Oral Answers to Questions

Lord Johnson of Marylebone Excerpts

Tuesday 19th June 2012 Commons Chamber

[Mr Hague]

I will go so far with my hon. Friend, as usual, but not all the way, as usual. I absolutely agree that the crisis is having a major effect not only on those in the eurozone but more broadly, and that it is having major political as well as economic ramifications. As for drawing together, in whatever form, reflections on the future of Europe arising from the crisis, however, it would be better to do that when one can discern how the crisis will end and progress and develop over the coming months.

[Joseph Johnson (Orpington) (Con)]

Many residents in Orpington work in financial services and make a big contribution to the success of this country’s biggest export sector. Can the Secretary of State say what safeguards the UK financial services sector might need in the event of steps towards banking union in the eurozone and fiscal compact countries?

[Mr Hague]

Safeguards will certainly be needed—my hon. Friend is quite right to raise that—but as things stand proposals and ideas about banking union take many different forms. Many people mean many different things by “banking union”. If such proposals are made more tangible and specific, we will set out the specific safeguards that we think we need for the single market. We are already making the case in European capitals that in the event of a banking union in the eurozone, which, by the way, we will certainly not be part of—let me make that absolutely clear—such safeguards will be necessary.