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European Council

As on many previous occasions, I had a very interesting meeting with President Klaus in Prague, at which he made that interesting point. However, dissolving a monetary union between the Czech Republic and Slovakia is very different from changing arrangements within Europe, where there are some very serious issues of equilibrium. The other point I would make is about those of us who do not want to join the euro, would never join the euro, and think that countries should maintain their own flexibilities. I have always held that view, but those of us who do hold that view should not misunderstand the fact that there would clearly be very big consequences for Britain were there to be a disorderly situation in Europe. To put it another way, it is much easier to stay out of the euro than to leave it.