Oral Answers to Questions

Douglas Alexander Excerpts

Tuesday 19th June 2012 Commons Chamber

[Mr Hague]

Safeguards will certainly be needed—my hon. Friend is quite right to raise that—but as things stand proposals and ideas about banking union take many different forms. Many people mean many different things by “banking union”. If such proposals are made more tangible and specific, we will set out the specific safeguards that we think we need for the single market. We are already making the case in European capitals that in the event of a banking union in the eurozone, which, by the way, we will certainly not be part of—let me make that absolutely clear—such safeguards will be necessary.

[Mr Douglas Alexander (Paisley and Renfrewshire South) (Lab)]

I am intrigued by the apparent complacency of the Foreign Secretary’s most recent answer. Given the Chancellor’s advocacy of greater integration in the eurozone, would the Foreign Secretary be willing to set out for the House what legal or political safeguards for British businesses and exporters the Government will be proposing at next week’s European Council?

[Mr Hague]

The Chancellor has set out exactly what we think should happen. For the eurozone to be successful, it is necessary to have more support from stronger economies, to help weaker economies adjust; more pooling of resources, whether through common eurobonds or some other mechanism; a shared back-stop for the banking system, to strengthen banks and protect deposits; and, as a consequence, much closer oversight of fiscal and financial policy. That is what we believe the eurozone needs to do. However, if it were to adopt measures that affect—or may affect, in any way—the ability of the single market to operate effectively and in the interests of this country, we will need the safeguards for which we are already making the case. Once we have specific proposals, we will set out those specific safeguards.

[Mr Alexander]

If President Hollande is successful at next week’s European summit in securing agreement for a jobs and growth package, will the Prime Minister support his new-found best friend in this endeavour or will the Government stick to their failing austerity-alone approach, which has delivered a double-dip recession here in Britain?

[Mr Hague]

The Opposition might need to take a closer look at some of the things that President Hollande is advocating, because he is saying that France must balance its budget by 2017. He is also saying that growth cannot come from state spending and that it must be reined in—to use his words—so perhaps the Opposition might care to decide whether they truly support the words of President Hollande.

--- Later in debate ---

[Mr Hague]

My right hon. Friend and I have had this exchange several times, and he is right to point out the importance of the Sunni-Shi’a tensions, and sometimes conflicts, in the region. As I have said before, however, I believe that there is more to it than that. There are also many people in Syria, of different ethnicities, religions and beliefs, who want freedom and democracy in their country, and who want to be rid of their repressive regime. The factors that my right hon. Friend has mentioned are not the only ones at work, but they certainly add to the complexity of the situation. They also add to the importance of opposition forces representing all groups in Syria and preserving their rights in the future, as well as the importance of trying to negotiate a peaceful political transition in Syria, which is what we are attempting to do.

[Mr Douglas Alexander (Paisley and Renfrewshire South) (Lab)]

In his recent answer, the Foreign Secretary reiterated his support for the Annan plan, but only last week the UN was forced to suspend the observer mission in Syria. In the light of that suspension, does he accept what is already clear to many people on the ground in Syria—namely, that the Annan plan is simply not working? Will he set out today the steps beyond the Annan plan that the UK is now advocating that the international community take to bring about a cessation to the violence in Syria?

[Mr Hague]

I accepted, some time ago, that the Annan plan was not working. It is not working at all at the moment, but it would be wrong to give up completely on the plan, because the road to any peaceful settlement in Syria will be through either the Annan plan or something very similar to it. It is therefore important to persist with those efforts, and we are doing that particularly in our talks with Russia. I met the Russian Foreign Minister again in Kabul last week, and the Prime Minister has met President Putin in the past 24 hours to pursue this matter further. We are seeking international agreement, including with Russia, on how to ensure the implementation of the Annan plan. We are ready to take that matter forward at the UN Security Council or in a contact group, or in both together. Of course, if all those efforts fail, we will want to return to the UN Security Council, as well as greatly to intensify our support for the opposition and to see more sweeping sanctions from across the world.