EU: Economic Governance

Lord Tomlinson Excerpts

Wednesday 27th October 2010 Lords Chamber

[Lord Sassoon]

My Lords, I welcome the question from my noble friend. It enables me to restate that it is perfectly right and proper that the UK should be subject, as it is, to the financial disciplines of the stability system in the EU. This means that we are required to exercise fiscal discipline. Indeed, the July council expressed itself satisfied. It said that the new UK Government’s proposals for deficit reduction were adequate to meet our responsibilities. It is quite right that we should go that far but, equally, we are not members of the eurozone. The system of sanctions that applies in the eurozone escalates to fines, as my noble friend said. The sanctions can start by requiring interest-bearing deposits, then non-interest-bearing deposits and finally fines. It is completely appropriate that those should apply to the eurozone and not to the UK.

[Lord Tomlinson]

My Lords, the noble Lord said clearly on two occasions that treaty changes are not on the table and that we will consider them with an open mind if they are. However, will he accept that treaty changes, if they are proposed, will reopen the whole of the Lisbon treaty box and require parliamentary ratification? Will he also be a little more robust in telling us that he can see no circumstances at present in which Her Majesty’s Government will consider treaty changes?

--- Later in debate ---

[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.

[Lord Tomlinson]

My Lords, the Minister did a bit of a soft-shoe shuffle in replying to the question asked by the noble Lord, Lord Marlesford. He talked about the next financial perspective, whereas I am sure that the noble Lord was arguing about next year’s budget. In the interests of clarity, will the Minister tell us how Her Majesty’s Government voted in council in relation to the budget for the year 2011? Did they show financial discipline or did they vote in favour of it?

[Lord Sassoon]

My Lords, forgive me, but I cannot recite how we voted on each matter at each council meeting. However, I will write to the noble Lord in answer to that question.