Europe must have structural reform: Hockey

The coalition will support Australia contributing to an international “firewall” fund for Europe but only if those countries in crisis make structural changes to their finances.

Opposition treasury spokesman Joe Hockey says Australia is a good international citizen that believes in the International Monetary Fund (IMF).

But he doesn’t want any risk to Australian taxpayers if the Europeans refuse to make changes.

“The Europeans are now asking us, through the IMF … to help them with their financial firewall,” Mr Hockey told ABC TV from London, where he has met with the Chancellor of the Exchequer.

“They’re asking Australian taxpayers to be on the hook when they themselves are not only not undertaking any significant structural reform but in some cases are arguing to extend the largesse of the state.”

He said Treasurer Wayne Swan must get a list of commitments that equated to real structural change, in exchange for pledging the $10-15 billion being asked.

Otherwise Australia would be subsidising the European way of life.

Mr Hockey pointed out that Mr Swan and Prime Minister Julia Gillard had previously been very direct in saying Europe had to be responsible for itself and hoped they would hold that line during negotiations over the bailout this weekend.

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