Martin Callanan MEP was speaking to BBC1's Politics Show. He urged the Coalition to take a more "robust" view on "legally dubious" bailouts. He said we weren't helping already indebted countries by imposing high interest loans on them. He said it was "wrong" for taxpayers to bear all of the burden without banks writing off some of their bad lending.

Comments

[Cleethorpes Rock]

We should encourage the Greeks to default by publicly declaring no confidence in their economy and their government.

We could tip off the markets beforehand and make a killing speculating on the price of the Euro, using our multi-billion pound winnings to put towards deficit reduction.

[Denis Cooper]

They said that this would never happen, because the Maastricht Treaty had been very carefully written to make sure that it would never happen.

Just remember that the next time some EU enthusiast offers you a glib reassurance about what the EU treaties would never allow to happen.

The EU leaders have long been willing to quietly bend the treaties when convenient, and now they've moved on to brazenly breaking them.

As Christine Lagarde, the French Finance Minister and now would-be head of the IMF, frankly admitted in her interview with the WSJ last December:

"We violated all the rules because we wanted to close ranks and really rescue the euro zone."

"The Greek and Irish rescues - €110 billion and €67.5 billion, respectively - and the creation of the bailout fund were, Ms. Lagarde said, "major transgressions" of the Lisbon Treaty that is the European Union's governing document. "The Treaty of Lisbon," she says, "was very straightforward. No bailing out.""

But don't suppose that the British Prime Minister or Chancellor would be the one to stand up and say "no" to a proposed massive contravention of the EU treaties as approved by the British Parliament.

[Vincit Veritas]

Wot? GEO & DC make a point on principle, especially against their beloved EU?

[Boomer]

No problem!Just send the bill to the good old British taxpayer.Dave will be happy to oblige.

[Victor Southern]

I am sure that Martin Callanan is right. It is improbable that these totally busted economies will be able to repay their borrowings. The old proverbs are best "Never throw good money after bad".

[michael mcgough]

Fine words by Martin,but only words.

[Tony Dean]

It is no concern of ours in Britain that other countries cannot manage their fiscal responsibilities. We should not lend any more money that we do not have - for WE have to borrow it to lend it!

[Patsy Sergeant]

It may not be any responsibility of ours Tony, but it would not surprise me in the least if both Greece and Portugal decided that if the EU wanted their membership, that their State debts could be paid by the same EU, by 'debts' I mean expenditure! And of course that would mean us as well as other countries since Mr. darling Darling, signed us up to the responsibility of having to help find the money that Portugal and Greece REFUSE to find!

[michael mcgough]

Darling may have signed the agreement but ,most especially given the dubious legality of the bail-outs should his successor be bound by it? Many MPs anbd MEPs think not

[Bruce]

Why should the UK obey EU "laws" when the EU itself ignores its own laws?

[John Stevens]

O dear. More under-informed comment for its own sake. The issue is fundamentally not the sustainability of the Greek deficit reduction plan (nor of the management of the asset sales which are proposed/required) nor of the sustainability of the euro (which remains, if anything too strong against the dollar and other international currencies, excepting, perhaps, sterling). It is the sustainability of the European banking system, including that of the UK. Whether this is best served by supporting bank underperforming "assets" or recapitalising the banks themselves is a fine and complex judgement on which will cost less and threaten least general growth.Given the current weaknesses of our economy, this sort of propagandising could become very counter productive: hence GO's very measured stance.