8 December 2011

Conservative eurosceptics should be careful what they wish for

Conservative eurosceptics are arguing that any new Euro treaty that leads to a closer economic union for the Eurozone should be vetoed by the British PM if it doesn't include unspecified protection for the City of London. Or if there is no veto it should be subject to a referendum - with the clear assumption that the UK electorate would reject any treaty.

Boris Johnson, who should know better, told the Beeb, the UK should oppose any change which created a "very dominant economic government" across Europe.

"If Britain was asked to sign up to such a thing within the 27 (all the members of the EU), it would be right to veto it and if we felt unable to veto it, I certainly think that it should be put to a referendum,"

In common parlance this is called cutting off your nose to spite your face. Vetoing a Eurozone bailout would be an act of extreme foolishness. The economic consequences for the UK and, yes, the City of London of a Eurozone collapse would be devastating.

With the European economies - whether they use the Euro or not - tetering on the brink those that are opposed to all things European would appear to prefer economic meltdown than to agree a sensible package of emergency measures which may help to alleviate the current crisis. Failure to agree a deal not only brings down the Eurozone it also destroys the large chunk of the UK economy that does its business with the zone.

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