Louth MP Sir Peter Tapsell has suggested to the Prime Minister that the Euro be abolished in favour of a return to national currencies.
Speaking at Prime Minister’s Questions on Wednesday, the Father of the House said a possible fiscal union would be dominated by Germany, leading to a ‘death of democracy throughout most of Europe’.
“So is not the least painful solution the abolition of the Euro and the return to national currencies?” He asked
David Cameron responded that that the insecurity in the eurozone had been caused ‘in part by both those issues: the lack of a fiscal union, but also the lack of a banking union’.
“One of the problems in the eurozone at the moment is the different level of interest rates in Spain, Italy and Portugal, which is in part because of concerns about the link between weak banks and sovereign Governments,” he said.
“Only when we have a banking union will there be greater security about those weak banks. We have a single currency in the United Kingdom, and we also have a banking union in the United Kingdom; we would not treat banks differently because they are in Scotland, Wales or Northern Ireland, rather than in England.
“I believe a working single currency will need a working banking union; I think that is logically consistent and sensible.”