MP John Baron has labelled efforts by the UK government to save the euro as “economic claptrap”.
The Tory MP for Basildon and Billericay spoke during a debate in Parliament, and criticised plans for Britain to pump another £10billion into the International Monetary Fund, which will be used to help save the eurozone.
Mr Baron said: “The UK is doubling its IMF contribution to £20billion.
“This recession is different from previous recessions. It is being caused by excessive debt rather than a lack of demand.
“We underestimate the extent of the crisis – £300billion of Italian debt has to be rolled over shortly.
“China, with its massive reserves, wouldn’t help. The fact the IMF wants another £10billion from us suggests it no longer has our original £10billion.
“Additional IMF funding will not work. Such policy simply reinforces the eurozone’s own flawed policy.”
He also hit out at the appointment of French lawyer Christine Lagarde as managing director of the IMF.
Mr Baron said: “Putting Christine Lagarde in charge of the IMF is like putting a debtor in charge of the debtors’ prison.
“The Government’s approach to this crisis, and the euro generally, is flawed.
“The line ‘we must save the euro’ is economic claptrap.”
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