Did Hague become Tory leader at the wrong time?

FOREIGN SECRETARY William Hague has today effectively told those that signed up to the EU currency – and are moaning about having to bailout struggling economies - they have made their bed and now have to lye in it.

 

In an interview with the Spectator magazine, a right of centre political mag, he made the comments regarding richer countries such as Germany moaning about having to foot the bill for poorer struggling countries, who have to be bailed out by them.

 

It comes as Angela Merkel, the German Chancellorhas managed to usher through, (just), her own parliament plans to expand the EU bailout fund, which is a fund designed to aid struggling EU countries like Greece, who have been on the verge of default, and even possibly leaving the EU currency altogether.

 

All 17 countries who joined up to the EU currency must ratify the commitment to expand the powers of the EFSF and boost its bailout guarantees to 440bn euros (£383bn).

So far, 10 countries have approved the measure.

As Europe's largest economy, Germany's commitment to the fund would rise from 123bn euros to 211bn.

Earlier on the Daily Politics today, the EU sceptic Tory MEP Daniel Hannan said that it would probably be better if struggling countries could just quit the single currency, and go back to controlling their own destinies.

 

He effectively said that the cost of keeping the EURO together would cost more than if each country reverted back to their own original currency – much more than 440bn euros – infact, two trillion.

 

He said that the EU was piling on more debt, in order just to pay off an original debt.

 

On his blog, he wrote: “Eurocrats are prepared to pay almost any price to keep the single currency together – or, more precisely, to expect their people to pay, since they personally are exempt from national taxation. For the periphery, that price will be deflation, poverty and emigration; for the core, perpetual tax rises.

 

He added: “In both cases, the result will be slower growth than would occur following a restoration of national monetary policies. That, surely, is in neither the eurozone's interest nor ours.”

 

He said the European Central Bank, which stores all the EUROS, would simply keep on banking “bad” debts.

 

Deputy PM NICK CLEGG has been in Poland also making a speech about the future of the EU, and sounded on the same wavelength as his Tory colleague.

 

The Liberal Democrats had originally back in 2009 been a fan of the single currency.

 

Even the CBI back in the early noughties were eager for Britain to be participants in the project.

 

The Tories however, have always been sceptical of the EU project, the single currency.

 

And Labour were divided on the issue as well. Gordon Brown, former PM and Chancellor said that Britain wouldn’t join the EURO unless five economic tests were met. He managed to stonewall Tony Blair into not joining.

 

Back in 2001, the Tories, under William Hague, made a great play on the election campaign trail with their notorious Keep The Pound mantra.

 

Who would have thought that just two years ago, on the Daily Politics, lefty politicians like Denis McShane, would be making phrases like “never say never,” when it came to Britain joining the EURO? Well, it seems that now, it’s more like “Britain will never-ever be joining the EURO.

 

PM David Cameron said that as long as he was PM, Britain would be out of the EURO single currency.

 

It looks like William Hague was right all along about campaigning to keep the pound. What a shame nobody listened to him at the time back in 2001. And we do have to thank Gordon Brown for keeping us out of it. I rather doubt the economic tests will ever be met – because the EURO is a beast that with 17 egos is just too volatile to be able to keep under control.

 

Did Hague become the Tory leader at the wrong time?

 

Watch Hannan’s speech on EU bailouts below…

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