There are now fresh fears that the UK may be dragged in to more bail out solutions for those single currency countries on the verge of collapse.
Ireland is desperate to get its hands on another £21 billion in order to keep collapse at bay after bank stress test results and debt mired Portugal is still under intense pressure to dip into the bail-out pot as her debt to economic output ratio rose to 8.9%, far higher than the 7.3% target.
Having already poured £6 billion into the yawning Euro debt chasm, the government of the UK may attract the ire of the taxpayer if yet more money is made available.
Conservative MEP for North East England, Martin Callanan, said “Any steps to force the UK to join in by handing over money through the euro Financial Stability Mechanism should be challenged politically, and if necessary legally as well”.
People's Pledge (www.peoplespledge.org/) campaigner Mark Seddon said “Some of us warned at the time that it would be a huge mistake for Britain to join the single currency. Since we didn’t make that mistake, why should we pay for the mistakes of other countries? Especially as last year Britain paid a record Â£9.2billion in contributions to the EU”.
Remember though the money we hand over is a loan not a gift. Unless of course we are borrowing the money at a higher interest rate than we get back in the end we should technically profit from it.
Bailing out of the Euro should not though be confused with the 'UK in or out' of the EU or its single currency. This just muddies the water. The real issue is that a globalised financial sector means that if one bank or country goes down the rest follows like a house of cards or a set of dominoes. Every country, state, local council, and the people in them have borrowed and lent out money globally. If one country fails within this modern system then it spreads like a contagion. There are no firewalls, Chinese walls or fire-breaks that can stop it as none were built in. In fact the reverse is true, we have spent the last few decades tearing down financial barriers between countries.
But being a separate, fully sovereign nation once more may enable the UK to decide for itself which barriers we put up and when.