DAVID Cameron today rejected calls to pay another £30 billion from Britain to bail out eurozone countries, saying the 17 single currency countries must do more to tackle their debt crises themselves.
The proposed figure was in a report to last week’s EU summit by Christine Lagarde, the new head of the International Monetary Fund – to which Britain contributes loans.
The move came as tensions in the Coalition continued, with Nick Clegg hosting a business breakfast for exporters and pro-Europe campaigners worried about last week’s use of the British veto.
Splits were also emerging among the 26 other EU countries, dousing hopes in Brussels that an agreement for fiscal union signed by all of the number could be struck.
The Irish finance minister Michael Noonan said in London today that such a deal would probably require a referendum in his country. He added Ireland would not agree to a financial transaction tax if it did not apply to London.
The Lagarde document suggested that 150 billion euros would be put up by eurozone countries for bailouts, plus another 50 billion euros from the 10 non-euro states, of which Britain is the only major economy.
However, a Downing Street source told the Evening Standard: “David Cameron did not sign up to that paper and made clear to the room at the time that our position has not changed.”
At the Cannes summit, which ended in disarray, Cameron offered in principle to lend an extra £10?billion to the IMF for a euro bailout on top of existing contributions of £20?billion. However, no deals were done because he and other world leaders, including Barack Obama and the Chinese president, wanted the single currency club to undertake reforms.
At Clegg’s breakfast meeting, Philip Souta, director of pressure group Business For New Europe, said: “We think the PM did the wrong thing in using the veto.”
Clegg, who was joined by Lib-Dem ministers Danny Alexander, Vince Cable and Chris Huhne, said: “I speak here on behalf of the whole Coalition Government, notwithstanding the differences of view between the parties within the government.
“The whole government is absolutely determined to re-engage with our European partners.”
Among the guests were Tory peer and former European Commissioner Lord Brittan, Centrica chairman Sir Roger Carr and BAA chief executive Colin Matthews.
