G20

David Miliband Excerpts

Monday 7th November 2011 Commons Chamber

[The Prime Minister]

It is important for people to see the European Commission report on the financial transactions tax, which shows the figures that my hon. Friend talks about, and shows that it would cost jobs. As I have said, if we could achieve global agreement for a tax of that nature there would be a case for it, but it is very hard to see that happening. I think that the focus of politicians in Europe should be to meet the promises they have already made about development rather than to hide behind a financial transactions tax that they know is very unlikely to come into being.

[David Miliband (South Shields) (Lab)]

The frustration and impatience that the Prime Minister expressed on Thursday and Friday last week were extremely well merited, and it would be as well if he came here and repeated his concerns about the failure of leadership across Europe at this vital time. In that context, though, is it not a tragedy that when Europe does need a voice for reform—for example, on budgetary policy, which is going to be a major issue in coming years—he has dealt himself out of the game with a focus on the repatriation of powers, which, frankly, is not the issue that is going to make or break the European economy?

[The Prime Minister]

I do not agree with the right hon. Gentleman, for this reason: I have managed to assemble a coalition for budgetary restraint in the European Union, and this year Britain, France, Germany and others have all agreed to freeze the EU budget in real terms. I would like to go much further, but I have to say that a freeze in the budget in real terms is not something we have been able to achieve in recent years, and is a breakthrough, so I do not accept the point about looking at rebalancing powers in Europe and fighting for a deal on the budget. We can do both.