Cameron looks to shield Britain from euro breakup

Reuters ^ | Wed May 16, 2012 7:04pm EDT | Matt Falloon

[Olog-hai]

Prime Minister David Cameron will promise on Thursday to do whatever is needed to protect Britain's economy and banks from a breakup of the eurozone, and will urge leaders of the single currency bloc to "sort out its problems".

Cameron's remarks, in a speech to business leaders in northwest England, are likely to irritate European leaders trying to keep the eurozone intact as Greece prepares for a new election and struggles to cope with its debt crisis.

Britain's Conservative-led coalition has long blamed its own economic woes on the turbulence in Europe, its main trading partner, though critics say Cameron's tough austerity measures have also helped push Britain back into recession this year.

Cameron, under pressure to appease the unruly anti-European Union wing of his Conservative party, blocked an EU economic pact last year that was supposed to help shore up the eurozone. Seventeen of the 27 EU members—but not Britain—use the euro currency.

"Either Europe has a committed, stable, successful eurozone with an effective firewall, well capitalized and regulated banks, a system of fiscal burden sharing, and supportive monetary policy—or we are in uncharted territory, which carries huge risks for everybody," Cameron will say, according to extracts from his speech released in advance.

"As I have consistently said, it is in Britain's interest for the eurozone to sort out its problems. But be in no doubt: whichever path is chosen, I am prepared to do whatever is necessary to protect this country and secure our economy and financial system."

The Bank of England said on Wednesday it had been planning for the possibility of a eurozone breakup for some time, with a focus on what banks should do to protect themselves. …

[Army Air Corps]

Ping.

[GeronL]

The UK is a welfare state with almost a decade (Labour rule) of pretty much unlimited third world immigration.

THAT is the root of many of their problems.

[GeronL]

None of the European “austerity” seems to have involved any significant spending cuts.

[Navy Patriot]

Usually such economic conflicts are settled by war.

If both sides repudiate debt and impose tariffs, we'll be off to a good start.

[Navy Patriot]

Right on both counts.

[tennmountainman]

That’s exactly right.

[SunkenCiv]

Thanks Olog-hai.

[rawcatslyentist]

Hey, let's open a joint checking account with a drunken Greek Sailor. What could go wrong?

/s

[Southack]

The Euro “breakup” threat is all for show. They have planned since before the 1997 introduction of that currency to default on our of their (now non) sovereign debt.

All part of the show folks, all part of the show.

[Southack]

er...they have planned since before the 1997 introduction of that currency to default on all of their (now non) sovereign debt.

[BfloGuy]

Or are they just doing bookkeeping tricks?

None of the European countries have cut spending -- they've just slowed the rate of growth. UK included.

[Caulkhead]

“The UK is a welfare state with almost a decade (Labour rule) of pretty much unlimited third world immigration.

THAT is the root of many of their problems.”

Even under labour non-EU immigration was limited, though more so now. The real growth in immigration has come from EU immigrants, particularly the Poles. If we had really had unlimited thrid world immigration for a decade, we wouldn’t have a 92% white anglo saxon celtic population as we do and we might be apporoaching the situation the US finds itself in with white minority births.

[Caulkhead]

“None of the European countries have cut spending — they’ve just slowed the rate of growth. UK included.”

Simply not true with regard to the UK. The reason we have kept our triple A credit rating when the US hasn’t is because our cuts are real and our plan credible in the eyes of the world’s financial institutions.

http://www.telegraph.co.uk/news/politics/7759398/Government-spending-cuts-in-summary.html

[BfloGuy]

Simply not true with regard to the UK. The reason we have kept our triple A credit rating when the US hasn’t is because our cuts are real and our plan credible in the eyes of the world’s financial institutions.

If you say so, but UK Public Spending shows £683.4 billion of spending in 2011, £703.4 billion in 2012, and projected a £722.2 billion in 2013.

I'll grant you they're fairly flat given Sterling's inflation, but they're hardly what I'd term as cuts.

[Caulkhead]

“If you say so, but UK Public Spending shows £683.4 billion of spending in 2011, £703.4 billion in 2012, and projected a £722.2 billion in 2013.”

The 2011 figure is an actual figure, the 2012 and 2013 shows the source of the figures as ‘Guesstimate’.

In order to understand the actual level of the cuts, you have compare actual spending with the level of spending if no cuts had been made.

I’m pretty sure we must be getting something right if this guy doesn’t like it:

http://www.politics.co.uk/news/2011/07/07/bill-clinton-condemns-uk-spending-cuts

:)

[BfloGuy]

In order to understand the actual level of the cuts, you have compare actual spending with the level of spending if no cuts had been made.

My only point was that, while cuts have been made, the overall level of spending is still increasing. I'm sure it's much better than it would have been -- but it's not a reduction; just a slowing in the growth.