European Council

Edward Miliband Excerpts

Monday 1st November 2010 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

May I thank the Prime Minister for his statement? I also thank him for the briefing statement that he gave me on Saturday on the developments following the discovery of explosive materials, including those at East Midlands airport. I join him in thanking the security services, the police and others for the work that they do to protect innocent people here and abroad. I also want to assure him that he has the full support of the Opposition in his efforts to tackle terrorism and keep the nation safe.

On Europe, Labour Members think that it is in the national interest for Britain to be strongly engaged in Europe on issues from terrorism to climate change, and from the global economy to human trafficking. We all know that the Prime Minister is in a slightly tricky predicament on Europe. He has his old friends and his new friends on the Front Bench. I want to tell him very sincerely that we are here to help him. We know that he held some pretty strong views on Europe in the past, but we are willing to ignore his previous convictions, just as long as he is as well.

Let me start with the Council’s conclusions on economic governance. We welcome any sensible proposals for greater co-operation to ensure economic stability across Europe. In principle, we also welcome the idea of putting in place clear arrangements for providing help to eurozone countries that get into trouble, rather than relying on an ad hoc approach. The Prime Minister is also right to say that eurozone countries should take financial responsibility when those circumstances arise. He was right to say in his statement that these new arrangements would not apply to Britain, but they might affect Britain. We have an interest in stability in the eurozone but also in supporting growth in what is our largest export market. Can he therefore assure the House that, as well as protecting Britain from those provisions, he will engage in discussions to ensure that the right balance is struck between the need for stability and the need for growth in the eurozone?

In the context of these reforms, I do not think the Prime Minister made it clear in his statement whether, if proposals are made for treaty change as a result of the amendments, he is prepared to accept the changes without a referendum. He used to imply that if treaty change were ever back on the table, he would have a referendum, but he seems to have abandoned that position. Will he confirm that that is the case?

The Prime Minister also used to imply that he would use the opportunity of treaty change to bring back the British opt-out on employment and social legislation. I think that is a pledge he made for this Parliament. Labour Members do not believe that this is a necessary or sensible course of action. He was silent on this issue during his statement. Can we therefore assume that his previous red lines on this issue were not raised by him at any time in these negotiations, and can he confirm that he does not intend to raise these red lines—or what were his red lines—in the coming months in the context of any possible treaty changes that might take place? Again, we will support him if he takes the right course.

Secondly, on the G20 summit in Seoul, which will discuss the prospects for the world economy, the Prime Minister will know that an increase in trade accounts for almost half of the growth forecast that the Office for Budget Responsibility predicts for the United Kingdom next year. Can I ask what discussions were had at the European Council about the uncertainty in the world economy and how Europe plans to do its bit to ensure that economic demand is sustained?

Thirdly, on the Cancun conference on climate change, I have to say—I think the Prime Minister will agree—that the prospects do not look bright for completing the unfinished work of Copenhagen. May I urge him on to show greater leadership on this issue—[Interruption.] Leadership, which is not just about some huskies, but is real leadership on this issue. Can he say what he will be doing personally to advance a deal on finance, which is a crucial precondition of progress and a key objective of the Cancun summit?

Let me turn next to the EU budget. The Prime Minister has offered what we might call an interesting version of events. He confirmed that, in August, the 2.9% increase was put forward by the Council of Ministers and 20 countries voted for that—Britain was not one of them; it voted against that. The Prime Minister tells us in his statement today that “before the Council started, we began building an alliance to take a different approach”—different from the Parliament—“and insist on 2.9%”. The question I ask the right hon. Gentleman is when he took that view. On 20 October, he told this House:

“We have called for a cash freeze in the size of the EU budget for 2011 and we are working hard to make this case across Europe.”—[Official Report, 20 October 2010; Vol. 516, c. 938.]

He was not saying that 2.9% had been agreed and that he had lowered his sights; he was telling us that he was still working for a freeze. Three days later he repeated this to the Daily Mail—a reliable source:

“We need to start working on trying to keep next year's budget down. It should be a freeze or a cut.”

That was his position at that time. So I have a simple question: when did the Prime Minister change his position on this issue? He certainly did not tell the House; he certainly did not tell the Daily Mail—and one would have thought that he would have kept it informed. As far as we can gather, it was sleeves rolled up, full steam ahead and when it came to 2.9%, it was “fight them on the beaches”. Now the Prime Minister has said that he changed his position.

Now, the Prime Minister has agreed to 2.9%. What does he say about something he originally voted against? One would have thought that he might be slightly sheepish about this—but not a bit of it! He actually says that he has “succeeded quite spectacularly”. If that is his view of spectacular success, I would hate to see what happens when things go wrong in his negotiations in Brussels.

What about the letter that the Prime Minster brandished as having been signed by 13 member states, supporting 2.9%? I do not think that is a spectacular success. Twenty countries were supporting 2.9% in August, so this is seven fewer countries than were originally supporting that increase. The only big difference is that Britain, which used to be against the 2.9% increase, is now for it. Let me say to the Prime Minister, in words that my grandmother might have used, that I admire his chutzpah on this issue. Is not the truth about it that he wished he could come back and say, “No, no, no,” but in his case, it is a bit more like, “No, maybe, oh, go on then, have your 2.9% after all”?

What is the deeper truth about the Prime Minister’s position? I have to say that I am disappointed in him, because he has fallen back into his old ways. It is more ludicrous grandstanding on Europe, which ends up proving futile and fooling no one. The Prime Minister said that he would provide for a referendum on Lisbon if there was an opportunity; he has abandoned that position. He said that he would repatriate powers; he has abandoned that position. He said that he would obtain a freeze in the EU budget; he has abandoned that position.

The Prime Minister has obviously not learned the lesson, because he left the summit bragging again, saying that he was a Euroscpetic. When will he recognise that anti-European bluster and PR are no substitute for a decent, engaged European policy? He should be leading the way on climate change, signing the directive on human trafficking, and working with European Governments to sustain demand in the global economy. The Prime Minister may have abandoned some of his previous convictions, but his rehabilitation on Europe has a long way to go.

[The Prime Minister]

If mine was chutzpah, that was brass neck.

The right hon. Gentleman asked how I was getting on with my new friends and my old friends. Let me put it in a way that he may understand: we are just one big happy family. It is brotherly love on this side of the House; it really is. The problem is that we are living with the decision of the right hon. Gentleman’s old friend, Tony Blair, who gave away £8 billion of rebate and received nothing in return.

The right hon. Gentleman asked whether we would ensure stability in the eurozone. Of course we want to do that, as I said in my statement. He said that this did not affect Britain in terms of the treaty change, and he was quite right about that. He asked whether this should lead to a referendum. The point is that we are not passing any powers from Britain to Brussels: this limited treaty change does not affect the United Kingdom. However, I cannot take a lecture on referendums from someone who could have provided a referendum on the Lisbon treaty, but failed to do so.

The right hon. Gentleman asked what we were getting in return. We are getting progress on the budget, which we never saw in a month of Sundays under a Labour Government. Let me say something about the issue of the budget, and the points that he made. Let us contrast the position now with what happened last year under a Labour Government. Last year under a Labour Government—[Interruption.] It is very instructive to look at what happened last year and what happened this year.

Last year the European Council voted for a 3.8% increase. The Labour Government supported it. The European Parliament proposed a 9.8% increase. The Council then agreed a 6% increase, and the Labour Government supported it. That is the difference between last year and this year. Last year we had a feeble Government who would not stand up for Britain; this time we have a Government who will.