European Council

Lord Pearson of Rannoch Excerpts

Monday 21st June 2010 Lords Chamber

[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.

[Lord Pearson of Rannoch]

I share with sorrow the sentiments expressed from the Front Benches about the two latest deaths in Afghanistan.

Turning to the Statement, does the noble Lord agree that it really is beyond belief that the EU should presume to examine our Budgets before Parliament debates them when its own internal auditors have been unable to sign off its own accounts for the past 15 years? Can he comment on that? Will he also comment on Mr Van Rompuy saying last week that the Government’s refusal to submit our Budget to Brussels is unfinished business? How will the Government react if they are outvoted on this in the autumn? Finally, and more widely, the Government’s protestations of their innocence do not exactly chime with the wording of the Council’s conclusions. I shall read three extremely briefly. First,

“we fully agree on the urgent need to reinforce the coordination of our economic policies”.

Secondly,

“All Member States are ready … to take additional measures to accelerate fiscal consolidation”.

Thirdly,

“The crisis has revealed clear weaknesses in our economic governance, in particular as regards budgetary and broader macroecononmic surveillance. Reinforcing economic policy coordination therefore constitutes a crucial and urgent priority”.

Which one is right—the Government’s Statement or the Council’s conclusions?

[Lord Strathclyde]

My Lords, the noble Lord, Lord Pearson of Rannoch, is right when he says it is beyond belief that the EU should wish to inspect our Budget before it is presented to Parliament. He is entirely right. In that there is not a cigarette paper of difference between him and the Prime Minister, or I suspect even the Opposition. We would all agree that the EU has no role and no place to look at our budgetary arrangements and, indeed, our parliamentary procedures. That position has been made entirely implicit in the Statement that I repeated a few minutes ago. It is not unfinished business; it is firmly finished business and we will be leaving it entirely the way that it is currently.

The noble Lord, Lord Pearson of Rannoch, made great play of looking at the conclusions and the Statement that we made. This is an old game to play and the noble Lord does it with great skill. I assure him that again there is no difference between the conclusions and the Statement that we made. They can live together entirely side by side and there is no difficulty for the Government.