Britain faces £5bn bailout bill if Greece leaves euro
BRITISH taxpayers may have to contribute towards a colossal new £210billion international bailout fund should Greece quit the euro, a report warned last night.
The UK may have to pay £5billion – £200 for every household – to help the Greek economy survive the shock of
changing back to the drachma.
The report published by the think-tank Open Europe, fuelled concern that the EU’s handling of the euro crisis is
damaging the British economy.
Open Europe believes EU chiefs will cobble together a deal after a general election this month to keep Greece in the single currency.
But in the longterm, it could be in the country’s interests to leave.
Raoul Ruparel, its head of economic research, said: “As Greece approaches a balanced budget and a more stable banking sector an exit will look increasingly attractive – particularly if the only alternative is to permanently give up economic and political sovereignty.”
It’s not a question of if Greece comes out of the euro, it’s a question of when
In that event, the International Monetary Fund, the eurozone and other EU countries including the UK would need to
find between £54billion and £210billion, says the report.
Around £45billion would have to be injected into Greek banks and pension funds to prevent a meltdown.
A new central bank would need more than £100billion in reserves and the government would require £10billion
to keep hospitals open and pay benefits.
The figures exclude long-term or “contagion” costs.
Tory MP Douglas Carswell said Greece should leave the euro as soon as possible.
He said: “If Greece had been allowed to leave the euro two years ago it would have saved a lot of bailout money.”
Fellow Tory Philip Davies said: “It’s not a question of if Greece comes out of the euro, it’s a question of when.
"But over my dead body will the British taxpayer be giving any money to bail them out.
“Greece bent the rules to join, so the people who should be coughing up are the Greeks and their eurozone colleagues who allowed them to do that.”