Douglas Carswell

09 FEB 2017

Britain can't afford to bank on the Eurozone

News that the Eurozone faces yet another Greek debt crisis should be a wake-up call to those still lobbying for single-market membership. It's a reminder that artificially tying Britain's economy to the EU is a bad idea.

The sovereign debt problem isn't going away any time soon. Inside the single currency, Greece will struggle to grow enough to pay her debts. Outside, she would devalue her currency, and effectively default.

That would do huge damage to Europe's banks. Research published by UKIP in Parliament shows the Eurozone's big banks still have dangerously low capital reserves. They would need a bail out – which technically the ECB can't give them.

Yet the last few pro-Remain MPs seem oblivious to what's happening across the Channel. They seem to think that Britain faces no risks from being too closely linked to the Eurozone.

The reality is the opposite. Of course we want a free-trade deal with the EU. That's in our mutual interests. But we can't afford to wall ourselves into the world's only declining market, particularly given the fragility of its financial sector.

Leaving the customs union and the single market and trading more with the world's growing markets is offers Britain much greater long-term gains – as PwC's latest Brexit report highlights.

Parliament needs to remember that Brexit isn't happening in a vacuum.

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