EU

UK refuses to contribute £25bn to eurozone rescue package

The UK has confirmed that it will not be providing £25bn towards the much-heralded €200bn eurozone bailout fund, prompting speculation that the fund will shrink to around €150bn as a result. The news, which was not unexpected, came during a conference call between British Chancellor George Osborne and European colleagues.

News of Britain’s decision caused a wobble on the major European stock markets, but the real implications will play out over the course of the week as it becomes clearer whether the entire eurozone rescue package is under threat. The package was supposed to be the centrepiece of the eurozone’s attempts to save itself, but the value of that package has now dropped by 25% and could dip further.

It remains to be seen how the British decision affects the country’s position in Europe, which is already seen by many to be weakened as a result of Britain’s refusal to step into line with the other EU member states. Some believe that British Prime Minister David Cameron was right to focus on securing British interests, but others argue that he has been short-sighted and has left Britain out in the cold.

About Michael R. Gideon

Writer, teacher, dog walker, guitarist, husband, father, reader, journalist etc. I mainly write at 100gf | Politics and Computers, but occasionally at other sites such as TV Vomit and Indie Bookspot. My Google Plus profile.

Discussion

One thought on “UK refuses to contribute £25bn to eurozone rescue package

  1. You worded that just right “…Britains refusal to step into line”. And why should they? This isn’t school. We make our own decisions based on what’s good for us, and so we should, and so should every country. Brussels have already got too much power. They have already taken away many of the liberties the western world are used to. What next? Total control from Brussels? No thanks!

    Britain are not part of the EuroZone so why should they bail out those that are? If I default on my mortgage because I over spent and it’s my own fault, then why would my neighbour pay my mortgage for me?

    The Euro was doomed to failure from the start and this is hopefully the end of it. It was a stupid idea that could never work and you just need to look at Greece, Italy, Portugal and Spain for the proof.

    How come the bailout fund is reduced by a quarter due to Britain not contributing? Does that mean there are only four countries contributing or that they expected Britain to pay the lions share? Seems weird that there are 27 countries in the EuroZone yet Britains money alone made up 25%? I say weird, I mean corrupt.

    Posted by Real-Estate Insider | December 20, 2011, 8:51 am

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