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| Eurozone crisis: 'Right' to boost IMF funds - Cameron | Eurozone crisis: 'Right' to boost IMF funds - Cameron |
| (about 1 hour later) | |
| Prime Minister David Cameron has told the BBC it is "right" to consider boosting funds to the International Monetary Fund at a time of crisis. | Prime Minister David Cameron has told the BBC it is "right" to consider boosting funds to the International Monetary Fund at a time of crisis. |
| Mr Cameron, in Cannes for a meeting of the G20 industrialised nations, said there was "no risk" to UK taxpayers. | Mr Cameron, in Cannes for a meeting of the G20 industrialised nations, said there was "no risk" to UK taxpayers. |
| The BBC's Nick Robinson says it could mean eurozone nations like Greece are indirectly helped by the UK. | The BBC's Nick Robinson says it could mean eurozone nations like Greece are indirectly helped by the UK. |
| Speaking as he went into the G20 summit Mr Cameron told reporters: "I'm here to safeguard the British economy." | Speaking as he went into the G20 summit Mr Cameron told reporters: "I'm here to safeguard the British economy." |
| The eurozone crisis also featured in the House of Commons on Thursday with Treasury minister Mark Hoban fielding questions from MPs. | The eurozone crisis also featured in the House of Commons on Thursday with Treasury minister Mark Hoban fielding questions from MPs. |
| He was asked if the government had contingency plans for the euro breaking up, replying: "Every good government would have plans in place for a whole range of eventualities and this government is well prepared for any eventuality." | He was asked if the government had contingency plans for the euro breaking up, replying: "Every good government would have plans in place for a whole range of eventualities and this government is well prepared for any eventuality." |
| He was then asked if those contingency plans included any prospect of the UK adopting the euro. Mr Hoban replied: "I don't think that there's any intention for us to join the euro at a time when it's breaking up." | He was then asked if those contingency plans included any prospect of the UK adopting the euro. Mr Hoban replied: "I don't think that there's any intention for us to join the euro at a time when it's breaking up." |
| Later, Chief Secretary to the Treasury Danny Alexander called the collapse of the euro an "extremely unlikely" scenario. | |
| He told the BBC contingency measures were in place, although he would not go into details. | |
| He said events in Europe were "very destabilising" but the UK's biggest protection against a collapse was that it was in a strong place in dealing with the country's deficit. | |
| The G20 summit is taking place as the Greek cabinet meets in an emergency session. Greek PM George Papandreou has faced growing opposition within his own party to a surprise referendum call on the EU bailout plan. | The G20 summit is taking place as the Greek cabinet meets in an emergency session. Greek PM George Papandreou has faced growing opposition within his own party to a surprise referendum call on the EU bailout plan. |
| In Cannes, the UK prime minister told the BBC: "I'm here to support the British economy. When the world is in crisis it is right to consider boosting the IMF." | In Cannes, the UK prime minister told the BBC: "I'm here to support the British economy. When the world is in crisis it is right to consider boosting the IMF." |
| He added: "No government lost money by lending money to the IMF. There is no risk to British taxpayers of seeing the IMF perform its proper role that's what we have always supported." | He added: "No government lost money by lending money to the IMF. There is no risk to British taxpayers of seeing the IMF perform its proper role that's what we have always supported." |
| UK funding | UK funding |
| His spokeswoman said the UK would not contribute "directly or indirectly" to the eurozone bail-out fund. | His spokeswoman said the UK would not contribute "directly or indirectly" to the eurozone bail-out fund. |
| The UK currently provides £29bn ($46bn) of the IMF's £600bn ($950bn) lending capacity. | The UK currently provides £29bn ($46bn) of the IMF's £600bn ($950bn) lending capacity. |
| 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. | 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. |
| Nick Robinson said those struggling countries around the world helped by the IMF "might of course just include a few in the eurozone getting money in effect from the British taxpayer". | Nick Robinson said those struggling countries around the world helped by the IMF "might of course just include a few in the eurozone getting money in effect from the British taxpayer". |
| He said the government now believed there were only three ways out of the eurozone crisis - that the deal agreed last week gets back on track, despite the surprise announcement about a Greek referendum, that Greece leaves the euro or that IMF funding be boosted for struggling eurozone countries. | He said the government now believed there were only three ways out of the eurozone crisis - that the deal agreed last week gets back on track, despite the surprise announcement about a Greek referendum, that Greece leaves the euro or that IMF funding be boosted for struggling eurozone countries. |
| In a statement to MPs - sparked by an urgent question from Eurosceptic Conservative backbencher Peter Bone - Treasury Minister Mark Hoban told MPs that "at no point have we committed any British taxpayers' money, not to Greece, not to the bail-out fund". | In a statement to MPs - sparked by an urgent question from Eurosceptic Conservative backbencher Peter Bone - Treasury Minister Mark Hoban told MPs that "at no point have we committed any British taxpayers' money, not to Greece, not to the bail-out fund". |
| Greece talks | Greece talks |
| But he said there "may well be a case for further increasing the resources of the IMF to keep pace with the size of the global economy". | But he said there "may well be a case for further increasing the resources of the IMF to keep pace with the size of the global economy". |
| "We stand ready to consider the case for further resources if necessary," Mr Hoban said. | "We stand ready to consider the case for further resources if necessary," Mr Hoban said. |
| "But let me be clear we are only prepared to see an increase in the resources the IMF makes available to all its members." But he said they were "not prepared" to see IMF resources reserved only for use by the eurozone. | "But let me be clear we are only prepared to see an increase in the resources the IMF makes available to all its members." But he said they were "not prepared" to see IMF resources reserved only for use by the eurozone. |
| He said instability in the eurozone continued to have a "chilling effect" on the UK, European and global economy and a resolution to the crisis was "in our vital national interest". | He said instability in the eurozone continued to have a "chilling effect" on the UK, European and global economy and a resolution to the crisis was "in our vital national interest". |
| He told MPs there was "no doubt the decision by the Greek prime minister has added to the instability and uncertainty in the eurozone" and it was "critical" that all parties stuck to last week's eurozone bail-out deal. | He told MPs there was "no doubt the decision by the Greek prime minister has added to the instability and uncertainty in the eurozone" and it was "critical" that all parties stuck to last week's eurozone bail-out deal. |
| For Labour, shadow Treasury minister Chris Leslie said many people were "very anxious" about safeguarding UK taxpayers' money. | For Labour, shadow Treasury minister Chris Leslie said many people were "very anxious" about safeguarding UK taxpayers' money. |
| "It would be wrong for the British people to pay twice over through temporary, ongoing euro funds as well as through the IMF itself. The eurozone should not rely principally on IMF money for the bailout and there can be no excuses for eurozone countries not putting up their own funds." | "It would be wrong for the British people to pay twice over through temporary, ongoing euro funds as well as through the IMF itself. The eurozone should not rely principally on IMF money for the bailout and there can be no excuses for eurozone countries not putting up their own funds." |
| But he added: "If we do indeed see a full and permanent eurozone bail-out fund then we agree that our role should be through the IMF." | But he added: "If we do indeed see a full and permanent eurozone bail-out fund then we agree that our role should be through the IMF." |
| Labour backbencher Natascha Engel asked: "If UK taxpayer money is being paid to the IMF and the IMF is paying towards the eurozone bailout how can you guarantee that no UK taxpayers' money is going towards bailing out the eurozone?" | Labour backbencher Natascha Engel asked: "If UK taxpayer money is being paid to the IMF and the IMF is paying towards the eurozone bailout how can you guarantee that no UK taxpayers' money is going towards bailing out the eurozone?" |
| Mr Hoban told her the money different nations contributed towards the IMF goes towards its "general resources" and of 53 IMF programmes worldwide at the moment, only three are in the eurozone. | Mr Hoban told her the money different nations contributed towards the IMF goes towards its "general resources" and of 53 IMF programmes worldwide at the moment, only three are in the eurozone. |
| French president Nicolas Sarkozy and German chancellor Angela Merkel have warned that the next 8bn euro (£7bn) of rescue loans for Greece will be withheld until after a bailout referendum, expected in early December. | French president Nicolas Sarkozy and German chancellor Angela Merkel have warned that the next 8bn euro (£7bn) of rescue loans for Greece will be withheld until after a bailout referendum, expected in early December. |
| The two leaders held talks on Wednesday evening with Greek prime minister George Papandreou to press him to end uncertainty about his country's future in the single currency. | The two leaders held talks on Wednesday evening with Greek prime minister George Papandreou to press him to end uncertainty about his country's future in the single currency. |
| Last week Mr Papandreou announced a surprise referendum on the rescue package drawn up for Greece, indicating its referendum question would focus on whether or not to stay in the eurozone. | Last week Mr Papandreou announced a surprise referendum on the rescue package drawn up for Greece, indicating its referendum question would focus on whether or not to stay in the eurozone. |
| Mr Sarkozy hopes to use the summit in Cannes to persuade cash-rich exporter nations like China to contribute to a one trillion euro (£870bn) European stability fund. | Mr Sarkozy hopes to use the summit in Cannes to persuade cash-rich exporter nations like China to contribute to a one trillion euro (£870bn) European stability fund. |