This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-15474590

The article has changed 7 times. There is an RSS feed of changes available.

Version 4 Version 5
Osborne: Eurozone deal must not lose momentum Osborne: Eurozone deal must not lose momentum
(about 1 hour later)
Chancellor George Osborne has said the eurozone is on the "right road" but "pressure" must be kept on its leaders to put the debt deal into practice.Chancellor George Osborne has said the eurozone is on the "right road" but "pressure" must be kept on its leaders to put the debt deal into practice.
He also insisted the UK would not pay into any International Monetary Fund package targeted at the eurozone.He also insisted the UK would not pay into any International Monetary Fund package targeted at the eurozone.
The deal will recapitalise Europe's banks, write off 50% of Greek debt and boost the eurozone's main bailout fund.The deal will recapitalise Europe's banks, write off 50% of Greek debt and boost the eurozone's main bailout fund.
Labour welcomed the agreement, but said the "missing piece" was a plan to boost growth and create jobs across Europe.Labour welcomed the agreement, but said the "missing piece" was a plan to boost growth and create jobs across Europe.
Mr Osborne told the BBC Europe was now in "a much better place", but it was vital the timetable did not slip.Mr Osborne told the BBC Europe was now in "a much better place", but it was vital the timetable did not slip.
'Maintain momentum' "We've got to maintain the momentum from last night and turn what was a good package into something that's got all the detail and is actually going to work in practice," he told BBC Radio 4's Today programme.
"I think the crucial thing this morning is to maintain the momentum to ensure that we don't see what happened back in July when they agreed another package but then it took months to put into place," Mr Osborne told BBC Radio 4's Today programme. 'Real influence'
"We've got to maintain the momentum from last night and turn what was a good package into something that's got all the detail and is actually going to work in practice." The agreement is aimed at preventing the Greek debt crisis spreading to larger eurozone economies like Italy, and includes a new bailout fund, worth about 1tn euros (£880bn; $1.4tn), which is due to be in place in November.
The agreement - reached after marathon talks in Brussels - is aimed at preventing the Greek debt crisis spreading to larger eurozone economies like Italy. Mr Osborne said there were still "very important questions" to be answered - for example about the role of China in the bailout fund - but added: "The eurozone leaders have grasped the seriousness of the situation.
The framework for a new bailout fund, worth about 1tn euros (£880bn; $1.4tn), is to be put in place in November. "The pressure has paid off in that respect and now we have got to maintain the pressure to put the package into place and fill in the blank spaces that remain."
Mr Osborne said there were still "very important questions" to be answered - for example about the role of China in the bailout fund - but added: "We're in a much better place this morning than we were yesterday afternoon. As it is outside the euro, the UK was excluded from certain parts of the negotiations, but Mr Osborne said Britain had "real influence in putting pressure on the eurozone".
"The eurozone leaders have grasped the seriousness of the situation. The pressure has paid off in that respect and now we have got to maintain the pressure to put the package into place and fill in the blank spaces that remain."
As it is outside the euro, the UK was excluded from certain parts of the negotiations, but Mr Osborne insisted Britain did have "real influence in putting pressure on the eurozone".
He added: "It's going to be a difficult road ahead, but they are on the right road and it's massively in Britain's national interests that they sort these problems out."He added: "It's going to be a difficult road ahead, but they are on the right road and it's massively in Britain's national interests that they sort these problems out."
'Many questions' IMF resources
In a statement later to the House of Commons, Mr Osborne said there may be a case for further increasing the budget of the IMF to keep pace with the size of the global economy.In a statement later to the House of Commons, Mr Osborne said there may be a case for further increasing the budget of the IMF to keep pace with the size of the global economy.
But he said: "Let me be very clear, we are only prepared to see an increase in the resources the IMF makes available to all countries of the world.But he said: "Let me be very clear, we are only prepared to see an increase in the resources the IMF makes available to all countries of the world.
"We would not be prepared to see IMF resources reserved only for the eurozone.""We would not be prepared to see IMF resources reserved only for the eurozone."
For Labour, shadow chief secretary to the Treasury Rachel Reeves said there remained "many unanswered questions" about how the deal would work in practice. About £4.9bn of UK money is held in the IMF's fund but it could draw down up to £29.4bn from the Treasury in certain circumstances.
"Isn't the missing piece in this agreement a lack of any plan for jobs and growth - not mentioned at all in the statement by the chancellor?" she said. For Labour, shadow chancellor Ed Balls said: "The eurozone going into a protracted crisis would make things worse for us, and therefore we all really hope this deal is going to work... but that does not solve Britain's problem.
"Isn't it the case that without growth we cannot solve the debt crisis, we cannot solve the banking crisis and we cannot solve the jobs crisis either? "Unless we get a plan for jobs and growth in Britain, and I have to say across Europe too, unless we get growth in our economies, this is not going to be a solution."
"Britain should be leading the charge for a proper plan for jobs and growth across Europe."
'Caucusing''Caucusing'
The UK government is supporting greater fiscal integration among eurozone countries as part of tackling the current crisis.The UK government is supporting greater fiscal integration among eurozone countries as part of tackling the current crisis.
But some critics have warned this could leave non-euro countries like Britain, Sweden and Poland excluded from key political and economic decisions affecting the whole of Europe. But some critics have warned this could leave non-euro EU members like Britain, Sweden and Poland excluded from key decisions affecting the whole of Europe.
Mr Osborne told MPs that David Cameron had dinner with the Swedish and Polish prime ministers on Wednesday night to discuss that very risk. Backbench Conservative MP David Nuttall told the Commons there was a "real danger" the 17 eurozone nations would "start to agree policies to suit themselves and then impose them on the other 10 EU countries".
And he said Britain had to be "alert to the danger" of the 17 members of the eurozone "caucusing on areas which should legitimately be the preserve of the 27 [European Union members]". Mr Osborne agreed that Britain had to be "alert to the danger" of the 17 members of the eurozone "caucusing on areas which should legitimately be the preserve of the 27 [European Union members]".
Justice Secretary Ken Clarke told the BBC that fear about a two-speed EU was "one of the big issues we have to address in due course". He told MPs that David Cameron had dinner with the Swedish and Polish prime ministers on Wednesday night to discuss that very risk.
"We obviously are going to have a distinct division between the eurozone countries and the rest, with most of the rest apart from Britain intending to be members of the eurozone eventually," he said. Europe's leaders have agreed to change the EU's treaty, if necessary, to allow greater fiscal integration.
"So what we have to make sure is that does not exclude us from proper participation in decision-making particularly on the single market but of course on all political issues as well." Mr Cameron says he has sought assurances to protect Britain's interest if there is change - and suggested it could provide an opportunity to repatriate some powers from Brussels.
Mr Cameron has said greater eurozone integration will provide an opportunity for the UK to renegotiate its relationship with Europe and to potentially repatriate some powers. Tory Eurosceptic John Baron told BBC Radio 4's World at One that should be a given.
This view has been backed up by his Conservative predecessor Sir John Major, who predicted greater co-ordination between the UK and other non-euro countries like Poland and Sweden to "repatriate key policies they can't influence". "We want [fiscal] cooperation, but the quid pro quo of that should be that we as a country should be allowed to have the sort relationship we want, which would include a free trade area," he said.
"Looking at the balance of trade, the Europeans benefit from that more than we do, so I don't think they would object to it."
'Bottom edge'
Mr Cameron's spokesman said any treaty change was not likely to be "significant" and so would not trigger a referendum, as some Tory backbenchers have suggested.
Deputy Prime Minister Nick Clegg said: "The issue now is about jobs, growth, the economy, that's what people care about rather than arcane debates about treaty change that may or may not occur."
Mr Clegg said the Brussels summit had been "very significant" and he hoped the eurozone was now "starting to turn the corner".
But Liberal Democrat MEP Sharon Bowles told the BBC the eurozone deal was on "the bottom edge of what we thought was enough".
She said that member states were not prepared to put more money at risk, and they would have to hope the deal created stability for long enough get growth initiatives underway.