European Council

Baroness Hoey Excerpts

Monday 22nd October 2012 Commons Chamber

[The Prime Minister]

The point I would make to Chancellor Merkel—we do not actually fundamentally disagree about this—is that the single currency needs a banking union. At the heart of that banking union will be the ECB, with a new role as a banking regulator. But clearly as this country is not in the single currency our banking regulator will continue to be the Bank of England, and there will not be any question of the ECB having a say over the Bank of England—that is not the situation. Strangely enough, in a way the challenge is to persuade countries of the eurozone to go far enough in having a banking union that will help to break the link between banks that are in difficulty and sovereigns that are in difficulty. Just as we have a solid banking union for our single currency in the United Kingdom, they need a solid banking union for their single currency in the eurozone.

[Kate Hoey (Vauxhall) (Lab)]

Did the Prime Minister make it clear—by the way, his use of “United Kingdom” versus “Britain” is improving, but it is not yet good enough—to the other European leaders that we would not contribute towards any of the millions of pounds that the European Commission wishes to spend to tell every European Union citizen how wonderful the EU is? Is that not a ridiculous waste of money?

[The Prime Minister]

I am very grateful to the hon. Lady for her school report and I shall continue to try to improve on my use of “United Kingdom” rather than anything else. On the issue of what the European Commission and European Union spend, as we get into this budget debate we should still look at the 6% of the money spent on the EU’s central costs and the fact that, as I said at the weekend, some 16% of Commission officials are paid more than €100,000 a year. Okay, 6% is a small percentage of the total but it is still meaningful in getting a good budget deal.