European Union (Approval of Treaty Amendment Decision) Bill [Lords]

Debate between Douglas Alexander and Kelvin Hopkins

Monday 3rd September 2012 Commons Chamber

[Mr Alexander]

I hope I can give my right hon. Friend the assurances that he seeks. The Opposition are far from indifferent about the future of the eurozone, not least for the reason that I have already explained—many British jobs and exports rely on the eurozone coming through the current crisis. His point highlights one of the delusions that is apparent among at least a few Members, which is that if Britain were to leave the European Union, the concerns that currently afflict the eurozone would somehow become remote from the interests of British jobs and workers. The eurozone will continue to be of absolutely fundamental interest to British manufacturers, exporters and jobs. The Prime Minister arrived at a recent summit lecturing the Germans and left being shouted at by the French, and that certainly does not seem to me to be how to secure the type of agreement that I sense lies behind my right hon. Friend’s question, which we want to see in the best interests of stability in the eurozone.

[Kelvin Hopkins]

Is it not the case that countries such as Poland and Britain have the great advantage that they can choose a parity for their currency that is appropriate to their own economies, rather than being forced to adopt a wholly inappropriate parity through the eurozone like Greece, Ireland and a number of other countries? Does my right hon. Friend agree that if Britain had joined the euro with the parity that existed at that time, we would now have a wrecked economy?

[Mr Alexander]

It is hardly a revelation that I strongly supported the five economic tests back in the years immediately following 1997, whether in relation to the convergence criteria or more broadly. In that sense, the Opposition’s position has not changed. It was an intriguing interpretation of history by the Foreign Secretary to attribute to his own conduct out of office so much credit for what the Labour Government did in office in keeping Britain outside the euro. However, he is right to recognise that there is broad consensus, which extends even to the hon. Member for Cheltenham (Martin Horwood), that there is no immediate prospect of British entry to the euro, for some of the reasons that my hon. Friend describes.

Let me be clear about some of the Opposition’s specific concerns, in a spirit of genuine concern about and mutual interest in the eurozone. First, we believe that the eurozone firewall needs to be bigger in scale and more flexible in operation than the ESM alone currently allows. Although the ESM is a key part of that broader firewall, an effective European Central Bank should also be used to enhance, and contribute to the establishment of, an effective firewall. Since the House last debated the matter, the ECB has announced its intention to begin buying bonds if member states comply with the relevant conditions regarding the management of their fiscal budgets. That is a welcome development, and we look forward to the ECB president Mario Draghi’s announcement this Thursday of how that new programme will work. The ECB must now deliver on its promise if it is to function properly as a lender of last resort and provide the necessary firepower to support the eurozone economies effectively under bond market pressure.

Foreign Affairs and International Development

Debate between Douglas Alexander and Kelvin Hopkins

Tuesday 15th May 2012 Commons Chamber

[Mr Alexander]

I think I am with my right hon. Friend in all of his remarks. Perhaps I shall write to him on the final phrase of his intervention.

In all seriousness, isolation can sometimes be a price worth paying for getting one’s own way in international affairs, but isolation achieving only defeat is surely unforgiveable. Even at this late stage, the Government must set out what steps they will take to ensure that real and urgent progress is being made at this month’s EU Council meeting. Alongside the welcome measures—

[Kelvin Hopkins (Luton North) (Lab)]

rose—

[Mr Alexander]

I am happy to give way and I am sure that it will be a comradely and unifying question.

[Kelvin Hopkins]

Indeed. On a positive note, it is certain that at least one member of the eurozone, and almost certainly several others, are about to recreate their own national currencies. Given that we sensibly have our own national currency, is there not a good case for us building strong relationships with these countries with their new national currencies? We could work with them to mutual benefit and help them in their difficulties.

[Mr Alexander]

There is a rare moment of unity between myself and the Chancellor of the Exchequer in saying that I am not sure it is entirely wise to speculate today about which countries have a future within the eurozone. But I would certainly concur with my hon. Friend’s point that the Labour Government did make the right choice in saying that the economics did not make the case for Britain entering the euro. I know that it was the present Foreign Secretary who argued that we had 24 hours to save the pound. I checked, and I think we have had 90,192 hours since he made those remarks, and as far as I am aware, we all still have a pound in our pocket, thanks to the actions of 13 years of a Labour Government and a little time from the Conservatives thereafter.