European Council

Chris Heaton-Harris Excerpts

Monday 1st November 2010 Commons Chamber

[The Prime Minister]

I do not believe that will happen, but what was interesting about this European Council is that there is quite an existential debate taking place within the eurozone about what it means to be a member of the euro. There is a very strong push by the Germans, who obviously feel that they have had to bail out the Greeks, that they have to have tighter rules for members of the eurozone, and there are very great worries on the part of some countries about the sanctions that could be applied to them. This is a debate that was inevitable when there is one currency and many countries and they are having to give up some of their sovereignty to make that single currency work. It is perfectly logical for eurozone members. It reinforces in my mind that they are right to do that, but we are right not to be part of it.

[Chris Heaton-Harris (Daventry) (Con)]

May I say to the Prime Minister how refreshing it was, after 13 years of inactivity and disinterest in this area, to see a British Prime Minister fighting for a reduction in the size of the EU budget and for better value for money for British taxpayers? Can he confirm that he now has two potential vetoes—first, on the limited treaty change on economic governance, and, secondly, on the EU budget for the next period, 2014 to 2020—and that they can be used independently of each other?

[The Prime Minister]

My hon. Friend is entirely right. Britain does have leverage, influence and an impact in these negotiations. The question that we have to answer is, what can we achieve that is most in the national interest. I do not want to make promises that I cannot keep or to set goals that are impossible, but action on the budget and the future financing is where we should exert our influence.

When it comes to treaty change, there would be a stronger argument for pursuing treaty changes of our own if what was now being suggested were a wider treaty change. It is not; it is a relatively limited change that makes the temporary mechanism permanent. We will see the full details of it in December, and we will be able to be involved in its negotiation, as my hon. Friend says.