European Union Economic Governance

Claire Perry Excerpts

Wednesday 10th November 2010 Commons Chamber

[Chris Leslie]

If we see growth dented here in the UK because those ripples flow from the eurozone—changes as a result, perhaps, of the measures we are debating—we could see further implications for spending cuts here in the UK in respect of vital public services and more austerity when perhaps stimulus would be the order of the day. However, there is a balance of risks here and it is clearly important for fiscal discipline to be exercised, but responsibly so. We have argued for a sensitive and measured approach to deficit reduction in this country, rather than the doctrinaire approach of steep and swift cuts favoured by the parties whose Members sit on the Government Benches.

I am glad to note the ironic analysis of the Minister in the explanatory memorandum that was referred to, which he signed last week. He said that he believed

“that the main consideration should be whether a Member State’s debt is on a downward trajectory, rather than the specific pace of annual debt reduction”.

He also said that the numerical pace should remain

“only as an indicative benchmark…that…is not used as a concrete rule by which Member States’ debt reduction plans are judged.”

How right he is—if only he applied such pragmatic sense to our economy and public services in the UK, too.

[Claire Perry (Devizes) (Con)]

I am enjoying the hon. Gentleman’s measured canter around the potential risks associated with this legislation and I am also entertained to hear the words “stability and growth” coming from Members on the Opposition Benches—something that perhaps they did not achieve towards the end of their time in office. However—perhaps I am front-running his conclusion—is he going to vote for or against the legislation tonight?

[Chris Leslie]

As I see it, it is difficult to know yet what propositions are before us. I want to hear the Minister’s answers to our questions and we will make up our minds then. The substance of the regulations and the eventual treaty changes might be beneficial, but we also have to wait and see what President Van Rompuy proposes in his eventual treaty amendment and what emerges from the December Council meeting. We are not at the end of a process; we are in it. There are further propositions to be put on the table.