This is more than just politically minded scaremongering from partisan types. This is an actual and real possibility. If the eurozone falls over then Britain could be stuck with a vast, £200 billion-style, bill for the clean up. This is because, although we’re not members of the eurozone as members of the EU we’ve a part in guaranteeing various of the debts existing under the eurozone scheme.
The problem with this being firstly that contingent liability, of course. But rather larger than that is that the eurozone itself is inherently flawed. It’s simply much, much, too large to be an optimal currency area. That’s why it broke Greece and looks like doing the same to Italy. And if Italy goes there’s a reasonable bet that all the French banks go under as well.
Oh, and the bills will become due in euros, not a currency we can gaily print ourselves, meaning we’d have to stump up real money, not just QE.
Britain could face paying more than €200bn to the European Union in the event of a eurozone bail-out unless the UK leaves under a managed clean Brexit, according to leading City and business figures. The warning comes from the Brexit Coalition, a new grouping that represents 29 diverse pro-Brexit campaigning organisations, including the Alliance of British Entrepreneurs, Artists for Brexit and Farmers for Britain as well as Labour Leave and Green Leaves.
The underlying point here being that as we leave we’ve got to really leave. Leave all of the entanglements behind us. Not remain a guarantor to the varied bailout funds that already exist. And, yes, we are already guarantors of varied debts.
As Marina Wheeler pointed out, leave means leave.