European Council

Kelvin Hopkins Excerpts

Monday 23rd February 2015 Commons Chamber

[The Prime Minister]

I think the best way to answer my right hon. Friend’s question is to say that that will, of course, depend on what happens next in terms of the Russian-backed separatists and Russia itself. What happened in Debaltseve—after the Minsk agreement was signed—should teach a lesson to anybody who thinks that this is going to be easily solved and that Russia will walk away. Frankly, if we see more behaviour like that, I think the argument at the European Council should be about how quickly can we renew the sanctions that we renewed later in the year anyway, and how quickly can we add to them. Certainly, that is the argument that Britain will make, and many others will make it with us. At the end of the day, as I have said from this Dispatch Box many times, Europe and America have to make the weight of our economic relationship pay against Russia. In the end, Russia needs us more than we need Russia. We need to make that relationship pay and then we can get it to change its approach.

[Kelvin Hopkins (Luton North) (Lab)]

It is reported that the Government have been privately discussing the implications of a Greek exit from the euro. Greek exit will happen sooner or later, and it is inevitable, in my view, that other countries will follow. Has the Prime Minister discussed with his European counterparts the implications of such a wider collapse of the euro and, if so, what has emerged from those discussions?

[The Prime Minister]

I will be very frank about the discussions I have been having. I thought it was important to chair some discussions here in the UK about what the consequences of Greek exit from the eurozone would be, because there is a chance that it could happen. If it does happen, we would need to make sure that our banks were secure—which they are—that our businesses understood what the consequences of Greek exit would be and that we could support tourists, dual nationals and British people who live in Greece. Those are all important questions that we should consider. Some criticised me for holding those meetings, but, to be frank, I would argue that any responsible Prime Minister in any responsible European country should do exactly that.

There are mixed opinions about the question whether a Greek exit from the eurozone would be followed by other countries exiting, because the spread of bond yields between Spanish, Portuguese and other bonds and Greek bonds has been very different in recent months compared with 2011. I am clear about what my responsibility is: to encourage the eurozone countries to come to agreements that can get their economies to grow and the continent to stabilise, and, back at home, to be very clear that we are ready for any eventuality, including a Greek exit from the eurozone.