Douglas Carswell's Blog

Why we're liable for Portugal's debts

Why is non-Euro Britain liable for £3 Billion to bail out Portugal?

Downing Street is keen to suggest we’re part of the bailout Mechanism thanks entirely to ex-Chancellor, Alistair Darling.  Indeed, when I asked the current Chancellor about it, I was told “my predecessor as Chancellor ... agreed to the creation of the European stability facility. ..... I made it clear to the previous Chancellor at the time that I did not support what he had done.”

Maybe.  Maybe not. 

Given the timing and magnitude of this decision – after the General Election but before the new administration took office – it is inconceivable that it happened without the say so of the incoming administration.

And, sure enough, we know that Mr Darling did indeed consult George Osborne about it.   What we don't know is the extent to which he responded by simply going along with the view of his predecessor - or actively argued against it. Nothing Mr D has said seems to suggest the later.

What is more, from the replies to various Freedom of Information requests I've submitted, it seems as if the current Chancellor did receive official advice about this matter on assuming office.  Perhaps it wasn't quite the fait accompli we're now being asked to assume?

If we are now being asked to stump up £3 Billion for Portugal, at a time of austerity at home, it is essential that we now see the official advice given to the Coalition on coming to office. 

If Britain was bounced into participation between Parliaments, we need to know.  Perhaps Treasury officials - such as Jon Cunliffe, now tipped to be the next UK ambassador to the EU – were driving this policy regardless of who happened to be Chancellor? Only if we see the advice, will we know who really called the shots. 

Maybe in those halcyon days of the new Coalition, it was simply a case of not wanting to raise the issue of Europe? 

Alternatively, perhaps the incoming administration didn't entirely appreciate the full consequences of the small print it was presented with on those first few days in office? 

Either way, we now need to see that official advice - and I hope that the Information Commissioner currently reviewing my request will agree.  If it was all down to Mr Darling before the Coalition took office, I don’t really see why there such a hang up about publishing the advice given after the Coalition was formed.

It is in the public interest that the advice that the Chancellor received on taking office is published so that we can all see why Britain might now have to stump up over £3 Billion for Portugal at a time when we are bracing ourselves for cuts at home.

Back to all posts