European Affairs

Debate between Lord Hammond of Runnymede and Pat McFadden

Thursday 25th February 2016 Commons Chamber

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Philip Hammond)]

I beg to move,

That this House has considered European affairs.

In just under four months’ time, the British people will face a choice—one that has been denied to them for many years—that we pledged to give them in our election manifesto and that we are now delivering; a choice that will have profound consequences for this country for a generation or more—whether to remain in the European Union on the basis of the deal negotiated by the Prime Minister or to leave.

The last time the British people were consulted on this question, 40 years ago, the answer was a clear yes, but much has changed in that 40 years, and the fact that we are holding this referendum now is recognition of a growing unease at the direction in which the EU has evolved—a growing sense that Europe was pursuing a goal that Britain did not share, and that we risked being dragged into a level of political integration for which few in Britain have any appetite.

For 25 years, I have shared that sense of unease. I have always considered myself a sceptic, and I consider myself a sceptic today. Like most people in Britain, I do not feel any warmth or affection for the EU or its institutions. I am irritated by the tone of much of what I hear coming from Brussels and instinctively suspicious of anything that sounds like a “grand projet”. But we do not live in some ideal world; we live in the real world, and the EU is part of that real world. The question that we have to answer is not: do we like it? The question we have to answer is whether we are stronger, safer and better off in the EU rather than out of it. Stronger, because our global influence is enhanced by being a leading member of the world’s largest trading bloc. Safer, because working together with EU partners strengthens our defences against organised crime and terrorism. Better off, because Britain benefits from having a domestic market of 500 million consumers and the clout that a quarter of the world’s GDP gives the EU in negotiating trade deals.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

The Prime Minister has said in recent days that his view of the European Union’s impact on our collective security had changed over the years because of his experience as Prime Minister. The Foreign Secretary would probably be thought of by many people as having a Eurosceptic background. Has his experience as Foreign Secretary also changed the balance of his view on the European Union’s impact on our collective security?

[Mr Hammond]

Yes, it has. First as Defence Secretary, and now as Foreign Secretary, I have seen how, in practice, working with EU partners is an important tool in our armoury. Of course, the EU will never, in any way, replace the security benefit that we get from NATO; it does a different thing. However, we have seen in the conflict over Ukraine that economic sanctions—which, in reality, are the only practical weapon available to us in responding to the challenge of Russia—when properly honed and consistently used by the European Union, will prove to be a very important weapon in our armoury against Russian aggression.

--- Later in debate ---

[Mr Hammond]

Let me make my point, and then I will happily give way to my right hon. Friend. A vote to leave is a vote for an uncertain future. That is a simple fact. That uncertainty would generate an immediate and negative reaction in financial markets; on that, all market commentators agree. Indeed, the mere possibility of a leave vote will have a chilling effect on business confidence even before the referendum.

[Mr McFadden]

It is already happening.

[Mr Hammond]

As the right hon. Gentleman suggests from a sedentary position, we have had a foretaste of that this week in the currency markets.

A vote to leave would trigger a fixed two-year time period under the treaty for the UK to negotiate the terms of our exit from, and our future relationship with, the EU. We would, of course, seek to reach agreement with the other 27 member states during that two-year period. In the meantime, however, we would be able to offer British businesses that wanted to invest no assurance at all about their future access to EU or other markets. We would have nothing to say to Japanese, American or Chinese companies that come here looking for a base from which to produce for the EU market. That would be truly a leap in the dark, and the effect would be to put the economy on hold until the negotiations were completed. At the end of those two years, there is no guarantee that agreement would have been reached, but our exit would be automatic unless every single one of the remaining member states agreed to an extension of the negotiating period.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Pat McFadden

Tuesday 20th October 2015 Commons Chamber

[Mr Hammond]

There has been a lot of focus on ISIL, but it is important to remember that it is Assad’s persistent indiscriminate attacks on his own civilian population with chlorine gas and barrel bombs that have been the principal driver of this mass migration.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

The Prime Minister said in his conference speech that the problem with the EU was that it was “too big” and “too bossy”. Looking at the refugee crisis, however, we can see that his rhetoric was simply wrong. Does the Foreign Secretary not agree that the problem for the refugee crisis has not been a European Union that is too strong and overbearing, but rather one that has been too weak, too unco-ordinated and too ready to fall back into the old habit of nationalism? Do not the desperate scenes that we have witnessed all summer demand more co-operation between states rather than a retreat into the use of barbed wire and nationalism and a failure of collective, co-ordinated leadership precisely when it is needed most?