EU demands £25bn lifeline from the UK

The Telegraph ^ | 12/18/2011 | Tim Ross and Bruno Waterfield

[bruinbirdman]

David Cameron will come under pressure today to resist demands to contribute more than £25 billion to a new eurozone bail-out.

European finance ministers will aim to agree a new €200 billion (£167.7 billion) loan to the International Monetary Fund as part of a deal to save the single currency.

Three quarters of the money is expected to come from eurozone members, but Britain will also be asked to provide funds.

Figures suggest European Union officials expect British taxpayers to be the second largest contributor. The Prime Minister has repeatedly promised not to provide any extra funding for the IMF for the specific purpose of saving the euro and Britain is already liable for £12 billion of loans and guarantees to Ireland, Greece and Portugal.

Earlier this month, EU countries set today as the deadline to raise up to €200  billion in new loans for the IMF to deal with the eurozone crisis.

Finance ministers will hold a conference call in an attempt to reach agreement on the war chest.

An EU official said Britain was still expected to contribute €30.9 billion (£25.9 billion), leaving the country as the second biggest contributor to the new IMF fund behind Germany and equal with France.

Any suggestion that Britain will pay more towards the bailing out debt-ridden eurozone economies will cause anger among Tory Euro-sceptics, particularly if the eurozone nations do not pay their fair share.

Douglas Carswell, the Conservative MP for Clacton, said: “George Osborne has spent 20 months going along with the bail-out and borrow consensus.

“It has cost this country billions of pounds in liabilities which dwarf all the austerity measures. He needs to call a halt now.”

Mr Carswell called for eurozone countries to be allowed an “orderly default” on their debts.

Peter Bone, the Tory MP for Wellingborough,

[Elle Bee]

just say FU EU

.

[Jonty30]

Let’s hopw so. All that 25 billion dollars would do is disappear into Soros’ or somebody’s pocket.

[MrEdd]

The proper response should be to hold an emergency press conference...at which the new Pound Sterling just being minted is unveiled.

[Flavius]

Oh magical money tree

[Elendur]

€200 billion (£167.7 billion) loan ... Three quarters of the money is expected to come from eurozone members,
/// so, who is the other 1/4 (50 billion) coming from?
Non-EU members. ...the USA?

[Billthedrill]

Mr Carswell called for eurozone countries to be allowed an “orderly default” on their debts.

There is likely to be nothing "orderly" about it, but debt that will, and can, never be repaid is already essentially in default. The holders of that debt might be forgiven a little desperation here but somebody always does end up missing the chair when the music stops.

[BfloGuy]

Have you noticed how it's either up to Germany to save the EU by giving permission to the ECB to print money or to do away with its "unfair" trade surplus -- or it's up to the UK to save the EU by submitting to tax on its financial transactions or coughing up cash?

Isn't it interesting that France isn't asked to do anything at all? Oh, that's right. It's France that's doing all the asking!

[Chode]

ain't that the truth...

[kristinn]

From the end of the article, a 21st century Euro Dunkirk?!:

Yesterday it emerged that the Foreign Office was drawing up contingency plans to evacuate up to a million expats from Spain and Portugal in the event of a European banking crash.

The planning was even said to include the nightmare scenario of thousands of penniless Britons sleeping at airports with no money to return to the UK.

[DUMBGRUNT]

Good question, where would most of the money end up?

My guess is, pay outs of government pensions and debt service (Soros&CO)

[Jonty30]

In my opinion, I think our elites made some bad bets rcently and lost some fairly large amounts. Now they want their money back and they are manipulating the system and politicians to ensure that happens.

That’s the only thing that makes sense to me about this whole situation.

[GeronL]

They need to tell the EU to go stuff it

[Tzimisce]

You peasants will pay your taxes and SMILE WHILE DOING IT.

/sarc(?)

[RichInOC]

“You are the weakest link, good-bye!”

[PGalt]

UNaccountable bureaucrats (socialists) placing DEMANDS on sovereign nations. How quaint. What’s next...war?

[Michael Barnes]

Anyone else seeing the precursors to war here?
Like a bad dream.

[SunkenCiv]

Thanks bruinbirdman.

European finance ministers will aim to agree a new €200 billion (£167.7 billion) loan to the International Monetary Fund as part of a deal to save the single currency... Figures suggest European Union officials expect British taxpayers to be the second largest contributor. The Prime Minister has repeatedly promised not to provide any extra funding for the IMF for the specific purpose of saving the euro and Britain is already liable for £12 billion of loans and guarantees to Ireland, Greece and Portugal.

This is the breaking point -- either the UK leaves the EU altogether, or the EU (France and Germany at this point) cave to the earlier demands Cameron made when he cast his veto.