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Eurozone crisis: 'Right' to boost IMF funds - Cameron Eurozone crisis: Right to boost IMF funds, Cameron says
(about 2 hours 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. It is "right" to consider boosting funds to the International Monetary Fund at a time of crisis, the prime minister has told the BBC.
Mr Cameron, in Cannes for a meeting of the G20 industrialised nations, said there was "no risk" to UK taxpayers. David 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. BBC political editor 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." Labour said IMF funds should not be used to plug a gap in the eurozone bailout fund.
The eurozone crisis also featured in the House of Commons on Thursday with Treasury minister Mark Hoban fielding questions from MPs. The eurozone crisis 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." When asked if the government had contingency plans for the euro breaking up, he replied: "Every good government would have plans in place for a whole range of eventualities and this government is well prepared for any eventuality."
'Very destabilising''Very destabilising'
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.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 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. In Cannes, Mr Cameron 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."
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.
Increased resources About £4.9bn of UK money is held in the IMF's fund but it can 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. In a statement to MPs - sparked by an urgent question from Eurosceptic Conservative backbencher Peter Bone - Mr Hoban said 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". 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". 'Stop obfuscating'
"We stand ready to consider the case for further resources if necessary," Mr Hoban said. But he added the government wanted to see an increase in the resources the IMF made available to all its members and not just those in 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." He said they were "not prepared" to see IMF resources reserved only for use by the eurozone. Asked how the government could guarantee that no extra UK money for the IMF would bail out the eurozone, Mr Hoban said all contributions go towards its "general resources" and of 53 IMF programmes worldwide at the moment, only three were in 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". It was "critical" that all parties stuck to last week's eurozone bail-out deal. Shadow chancellor Ed Balls said any additional funding should be held back until the details of the permanent eurozone bailout fund had been agreed.
For Labour, shadow Treasury minister Chris Leslie said: "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." "The IMF's job is to support individual countries with solvency crises, not to solve a structural problem caused by eurozone countries being unable to agree the necessary steps to support and maintain their monetary union," he said.
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." "So instead of obfuscating and hiding behind fudged words in communiques, David Cameron and George Osborne should be clear about what's really going on.
Labour backbencher Natascha Engel asked how Mr Hoban could guarantee no UK money would bail out the eurozone - when it was giving money to the IMF. "They must clarify, as we have consistently said, that there should be no IMF funding to plug the gap in the bailout fund and do the job the [European Central Bank] should be doing."
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. Call for unity
As the G20 summit is taking place, Greek PM George Papandreou has faced calls for his resignation, amid opposition within his own party to his surprise referendum call on the EU bailout plan.As the G20 summit is taking place, Greek PM George Papandreou has faced calls for his resignation, amid opposition within his own party to his surprise referendum call on the EU bailout plan.
He said on Thursday he was ready to drop the plan and called for unity in his party ranks ahead of a confidence vote on Friday.He said on Thursday he was ready to drop the plan and called for unity in his party ranks ahead of a confidence vote on Friday.
The Greek opposition New Democracy party has said it will accept taking part in a coalition government if Mr Papandreou agrees to stand down.The Greek opposition New Democracy party has said it will accept taking part in a coalition government if Mr Papandreou agrees to stand down.
Nigel Farage, leader of the UK Independence Party, which campaigns for Britain's exit from the European Union, said: "For a few days there, the people of Britain were jealous of Greece - after all they were going to get a referendum.Nigel Farage, leader of the UK Independence Party, which campaigns for Britain's exit from the European Union, said: "For a few days there, the people of Britain were jealous of Greece - after all they were going to get a referendum.
"But of course now we can only feel empathy with them. They are in a similar boat. No referendum and a government that nobody ever voted for.""But of course now we can only feel empathy with them. They are in a similar boat. No referendum and a government that nobody ever voted for."