Lib Dems to George Osborne: Don't Let Eurosceptics Stop British Cash Going to the IMF

"Obsessive euroscepticism" shouldn't get in the way of Chancellor George Osborne handing over more British cash to the International Monetary Fund (IMF) to keep the eurozone afloat, according to the Liberal Democrats.

Chancellor George Osborne held a conference call with other EU finance ministers to thrash out a new loan deal to the IMF in yet another attempt to save the euro.

Sky News is reporting that Britain has refused to contribute to the new fund, leaving Liberal Democrats and their Conservative coalition partners at odds once again over Europe.

The EU wants Britain to contribute €30.9billion to the total pot of €200billion - making us the second biggest contributor in the whole region.

Germany would give the most, with France adding as much as Britain.

"The IMF has been one of the pillars of the post-war global economic system and Britain has always been a willing participant in it - and indeed an occasional beneficiary from it," said Martin Horwood, the Liberal Democrat International Affairs spokesperson.

"It would be quite wrong for us to let obsessive euroscepticism interfere with this system or set unreasonable conditions on it.

"We should stand ready to help increase IMF resources in the interests of global economic stability. This is as crucial to the UK as to anyone else."

Prime Minister David Cameron has said in the past that there is no more British money available for bailing out failing eurozone states, as Britain has already loaned Ireland, Portugal and Greece money.

The Treasury says it will give money as part of a global effort and if the fund was available to all, not just to be diverted straight to the eurozone.

"George Osborne has spent 20 months going along with the bail-out and borrow consensus," eurosceptic Tory MP Douglas Carswell told the Daily Telegraph.

"It has cost this country billions of pounds in liabilities which dwarf all the austerity measures. He needs to call a halt now."