European Union

Bob Stewart Excerpts

Tuesday 13th December 2011 Commons Chamber

[Mr Dodds]

Yes. For precisely that reason, I believe that when the peoples of each country—and even some of the politicians, who are currently going around saying that the UK has done a terrible thing—begin to study the detail and realise the restrictions that will now be imposed on their freedom to set their budgets and taxes, to borrow and so on, they will seriously reconsider the proposal. Having caused the greatest economic catastrophe for many decades, by creating the euro and the one-size-fits-all approach, EU leaders have come up with a bizarre answer: no comprehensive solution to deal with the immediate and pressing crisis, and no overarching deal that will properly address the problems that Greece, Italy and Spain face, but a plan to deepen and extend European integration—a plan for more treaty change and more institutional tinkering.

After all the arguments about the Lisbon treaty, we were told that Europe had learnt its lesson and that there would no more institutional debates and treaty changes. Instead, Europe was to get on with the business of trying to create jobs, growth and economic prosperity, yet here they are, at it again. There is a one-track mind among many European federalists about deepening European integration, and political and fiscal union.

[Bob Stewart (Beckenham) (Con)]

When the euro was set up, were there not strict rules on compliance for those joining, which even some of the biggest countries largely ignored? Now there is again talk about strict rules on compliance. Perhaps the boy is crying wolf; I do not believe that those rules can be enforced on countries that have shown in the past that they will not comply. They will not comply in future, either.

[Mr Dodds]

The hon. Gentleman makes a good point. He is right: in the rush to set up the euro, which was a political project from the beginning—it was believed that it would ultimately lead to political and fiscal union—those behind it permitted countries that they knew were not capable of meeting the requirements to join. What they are trying to do now will not succeed in patching the whole thing together.

--- Later in debate ---

[Mr Gregory Campbell (East Londonderry) (DUP)]

I support the motion. In the past year or 18 months, many people in Northern Ireland and some across the rest of the UK have attempted to sideline my party and say that the issues we would be raising in Parliament would be negligible, isolated and of interest to very few people. Only a few weeks ago we tabled a motion on the important topic of fuel poverty, and more than 200 Members joined us in the Lobby. I hope that more will join us tonight on this very important matter, which affects every man, woman and child across the length and breadth of the United Kingdom.

Almost 40 years ago a Euro-dream began, and we have seen the emergence, change and evolution of that dream, which many would argue is fast turning into a nightmare. Over the past weekend we saw its culmination, when the Prime Minister of this nation went into negotiations and, thankfully, when faced with a fait accompli, decided that it was time to say no. He was right to say no. What the Prime Minister has given to the Parliament and the people of this United Kingdom is a door-opening opportunity that we must not waste or cast to one side, but must seize with both hands.

In recent months we have seen the huge gulf—the chasm of Grand Canyon proportions—that exists between the economic development of countries such as Greece and Germany. But there is still insistence among the Europhiles that one size does fit all, when it is apparent to us all that that cannot and will not be the case. What we need, by way of opportunity, is for the competitiveness of the UK to emerge from the opportunity with which we have now been provided.

[Bob Stewart]

Is it not competitiveness within the European Union that is at fault—the competitiveness of the north against the lack of competitiveness in the south? That is what will kill the euro project, in money terms.

[Mr Campbell]

I thank the hon. Gentleman for those comments, and there is a significant amount of truth in what he says.

Here is a microcosm of some of the issues that might emerge. Some of my colleagues have mentioned the difference between the Irish Republic and Northern Ireland. Over the next few days millions of pounds will be spent in retail outlets in Northern Ireland by shoppers from the Irish Republic. That is good for the businesses of Northern Ireland, but why are they doing that? It is because only last week the Government of the Irish Republic had to announce an increase in VAT to 23%, so of course there is a 3% differential. We do not know where that 23% rate will go next year or the year after. The fact that this nation state retains the right not only to keep VAT at 20%, but possibly, I hope, over the next year, to reduce it back to 17.5%, will increase yet again the differential between the Irish Republic and Northern Ireland.

Colleagues have mentioned corporation tax. Again, that could add to the competitive advantage that we in the United Kingdom, particularly in Northern Ireland but in other regions as well, will have over other parts of the euro region, where corporation tax will be levelled at a rate that will not be similar to the current rate in the Irish Republic, but will have to be raised because of Franco-German demands.

In short, the issues are very clear. The Prime Minister has taken a stand. We commend him for that, but it must be only the beginning, not the end. We must now push the door open, ensure that we rebalance our position in relation to other nation states within the European region, and try to renegotiate a much better deal so that the £10 billion or £11 billion net that we put each year into the EU is deployed more cost-effectively to ensure that as we go forward, the competitiveness of this nation state benefits the people of this nation state.

--- Later in debate ---

[Martin Horwood]

Of course not, and the law will be followed, but we may find that European Governments have to gather yet again for more crisis summits in the not-too-distant future. That offers Britain a bit of an opportunity. We now need a process of positive and active diplomacy to persuade some of our more traditional allies in Europe—Ireland, Sweden, even Germany, and many others—of the benefits of having Britain fully involved not in the eurozone, but in the overall process of European economic decision making. Why? Because one of the medium to long-term solutions to Europe’s problems is to have a real focus on jobs and sustainable prosperity—jobs and prosperity in the UK, as well as in the rest of Europe because, as has been pointed out, half our trade and foreign direct investment comes from other EU members.

The argument about repatriating powers, let alone leaving the EU, completely misses the point. It is in our interest not just to have a competitive and vibrant British economy, but for there to be a competitive and vibrant European economy as well, and Britain can help to bring that about. It is not just in Britain’s interest to be at the heart of the European economy and European economic decision making; it is in Europe’s interests too, and that in turn will help British jobs, British business and British prosperity.

[Bob Stewart]

In those circumstances, would it not be wise for those people who want us to stay in to come to us and say, “Look, talk again. We want to give you what you want. We really require you”? I think Europe requires us rather more than we require Europe.

[Martin Horwood]

The hon. Gentleman makes a very good point. The Liberal Democrats supported the initial negotiating position. The mystery of last week’s summit is why we seemed to have so few friends in the negotiating chamber who would support those reasonable initial demands. That is why I am suggesting that we have a process of much more active and positive diplomacy in the run-up to what might be future summits.

--- Later in debate ---

[Dr McCrea]

No. The hon. Lady has not been present for the whole debate, so I am going to take this time to respond to the issues that have already been raised.

The Prime Minister went in to the negotiations. Naturally, there were pressures on him from other European leaders. Their demand was to go with the flow, but he stood firm and resolute for the interests of the United Kingdom. He did not come back to the House waving a “Neville Chamberlain” piece of paper, but became the first Prime Minister to have the courage to veto a new European Union treaty.

There are those in the House who condemn the Prime Minister for doing that. I ask them what authority he had to do other than stand up for the interests of the United Kingdom—that is why he is Prime Minister. In the past, other Prime Ministers have gone into important negotiations and when it came to the point of decision, they did not do what was in the interests of the country—although their consciences were saying that they should do something, they were not willing to do it because it was not popular.

Politicians are vain enough to desire popularity; they love compliments, especially from others on the world stage. However, it is better to do right than be forced to do wrong. The Prime Minister stood at the Dispatch Box in the House before going to the European summit. He told the House that he would act in the best interests of the United Kingdom and that he would make certain demands to protect British interests, and if he could not get them, he would use his veto.

There is no use in someone’s talking tough and taking a weapon to defend themselves if they are not prepared to use it. The Prime Minister took the veto weapon with him into the negotiations. Angela Merkel and Nicolas Sarkozy flatly refused him even the most modest concessions simply because they believed that he would do what other Prime Ministers had done before and that he would not use the nuclear option of the veto. History had told them that Prime Ministers did not have the bottle to use the veto, and, after the huffing and puffing, would concede rather than hold firm.

[Bob Stewart]

The President of France and the Chancellor of Germany were acting in their best interests. They wanted to do a raid on the City of London—something that provides 11% of the income of this country—and take it away from us so that we could not use it. That is what the Prime Minister was defending and that was why he was in the right.

[Dr McCrea]

I agree. The European Union has been used to raiding our coffers over the years; we have been paying for many of its wonderful, unique programmes, which have in fact been an abuse of some of the finances hard earned by the people of this country.