EU: Integration

Baroness Falkner of Margravine Excerpts

Tuesday 22nd November 2011 Lords Chamber

[Lord Howell of Guildford]

Some of those aspects are correct, but the noble Lord overemphasises the polarity and the rigidity of the choice. There is no doubt that one of the propositions that is current throughout the eurozone is that the only way forward is towards fiscal union. Indeed, if that is a way of avoiding total chaos in the European markets, it is in our interest, too, that the process should be non-chaotic. That is perfectly clear. However, in other areas, as I said earlier, some degree of decentralisation and flexibility might play a much more useful part in making the European Union fit for purpose in the 21st century.

[Baroness Falkner of Margravine]

Would it help my noble friend, in answer to the question of the noble Marquess, Lord Lothian, if the networked Europe that he talked about was a flexible EU of variable geometry, in which those that want to join the eurozone can do so, and those that want to deepen the single market for a more competitive open trading system to the benefit of all our citizens can also participate in the decision-making? Should that not be the way forward, not fretting about variable speeds and referendums?

[Lord Howell of Guildford]

I do not know about my noble friend’s remarks on referenda. There is a case for them on certain occasions, as the Government have made clear. However, the broader issue she described is not very different from what we had in the past. This nation and several others are not members of the eurozone; others are. There is absolutely no reason why we should not co-operate very closely with those who are in or out of the zone in what is in effect a multi-speed Europe, as long as we recognise that we work together in a co-operative pattern within the Union to address constructively the very dangerous challenges from the outside world.