Skip to comments.David Cameron wins battle to keep Britain out of second EU bail-out for Greece
Posted on 06/24/2011 2:40:04 AM PDT by iowamark
At a European Union summit in Brussels, the Prime Minister won a fight with Angela Merkel, the German Chancellor, to keep Britain out of any new rescue package.
Germany had wanted to use money from the European Financial Stability Mechanism to bail out Greece. Britain is a contributor and has no veto on how its 11.85billion (£10.5billion) funds are used.
But Herman Van Rompuy, the EU president, said that the EFSM would "not be part of the package".
Britain's benchmark FTSE 100 index opened up more than 1pc as Greece secured the backing of European leaders late last night for its five-year austerity plan, which Greek ministers will vote on next Tuesday.
Markets also rallied in Asia, with the Hang Seng index in Hong Kong climbing 1.8pc as Chinese Premier Wen Jiabao said he was confident that price rises would be kept firmly under control this year.
Speaking in Prague before flying to Brussels, Mr Cameron said it would be "quite wrong" to ask Britain to contribute to rescuing Greece, while German officials said the stability mechanism should be used.
Mr Cameron will also use the summit to argue that the EU should exempt small firms from new red tape. "This is the right outcome for the British taxpayer," said a Downing Street source.
Earlier this week, aware of the potential domestic outcry if Britain had to stump up billions for Greece, Chancellor George Osborne told fellow EU finance ministers at talks in Luxembourg that the UK did not expect to be called upon...
A Downing Street source commented: "This is the right outcome for the British taxpayer."
(Excerpt) Read more at telegraph.co.uk ...
Germans need to pony up their and pay their enormous financial and moral debts.