Joined: 03 Jun 2005
|Posted: Fri Jun 17, 2011 9:14 am Post subject: LET GREECE DEFAULT ON ITS DEBTS THEN WE CAN GET OUT OF EU
|Let Greece default on its debts, demand top Tories as EU bailout set to hit £1trillion
By Jason Groves
Last updated at 7:26 AM on 17th June 2011
Ministers were last night urged to allow Greece to default on its debts – amid warnings the cost of EU bailouts could soar to more than £1trillion.
European stock markets tumbled in the wake of violent protests in Athens and growing speculation that Greece will default on its crippling debts despite last year’s £100billion bailout.
Financial experts warned Europe was facing a ‘Lehman moment’ – a reference to the collapse of the giant investment bank which plunged the world into recession.
Demand: John Redwood, left, and Douglas Carswell said that Greece should be allowed to default on its debts after warnings the bailout could cost £1trillion
The IMF yesterday approved an emergency £10billion payment to the Greek government to enable it to pay its bills next month.
More...DOMINIC SANDBROOK: A crisis that could tear Europe apart
Informal talks have also begun on a second Greek bailout, with German Chancellor Angela Merkel said to be pressing for Britain to be included in the cost of any deal.
Insistent: German Chancellor Angela Merkel is said to be pressing for Britain to be included in any bailout
A senior official at the European Central Bank warned the EU bailout fund could have to double to 1.5trillion euros, equal to more than £1.1trillion – potentially saddling Britain with tens of billions of pounds in extra cost.
Tory MPs said ministers should ‘not put a penny more into the failing EU countries’. They urged ministers to resist a second bailout, suggesting it would be better for Greece to default and drop out of the euro.
Former Tory Cabinet minister John Redwood said it was ‘double or quits time’ for Greece and the euro.
He said France and Germany would either have to bail out the struggling economy, or allow Greece to leave the single currency and risk its collapse.
Mr Redwood said the ‘simple and best’ solution would be for Greece and other struggling countries to quit the euro. But he said that whatever solution was agreed, British taxpayers’ money should not be involved.
Fellow Tory Douglas Carswell said defaulting was now the ‘least worst thing’ for Greece to do.
He said it would be ‘totally unacceptable’ for more British money to be used in a vain attempt to prop up Greece or other struggling Eurozone countries.
Mr Carswell said membership of the euro was limiting Greece’s options and likened its situation to the Black Wednesday debacle in which Britain was forced to quit Europe’s Exchange Rate Mechanism in 1992.
The warning came as world stock markets hit a three-month low and the euro tumbled amid growing fears a Greek default could force other struggling economies to follow, and spark a fresh global economic crisis.
Protests: Thousands of Greeks took to the streets again yesterday to vent their anger against the austerity measures
Thwarted: A string of parliamentary resignations threatened Greek prime minister George Papandreou's plan to reshuffle his cabinet and pass austerity measures
Neil Mackinnon, an economist at VTB Capital in London and a former Treasury official, said: ‘The probability of a Eurozone Lehman moment is increasing.
‘The markets have moved from simply pricing in a high probability of a Greek debt default to looking at a scenario of it becoming disorderly and of contagion spreading to other economies like Portugal, like Ireland, and maybe Spain, Italy and Belgium.’
Meanwhile, in Athens a string of parliamentary resignations threatened to thwart Greek prime minister George Papandreou’s plan to reshuffle his cabinet and pass austerity measures needed to save the nation from default.
The political turmoil raised further uncertainty over the socialist cabinet’s five-year plan to force through tax hikes, spending cuts and state property sales demanded by its bailout lenders.
This whole issue of bailouts defies financial logic at any level in or outside the E.U. The extent of the political and financial influence of the E.U. is far in excess of ANY intended mandate ever extended by the citizens of the UK. The continuing intervention by Merkel to extend the creeping influence of Germany and to encapsulate the UK into the Merky plan has to be rejected and real consideration given to our withdrawal from the EU.
We are back to the bankers making money again and they think we will help bail them out , time to show that the UK has guts and withdraw from this shower of sh--t.