Financial Markets

Part of Olympics – in the House of Commons at 3:34 pm on 6th October 2008.

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Photo of Iain Duncan Smith Iain Duncan Smith Conservative, Chingford and Woodford Green 3:34 pm, 6th October 2008

I recognise that the Chancellor will have difficulty in answering a number of these questions, but I wonder whether I can return him to Germany's statement about protection for its depositors. At the Dispatch Box, the Chancellor mentioned, quite rightly, that our protection covers about 98 per cent. of all depositors, but he will also recognise that we have significantly more money on deposit than Germany does. The reality is that that 2 per cent. represents a very significant amount of money. What concerns me right now is that, given the febrile nature of the markets—watching little things and then panicking—if they see any flight of capital, even that 2 per cent., towards Germany, it could cause another stampede and another crisis. I recognise the Chancellor's problem about indicating what he may or may not do, but does he not recognise that that 2 per cent. alone is perhaps enough to tip over the markets if they saw a flight of that money to, say, Germany or even Ireland?

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