bailouts

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Speaking before the European Parliament, President of the European Commission Jose Manuel Barroso on Tuesday said that "he was puzzled" by British Conservative MEPs as they "seem to delight in the difficulties of the euro area". The outburst came after Chairman of the European Conservatives and Reformists group in the European Parliament Martin Callanan said that the euro is "driving people's of Europe apart" Transcript: "There are too many political forces that say one thign in Strasbourg and another thing in the capitals of the member states....it is also very important that political parties don't say one thing in Strasbourg and then a different thing in their national capitals. One important and interesting point was made by the British Conservatives today. It was in fact expressed some kind of satisfaction with the situation in the euro area. Let me tell you that it is puzzling that you seem to delight in the difficulties of the euro area and this is in stark contrast with the position taken by your leader, Prime Minister Cameron. So a good effort will be in terms of accountability to your public that you say the same thing here that you say in London..... I am also by the way very puzzled with the ease with which some of you are recommending some member states to leave the euro. This, once again is in complete contrast to the position taken by the PM of Britian, which for instance at the G8 summit said it is in his national interest that Greece stays in the euro area. "And when some of you are suggesting that the problems of the economic situation in europe now are the result of the euro area and that for instance you disapprove the big bailout programmes in the banking sector in the euro area, let me just put the facts straight. The country by far that has been spending money with the banking sector is Britain. More than any country in the EU..... The country in all the EU that has been committing taxpayers money to save the financial sector has been by far Britain. This is not a euro area problem. This is a problem of the EU as a whole." Speech by Martin Callanan: Thank you Mr President, Firstly, can I congratulate Spain on their victory on Sunday night? Clearly Germany isn't the most competitive European country at everything! But at least Spain can boast some success from the Euros. When we look under the surface of last week's summit, we find that in reality the decisions taken were of course just another set of short term stopgaps. Perhaps they relieve the immediate pressure points - but it was hardly the game changer that the Irish Prime Minister claimed. Using the bailout fund for bank recapitalisation and buying bonds may give Spain and Italy some breathing space. However, I do find it slightly ironic that the same people in this house who bash the bankers at every opportunity are the same people who are happy for their risks and profligacy to be further transferred to taxpayers through these bailout funds. Initially the markets responded positively. Finally they had seen a small sign of life from EU leaders. However, already countries like Finland and the Netherlands are challenging the new roles for the bailout fund that they seem to have agreed to on Thursday night. When the dust settles, when small print is read, and when the details are discussed, I fear the outcome of this summit could be far less seismic than many in this House want to believe. That is because the fundamental questions have not been answered. The lack of competitiveness of many countries and the mutualisation of debts have not been addressed. Relying on the ESM and EFSF is no long term solution to this crisis. They are not bottomless pits with the power to grant our every wish. If they are being committed to bank bailouts and bond purchases, will there be anything left for the sovereign bailouts for which they were intended? And let us not pretend that even this relatively small shift in German policy was arrived at wit...