition, so we will now move on.

[Mr William Bain (Glasgow North East) (Lab)]

The Bank for International Settlements, in its annual report published yesterday, identifies two solutions to the Greek sovereign debt crisis: either mutualising Greece’s debts through further eurozone bail-outs, or restructuring them. Does the Prime Minister agree with that analysis, and if so, which option does he favour?

[The Prime Minister]

Of course, everyone is free to speculate about the different paths that Greece might take or might like to take, but it is not for the Government of the UK to speculate about another country’s finances. The Greek Government have made their decision, backed by the eurozone and the European Council, to seek further austerity measures so that they can deal with their deficit. That is the decision they have taken, that is what is supported by eurozone money, and the IMF will lend money only if it believes that it can be paid back.

On deficits, let me just make the point before people get too over-confident that if we look at 2011, we find that the UK’s deficit is 8.6% compared with Greece at 7.4%. That to me underlines the importance of our domestic programme of dealing with our debts and our deficit—[Interruption]—and not of charging around, as the most annoying man in British politics is currently doing, and suggesting a £51 billion VAT cut.