Britain May Have To Contribute To Greek Rescue Funds On EU Demand

To protect UK taxpayers from Eurozone bailouts, Britain might have to lend an estimated amount of AU$2.09 billion as emergency loans to Greece, on European Union's demand (EU). President of the European Commission Jean-Claude Juncker through his “black and white” deal has planned to revive a bailout fund and asserted to include Britain into the Eurozone bailouts. Similarly, Chancellor George Osborne had tried to put off a proposal that might save the Greek banks from collapse.

The proposal deferred the agreement which mentioned that British tax payers would not ever be subjected to Eurozone bailouts. According to Telegraph UK, Britain's Prime Minister David Cameron has expressed that he could negotiate Britain’s membership with the European Union to save the country from bailouts.

Today in the morning EU officials accused the agreement of radical politicisation without any legal basis and blamed Mr. Cameron for undertaking such an action at this moment of crisis. He had also tried to stop the Mr. Juncker from being appointed. This has not only spread skepticism among EU officials but has generated added demands for a change in the treaty.

Earlier this morning, Mr. Osborne said the agreement was a “non-starter.” It is feared that he might be voted out in a meeting to be held in Brussels later today. The issue has to be revisited which otherwise would be unacceptable, reported a treasury. “The idea that British taxpayers’ money is going to be on the line in this latest Greek deal is a non-starter,” he said.

The Telegraph UK reported that Greek Prime Minister has give in to the demands of the Germans for adopting a package austerity measures in exchange for a third bailout. The fund, which would worth more than AU$ 127.48 billion, would be coming from European Stability Mechanism (ESM) that was set up in October 2012 by Eurozone states. However, this could be time-consuming, as it would need approval of atleast 12 European parliaments.

As Britain contribute almost 14 percent to the EU budget, this emergency loan would leave UK tax payers at a default risk of AU$ 1772.48 million. However, Mr. Cameron had ensured an agreement blocking such a deal in the year 2010. He has mentioned in the agreement addressing the House of Commons that Britain shouldn’t be dragged in to the Eurozone bailouts. Previously he issued a statement saying that Britain shouldn’t be liable for bailing out the Eurozone as it didn’t constitute a part of Euro.

In 2011, much before the deal had come into force Mr. Cameron prevented EFSM from being used in baling out Greece. However, Jeroen Dijsselbloem confirmed that Britain lacked the veto power and a bailout involving all member states is in the process of being considered by the EU finance ministers.

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