Middle East: Quartet

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Tuesday 28th February 2012 Lords Chamber

[Lord Howell of Guildford]

I think that the noble Lord is realistic. The quartet is not in a position to achieve the magic progress that we want to see, but the moment may come when its usefulness can be developed. In the mean time, we retain confidence in it as a part of the mechanism for taking things forward. Clearly, however, many other aspects need to be improved and strengthened.

[Lord Lea of Crondall]

My Lords, how does the effect of the Iranian nuclear weapons crisis on Israel bear on the ostensible agenda of the quartet? Is there not a lack of reality in the timescale as regards the urgency of various matters? Will that have a bearing on the present agenda of the quartet?

[Lord Howell of Guildford]

The noble Lord is asking about the broader issue of Israel and Iran and the very tense situation that clearly exists. I think it was President Obama who, on becoming President, was advised that everything in the Middle East is connected with everything else. Israel’s concerns about Iran, and all our concerns about Iran’s attempt to move to nuclear weapons, are part of the Middle East imbroglio. However, we must not let that take our eye too much off the need for the Middle East peace process to go ahead and for the road blocks along that process—including the building of settlements, which is clearly a major obstacle—to be overcome.

EU: Recent Developments

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Thursday 16th February 2012 Lords Chamber

[The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)]

My Lords, I hope that noble Lords will welcome the opportunity for a European Union debate in the light of the very rapid changes and developments in the European Union, and that we will be able to bring to bear the accumulated wisdom of your Lordships' House on how we should proceed in the interests of this nation and of European strength and unity in the coming weeks and months.

Although the global pattern of influence, power and wealth is fast changing, Europe remains our neighbourhood and our largest immediate market. Obviously it is in a stable, prosperous and vibrant neighbourhood that we want to live within the European Union, on terms of close co-operation and friendship with our neighbours. It is therefore in Britain’s clear, immediate interest to see our neighbours’ problems sorted out, notably the present eurozone tangles. These are having a chilling effect not just on the eurozone but on our economy and the global economy, including even the great new markets of the emerging world on which we increasingly depend.

Addressing the eurozone problems in a realistic and sustainable manner is one of the best ways in which the conditions for renewed economic dynamism can be found and secured, both here and across the whole European economic space. The package of measures agreed by the European eurozone states in October last year set out the immediate steps that must be taken if the eurozone is to hold together and endure. Europe's banks must be properly capitalised; the uncertainty in Greece must be brought to an end, which we hope will happen soon—and without utterly destroying that noble country; and a firewall must be built that is strong and high enough to deal with the full scale of the crisis.

In the longer term, much more will be needed. Proper fiscal discipline built into the system will be the only path that goes forward for the eurozone. This is the inevitable consequence of the decision taken in Maastricht in 1992 to set up the single currency area, to which the United Kingdom did not sign up, and outside which we thankfully remain. For those inside the area, it was always the hope that, following monetary union, greater fiscal discipline would indeed somehow follow and be achieved. It was deviations by several states from this hoped-for path of fiscal discipline that built up into the current eurozone crisis, for which new rules on closer fiscal integration aimed at trying to correct the problem had to be hastily hammered out over recent months.

At the December European Council, the issue was whether these new rules aimed at closer fiscal union should be incorporated in the European Union treaties or implemented through an intergovernmental agreement. My right honourable friend the Prime Minister went to the European Council prepared to agree a treaty of all 27 countries, but only if there were proper safeguards in place to ensure that the integrity of the single market was preserved. They were not an opt-out for the UK, as some have suggested; they would have applied to the European Union as a whole, ensuring that the basic building blocks of the single market—that is, a level playing field upon which competition takes place—were properly protected in all member states. These safeguards were not acceptable to some, and so the Prime Minister vetoed the proposal to have a treaty change for all 27 member states. To have incorporated the changes in the intergovernmental agreement into the EU treaties as a whole now without proper safeguards would have been the effect of signing up in December.

[Lord Lea of Crondall]

I am sorry to interrupt so early in the noble Lord’s introduction, but he mentioned safeguards. Some parts of the Government seem to say that those safeguards were solely to do with the City of London. Does that mean that the rest of what was agreed on closer economic and monetary integration would have been quite okay?

[Lord Howell of Guildford]

Not necessarily. I would like to give a straightforward answer to the noble Lord, who follows these things, but there are a number of qualifications and details that I want to come to in my speech. I have tried to set them out most carefully because I know your Lordships’ detailed interested in them.

I was saying that to have incorporated the changes in the intergovernmental agreement, the fiscal union agreement, into the EU treaties now without the proper safeguards, which would have been the effect of signing in December, if my right honourable friend had gone ahead with it, would have risked changing the character of the European Union profoundly. It would have strengthened the euro area, but without corresponding balancing measures to maintain the integrity of the single market at 27. I shall come to the nature of those safeguards in more detail and why we felt they were not present.

As a result of the December meeting, eurozone countries and others are making separate arrangements outside the treaties for strengthening budgetary discipline, including by ensuring that there are much tougher rules on deficits. The Governments of 25 member states, so far, have indicated that they intend to sign up to the intergovernmental agreement reached in January.

This is a treaty outside the European Union. We are not signing it, we are not ratifying it and it places no obligations on the United Kingdom. It does not have the force of European Union law for us, European Union institutions or even the countries that have signed it. European Union legislation can be agreed only in the European Union Councils of Ministers, and we are a full member of them. There will be no inner group of European countries distorting the single market from inside the EU treaties. That is the protection that the Prime Minister secured in December, and that protection remains.

There has been much comment about the use of the European Union institutions, and I want to come to that. The new agreement sets out limited roles for the European Commission and the European Court of Justice. The legal implications are complicated and hinge upon how the agreement is implemented. It is for this reason that we have reserved our position.

We have been clear that we will not allow the institutions to be used in any way that would undermine the interests of the 27, in particular, the single market, and that we will insist that the EU institutions continue to work for all 27 nations of the European Union. Indeed, those institutions are established by the treaty, and that treaty is still protected. The intergovernmental agreement is absolutely clear that it cannot encroach on the competences of the EU and that measures cannot be taken which undermine the single market. As my right honourable friend the Prime Minister made clear to colleagues at the informal January European Council, we will be watching closely the implementation of this new intergovernmental treaty, and we are able to take action if our national interests are threatened.

We want to see a reformed and strengthened European Union better able to cope with the new international pattern of powers and influences. I agree with the comments that I read, made by the noble Lord, Lord Mandelson, that the EU model needs “dramatic reform”—I think those are his words—but we do not want to be part of a fiscal union. We do not want to be part of the eurozone, and we have made clear that the British people have a say before any further competence can be transferred to the European Union.

Having said that I agree with the noble Lord, Lord Mandelson, I slightly disagree with his suggestion that it is the European social model that should guide us, as I believe we should have confidence that we can develop potentially our own model, especially based on wider capital ownership, and wider ownership and distribution on a fair and balanced basis in our society, and that is what we should think in terms of.

Nevertheless, as I have said, it is in the UK’s interests that the eurozone sort out its problems. The UK’s attitude is supportive and constructive. We are involved in discussions on the implementation of this agreement and, as ever, in the machinery of building a prosperous and competitive Europe and a good single market. These remain our aims. The view that the only way to exert influence in the European Union is through surrendering more sovereignty and control to Brussels is, frankly, outdated.

The EU is not monolithic. It contains flexible arrangements such as the single currency and the Schengen agreement, and it is right that the European Union should have,

“the flexibility of a network, not the rigidity of a bloc”,

as my right honourable friend the Prime Minister said in his speech at the Guildhall last autumn. The UK is at the forefront of efforts in Brussels to develop our union according to this model, which we believe to be the right one.

Britain’s agenda in Europe is to promote growth, competitiveness and jobs. We have said repeatedly that the best way in which the European Union can drive growth and create jobs is to complete the single market, establish trade deals with the fastest growing parts of the world—which we are seeking to do on many fronts—and cut the regulatory burdens on business.

Last year the European Commission estimated that growth in the Union this year would be 0.6 per cent. The IMF now projects minus 0.1 per cent. Competitiveness remains Europe’s Achilles heel. More than half of EU member states are now less competitive than they were last year. It is essential that countries across Europe take bold action to recover their economic dynamism, get to grips with their debts, and secure growth and jobs for the future.

This is why the UK has been arguing for a pro-business agenda in Europe. We are pushing for the completion of the single market in services, where there are still 4,700 professions across Europe to which access is regulated by government, and in the digital area, where there are over a dozen separate copyright regimes. Together, these measures could add more than 6 per cent to European Union gross domestic product within 10 years.

We are also committed to reducing regulatory burdens, especially for small and medium-sized enterprises and microenterprises, and pushing forward a patent package to support innovation. This has been discussed in Europe for over 10 years and decisive progress is now at last being made.

We are also actively pushing for decisive action to get trade moving. We want 2012 to see significant movement on EU free trade agreements with major partners such as Japan—which has been going for many years—India, Canada and the United States. Completing all the deals currently on the table could add an estimated €90 billion to Europe’s GDP. An agreement between the EU and the US could have a bigger impact than all of these put together.

For countries outside the European Union, the UK remains the gateway to the largest single market in the world. Of the 1,200 Indian firms operating in the EU, over half have their headquarters in the UK. Britain is a world-class destination for international business, and the most attractive foreign direct investment destination in Europe, and remains so. Being outside the euro does not affect that.

My right honourable friend the Foreign Secretary has emphasised that we need to develop our commercial, economic and political presence in fast-growing, emerging markets. We certainly do. At the same time, Europe is our neighbourhood and our biggest market. It is full of innovation and potential for the future. More than 40 per cent of our exports go to EU eurozone member states—more of course to Europe as a whole. Trade with the EU allows us to specialise in what we produce best and to run trade surpluses with other countries, such as the US and Australia. Our aim is to use this position to expand our exports to fast-growing markets in addition to our existing exports—not as an alternative or instead of them but, I repeat, in addition.

The Commonwealth is one such area. It is one of the great networks of the future. It provides a gateway to many of the great, new markets. It includes some of the world’s fastest-growing economies, with members showing democratic values and similar legal and accounting systems. These provide solid foundations for doing expanding business and a platform for trade, investment, development and, in turn, prosperity. Trade within the Commonwealth totals more than—

Egypt

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Tuesday 18th October 2011 Lords Chamber

[Lord Howell of Guildford]

The Egyptian Foreign Minister, Mr Amr, told my right honourable friend that the lower house elections would go ahead in November and the presidential elections would be next year, possibly next summer. I agree totally with my noble friend that it is in nobody’s interests for these elections to be further delayed. We have made it absolutely clear to the Egyptian Ministers and authorities that the sooner we get forward with the sequence of the return to full democracy the better, and early presidential elections are very much part of that.

[Lord Lea of Crondall]

My Lords, we have a virtually insoluble dilemma about Britain in any sense directly addressing the question of rights on behalf of the Coptic Christians. The revolution is fairly recent, but let us look ahead to the reconstruction of Egypt, whether it is in relation to its infrastructure, investment, social policy, tourism or anything else. Is it not reasonable to visualise, as we have done with a number of countries, that the dialogue with Egypt—which would have to be carried out under the European Union because it cannot be accused of imperialism in the same sense as Britain can, but that is arguable—would have to include a wide range of social and religious freedoms and human rights questions? Would it be more useful for the British Government to help stimulate discussion fairly soon about the forum for dialogue so that the whole of Egyptian public opinion can be brought on board as part of that dialogue?

[Lord Howell of Guildford]

I think I see what the noble Lord is getting at. Certainly our support and help—I repeat, not interference with the affairs of the Egyptian nation—is geared to that kind of development. We are backing non-governmental organisations that are promoting think tanks and discussion groups to try to widen the political diversity, to support the role of women in the political process and to develop a number of other activities to support the evolution of sensible, balanced party politics. This is what we are seeking to do in addition to substantial aid through the Arab Partnership in various other social areas. The general thrust is, I think, in line with what the noble Lord was saying.

Arab Partnership Initiative

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Thursday 15th September 2011 Lords Chamber

[Lord Howell of Guildford]

Yes, it most certainly can. There are Arab Partnership funds for Iraq but they are on quite a modest scale because—as I know my noble friend is well aware—Iraq is potentially a rich country with gigantic resources of oil, phosphates and so on. Money is not the main problem; the problem lies in technical and administrative support. The Arab Partnership is involved, for example, in the development of broadcasting and accountable institutions and upholding human rights. We are working with the Government of Iraq across the whole field of energy, education and health. There is active engagement in ensuring that this potentially brilliant country comes back to the full comity of nations.

[Lord Lea of Crondall]

My Lords, British Arabs are not unaware of the meaning of the Arab spring, yet there are none of them in this House to give us the benefit of their advice. That is despite the fact that there are 200,000 or 300,000 British Arabs—the census will give the exact figure in due course. Does the Minister agree with me that rectification of this anomaly—it is rather an invidious position—is long overdue, not only on its own merits but in terms of the perception of Britain in the Arab world?

[Lord Howell of Guildford]

That is not actually a matter for me. However, it gives me the opportunity to say that your Lordships' House is already much more representative of this various and variegated nation of ours than people often give us credit for, and it could certainly become more so. I agree with the noble Lord that it is a valid point.

EU: Repatriation of Powers

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Tuesday 14th December 2010 Lords Chamber

[Lord Howell of Guildford]

I understand exactly the noble Lord’s concern on this, but I think that he is being a bit defeatist. It seems to me that there is a very widespread will throughout the European Union to reform it and indeed, if I may borrow a phrase, to make it fit for purpose in the 21st century. That certainly involves a sensible pattern of competences between the nation member states and the central institutions. Therefore, I think that, by gloomily saying that nothing can happen until everyone agrees, the noble Lord is taking a very negative approach to an area where European reform is perfectly possible.

[Lord Lea of Crondall]

My Lords—

--- Later in debate ---

[Lord Lea of Crondall]

My Lords, it is obvious that the Government are up a gum-tree with their policy. An example of their prejudices is the working time directive. When he was a Minister in this House, the noble Lord, Lord Darzi, pointed out that the absence in the United States of the famous 48-hour limit for doctors, which is often quoted, costs many thousands of lives there a year, so how can the Government stick to these dogmas when the facts are against them?

[Lord Howell of Guildford]

I just do not recognise what the noble Lord is saying. On the question of health administration and working hours in the medical profession, constructive discussions are going on with our fellow EU members about ways in which we can go forward. On the working time directive, we want to limit its particular application in a number of areas, which we intend to do. I do not understand all the talk of dogma and gum-trees. They may be trees that the noble Lord lives with, but they do not come into my bailiwick.

EU: Defence Pact with Russia

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Thursday 18th November 2010 Lords Chamber

[Lord Howell of Guildford]

The answer to the noble Baroness’s second question is yes, we do combine. Concern for human rights and the rule of law are two facets of the same issue. Upholding the rule of law and the broader security issues are all one ball of wax, if I may use that phrase. As to Russian involvement, President Medvedev has said that he will go to the NATO-Russia Council summit in Lisbon on Friday. So, he will attend—that is what my brief says and I am glad to learn it.

[Lord Lea of Crondall]

Is another area of potential mutual co-operation, although with some difficulty, the Arctic and the whole question of the North East Passage and mineral resources in that area?

[Lord Howell of Guildford]

Yes, this is a vast and vastly important area in which of course our partners and allies such as Norway and indeed, Canada, as well as Russia are involved. There have been extensive disputes over the years, particularly in Russia and Norway, as to which parts of the Arctic are under which territorial direction, and there was the dramatic planting of a flag at the North Pole by some Russian underwater vehicles. I understand, although it is not in my brief, that considerable advances have been made in agreeing the border lines between Norway and Russia, which opens the way, provided that costs and technology allow, for a vastly greater exploitation of the huge oil and gas resources—mostly gas—under the Arctic Circle.

Israel: Illegal Settlers

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Thursday 14th October 2010 Lords Chamber

[Lord Howell of Guildford]

There are security dangers in all these developments. Obviously, attacks on Israel from Hezbollah and from rocketing from Hamas in Gaza are matters that make it more difficult for the negotiations to go ahead. These two are deplorable developments and they must cease if we are to make progress.

[Lord Lea of Crondall]

My Lords—

--- Later in debate ---

[Lord Lea of Crondall]

Does the Minister agree with the point being put to our friends in the Israeli Government that public opinion in this country and much of western Europe is influenced by the fact that there were two sides to the Balfour declaration? One is creating a homeland for the Jewish people and the other is observing the rights of the Palestinian people.

[Lord Howell of Guildford]

My noble friend is urging short answers, so the answer is yes, of course there are two sides.

Human Rights: Journalists

Debate between Lord Howell of Guildford and Lord Lea of Crondall

Thursday 1st July 2010 Lords Chamber

[Lord Howell of Guildford]

I cannot confirm the precise figure, although I suspect that the noble Lord is right. Given the limitations of our contacts, we seek where we can to make the case—and to urge the lobbies and the countries which have got some influence to press all the time—that these kind of things are not acceptable in countries which seek to be part of the comity of nations and do not want to be branded as anti-democratic pariahs.

[Lord Lea of Crondall]

My Lords, is the correlation between freedom of association and free trade unions, and the inverse correlation with the number of assassinations, being noted by the Foreign Office? It is not surprising that this is so. Will the noble Lord take into consideration that support for the ILO principles of free trade unionism will be helpful in connection with my noble friend’s Question?

[Lord Howell of Guildford]

Again, the noble Lord is right. Our freedom is not the sort of thing that you can slice up in different areas. It is a bundle, a grouping of inalienable freedoms and core principles by which we have to stand. People say, “Why bother about the rest of the world?”, but it is in our interests at least to inspire others to follow our own principles and standards, even if we cannot guarantee that they will be accepted.