Government of France: Meetings

Baroness Falkner of Margravine Excerpts

Tuesday 12th June 2012 Lords Chamber

[Lord Howell of Guildford]

The noble Lord should not understand that, because I find his question rather hard to understand as well. The polarity of argument that he poses simply does not exist. The aim of Governments throughout Europe and throughout the global system is to restore expansion. We welcome the ideas of the French and of Monsieur Hollande where we think they would go in that direction, just as I think France and all responsible countries recognise that there has to be tight budgetary discipline as well, otherwise the efforts to expand if they immediately jack up interest rates would simply cancel out the policy. There is a matter of balance, and the noble Lord is better than most at understanding the need for balance in economics rather than one side or the other.

[Baroness Falkner of Margravine]

My Lords, does my noble friend agree that while a pro-growth pact in Europe is welcome, it seems to be a bit of challenge to reduce a budget deficit supposedly exceeding even Italy’s by 2017, while magicking up 3.5% growth next year and massively cutting unemployment? It is a very ambitious project. If it is likely to succeed, will we listen very carefully to the ideas that bring it about, particularly after next Sunday when we might see a few more details of these plans?

[Lord Howell of Guildford]

These are challenging demands, and they are obviously creating great strains and tensions in the countries affected. In a way, my noble friend has asked me to comment not so much on Monsieur Hollande’s wish to see expansion, which we all share, as on the German wish to stick very rigidly to certain austere budget disciplines. Somewhere between those two, and perhaps in talks between Monsieur Hollande and Chancellor Angela Merkel, there will emerge a sensible balance. We hope that there will and we shall certainly contribute to anything that achieves that.