Mr John Redwood (Wokingham) (Con): As there is a danger of the euro crisis now spreading to Italy, can the Prime Minister tell me what the leaders of euroland have said they will do by way of buying Italian bonds or offering subsidised loans to Italy to head off the crisis in the market there?
The Prime Minister (Mr David Cameron): My right hon. Friend asks an important question. It goes back to the question that the Father of the House (Sir Peter Tapsell) asked, about the actions of the ECB. The ECB has been intervening in markets and buying bonds of countries that are under pressure. That is what makes it so difficult to understand why some in Europe are so opposed to the ECB being more of a monetary activist, if I could put it that way. The key with Italy—everyone should be careful about speculating about another country, but the point I made in my statement is that Italy must demonstrate that it has a credible fiscal path. That is as much about the confidence of the markets that it will be able to pay its deficit and pay its debts. If it can do that, its interest rates will fall.
November 8, 2011
The PM’s last sentence sums up more than he realises about the eurozone. “If” could be easily followed by “PIIGS might fly”.
November 9, 2011
So the answer was – “Not a lot, they are crossing their fingers and hoping for the best”
Alternatively, they could of course create their own credit rating agency – although why anyone would listen to them I’ll never know!
So when will you help remove Cameron?? – Don’t reply, it’s a rhetorical question, but I doubt you’ll get a majority with him as leader.