‘Speedy demise better than slow death for euro’
Mr Straw became the most senior British politician to say that the eurozone “cannot last”, as he urged ministers in the House of Commons to prepare Britain for “alternatives” to the single currency.
His comments came as EU finance ministers refused to hand the Greek government a second bailout package of €12 billion unless it agrees to implement a €28 billion set of austerity measures which include tax increases and massive spending cuts.
Finance ministers meeting in Luxembourg put off until July 3 a final decision on the loan instalment, without which Athens would be forced to default on its debts.
Downing Street made clear that Britain has not been asked to contribute towards the latest bailout, which is expected to involve only the 17 members of the eurozone.
But Treasury Financial Secretary Mark Hoban told MPs that the burden of supporting Greece may have to be shared by the International Monetary Fund, of which Britain is a major shareholder.
Taoiseach Enda Kenny, speaking at the same press conference, said Ireland was “not preparing for the destruction of the euro”, but discussing its own economy’s return to health within the single currency.
Mr Hoban was forced to make a statement to Parliament on the situation in Greece because of an urgent question from eurosceptic Labour MP Gisela Stuart, who warned that the UK will not be able to isolate itself from the consequences of a default by Greece.
