David Cameron: euro crisis has 'chilling effect' on English economy
He arrived at an EU summit in Brussels insisting the issue had to be tackled once and for all - and it involved all member states and not just those in the single currency club.
"The crisis in the euro-zone is having an effect on all our economies, England included." the Prime Minister insisted. (Only because England’s in the EU, if England pulled out of the EU England’s economy would be far stronger having not to keep pouring billions of pounds into the EU, money which could be better spent on the rebuilding of England, jobs and homes)
EU leaders were taking their turn on the third day of talks designed to forge an economic crisis response which will calm market fears and deliver reassurance that the euro-zone has a credible package of measures to withstand current and future economic shocks when living in the real world we all know that the euro was and is destined to fail.
Meanwhile the failed Greek euro and EU crisis lead to a second day of rioting in Athens with Greek protesters rampaged for a second day outside parliament with firebombs and stones, leaving one construction worker dead and at least 74 injured. Communist party supporters taking part in the rally came under repeated attacks from hundreds of masked protesters in motorcycle helmets. Fights broke out as the Communist party supporters retaliated. Chaos ensued as protesters and masked youths armed with clubs charged each other, and riot police fired volleys of tear gas to separate the two sides, and these could be the scenes we could see here in England if Cameron refuses and dictates to the people over holding an referendum on a Yes or No vote over staying in the EU.
Yesterday, EU finance ministers met to discuss how to recapitalise the region's banks to make them strong enough to withstand expected losses on government debt. George Osborne, the British Chancellor, said "real progress" had been made during the day of talks when if the truth no real progresses had been made because if the French and German disputes.
European banks will have to come up with £94bn of new capital over the next six to nine months, the Financial Times reported this morning and just how much of this is having to be paid by the already over burden English tax payers?.
That figure was reached after emergency stress tests carried out by the European Banking Authority, and would give banks a 9pc core tier one capital ratio after they took losses on the value of government debt from various euro-zone nations.
What leaders will debate today is how to use the €440bn European Financial Stability Facility (EFSF), which some countries would have to borrow from to recapitalise their banks, as well as size of loss holders of Greek debt must take to make the country's borrowings sustainable borrowing to pay debts to get back into debt.
“Europe's” leaders are “threatening” to trigger a formal default on Greek debt and risk a “credit event” if banks refuse to accept losses of up to €140bn (£120bn) on their holdings dose England really want to be a part of the EU.
Hardline euro-zone members who pocket millions of pound, backed by the International Monetary Fund (IMF), delivered the ultimatum this weekend after an official report found that in a worst-case scenario Greece could need a second bail-out of €450bn – twice the current package.
“The only voluntary element for the banks now is to take a 50pc haircut or face a credit event, a default,” said an EU diplomat.
Europe’s banking lobby, dominated by French financial institutions with a high exposure to Greek debt, have protested that any haircut greater than 40pc is too much.
UK officials are confident that “British” banks will escape unscathed from any forced haircut on sovereign debt which very unlikely if England stays in the EU if England pull out of the EU English Banks will be safe for hard-line euro members that would destroy England.
Meanwhile England’s, Dictator British Prime Minister David Cameron is attempting to face down an English rebellion tomorrow by Tory MPs and a 100,000 English votes in a vote over staging a referendum on England’s membership of the EU.
Ministers expect 60 or 70 MPs to defy the party’s high command and back the call for a referendum, while some rebels claim the final toll could be up to 100 — about a third of the parliamentary party and the 100,000 plus English votes could rise to over 95% of English voter wanting out of the EU.
Downing Street dictatorship has upped the stakes dramatically. Last night, No 10 leaked sources insisted they would impose a three-line whip — effectively ordering all Tory MPs to fall in line which could see un-rest right across England being its undemocratic not to hold a vote when the people of England have asked for one?
Dictator Cameron, who yesterday took personal charge of the effort to persuade MPs to back the Government, has come under intense pressure from Cabinet colleagues to try to defuse the revolt by offering concessions or a way out to rebels. Sources say a handful of parliamentary private secretaries — the lowest rung on the government ladder — might resign.
Military actions could be taken against the British government if they refuse the will of the people in holding a vote, as this would be seen as England becoming ruled under a dictatorship and not democratic leadership
EU referendum: Dictator Cameron is determined to face down his backbenchers
Tomorrow’s Commons vote on a motion calling for a referendum on England’s membership of the European Union
Tomorrow’s motion, submitted by the Conservative MP for Bury North, David Nuttall, has come before the House thanks to a new mechanism which gives Commons time to e-petitions that have secured more than 100,000 English signatures and then been selected by the Backbench Business Committee that was founded in June 2010. It was open to Cameron to treat the whole business as a bit of a lark, an opportunity for backbenchers to let off steam, before a free vote that would not be binding upon the Government.
Instead, the PM insisted that the debate be brought forward to tomorrow, so that he and William Hague could be present, and imposed a three-line whip. A parliamentary wheeze has become a trial of strength between Dictator Cameron and his increasingly testy backbenchers. This weekend, he, George Osborne and other senior members of the Government are hitting the phones, urging potential rebels to “be reasonable” (in the Godfather sense of the word).
The PM will win, but the aesthetics of his victory are important. At the time of writing, 68 Tory MPs have signed up to defy the whip (not far shy of the 77 who backed Mr Nuttall’s Ten Minute Rule Bill to relax the smoking ban). Such a revolt would be a challenge to the authority of the Prime Minister, and each rebel vote will be interpreted unambiguously as a gross discourtesy. “The PM will be reading the division lists afterwards very carefully,’’ says a senior Government source, with due menace.
Cameron’s allies know full well the risks of appearing too heavy-handed and forcing a fight that could have been avoided. There has been bad blood between the leadership and the backbenchers every since the expenses scandal, during which less affluent Tory MPs felt they were being thrown to the dogs by millionaire Cameroons. Most Conservative backbenchers believe that the Lib Dems have disproportionate power in the Coalition. They are bitter that Nick Clegg was allowed a referendum on AV, an electoral system that not even the Lib Dems really wanted.
The PM’s allies are conscious of all this ill feeling, which is why they hoped privately that George Eustice – once Cameron’s press secretary, now leader of the “Fresh Start” group of Eurosceptic MPs – would come up with a compromise. Mr Eustice didn’t pull it off, but has earned the discreet gratitude of No 10 for trying (he’s the one rebel who’s still got a good chance of promotion). There will be much repair work to be done between leadership and back benches in due course.
None the less: Dictator Cameron is determined that tomorrow’s debate should dramatise robustly his refusal to let Europe engulf the party once more – a Clause Oh-For-God’s-Sake, if you like. He fears the party resuming its lethal embrace with a single issue, lost in introspection, arguing over how many Bill Cashes can dance on the head of a pin while the public, anxious about jobs and inflation, watches in bafflement. What Ed Miliband wants more than anything is to say that the Tories are “out of touch”: in the next 24 hours, he may be justified in this claim.
The irony is that the Cameroons are all for an EU referendum: just not this one, and not now. Steve Hilton, the PM’s closest adviser, is keeping a low profile this weekend, keen not to be drawn into parliamentary politics. But his campaign to bring about a revolution in public sector delivery – constantly thwarted or slowed down by Brussels directives – has persuaded him that a reckoning of some sort is essential.
The Nuttall motion proposes three bald options: stay in the EU, leave, or renegotiate the terms of our membership. The Tory manifesto committed Cameron to repatriating “key powers over legal rights, criminal justice and social and employment legislation”, although the Coalition Agreement promises only that “we will examine the balance of the EU’s existing competences”. In private, senior Tories have long been uncertain about how exactly they would bring powers back from Brussels to Westminster, and what leverage they would have.
The euro-zone emergency is precisely the wrong moment to force this debate. Marriage counselling is pointless when the couple’s house is on fire. But the European crisis means that, much sooner than expected, an EU Intergovernmental Conference will be necessary to discuss sweeping changes to the Union, its fiscal structure and much else. Britain will be in a potentially strong position to barter, and to achieve the repatriation of powers it seeks. There would be a Treaty and a referendum on the renegotiated terms of membership. In private, Cameron’s team believes that all this is achievable – but not yet, and certainly not during the Coalition’s lifetime.
One senior minister put it: “The one referendum the sceptics would probably lose is whether we stay in or out.” Or to put it another way: be careful what you wish for. In politics, as in life, the greatest strategists are patient. They know that true victories never take the form of shiny gimmicks.