PRIME MINISTER – CONSEQUENCES OF FISCAL UNIFICATION – 7 December 2011

Dr Julian Lewis: Why is my right hon. Friend supporting a policy of fiscal unification for the eurozone states that, if it happens, will undoubtedly lead to the creation of a dangerously undemocratic single Government for those countries?

[The Prime Minister: The point that I would make to my hon. Friend is that I do not want Britain to join the euro – I think Britain is better off outside the euro – but the countries that have chosen to join the euro have to make that system work. In order to do that, they need not just stronger fiscal rules, which is clear, but greater competitiveness. It is for them to decide how to go ahead and do those things. We should maintain Britain's position outside the euro, and ensure that we safeguard our interests at the same time. That is exactly what I will be doing in Brussels.]