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Cable warns of war in Europe if euro collapses

 

Rod Minchin
Sunday 14 October 2012 23:53 BST
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Vince Cable warned yesterday Europe could be plunged into war if the euro collapsed
Vince Cable warned yesterday Europe could be plunged into war if the euro collapsed (EPA)

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The Business Secretary, Vince Cable, warned yesterday Europe could be plunged into war if the euro collapsed.

The senior Liberal Democrat said the consequences would be “incalculable” and added there was “no automatic guarantee” that Europe would not disintegrate into conflict.

“I think we need to take stock that if the eurozone were to unravel in a way that destroyed the European project – and there is a risk that could happen – the consequences would be absolutely incalculable. We tend to forget, until we were reminded last week of that Nobel Prize, the European project was constructed to rescue Europe from extreme nationalism and conflict. There is no guarantee that won’t return.”

Mr Cable spoke during an event at the Cheltenham Lit-erature Festival called “Austerity, the euro and us”.

The minister described the euro as “very valuable” and had to be maintained – otherwise Britain would suffer.

“We are not in the eurozone so we cannot directly influence it. We will be heard very loudly if it does unravel,” Mr Cable told the audience. “My sense is that the Germans in particular realise how much is at stake. A series of sensible measures have been taken in recent months.

“Deep down there is enough common sense and a sense of survival to prevent this getting out of control. If it does, I’m afraid the consequences for us will be awful.”

The Business Secretary said the challenge for the Government over the next year was how to balance the need to stimulate growth while at the same time maintaining confidence on the money markets.

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