European Council

Denis MacShane Excerpts

Monday 1st November 2010 Commons Chamber

[The Prime Minister]

If there were any prospect of a passage of power from Britain to Brussels, we should have a referendum. That is not just my word: we are going to legislate to put it into place. But the question that we must answer here—this goes directly to what my right hon. Friend has said—is, “What is it in Britain’s national interest to try to insist on at this time?” In my view it is the budget, and the amount of money that goes from Britain to Brussels, into which we should be putting our efforts. That is what I did, and that is what I am going to go on doing.

[Mr Denis MacShane (Rotherham) (Lab)]

May I welcome the Prime Minister to the club of Euro-pragmatism? He has said nothing today with which I can greatly disagree. Will he answer two questions, however? First, will he confirm that if the final budget deal is above 2.9%, Britain will not seek to veto it? Secondly, will the proposed treaty change happen under the so-called passerelle clause of the Lisbon treaty?

[The Prime Minister]

I thank the right hon. Gentleman for his endorsement—wherever they come from, they are always welcome. The point about the budget approach is that 13 countries have put their signature to a letter saying they will not accept anything over 2.9%. They will, I believe, all stick to their word, and we will insist on this so that we either get 2.9%, agreed between Parliament and the Council, or we get deadlock, in which case the budget is frozen at last year’s level.

The final decisions on the proposed treaty change will be taken at the December summit. That is likely to be under the simplified revision procedure so there is not a parliamentary convention. The key point here is to be absolutely clear that this is going to be a few lines that are about putting in place what is a temporary bail-out mechanism and making it a permanent bail-out mechanism. The key point for the House to hold on to is that this does not affect the UK, except inasmuch as we want the eurozone to sort itself out.