Greece: New Government

Baroness Anelay of St Johns Excerpts

Tuesday 3rd February 2015 Lords Chamber

[Lord Clinton-Davis]

To ask Her Majesty’s Government what are their priorities in establishing a relationship with the new government of Greece.

[The Minister of State, Foreign and Commonwealth Office (Baroness Anelay of St Johns) (Con)]

My Lords, the Government’s first priority is to establish a strong working relationship with Greece’s new Government. Last week, the Prime Minister called Prime Minister Alexis Tsipras on the telephone to congratulate him, and yesterday the Chancellor met the new Finance Minister, Yanis Varoufakis. The UK remains committed to working closely with the new Government on the full range of bilateral, EU, NATO and wider international issues.

[Lord Clinton-Davis (Lab)]

My Lords, are not the poor and many middle-class people in Greece enduring unbelievable hardship? What are the United Kingdom Government able to do to mitigate this disaster? Are the people of Greece able to look forward in any way? It is hardly surprising that they are resorting to radical measures. What can the Government do, given that Britain is a member of the European Union, to alleviate their plight?

[Baroness Anelay of St Johns]

My Lords, we are indeed a member of the EU, but we are not a member of the eurozone; so I would gently say to the noble Lord that we are not directly involved in Greece’s debt repayment negotiations, and nor indeed should we be. Of course, we are open to the discussions with the Greek Government, as I explained in my first Answer. The discussions yesterday were cordial and constructive, and that was the interpretation of both the Greek Finance Minister and the Chancellor of the Exchequer. As I say, we are open to discussions, but since we are not a member of the eurozone we are not the country that will take the decision about how the Greek Government may decide to present their plans—which possibly will be next week. I know that they are working hard to achieve that.

[Lord Pearson of Rannoch (UKIP)]

My Lords, given the euro’s catastrophic effect on jobs and prosperity, should not our top priority be to encourage Greece, and indeed the other euro member states, to abandon it? If that led to the collapse of the whole project of European integration, would that not be hugely beneficial to us all? Just in case the Minister does not agree with me, can she tell noble Lords what is now the point of the European Union and its wretched euro?

[Baroness Anelay of St Johns]

My Lords, it is clear that the stand-off between Greece and the eurozone is fast becoming the biggest risk to the global economy and is a rising threat to our economy at home. I say that, and indeed the Chancellor of the Exchequer said it yesterday after his meeting with the Greek Finance Minister. It is up to Europe to come to a conclusion which means that Greece can remain part of the euro, that the European Union can prosper, and that jobs and growth can continue. That is the way forward for success in Europe and for the success of this country in Europe.

[Baroness Ludford (LD)]

Does my noble friend agree that if, as we all hope, the eurozone is to get more jobs and growth, then in communicating with the Greek Government, we must urge structural reforms, including eliminating cronyism and corruption; that those are essential if we are to get, in the words of the new Finance Minister, a reformed, not a deformed, Greece; that fiscal responsibility and sustainability are essential; that spending more money without knowing where it is coming from—a fault not unknown in some parties in this country—is inadvisable; and that the UK can also offer the Greek Government the benefits of the progress that has been made in this country in tackling tax evasion in the last five years?

[Baroness Anelay of St Johns]

My Lords, I agree with every word that my noble friend said.

[Baroness Hooper (Con)]

My Lords, can my noble friend reassure us and confirm that the relationship between Greece and the UK has been greatly reinforced by the educational exchanges that have taken place over the years, especially in the field of medicine? Will she therefore reassure us that the existing educational initiatives will be reinforced?

[Baroness Anelay of St Johns]

My Lords, I entirely agree with my noble friend on the importance of those educational exchanges. Work is done throughout various government departments and the FCO always looks very carefully at how we can give advice on such matters, too.

[Lord Tomlinson (Lab)]

Does the Minister agree that it is a little bit too simplistic just to say, “We are not members of the eurozone”, and therefore almost wash her hands of it? There are loans from the International Monetary Fund and we have an interest in those loans being properly managed. Can she tell us what the Government’s intention in that regard is?

[Baroness Anelay of St Johns]

My Lords, we would never wash our hands of discussions with our colleagues within the European Union. I think that I have made it clear that both the Prime Minister and the Chancellor of the Exchequer have already had discussions. Indeed, my right honourable friend the Prime Minister telephoned Mr Tsipras on the very day that the Greek Prime Minister took his position. Discussions are ongoing and there will, of course, be meetings next week at the European summit. As regards the IMF, we are indeed part of the system that backs it up. The IMF’s status as preferred creditor means that it is repaid first. What is important is that we do not get to the point of a Greek default. The new Greek Government are working on that and it is important for them to be able to discuss what kind of package they can put together, as they work around their colleagues in the eurozone this week.

[Lord Hamilton of Epsom (Con)]

My Lords—

--- Later in debate ---

[Lord Kilclooney]

My Lords, when the Chancellor of the Exchequer met the Greek Minister yesterday, did he point out to him the advantages the United Kingdom had by not being a member of the eurozone?

[Baroness Anelay of St Johns]

My Lords, he pointed out the advantages of having a Government who put competence over chaos.