Eurozone Crisis

Andrew Love Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

I cannot confirm that they are dead in the water, because the eurozone is determined to pursue a financial transaction tax and talks about that in its statement. However, I can confirm to my hon. Friend that Britain will not accept a financial transaction tax at an EU27 level while other jurisdictions in the world do not impose one. We are not opposed to financial transaction taxes in principle—after all, we have stamp duty on shares in this country—but we will not have a financial transaction tax at a European Union level while countries such as America, China, Singapore and others do not have one. As their having one is a long way off, we will be waiting a long time—perhaps for ever—for a European Union financial transaction tax.

[Mr Andrew Love (Edmonton) (Lab/Co-op)]

Over the next few years we are likely to see the emergence of a two-speed Europe, with the Government—or parts of the Government—going in exactly the opposite direction. What can the Chancellor and the Prime Minister do to ensure that we are not locked out of the fundamental decisions that will be made?

[Mr Osborne]

I just do not accept the premise behind the hon. Gentleman’s question. The coalition agreement explicitly states:

“We will ensure that there is no further transfer of sovereignty or powers over the course of the next Parliament. We will examine the balance of the EU’s existing competences”.

The odd one out is the Labour party, which has set itself against taking any power from Brussels back to Britain. That is exactly what the Labour leader said this weekend when asked that question. I suggest that the hon. Gentleman use his lobbying efforts and his questions on his own party leader.