Vince Cable: Europe could be plunged into war if Euro collapses

Vince Cable has warned that Europe could be plunged into war if the crisis in the eurozone results in the collapse of the currency.

Vince Cable said that the potential consequences of the failure of the Euro were "incalculable" Photo: PA

By Rosa Prince, Online political editor
5:17PM BST 14 Oct 2012
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The Liberal Democrat Business Secretary said that the potential consequences of the failure of the Euro were "incalculable" and that there was "no automatic guarantee" that the continent would not disintegrate into conflict.

His comments come days after the Nobel Peace Prize was awarded to the European Union in recognition for its success in warding off conflict since the Second World War.

Speaking at the Cheltenham Literary Festival, Mr Cable said: "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 in order to rescue Europe from extreme nationalism and conflict. There is no automatic guarantee that won't return."

David Cameron has said that the ongoing crisis in the Eurozone will present an opportunity for Britain to renegotiate its relationship with the EU.

Last week, he suggested that this new settlement could be put to voters in the form of a referendum in order to get "fresh consent" for British membership.

Michael Gove, the Education Secretary, is reported to have told friends that Britain should threaten to quit the EU unless extensive powers are repatriated from Brussels. He is said to believe that, unlike many within the EU, Britain is strong enough to prosper as a trading nation without the support of the single market.

On the BBC's Andrew Marr show, Philip Hammond, the Defence Secretary, agreed that the "mood" was hardening among Conservative MPs, adding: "The point that Michael is reflecting - and many of us feel - is that we are not satisfied with the current relationship.

"The mood has changed...because for the first time in a decade, those of us who are uncomfortable with the way that relationship has developed see an opportunity to renegotiate it.

"It makes sense for Britain to be in the single market but to reset the relationship so we have a balance of competences which works for Britain and the British people."

At the Cheltenham event, entitled Austerity, the euro and us, Mr Cable said, however, that it was difficult for Britain to influence the world on its own. He argued that that the euro was "very valuable" to Britain and should be supported.

"We will be heard very loudly if it does unravel," he said. "I think 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.

"We are only two per cent of the world economy. So what happens in China or the eurozone has massive implications for where we are.

"If they go badly wrong it will hurt us, regardless of what we do at home. I think we have to have a certain amount of humility of about what we can accomplish domestically, although we can keep trying."

Vince Cable: Europe could be plunged into war if Euro collapses - Telegraph