European Union: Recent Developments

Debate between Lord Pearson of Rannoch and Lord Roper

Monday 17th December 2012 Lords Chamber

[Lord Pearson of Rannoch]

My Lords, as the noble Lord, Lord Liddle, mentioned this phenomenon as well, and turned and wagged his finger at me with great energy when he said that millions of people want to join the European Union, do those noble Lords agree that that wish is guided by the political classes in those countries far more than by the people? It is, of course, the political classes who stand to get at least 10 times their present salaries on the EU pay scale either at home or in Brussels?

[Lord Roper]

As we have been constrained to keep to seven minutes, I shall say no more than that in almost all of the countries that have acceded recently, there have been referendums and that, therefore, the people of those countries have given their consent to the process of accession.

Turning to the Prime Minister’s Statement, which we heard earlier, the agreement in ECOFIN and then in the December European Council on the method of guaranteeing the interests of the non-members of the eurozone as the banking union develops, is, I believe, very satisfactory, and suggests that it will be possible to find effective arrangements for those member states outside the eurozone as economic and monetary union develops to preserve the integrity of the internal market in financial services. On the other hand, it must be said that the progress towards achieving an effective road map at the European Council to develop such an economic and monetary union was very limited, and suggested that it will take rather longer than expected.

We are approaching the 40th anniversary of British accession to the European Union, and we should, I believe, be celebrating the contributions of the UK Commissioners and officials from the UK who have played a part in that development. We have heard from one, and we will hear from another shortly. Instead, we are being exposed to competing proposals for less or more repatriation of competences to London from Brussels. This was referred to in only general terms by the Prime Minister in his press conference on Friday, but may be made more explicit in his much awaited European speech.

It is difficult, on one level, to equate such proposals with the view frequently stated in this country that we should operate on a level playing field, because this seems to be an attempt to make the playing field not level. Even before President Hollande’s categorical remarks on Friday, it is very difficult to see that they would be acceptable to the other member states. Indeed, President Hollande echoed remarks made earlier this year by the German ambassador. The idea that the United Kingdom could bargain such repatriation against our support for the constitutional changes needed for full economic and monetary union and putative political union is not plausible. The other members would follow the precedent of last December and proceed with a treaty among themselves.

This is not to say that there are not many unsatisfactory aspects of the current operation of the European Union and that there is not considerable validity in many of the criticisms of it. However, we need to find other ways to implement a reform agenda. I believe that the way is to work within the union to make changes that would then apply to all member states. The coalition Government have already had some success in this and should pursue it.

For instance, we strongly supported the proposals of Commissioner Damanaki, first considered in July this year, which, when implemented, will fundamentally overhaul the common fisheries policy. Incidentally, they follow very closely the proposals in your Lordships’ European Union Committee’s report on the common fisheries policy, which was produced in July 2008. They would involve devolving powers over the design of sustainable fisheries to a regional and national level, so that they can design innovative and tailored policies for their seas within the overall CFP.

In another example, when he was a Minister in BIS, my right honourable friend Ed Davey, working with a group of like-minded countries, negotiated the first exemption for small businesses from European Union accounting rules, saving small businesses £400 million a year. This has led to an EU commitment to exempt small businesses from all new EU regulations wherever possible. More recently, my right honourable friend Vince Cable has put forward, together with 12 other member states, a 10-point plan for smarter regulation.

The same approach can be seen in, for example, making changes to the working time directive. These examples demonstrate the opportunities for working within the European Union to deal with problems, rather than seeking unilateral repatriation.

Finally, the balance of competences review which the coalition Government have set up may discover examples where the principles of subsidiarity and proportionality have not been followed in the past. In these cases it would seem very useful to raise them within the various institutions, with a view to changing the European Union legislation concerned. We have significant opportunities for effective reform within the Union, but not by unilateral repatriation.