Mr Redwood’s contribution to the statement on the EU Council, 2 July

Mr John Redwood (Wokingham) (Con): Given that there is practically no unpledged money left in the current bail-out fund and given that the new bail-out fund does not exist, did the member states assembled discuss how they are going to get hold of the £500 billion or more that they might need, and are they proposing to borrow it on the credit rating of countries such as Spain and Italy?

The Prime Minister (Mr David Cameron): As ever, my right hon. Friend is incisive at getting to some of the difficulties in what is being proposed. I think we should be pushing the eurozone members into taking the short-term steps to try to help with financial stability, which buying bonds, directly recapitalising banks and sorting out issues of seniority are all about. We have to recognise the great difficulties they are going through in trying to raise adequate amounts of finance, but none the less it is in our short-term interests that they do deal with the crisis at the heart of the eurozone, because the high interest rates in Italy and Spain are not only hurting Italy and Spain; they are hurting us, too.

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12 Comments

  1. Oldrightie
    Posted July 3, 2012 at 10:45 am | Permalink

    So basically he doesn’t know squat diddly where the money is to be found. Can’t even afford the paper to print more worthless notes.

  2. Morvan
    Posted July 3, 2012 at 12:38 pm | Permalink

    “….. not only hurting Italy and Spain; they are hurting us, too.”

    I was under the impression that the UK is able to borrow at rates that are very low because of the problems in those countries – safe haven terms in fact. How can your leader get away with such nonsense?

    M.

    • AJAX
      Posted July 3, 2012 at 2:03 pm | Permalink

      What he was suggesting is that if the PIIGS default the aftershock from their implosion will strike us economically too. Which is true, but somewhat short-sighted.

      All he’s doing (as per usual with Tory administrations & the EU) is crisis-managing, there’s no strategic vision in this government.

      • Morvan
        Posted July 3, 2012 at 5:10 pm | Permalink

        AJAX

        Sorry, but the tense is present, not future. I agree when it all goes TU no one is going to escape the fall-out, but that is not what Cameron was saying. He is saying that high interest rates are hurting us now, which is arrant nonsense given the current yields on Gilts.

        M.

  3. AJAX
    Posted July 3, 2012 at 1:46 pm | Permalink

    There’s too much debt, they’re not getting free of the smash up that’s approaching by generating a bit more.

    HMG is an also-ran in this, it’s all about Germany & what the Bundesbank/Berlin political class is going to do, but actions speak louder than “Eurosceptic” words, & when the EU is in trouble a Tory administration is always there to go out of its way to help prop it up.

    No vision; bad government & poor economics.

  4. pedroelingles
    Posted July 3, 2012 at 4:27 pm | Permalink

    Do please let us know when Cameron gives a straight answer to a clear and concise question; this veiled avoidance is not what was transparently promised at the last Election. Just a brief report from you to draw our attention to a demonstrative decision would suffice. Presumably the British Tax Payer’s contribution from the current Bail-out Fund has been soaked up already. Many, as I have, will have recently received a letter requesting donations to the Conservative Party. I have replied with a definitive NO stating that my lifetime support of the Conservative Party is now regretfully in abeyance until an unequivocal commitment to having a Referendum on this Country’s continued association with the EU is confirmed. Meanwhile I am turning to UKIP in total disappointment but thankful that there is someone who has a declared objective, is sympathetic to the undoubted majority wish of the electorate and will uphold democracy without further prevarication. The feeble side-stepping of meeting the majority of the People’s wish for a Referendum merely to appease the minority diversions of Lib-Dems must cease as clearly their miniscual support is dwindling ever more rapidly and will probably be down to about 4% at a future Election. They do not have one iota of support to warrant the wielding of the power they are now holding over what has become this pussy-footing Government. I trust that I may once again be happy to send a donation in support of the Conservative Party. Sent with regret but hope. pedroelingles.

    • Tad Davison
      Posted July 3, 2012 at 7:03 pm | Permalink

      pedroelingles

      I think that about sums up what a lot of us feel.

      Tad

  5. Mike Stallard
    Posted July 3, 2012 at 7:21 pm | Permalink

    “Because the high interest rates in Italy and Spain are not only hurting Italy and Spain; they are hurting us, too.”
    This kind of remark usually slips by without comment as if the Prime Minister was talking about the weather.

    What I am asking is this: HOW are they hurting us? HOW are they likely to hurt us? Nobody is saying.
    Are the banks in UK going to go bust? Is Spain about to close (a bank with UK links-ed)? How teetering are the English high street banks? If I were in finance, and I am not, these questions would keep me awake at night. But they are never discussed.

  6. BobE
    Posted July 3, 2012 at 8:44 pm | Permalink

    Worth a watch.
    VIDEO: Farage Batters Van Rompuy (Again): “With everyone of your predictions it goes on getting worse, I’m sorr… http://bit.ly/Ms4Od9

  7. BobE
    Posted July 3, 2012 at 9:07 pm | Permalink

    John even the Germans are getting worried….

    Seehofer also criticized a suggestion by Finance Minister Wolfgang Schäuble that Germany should hold a referendum on a new constitution that could relinquish national powers to Brussels. “Hands off our constitution! We have this constitution to thank for the most stable state and the most stable democracy there has ever been in German history. We don’t want a different constitution,” said Seehofer.

    He said he wouldn’t accept the transfer of major powers to a “European monster state.” He said he would turn the next general election and the Bavarian regional election, both scheduled for 2013, into a vote on Europe. “We will put this question to the people.”

    Merkel on Tuesday denied there were any differences between her and Seehofer on European policy. She said her coalition was united on the issue.

    Alarming Data From Greece Expected

    The euro crisis could worsen in the coming days. The Greek government said it would present alarming figures on the recession and unemployment to visiting inspectors from the “troika” of European Union, European Central Bank and International Monetary Fund on Wednesday

  8. Superblur
    Posted July 9, 2012 at 7:48 am | Permalink

    As with Europe, money, banks, lords reform and renewable energy especially the high costs effecting industry and domestic users alike why is it that every time either Dave or Nick make a comment my line of thought goes to urine and rain especially when related to what is running down our necks. UKIP is getting more interesting everyday. Enough is enough we need some dramatic changes and people in place with actual experience of real life and industry.

  9. robin pearce
    Posted September 23, 2012 at 10:51 pm | Permalink

    A Tory government allowing us to be taken over by a Maoist!
    You couldn’t think it up.
    Meet your new Soviet overlord.
    Wiki on Barroso;
    ‘Barroso’s political activity began in his late teens, during the Estado Novo regime in Portugal, before the Carnation Revolution of 25 April 1974.
    In his college days, he was one of the leaders of the underground Maoist MRPP (Reorganising Movement of the Proletariat Party, later PCTP/MRPP, Communist Party of the Portuguese Workers/Revolutionary Movement of the Portuguese Proletariat).
    In an interview with the newspaper Expresso, he said that he had joined MRPP to fight the only other student body movement, also underground, which was controlled by the Portuguese Communist Party’

    Our only hope

    John Redwood
    http://www.youtube.com/watch?v=X7ybR_OesyA

    Nigel Farage
    http://www.youtube.com/watch?v=Vms_vd_yWgY

  • About John Redwood


    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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