G8 and NATO Summits

Denis MacShane Excerpts

Wednesday 23rd May 2012 Commons Chamber

[The Prime Minister]

I think that there is still something salvageable from the Doha round—all the elements of trade facilitation, such as helping to reduce customs times and charges, rather than the bigger Doha package—and I think that we should pursue that. We had a conversation at the end of the G8 in which we agreed to go away and look at our “issues paper” for the G20, and to establish whether there was a small enough distance to be closed between the EU and the US to make a deal worthwhile. I am very hopeful. Britain is one of the most open trading nations. There are real concerns on both sides—obviously there is a French position on agriculture, and an American position on many services and other issues—but I think that we will have a good look at this at the G20 and see whether we can fast-track it.

[Mr Denis MacShane (Rotherham) (Lab)]

Is the Prime Minister aware that Greece spends 50% more on defence than ourselves, France or Turkey, and is the biggest arms importer in Europe? Is he aware that the Greek shipping industry, which accounts for 7% of Greek GDP, and the Greek Orthodox Church, which is the biggest land and property owner, do not pay a penny in tax? When he talks to the Greek Prime Minister, will he ask him to scale down defence spending and get the oligarchs and the Orthodox Church to pay a little bit to solve the Greek crisis?

[The Prime Minister]

The right hon. Gentleman makes a good point. However much one can look at the Greek situation and feel for the people who are suffering as a result of unemployment and living standards, there is a crying need for genuine reform in Greece, and for more straightforward and honest politics when it comes to dealing with those problems. That means making sure that people do pay their taxes, and making sure that industries are competitive.

The issue of defence spending is obviously more complex because of the relationship between Greece and Turkey, but as we are now both NATO members and Turkey is an aspirant EU nation, there should be an opportunity to decrease Greek spending on national defence, while of course encouraging it to be a good NATO member at the same time.