Bill Cash has the following letter in The Telegraph today:
SIR – We now know that the Government is prepared to sue Iceland’s government over the recouping of money lost by British savers when the Icelandic bank Icesave collapsed in 2008, involving £2.3 billion (Business, April 11). There is no excuse for the Government not to take legal action to relieve the United Kingdom from the “legally unsound” and apparently unlawful commitment to eurozone bailout guarantees under the European Financial Stabilisation Mechanism, which was entered into by Alistair Darling and endorsed by the Government.
What’s sauce for the goose is sauce for the gander. Austerity Britain can’t afford to throw away billions without a fight in the national interest. In this context, I notice that a case for a temporary injunction has been taken to Germany’s Federal Constitutional Court in relation to the Portuguese bailout.
Bill Cash MP (Con) London SW1
As expected, the European Council on 24/25 March agreed on “a comprehensive package of measures to strengthen EU economic governance and ensure the stability of the euro area”, including the Euro Plus Pact, previously referred to as the ‘Pact for the Euro’ and the ‘Competitiveness Pact’. The European Council adopted the draft decision amending the Treaty to set up the future European Stability Mechanism (ESM). Angela Merkel was able to renegotiate the terms of European Stability Mechanism (ESM) recently agreed by the eurozone finance ministers. There was no agreement on expanding the size of the European Financial Stability Facility (EFSF). That decision has been postponed until June. There was, therefore, a lot of room for negotiations and the Prime Minister should have sought a better deal for the UK.
The BBC reports: "Tory MP Bill Cash said the UK was "potentially exposed" to a 4bn euro (£3.4bn) rescue of Portugal's economy after its debt crisis worsened."
Moreover, it says "In an urgent question in the House of Commons, Mr Cash said the mechanism "involves the UK underwriting approximately 8bn euros to eurozone countries until 2013", and urged the prime minister to renegotiate arrangements underpinning it at Friday's summit of EU leaders. "
The Press Association reports: "Tory Bill Cash, chairman of the cross-party Commons European Scrutiny Committee, called on David Cameron to make that commitment at a meeting of EU leaders in Brussels."