MP: adding yet more debt is simply reinforcing failure
Today in the House of Commons during a Statement by the Chancellor of the Exchequer on Britain’s additional £10 billion loan to the IMF, John Baron MP said it was wrong to be adding yet more debt to the crisis and highlighted the additional risk involved in lending to countries in the Eurozone which could not devalue.
John said:
“Until the root cause of this crisis is addressed – that being a lack of competitiveness – piling more debt onto a problem caused by excessive debt is simply reinforcing failure. Is the Chancellor at all concerned that of the 50 countries outside Europe helped by the IMF, every one has had the option of devaluation which has been part of the IMF programme mix, but this option is not available to countries inside the Eurozone?”
The Chancellor said in response that the IMF does not just operate in the Eurozone and that Britain should support good international organisations.
John said afterwards:
“There are no sweeping reforms to boost competitiveness within the Eurozone. Until that happens, any additional debt will simply postpone the inevitable and could cost the British taxpayers dear.”
Ends
Word Count: 208
Date: 23rd April 2012
Notes to Editors
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