Leave Britain out of new bank bailout

Leave Britain out of new bank bailout

David Cameron threatened to veto support for a new European bank rescue deal yesterday as he clashed with Germany over fresh moves towards a single currency superstate. The Prime Minister vowed to put British interests first by not spending taxpayers’ money on propping up Greek and Spanish banks. On a visit to Berlin, Mr Cameron admitted eurozone countries will have to form a ‘bank union’ to pool their deposits if they want to prevent a European bank meltdown and save the single currency from destruction. But he said the UK would not join such a union and indicated he would wield the veto again unless Britain gets key concessions to protect the City of London and the single market. The PM repeatedly clashed with German Chancellor Angela Merkel on the future of Europe as she outlined plans for ‘more Europe’. Mr Cameron flew to Berlin for talks on the crisis as Spanish banks teetered on the edge of collapse. Fears of financial catastrophe in Spain intensified last night after the crisis-torn country was rocked by a devastating downgrade to its credit score. Leading international agency Fitch slashed its rating on Spanish government debt from A to BBB – leaving it one notch below bailed-out Ireland and just two above ‘junk’ status. It said the bill for bailing out Spain’s basket-case banks could hit £80billion – three times higher than previously thought and enough to trigger an international bailout.