UK-EU Relationship (European Affairs Committee Report)

Baroness Lawlor Excerpts

Wednesday 20th September 2023 Lords Chamber

[Baroness Lawlor (Con)]

My Lords, I am grateful to the noble Earl, Lord Kinnoull, and the committee for this very stimulating report, which aims for a constructive approach to the EU and its institutions over four well- chosen areas. I agree on the importance of a constructive dialogue. I see Brexit as an opportunity to renew the ties which have historically bound the UK to so many of her continental neighbours—but on a different basis.

Co-operation must be two-sided. One approach is to inspire trust and hope it is repaid, while another is to withhold co-operation until it is forthcoming from the other side. Which is best is a matter of tactics. Consider the memo of understanding on which the committee urged progress—I am delighted that its voice was heard and the report has now appeared. A guarded welcome is justified if the EU shows itself to be open to moving to financial services trade based on mutual recognition of laws and outcomes. Now that the UK intends to revert to the common-law approach for the sector as it sheds layers of EU law, will the EU do business on that basis, or will it press the UK to agree to shadow EU law or absorb the corpus bequeathed in the 2018 Act into UK law, and give precedence not to the common law tradition, which is open, flexible, transparent and predictable, but to the EU approach, which is based on code and the precautionary principle? That would not be in our interests. It would obstruct the people of this country—and indeed the EU—from benefiting from Brexit freedoms for one of the world’s great financial centres, second only to New York.

The committee welcomes the UK’s involvement in the European political community. However, I share the caution expressed by the French historian John Keiger, who traces this initiative of President Macron throughout the period from the early 1950s. The EPC was initially proposed in 1952 when the European Coal and Steel Community sought to set up a European political community to co-ordinate the foreign policies of the six member states. It resurfaced in 1961 with the Fouchet Plan for intergovernmental political co-ordination of Common Market states, and then again at the beginning of the 1970s. François Mitterrand came up with a similar idea for a “European confederation” in 1991 to draw in East and West. Although it has never firmly taken root it has paved the way, and was seen to pave the way, for further integration.

Integration is not a UK aim, and we should beware that a desire to “co-operate” and strike deals should not be pursued at the expense of the very different interests globally which the UK can have, even with a country as old an ally as France, and as good a neighbour. It is for the EU to recognise that this country is a sovereign power—I am sorry that there is some concern about what was described as rather a nebulous phase—with a different legal and constitutional as well as economic tradition from that of the EU. We have seen the difficulties created when the EU refuses to embrace that reality to drive through its own interests, as happened in Northern Ireland—which the Windsor Framework may ameliorate but cannot resolve. It is on the basis of mutual recognition and respect of important differences, and only that basis, that both parties can work fruitfully together.