Balance of Competences

David Rutley Excerpts

Thursday 12th July 2012 Commons Chamber

[Mr Hague]

Yes, it is part of the history of EU competence that it has sometimes been extended, not by treaties and not by the decisions of nation states, but by rulings of the European Court of Justice, or by an expansive interpretation of the treaties by the European Commission. As we go through each of the issues, the way in which competences have developed in the past will be a legitimate factor in the assessment of how competence should be exercised in the future.

[David Rutley (Macclesfield) (Con)]

Like many of my hon. Friends, I warmly welcome the statement. I am keen to see a fundamental realignment of the UK’s relationship with Europe. Does my right hon. Friend agree that the prospect of a more multi-tier Europe should hold no fears for us, and, in that spirit, can he confirm that the UK will not be part of an EU banking union?

[Mr Hague]

We will not be part of an EU banking union. There are, of course, supervisory arrangements in respect of which we have common arrangements with the rest of the European Union, but the United Kingdom will certainly not become part of a full-scale banking union, participating in the provision of mutualised deposit guarantees. I hope that that, too, is common ground across British politics.

As for my hon. Friend’s question about a multi-tier Europe, I believe that the European Union, however it develops, will have to become more flexible. The unitary patent is an example of that, as is, in a different way, the fisheries policy as it develops. As the EU enlarges, as we hope it will, it is inevitable that it will become more flexible, and essential for it to do so.