European Council

Lord Foulkes of Cumnock Excerpts

Monday 27th June 2011 Lords Chamber

[Lord Strathclyde]

My Lords, that really is not an issue for the British Government; it must be an issue for the Greeks, for the European Central Bank and for anybody else who is involved. We want to see a successful and stable eurozone. The European currency union is very substantial and, as I said a few moments ago, it is very important to the British economy, given the amount of our exports that go into the eurozone. While it is in our interest for the eurozone to be a successful monetary union, it is not necessarily in the interest of the British taxpayer to be seen as a lender of last resort. That is the difference that we have made in this Council, which is why we are very glad that Article 122 will no longer be used if there is a bailout.

[Lord Foulkes of Cumnock]

My Lords—

[Lord Stoddart of Swindon]

My Lords, I am pleased that the Prime Minister has said that Article 122 will no longer be used in future for bailing out other countries. Is it not true, however, that Article 122 was used illegally? Indeed, Article 125 of the Lisbon treaty precludes Article 122 or any other article from being used to bail out other countries within the European Union. In that case, the Commission broke the law. Should not the Government in fact be referring that breach of the law to the European Court of Justice to see exactly what went wrong?

--- Later in debate ---

[Lord Strathclyde]

We have independent regulatory regimes that look into these matters. The exposure of British banks to Greek sovereign bonds is substantial, but it is considerably smaller than the exposure to other European countries.

[Lord Foulkes of Cumnock]

My Lords, it is always my deepest pleasure to defer to the kindness and remarkable wisdom of the independent UKIP former Labour Member who sits so graciously on our Benches. It is even more of a pleasure to defer to one of my own colleagues. In repeating the Statement, the Leader of the House mentioned the Arab spring. I welcome the statements by the Foreign Secretary and others about the need to follow the revolutions taking place in the Middle East and north Africa with support for development of the democratic processes in those countries, but is the Leader aware that at the same time the Foreign and Commonwealth Office is putting the squeeze on the finances of the Westminster Foundation for Democracy and bodies that exist specifically to ensure that that kind of work is extended and developed? How does he reconcile this? Will he have a word with his noble friend sitting next to him, and with the Foreign Secretary, and say that it is vital that the work of the Westminster Foundation for Democracy and other bodies promoting democracy is increasingly supported as we see the developments taking place in the Middle East and north Africa?

[Lord Strathclyde]

My Lords, the Westminster Foundation for Democracy is obviously a much valued organisation with a tremendous reputation and a long lineage over the past 20 years of explaining democracy to many countries that have come to it in a new way. It is also true about the Arab spring. My noble friend Lord Howell of Guildford has kindly reminded me that it is his view that the Westminster Foundation for Democracy got an increase in its budget this year. The noble Lord, Lord Foulkes of Cumnock, is vigorously shaking his head, which means that there is a disagreement between them. I admire them both greatly in their respective ways, so I shall make it my business to find out the answer. Whatever the truth, we all know that bodies of this kind have had a bit of a squeeze put on them as an inevitable consequence of the economic considerations that we have. The Westminster Foundation for Democracy is a highly valued body and I shall write to the noble Lord about its funding.