Rob Wilson's Westminster Diary, February 18, 2010

Rob Wilson MP • Published 18 Feb 2010 21:00 0 Comments

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MONETARY union via the Euro was always half-baked because it was never really a genuine economic union.

The real motivation has always been "the European project", a political union driven by an elite who think they know what is best for us. In private you hear Europhiles talk fondly of one country called Europe that will challenge the might of other super blocs (ie the US) in the 21st century. The Lisbon Treaty was supposed to be that new country's constitution.

The whole European project, which should have been about economic co-operation, has become something entirely different. However, the monetary union was always the project's Achilles heel because in the rush to bond Europe into one country, economies with little or nothing in common were effectively shoehorned together.

If a single currency were needed, it should have started with Germany and France and grown slowly over decades as economies integrated and became subject to the same strict financial disciplines.

Consequently, in the first major economic storm of the new century, a financial crisis in the comparative small Greek economy is sending shockwaves around Europe. Greece has apparently 'cooked the books' and can't pay its debts.

We now face the possibility that Britain and others will have to bail out Greece and possibly others to keep the Euro intact. Unfortunately, due to Labour's economic mismanagement, we're not in the best financial health ourselves, indeed our debt ratio is very similar to that of Greece and our Triple AAA credit rating is under threat. How can we bail out Greece or anyone else?

Sadly, under Labour we have moved from a powerful and rich economy to the verge of bankruptcy. We are mired in huge debt, heavy taxes and rules for anything and everything, making business harder and harder for entrepreneurs. The Government no longer understands who creates the wealth it consumes.

Never in our history has so much been spent for so little return. The last few hardy Labour supporters will point to all the new schools and hospitals. Wonderful, except that we will still be paying for them for the next 30, 40 or even 50 years.

Despite this, I don't think Europe will have to bail us out like Greece. Thankfully, there might be a change coming in May!

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