By Jonathan Isaby
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During the questions to David Cameron on his statement on the European Council, the immediate past Foreign Secretary and beaten Labour leadership contender opined in a rare Commons intervention:
"The Prime Minister mentioned the stability of the banking system in advance of what I believe is an inevitable Greek default. In that context, is it not the case that future European Councils will be discussing whether to use the European financial stability facility or the European stability mechanism to shore up and recapitalise the banking system, rather than throwing good bail-out money after bad?"
David Cameron refused to accept the premise:
"Of course the Greeks have a debt and solvency problem as well as a liquidity problem, but they have decided that they want to use liquidity to give themselves some time to deal with their debt problem. That is the choice they have made—and that is the choice the eurozone members are supporting—and I can quite see why they want to do it in that way. Let me also just make the following point, as I think a number of colleagues will ask similar questions: we must be very careful not to speculate about the financial situation faced by a fellow member state of the European Union."