Disappointing Chancellor has not taken opportunity to press wealthy eurozone countries to dig into their own pockets - Ed Balls

20 April 2012

Ed BallsEd Balls MP, Labour's Shadow Chancellor, in response to George Osborne’s announcement of an additional £10 billion of UK funding for the IMF, said:
 
"It is disappointing that the Chancellor has not taken the opportunity to press the wealthy eurozone countries to dig into their own pockets and establish a strong firewall of their own, before offering up more funding from Britain. There is a real risk that yet another sticking plaster response will mean the eurozone continues to duck the tough decisions they need to take.

“The IMF has a vital role to play in the global economy and should have the resources to do that job, but it should not be bailing out the eurozone when the euro area countries are not doing their own bit to help themselves. The IMF should not become the de factor central bank of the eurozone. That is the principled position Labour and the US government have taken and why we voted against increased funding last summer.
 
“Just a few weeks ago George Osborne said he could not even consider giving more funding to the IMF until we saw ‘the colour of the eurozone money’. But we have still not seen the colour of the eurozone’s money and there is still no political agreement to let the European Central Bank do its proper job as lender of last resort.

“George Osborne needs to explain why he has suddenly changed his mind and why he is running so scared of Parliamentary scrutiny on this important issue.”