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April 22, 2021

Europe warns: “You are on your own” if pound hit by financial crisis

Prime Minister David Cameron and his coalition government will not be helped by Euro-zone member states of the European Union, if the pound suffers a financial crisis, following Britain’s refusals to sign up to the bail-out package agreed yesterday in the EU, according to thelondondailynews.com. The rescue package which consists of a £378 billion support fund, setup by members of the Euro-zone is designed to prevent contagion of the crisis in Greece spreading to other Euro-zone nations. European financial analysts believe the UK will be hit by a major financial crisis and “it is only a matter of time” before sterling suffers from the same “market turbulence” that nearly destroyed the euro.

French sources believe that sterling will be targeted given the political “difficulties” in the UK, with the former French finance minister in The Daily Telegraph reporting as saying “the English are very certainly going to be targeted given the political difficulties they have. Help yourself and heaven help you. If you don’t want to show solidarity to the euro zone, then let’s see what happens to the United Kingdom”.

Sweden not a member of the Euro-zone is believed to be close to signing up to the EU financial “mechanism” which is designed to help EU member states in trouble with loan guarantees. The Swedish finance minister said that: “I think its unrealistic to imagine that Britain won’t take part. London is Europe’s financial centre. If bank financing and payments no longer work, it will take a few days before the financial markets in London are dramatically affected.”

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