10 September 2012
Speaking during a debate on the UK ratification of a permanent European Stability Mechanism (ESM) to safeguard the economic stability of the eurozone, Geoffrey Clifton-Brown says that the recent ECB announcement of a new scheme of Government bond buying - to run alongside the ESM - will only work if there are strict fiscal conditions to ensure the situation improves.
Geoffrey Clifton-Brown (The Cotswolds) (Con): The ECB’s announcement was made alongside the fact that it would impose conditions on the buy-outs of bonds. There is concern in some countries that they will not be able to meet those conditions. Is my hon. Friend the Member for Wycombe (Steve Baker) not right that the market is taking a very short-term view? Unless there are strict fiscal conditions so that the situation improves, the buy-outs of bonds will not solve the problem.
Emma Reynolds: I thank the hon. Gentleman, because he brings me on nicely to the next part of my speech, which is about the conditionality of the ESM and the bond buying that was announced last week.
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Geoffrey Clifton-Brown (The Cotswolds) (Con): The ECB’s announcement was made alongside the fact that it would impose conditions on the buy-outs of bonds. There is concern in some countries that they will not be able to meet those conditions. Is my hon. Friend the Member for Wycombe (Steve Baker) not right that the market is taking a very short-term view? Unless there are strict fiscal conditions so that the situation improves, the buy-outs of bonds will not solve the problem.
Emma Reynolds: I thank the hon. Gentleman, because he brings me on nicely to the next part of my speech, which is about the conditionality of the ESM and the bond buying that was announced last week.
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