European Council

Lord Hannay of Chiswick Excerpts

Monday 20th December 2010 Lords Chamber

[Lord Strathclyde]

My Lords, I have not had time to study the stability report from the Bank of England to which the noble Lord referred, but I understand exactly what he was saying. With the greatest respect to him, I think that his question was misconceived. There is no fear from us that we are trying to appease anti-European or sceptical Back-Benchers. These are bogeymen that obviously exist in the noble Lord’s nightmares. We have no such nightmares and no such concerns. If any such concerns exist, they are partly dealt with by explaining that there will be a process in the British Parliament for agreeing the changes that we have made. Of course, as I laid out in the Statement and in reply to the noble Lord, Lord Hunt, we have a clear strategy for growth in the United Kingdom and believe that there should be a clear strategy for growth in the rest of Europe.

[Lord Hannay of Chiswick]

I perked up slightly at the Minister’s first answer to the noble Lord, Lord Hunt, when he said that the treaty change would be settled in this Parliament, as it should be. I was then a bit saddened to hear that it is only treaty changes that do not affect us that get settled in Parliament and ones that do affect us get settled somewhere else. This reflects a very odd view about the primacy of Parliament.

On the budget, on the financial perspectives, I strongly welcome the fact that the Government are taking a tough line in the initial phases of that negotiation. I think that that is absolutely necessary, but they seem to have nailed their colours to something that used to be known in the jargon as “zero real growth” for a period of 10 years. That is a very long time. I do not imagine that the Government will be proposing zero real growth in public expenditure in this country for 10 years and, if they do, their prospects of re-election in 2015 may be a bit damaged. So some care needs to be taken about what is a very long period ahead, although I very much agree that taking a tough line at the beginning is good.

Finally, will the noble Lord confirm that the fact that Montenegro was accepted as a candidate country shows that the European Union is continuing with future enlargement in the Balkans and elsewhere?