UK needs a solution to the Greek crisis

12 April 2012

There is a commendable brusqueness to the way in which the French and German leaders have dealt with the prospect of a Greek referendum on the EU bailout. They have, effectively, told the Greeks that they must be either in or out of the euro but that if they remain in, they must sign up to its disciplines. Minds may be concentrated by Mr Sarkozy's declaration that the latest tranche of bailout money will not be paid until there is a clear outcome to the referendum. Indeed, given the febrile nature of Greek politics, whether it happens at all is still in doubt.

Yet if the bailout plan fails, the IMF may well end up picking up some of the cost - which would mean Britain contributing more. In this context, David Cameron's speech to the Cannes summit, calling on leaders to stop bickering and concentrate on growth, is very much to the point. As Anthony Hilton points out on this page, there are signs that growth is picking up, albeit weakly. Yet without a firm resolution to the eurozone crisis, it will spread - from the banks who rashly exposed themselves to Greece's sovereign debt to other weak economies, and ultimately even to states outside the euro, like the UK.

There is logic to the prospect that Greece may leave the euro and have a currency that would find its own level; it could then also set its own interest rates. The tragedy is that all this was not taken into account when it was allowed to join the euro. The eurozone might survive the departure of Greece, but that departure would need to be managed well if it is not to create a crisis of confidence throughout Europe. The political problem for Britain is that a smaller, tighter eurozone would be harder for us to influence and would create real problems for the City.

A referendum would at least bring some sort of clarity to a situation whereby the Greek government signs up to commitments that do not have the backing of its own people. A vote would oblige voters to take responsibility for their own actions. But that might leave Britain with unpleasant consequences, both in footing the bill and in the chilling effect of a eurozone in crisis on our still-fragile recovery. We need decisiveness and stability - and both of those remain in short supply.

Yellow line revolt

The Mayor has called on Westminster council to hold an immediate review into the effects of its move to impose evening and weekend parking charges in the West End and Mayfair. At present, the council says insouciantly it will hold one in 18 months' time and will impose the charges meanwhile. It is quite something for one bad idea to unite churches, minicab drivers, Peter Stringfellow and celebrity chefs against it but that is what the council has managed to do. A petition by opponents has attracted thousands of signatures. Small wonder when the idea was mooted a few years ago it was prudently scotched by the late Sir Simon Milton, the then leader of the council.

An immediate review would have the benefit of exposing the economic consequences of off-peak charges. They would deter people from coming into the West End, damage theatres and restaurants, penalise church congregations and badly affect low-paid night workers. It is not too late for the council to drop this idea now.

Literacy liberates

The girl-band singer, Mollie King, has bravely revealed that she cheated at school in order to disguise her reading difficulties. This paper's campaign to Get London Reading has produced many similar stories about the debilitating results of illiteracy. Helping people to read changes lives.

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