European Council

Baroness Royall of Blaisdon Excerpts

Monday 11th February 2013 Lords Chamber

[Baroness Royall of Blaisdon]

My Lords, I thank the Leader of the House for repeating the Statement by the Prime Minister on the outcome of the European Council meeting. Like the Prime Minister and the Leader of the House, I pay tribute to Pope Benedict XVI. He is a spiritual leader for 2 billion people and a theologian of great distinction. His visit to the UK in 2010 will be long remembered as a proud moment for millions of Catholics, other people of faith in this country and, indeed, many Members of this House. His decision to stand down is not one that he will have reached lightly. It is right that all sides of your Lordships’ House acknowledge his service, and from these Benches, I do so now.

On the European Council, I join the Prime Minister and the Leader of the House in welcoming the fact that an agreement has been reached on a cut in the seven-year payment ceilings for the European Union budget. At a time when so many budgets are being cut at home, last October the other place voted for a real-terms cut in the EU budget, and it was right to do so. That is what my party argued for in the debate. In the resulting vote, the Prime Minister was given a strong negotiating mandate for a real-terms cut in the budget. We are therefore glad to see the agreement reached at the European Council. However, as well as restraint in the budget, we needed reform—prioritising growth within a smaller budget by cutting back even further on wasteful spending.

First, on agriculture, the CAP fell as a proportion of spending from 46% in 1997 to 33% in 2010. We welcome the modest decline in agriculture spending as a share of the European budget, from 31% in 2013 to 27% by 2020. The Leader was right to say that there is further to go in this area, with agriculture making up just 1.5% of the total output of the European Union but still accounting for nearly 30% of the budget.

Secondly, we welcome the increase in funds targeted towards growth infrastructure, R&D and innovation. However, can the Government confirm that the achievement of a declining budget compared to November’s proposal came not at the expense of agricultural spending but in part at the expense of this funding for growth? Can the noble Lord also tell the House that proper investment will continue to be made by the EU in science, as urged by many UK university vice-chancellors last week?

Thirdly, the Opposition and the Government agree on the need for the EU to play its part in effective development, diplomatic and governance support in north Africa. Can the Leader of the House therefore say what discussions took place about how the EU could play this enhanced role in the context of the decision in this budget round to freeze the European Development Fund, which provides assistance to that region? Given the new emerging challenges across the Sahel, what information can the Leader of your Lordships’ House provide on how funding to that region will be affected? Will he also take this opportunity to update the House on the transition road map for Mali, which forms part of the Council conclusions?

Fourthly, given the very significant and unprecedented difference between the ceiling on payments and the ceiling on commitments agreed on Friday, can the Leader tell the House what discussions took place on how this would be dealt with in the years ahead?

This budget agreement shows that contrary to the views of some Members opposite, the European Union is capable of change, and that it is capable of change when we work with our allies. However, while this budget agreement brings restraint, Europe still needs a plan for recovery and growth. The Council conclusions talk about the importance of trade agreements. Can the Leader update the House on developments on the possible EU-US trade agreement and on how the Government see it being developed this year, including at the G8 summit? However, do the Government also recognise that the long-term changes to the budget and the possible EU-US trade agreement are not a substitute for a growth strategy now for Europe?

There are 26 million people unemployed in the European Union, more than 6 million unemployed young people looking for work and, shamefully, 1 million of them are here in the UK. I should be grateful if the Leader can say what specific budgetary measures were agreed in relation to young people and employment—for example, on the European youth guarantee.

The European economy is struggling and the British economy is flatlining. What Europe now needs—what Britain now needs—is a plan for jobs and growth. That is the way in which Europe must change, and that must be the priority for the months and years ahead, in both Britain and the European Union.