G8 and NATO Summits

Dennis Skinner Excerpts

Wednesday 23rd May 2012 Commons Chamber

[The Prime Minister]

Like my hon. Friend, I have always been a genuine euro-sceptic—sceptical about the euro—which is why I did not want to join it. We have to recognise, however, what is in this country’s interest, which is for the eurozone to sort out its issues and difficulties. I believe that will involve greater fiscal transfers and it must involve eurobonds over time. As I have said, it involves a more active monetary policy in Europe. We should encourage our European partners to go down this road to make sure that their system works properly. There are real dangers from disorganised exits from the euro. It is not just that countries would devalue, which would have an impact on us, as we have to think about the impact on financial institutions and banks around Europe, including on British banks. It is very important that the eurozone takes the necessary steps to put in place the contingency plans to keep it safe.

[Mr Dennis Skinner (Bolsover) (Lab)]

Now that the Prime Minister is lecturing Greece about the need for growth and that we need a little bit in Spain and the eurozone, so he says, for the sake of clarity can we get to the bottom of growth here? Will he repeat these words after me: “I’m going to drop the austerity plan and go for growth in Britain”? Now’s your chance.

[The Prime Minister]

I am afraid that I do not agree with the hon. Gentleman. I deeply regret that my last encounter with him was perhaps a bit sharper than it should have been, and I hope he will accept my apology. He is a tremendous ornament to this House, and that will always remain the case. I do not agree with him because I think a deficit reduction plan is necessary to deliver the low interest rates we need, which are essential for growth. I make the point again that when this Government came to power, our interest rates were the same as those in Spain. Today, ours are less than 2% and Spain’s are over 6%. One reason for that is that we have a credible fiscal policy.