Would You Believe It?

The devil, they say, is always in the detail.

Even though the UK is in dire economic straights, of our own making, it appears a little-known clause in the European Union treaty may force Britain to chip in billions of pounds to rescue countries in economic crisis because of their membership of the Euro.

This clause gives the Commission in Brussels the power to propose bailing out a state in 'severe difficulties'. Such help could be agreed by a majority vote of states and Britain would NOT have a veto.

With countries such as Ireland, Spain and Greece plunged into economic crisis, largely as a result of being unable to devalue their currencies, there is the prospect of British taxpayers having to help fund expensive rescue packages - despite the UK never having joined monetary union.

An EC report last week highlighted the major problems facing some eurozone members, and ratings agency Standard & Poor's downgraded Spain's credit rating. The Commission report said of Spain: 'Deteriorating labour market prospects, further tightening of credit conditions and adverse wealth effects are set to lead to a significant contraction in private consumption.'

It added that Ireland was 'particularly exposed' to the international economic crisis and that Greece is expected to be 'significantly affected'.

Under the Nice Treaty, signed in February 2001 and incorporated into the combined EU treaty, huge rescue packages can be approved on a majority vote. Britain disliked the proposal when it came up for negotiation and the Conservatives opposed it, but the Government gave way and agreed.

And the moral of the story? You can't trust Labour to get it right at home or abroad.