European Council

Lord Hannay of Chiswick Excerpts

Monday 21st June 2010 Lords Chamber

[Lord Strathclyde]

My Lords, my noble friend raises an important and interesting issue. The eurozone is of course extremely important to the British economy. We want a strong and competitive eurozone area, but it is clear to anyone who has been following this subject in recent months that there are substantial problems with the euro and, most notably, with Greece. However, I am not in a position to speculate in any way on what may or may not happen in any other eurozone country or, indeed, on what contingency plans are envisaged over the next few months. The G20 has recognised that countries with serious fiscal challenges need to accelerate the pace of consolidation. In that regard, we welcome the recent announcements of further consolidation plans by the Governments of Spain and Portugal. It is important that to rebuild confidence all Governments implement in a rigorous manner the measures that they have announced. It is that confidence which will provide strength again to the eurozone. That in the long term will be to all our benefits.

[Lord Hannay of Chiswick]

My Lords—

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[Lord Strathclyde]

My Lords, I can give my noble friend no encouragement whatever that we are about to join the euro any time soon—an answer that he may find rather disappointing. However, all the evidence over the past few years indicates that we were entirely right not to join the euro, as the former Prime Minister, when he was Chancellor, ensured would be the case. That was the right decision then, it is clearly the right decision now, and we shall continue with that. However, that does not mean that we should not play an active and engaged role, as my noble friend Lord Dykes said, and we will continue in the way that we started. Indeed, my right honourable friend the Prime Minister was very much welcomed in Brussels for his positive attitude and constructive approach to a whole range of extremely difficult issues that face Europe. I say to my noble friend, as I did to the noble Baroness the Leader of the Opposition, that the EPP issue is not one that we shall reopen.

[Lord Hannay of Chiswick]

My Lords, will the Minister accept my thanks for allowing a question from Benches other than the government Benches after six minutes?

I congratulate the Government on the confirmation of the millennium development goals, which I think is a very positive step. However, do they not recognise that some members of the European Union—not the United Kingdom—are not fulfilling their obligations to move to 0.7 per cent of GDP? To give an example, Italy is cutting back on its aid. Does that not demonstrate the necessity for proper co-ordination at the European level when these commitments are entered into and the need to ensure that they are followed? Simply saying all the time that we are not going to do this or that in co-ordination has its disadvantages when we are in the lead and other people do not follow.

The noble Lord mentioned education. Does he not recognise that our higher education sector is the leader in Europe, that we have four of the world’s top 10 higher education establishments and that we are extremely well placed to give the lead in this essential part of making Europe more competitive? I hope that the Government will take that to heart and will see how, without transgressing any transfer of powers, we can make more of a reality of co-operation in the higher education sector and make it a more competitive part of the European economy.

[Lord Strathclyde]

My Lords, with regard to the millennium development goals, the Council reaffirmed its commitment to spend 0.7 per cent of GDP by 2015. The important point that I think will encourage the noble Lord is that the Council also agreed to monitor progress towards this target annually. Therefore, if a country lags behind, no doubt this will be brought to the Council’s attention at the time and appropriate action will take place in that member country.

I agree with the noble Lord about the excellence of Britain’s university education system and that we have a lot to contribute to this debate, at least by example. That is why we believe that this matter should remain firmly as part of the national competencies and not be raised to a higher level through command and control and instruction by the European Commission and others. That is precisely why we got the conclusion in the final report with which we were happy—namely, that education would remain part of those national competencies.