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EU makes UK liable for Greek debt
Date 10/06/2010 16:00  Author webmaster  Hits 2299  Language Global

The Government has finally confirmed that Britain could be liable to pay nearly £8bn of Greece's debts.

The news came in the House of Lords when the coalition were forced to answer a question asked by UKIP leader Lord Pearson, and showed how European Finance Ministers bent the rules about financial aid in order to prop-up the failing euro-zone economy.

When Lord Pearson asked if the UK could be forced to pay billions of pounds towards other EU countries' debts, Lord De Mauley, on behalf of the government, replied: "Finance ministers agreed up to €60 billion of emergency finance. Where there are defaults on loan payments... member states would be liable for a share. The UK's share would be approximately 13.6%, or up to a maximum of around €8 billion.

The EU are using a little known paragraph ( Article 122.2 [TFEU] of the Lisbon treaty) to enable the bailout.



Lord Pearson challenged the government on the legality of using the treaty in such a way stating: "This article can only be used legally to help with natural disasters, such as earthquakes and so on."

Avoiding the question, the government's spokesman stopped referring to the package as ‘emergency finance' and changed it to ‘loan', seemingly admitting to UKIP that the treaty could not be used to ‘give' money to countries in these circumstances. "That does not rule out member states lending each other money," the spokesman said.Lord Pearson challenged the government on the legality of using the treaty in such a way stating: "This article can only be used legally to help with natural disasters, such as earthquakes and so on."

Avoiding the question, the government's spokesman stopped referring to the package as ‘emergency finance' and changed it to ‘loan', seemingly admitting to UKIP that the treaty could not be used to ‘give' money to countries in these circumstances. "That does not rule out member states lending each other money," the spokesman said.
www.ukip.org
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