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Osborne refuses UK contribution to Greece bailout

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Chancellor George Osborne is to refuse the UK’s part in the new €86bn Greek bailout, saying it goes against a previous agreement of EU leaders in 2010.

Downing Street is said to be angered by the most recent deal struck by European leaders on a Greek bailout, reports the FT, which would see the country’s contribution at around €1bn.

The funding for a bridging loan for Greece will come from the European Financial Stabilisation Mechanism, which sees contributions from all 28 member states. However, Osborne will tell a meeting of officials in Brussels that the fund cannot be used for such a loan.

An EU summit in 2010 saw an agreement that only fellow eurozone members would be involved in any bailout of Greece, with David Cameron saying any involvement by the UK now would go against this agreement and be “quite wrong”.

“The idea that British taxpayers’ money is going to be on the line in this latest Greek deal is a non-starter,” one UK Treasury insider told the FT.

Any payment by the UK in the Greek bailout is likely to fuel the fire of eurosceptics ahead of the discussion and referendum on Britain’s membership of the EU.

The latest bailout deal is already seeing resistance in Greece, with threats of strikes by workers in the country affected by the new reforms, which include cuts to pensions and reform of tax.

It is likely Greek prime minister Alex Tspiras will have to rely on opposition support to pass the deal through parliament, as he sees a backlash from his own Syriza party who termed the deal a “humiliation of Greece”.

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Comments

There are 12 comments at the moment, we would love to hear your opinion too.

  1. Let`s hope that this refusal is more successful than his attempt to rebuff the unexpected £1.7 billion EU bill that the UK received in November last year – at which time it was reported: “EU rules have also been changed to ensure that Britain can never again be `ambushed` with an `enormous` bill.”
    Bring on the referendum please.

  2. Osborne is similar to Tsipras in wanting all the benefits of the EU without the cost.

  3. What benefits are those?

  4. Ha Ha, the EU is a bit like the FCA no accountability at all.

  5. Julian Stevens 14th July 2015 at 9:53 am

    Greece’s choice is simple ~ comply or prepare for economic meltdown.

  6. Greece should never have joined the Eurozone and neither should many of the others. Germany is to blame for most of this, so let them pay.

  7. Wonder how much it would cost for Greece to effect a buy out ?

    IE -: how much would it cost each Greek national over 18 and under 70 to clear the debt and get out of the euro.
    They obviously don’t want to be in the euro, so OK put you money where your mouth is and all club together and get out !

    This maybe a cheaper and better option than being at the whim of Brussels, Germany and France !!

  8. Elizabeth Bell 14th July 2015 at 1:35 pm

    The UK reportedly gave 20 million to China foreign aid?? So why not Greece?

  9. ….sun burn and some strange textured yoghurt….

  10. Andrew Horlock 15th July 2015 at 9:54 am

    I am shocked to be honest at the short sightedness of some of the posters on here – yes the Greeks can give us sunburn, yes Greek Yoghurt and yes that goats cheese stuff, but this is the perfect opportunity for us to say – you want our help then relinquish your claim on the Elgin Marbles and any other antiquities you want returned. No agreement no deal.

  11. It will benefit Greece to leave. Either route, to stay or go will be painful but to leave in the long run will benefit Greece and the Greek people alike. De la Rue should have been on notice and had those printing presses going for the last 4-6 weeks.

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