Today's Coming Crisis Movie

Friday, June 17, 2011

John Redwood: Let Greece default on its debts, demand top Tories as EU bailout set to hit £1trillion - 17th June 2011

Ministers were last night urged to allow Greece to default on its debts – amid warnings the cost of EU bailouts could soar to more than £1trillion.

European stock markets tumbled in the wake of violent protests in Athens and growing speculation that Greece will default on its crippling debts despite last year’s £100billion bailout.

Financial experts warned Europe was facing a ‘Lehman moment’ – a reference to the collapse of the giant investment bank which plunged the world into recession.

The IMF yesterday approved an emergency £10billion payment to the Greek government to enable it to pay its bills next month.

Informal talks have also begun on a second Greek bailout, with German Chancellor Angela Merkel said to be pressing for Britain to be included in the cost of any deal.

A senior official at the European Central Bank warned the EU bailout fund could have to double to 1.5trillion euros, equal to more than £1.1trillion – potentially saddling Britain with tens of billions of pounds in extra cost.

Tory MPs said ministers should ‘not put a penny more into the failing EU countries’. They urged ministers to resist a second bailout, suggesting it would be better for Greece to default and drop out of the euro.

Former Tory Cabinet minister John Redwood said it was ‘double or quits time’ for Greece and the euro. Read More