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Osborne refuses to rule out helping other €urozone nations in Commons statement

Tim Montgomerie

Screen shot 2010-11-22 at 16.25.42Highlights, not verbatim.

In his statement to the Commons on the Irish bailout George Osborne made it clear that Britain had been at the heart of the negotiations with Ireland about the conditionality for the facility agreed for it. He said there should be no requirement for Dublin to change its corporation tax regime.

Responding to the Shadow Chancellor, Alan Johnson, who implied that Eire's deficit reduction plan was an explanation for its difficulties, the Chancellor said that no international actor who had been part of the negotiations over the bailout had argued that Dublin needed to moderate its fiscal adjustment.

Responding to Andrew Tyrie, Mr Osborne said he planned to use the December EU summit to leave the general bailout facility.

Mr Osborne dodged a question from Mr Redwood when he sought reassurance that Britain would not be part of a bailout of other €urozone nations. The Chancellor instead explained why he had specifically agreed to support Ireland.

Screen shot 2010-11-22 at 16.41.03 David Blunkett asked why the government could not have added £100m to the £7bn facility so that the last government's loan to Sheffield Forgemasters could have been restored? Mr Osborne said that this help for Ireland will prevent damage to the UK economy, including Sheffield's economy.

Alan Beith said that constituents were angry about bailing out British banks. They will be angrier still at bailing out foreign banks.

Douglas Carswell asked the Chancellor to confirm that while Britain was outside of the €urozone it was part of an effective Debt Zone. The Chancellor replied that he had always opposed the €uro but he needed to deal with the world as it is. Not how he'd like it to be.

Responding to Labour's Gisela Stuart Mr Osborne agreed that adjustment would be harder for Ireland because the country would not have currency flexibility.

The Chancellor told Peter Bone that leaving the €uro had not been part of the bailout negotiations.


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