Sunday, February 26, 2012

Chancellor Rules Out New Eurozone Bailout... Where have we heard that before?

George Osborne has told Sky News that Britain and other leading economies are not ready to fund another eurozone bailout as finance ministers meet in Mexico for the G20 summit.

Speaking to Sky's Dermot Murnaghan, the Chancellor said: "We are prepared to consider IMF resources but only once we see colour of eurozone money and we have not seen this.

"While at this G20 conference there are a lot of things to discuss, I don't think you're going to see any extra resources committed here because eurozone countries have not committed additional resources themselves, and I think that quid pro quo will be clearly established here in Mexico City."

Mr Osborne also refused to be drawn on whether he has bowed to pressure from Deputy Prime Minister Nick Clegg to increase the personal tax allowance to £10,000 at next month's Budget.

He said: "Any tax cut would have to be paid for... what we are not going to do in the Budget is borrow any more money to either increase spending or cut taxes. Read More