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France Hits at U.K. Euro Aid Demurral
So much for entente cordiale: A senior French official slammed Britain's refusal to aid the euro, saying Europe will return the favor when markets turn on the pound
May 12, 2010
By Leigh Phillips
Furious at the UK's refusal to participate in the eurozone bail-out, France has brusquely warned that Europe will not come to Britain's aid when – not if – the markets round on sterling.
The French market regulator, Jean-Pierre Jouyet, on Tuesday (11 May) told Europe 1 radio that it is inevitable that the pound will be targeted and that when that happens, Britain will be on its own.
"The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you," he continued.
"If you don't want to show solidarity with the eurozone, wait and see what happens outside it."
On the weekend, as EU leaders scrambled to cobble together a half-a-trillion-euro bail-out for the single European currency, the UK's main priority was to avoid being part of the scheme.
British finance minister Alistair Darling at the time said: "When it comes to supporting the euro, obviously that is for the eurozone countries."
Sweden and Poland however, both also outside the euro area, are to participate in the EU €440 billion "special-purpose vehicle," the EU's vast new emergency fund.
The warning from Mr Jouyet, a former Europe minister and a confidante of President Nicolas Sarkozy, comes as rating agencies are considering a downgrade from the UK's triple-A credit rating.
The European Commission's spring economic projections say Britain, already home to the third largest budget deficit in the EU, is to overtake both Greece and Ireland in terms of indebtedness later this year.
Such a downgrade would raise the cost of government borrowing as interest payments would increase.
"There is not a two speed Europe but a three speed Europe. You have Europe of the euro, Europe of the countries that understand the euro, such as Poland and Sweden, and you have the English," said Mr Jouyet.
http://www.businessweek.com/globalbiz/content/may2010/gb20100512_285037.htm
So much for entente cordiale: A senior French official slammed Britain's refusal to aid the euro, saying Europe will return the favor when markets turn on the pound
May 12, 2010
By Leigh Phillips
Furious at the UK's refusal to participate in the eurozone bail-out, France has brusquely warned that Europe will not come to Britain's aid when – not if – the markets round on sterling.
The French market regulator, Jean-Pierre Jouyet, on Tuesday (11 May) told Europe 1 radio that it is inevitable that the pound will be targeted and that when that happens, Britain will be on its own.
"The English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven will help you," he continued.
"If you don't want to show solidarity with the eurozone, wait and see what happens outside it."
On the weekend, as EU leaders scrambled to cobble together a half-a-trillion-euro bail-out for the single European currency, the UK's main priority was to avoid being part of the scheme.
British finance minister Alistair Darling at the time said: "When it comes to supporting the euro, obviously that is for the eurozone countries."
Sweden and Poland however, both also outside the euro area, are to participate in the EU €440 billion "special-purpose vehicle," the EU's vast new emergency fund.
The warning from Mr Jouyet, a former Europe minister and a confidante of President Nicolas Sarkozy, comes as rating agencies are considering a downgrade from the UK's triple-A credit rating.
The European Commission's spring economic projections say Britain, already home to the third largest budget deficit in the EU, is to overtake both Greece and Ireland in terms of indebtedness later this year.
Such a downgrade would raise the cost of government borrowing as interest payments would increase.
"There is not a two speed Europe but a three speed Europe. You have Europe of the euro, Europe of the countries that understand the euro, such as Poland and Sweden, and you have the English," said Mr Jouyet.
http://www.businessweek.com/globalbiz/content/may2010/gb20100512_285037.htm