Chancellor Osborne has asked that leaders in Europe become decisive in their plan of action over the debt crisis that has been building in the eurozone. In fact, global leaders are now calling the eurozone the epicentre of all the mayhem within global markets.
The chancellor further echoed the prime minister’s words when he said that it was time for Europe to get out the big guns in order to tackle the problem. In his words, the UK government sees the need for what he refers to as the three R’s, resolution, ring-fencing and recapitalisation.
Mr. Osborne stated that the solution needs to be comprehensive to fence in eurozone countries that are most vulnerable and that solution needs to see to the recapitalisation of banks in Europe whilst making a decisive commitment in terms of Greece’s debt crisis and imminent default.
Further mentioned was the fact the Osborne’s conservative party is angry that Brussels feels that immigrants from Europe should be entitled to UK welfare benefits. The chancellor stated that they are looking at ways to circumvent that ruling.
In any case, the chancellor’s purpose seemed to be that he wanted to be reassuring to his own party that Britain does have a handle on the situation as it is developing in Europe and that they are indeed being proactive. In addition, he did say that advice being given to the UK’s neighbours in Europe was being given ‘in private,’ he wanted to reassure his party and the public of UK involvement.
On a final note, Osborne is adamant that the euro should be upheld and not be allowed to ‘fall apart’ as had been suggested by Nigel Lawson, his predecessor. The chancellor stated that this would not be in the best interest of Britain. He added that in his opinion Greece should not exit the euro, even through default and he s in total support of the BoE’s resolve to add an additional £75 billion in round two of QE.