European Council

Baroness Falkner of Margravine Excerpts

Monday 20th December 2010 Lords Chamber

[Baroness Falkner of Margravine]

My Lords, perhaps I may take the opportunity to thank my noble friend the Leader of the House for repeating the Statement and, through him, to congratulate the Prime Minister on his perseverance and clarity in his clearly difficult negotiations in Brussels. One of the successes of the Statement is that it is forward-looking. We all know of the difficult issues that are still with us, two or three years after the financial crisis, in the peripheral countries of the eurozone. It was surprising to hear so much time devoted by the Official Opposition to the past and what the Government might or might not have promised in previous years. Media reports suggest that some concessions were made in terms of the financial perspectives moving forward to the period 2014 to 2020—indeed, the Germans secured their Lisbon treaty revision to establish the financial stability facility—but it was disturbing to hear that there was agreement with the French that the common agricultural policy would remain untouched. In other words, our desire to achieve greater efficiencies will not now bear fruit. Will my noble friend reassure us that we will continue with our commitments to reform the common agricultural policy? I wonder also whether he could reassure us that the newer eurozone countries, which have done very well by the structural funds and would naturally be loath to see them cut back, will nevertheless have conversations with us to attain that end, because we cannot all have cake every day.

[Lord Strathclyde]

My Lords, my noble friend is entirely right: we cannot have cake every day. Throughout Europe, different countries in different ways are learning the lesson of increasing productivity and trying to do more for less. The Prime Minister had one thing on his mind, and was not alone in so doing. He made it clear that, with leaders having to look at cuts in all sorts of very sensitive areas in their home countries, as we have had to do in ours, it was quite wrong to see net contributions to the EU continue to rise exponentially and that we needed to come forward with a very sensible plan over the next few years.

My noble friend Lady Falkner asked about our commitment to reform the CAP. This has been a long-standing commitment, and we cling very firmly to our view that the CAP needs to be reformed. Discussions on it will continue, likewise on the structural funds.