EU: Economic and Financial Issues

Debate between Lord Hannay of Chiswick and Lord Sassoon

Monday 12th March 2012 Lords Chamber

[Lord Sassoon]

I believe that the effect of UK stamp duty on jobs and growth is negligible. The European Commission conducted its own assessment of the effect of the financial transaction tax, which is what I think is relevant, and the numbers that have been produced by others indicate the range of negative impacts. We think that it makes no sense to introduce a financial transaction tax on the basis of Europe going it alone without the rest of the world being there.

[Lord Hannay of Chiswick]

My Lords, I am delighted that the Minister has tired of the Kabuki play in which he and I have been indulging for some weeks, and I will not continue that now—

[Lord Hannay of Chiswick]

That seems to be popular in an unusual quarter of the House. Can the Minister perhaps tell us how, the previous strategy having failed on 9 December, the Government will set about protecting Britain’s national interests in the area of financial regulation in the current situation in which those proposals are as dead as a dodo?

[Lord Sassoon]

My Lords, the strategy did not fail on 8 and 9 December. We did not sign up to a treaty which it would have been wholly wrong for the UK to sign up to on the terms that were offered. What is happening now and is very positive is that we are working with a significant number of like-minded countries to drive forward the growth agenda. My right honourable friend the Prime Minister was one of 12 Heads of Government who signed up to a letter very much led by us. We have regular meetings with 16 like-minded countries to define and drive forward the pro-growth agenda.

EU: Fiscal Compact Treaty

Debate between Lord Hannay of Chiswick and Lord Sassoon

Tuesday 7th February 2012 Lords Chamber

[Lord Sassoon]

My Lords, it continues to be the Government’s wish that the eurozone holds together and makes the arrangements, some of which I outlined in my previous answer. As I have said in answer to previous questions from the noble Lord, Lord Barnett, the Government take all precautionary measures and look at all scenarios that there may be as this still very severe situation continues to unfold.

[Lord Hannay of Chiswick]

Will the Minister have a shot at the question that I have given to two of his colleagues, which they have failed to answer so far, and state what objections the British Government have for the text of the intergovernmental agreement that will be signed at the end of this month?

[Lord Sassoon]

My Lords, I think that my noble friends Lord Howell and Lord Strathclyde have given very good answers to that question in the past and there is nothing I need to add.

Euro

Debate between Lord Hannay of Chiswick and Lord Sassoon

Thursday 27th October 2011 Lords Chamber

[Lord Hannay of Chiswick]

My Lords, would the Minister be so good as to give the noble Lord, Lord Liddle, a reply to the question about the euro-plus pact? It may be that the name of this pact is unfortunate, but it is supported by a number of countries which are not in the eurozone, and its objectives relate very closely to our most important objective, which is to further the single market. Would he not agree that the priority now is not drawing up long wish lists for repatriation but working out how we are going to keep our position and keep the integrity of the single market?

[Lord Sassoon]

As the noble Lord, Lord Hannay, says, there are many things up for consideration and we need to consider the future architecture in the round and decide where it is in the best interests of the UK to move forward on all those issues. It would be too early to pick out one item this morning.

EU: Economic Governance

Debate between Lord Hannay of Chiswick and Lord Sassoon

Wednesday 27th October 2010 Lords Chamber

[Lord Sassoon]

At the moment, the proposals floating around sit within the various statutory limits for Europe. However, just because those statutory limits are set at some theoretical level, that does not mean that it is at all appropriate in the view of the Government for people to go around suggesting 6 per cent increases in the budget next year or anything remotely like it. At a time when the UK and many other members of the EU are tightening their belts appropriately, the EU budget should do the same.

[Lord Hannay of Chiswick]

Does the Minister agree that there are perfectly respectable arguments against treaty change at this stage that do not need to delve into the intricacies of Britain’s relationship with the European Union? Given that what is being sought is greater stability in the eurozone, which is in our interest, respectable arguments against treaty change—such as that the ratification by countries quite different from ourselves might be problematic and might lead to a loss of confidence in the euro as a result—ought to be deployable by any member state.

[Lord Sassoon]

My Lords, the task force has come forward with some significant proposals for strengthening the framework within the eurozone. I echo the noble Lord’s sentiments in respect of the task force proposals, but those proposals, which would be a significant step forward, do not themselves require any treaty changes. There may be other suggestions, such as the idea of a permanent crisis resolution framework, which may require treaty change. The UK Government absolutely support the euro area’s desire to take positive action to overcome its problems through the creation of an appropriate framework. If that has treaty consequences, we will look at it in that spirit.

EU: Financial Assistance to Member States

Debate between Lord Hannay of Chiswick and Lord Sassoon

Monday 19th July 2010 Lords Chamber

[Lord Sassoon]

My Lords, I am not sure what the question is or what it has to do with Article 125, but we were all entertained by it.

[Lord Hannay of Chiswick]

My Lords—

--- Later in debate ---

[Lord Sassoon]

Indeed, my Lords. Out of the €500-billion package agreed on 9 May, the UK participates in the €60-billion element of it. I agree that it is appropriate the UK should play its part. I remind the noble Lord that on Friday 23 July the bank stress tests will be published, which will be another important component in ensuring the stability of Europe and the eurozone.

[Lord Hannay of Chiswick]

My Lords, does not the Minister agree that during these current economic and financial difficulties in Europe we would all do well to remember that, to coin a phrase, “We are all in this together”? Therefore it is in this country’s interest that countries in difficulties should be helped, as they are being.

[Lord Sassoon]

My Lords, as I have set out, the UK is indeed playing its part. Forty per cent of our exports go to the eurozone and it is absolutely critical that we play our part, not only in the current ongoing crisis but in influencing the structural reforms that Europe requires going forward.