Cross-border Travel (Spain/Gibraltar)
Emma Reynolds Excerpts(11 years, 7 months ago)
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Mr Lidington
Where there is a genuine case for increased checks at the border because of an acknowledged need to combat smuggling or other criminal activity, that might be fair. In such a case, however, we would expect the Spanish authorities to be open with the Government of Gibraltar about those circumstances, but that has not been the case hitherto in this instance.
So far as maritime incursions are concerned, we are absolutely confident of the United Kingdom’s sovereignty over British Gibraltar territorial waters, which is why the Royal Navy challenges Guardia Civil and other Spanish state vessels whenever they make unlawful maritime incursions into British Gibraltar territorial waters. We back that up through formal diplomatic protests to the Spanish Government about all unlawful incursions. Those challenges and protests make it clear that such incursions are an unacceptable violation of British sovereignty.
Emma Reynolds (Wolverhampton North East) (Lab)
I congratulate my hon. Friend the Member for Heywood and Middleton (Jim Dobbin) on securing this important urgent question. The Opposition continue to support the self-determination of the Gibraltan people and their right to remain under British sovereignty, as we did in government, so I welcome the Minister’s answer on that. We also welcome the fact that Chief Minister Fabian Picardo, who is in London today, has been in touch with the Government and that discussions have taken place between the Minister for Europe and the Gibraltan Chief Minister.
I agree that the delays of up to five or six hours at the border between Spain and Gibraltar are simply unacceptable, and I welcome the Minister’s discussions with the Gibraltan Chief Minister. I echo his observation that this is also of deep concern to the thousands of Spanish workers who cross the border every day to work in Gibraltar. What more can the Government do to ensure that these delays do not happen again, and that the reasons given in this and other instances by the Spanish Government are properly investigated and that evidence is produced for what many think are just excuses? Finally, what discussions has the Minister had with the Spanish Government about their decision to abandon the trilateral forum, and what pressure is he and the Foreign Secretary exerting on the Spanish Government to return to it?
Mr Lidington
I agree with the hon. Lady that the border delays end up penalising Spanish workers as much as the people of Gibraltar. The delays get in the way of sensible economic relations between Gibraltar and the neighbouring regions of Spain, and therefore interrupt what ought to be a mutually beneficial economic relationship. They harm jobs and hopes of prosperity. We shall continue to raise with the Spanish authorities at every appropriate level cases where we think that the border delays that have been imposed have not been adequately justified. The Government of Gibraltar regularly co-operate with Spain in tackling tobacco smuggling and other forms of criminal activity. That is the sort of sensible, constructive co-operation we want.
The British Government very much regret that the current Spanish Government refuse to take part in further meetings of the trilateral, which we believe well serves both Gibraltar and Spain, as well as the United Kingdom. We would like some kind of equivalent collaborative system established, but so far Spain has refused to return to the trilateral. I am grateful for what the hon. Lady said about her support for British sovereignty over Gibraltar and respecting the rights of its people. I particularly welcome her remarks, if they mark a break with the proposals for shared sovereignty and the betrayal of the people of Gibraltar that the Labour party supported when in office.
EU-UK Relationship (Reform)
Emma Reynolds Excerpts(11 years, 7 months ago)
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Andrea Leadsom
I almost entirely agree with my hon. Friend. I favour the idea of reform followed by referendum, but I think the reform is absolutely key and the poll survey shows that the British public think so, too. If the public saw reform, they would be content to remain a part of the EU.
What happens next is about politics, not economics. According to Eurostat, at the end of the first quarter of 2012, euro-area Government debt stood at 88.2% of euro-area GDP. On the other hand US national debt is more than 100% of GDP and in Britain it is 86.4% of GDP. My point is that if all euro-area debt were to be consolidated, the position within the eurozone in terms of consolidated debt would be no worse than either the UK or the US. This is about politics, not economics. It is about the extent to which eurozone members are prepared to underwrite one another’s debt. Politicians must make up their minds what they are going to do about the crisis.
Let me quickly run through where the big eurozone countries stand on debt pooling. Germany is firmly opposed to eurobonds at this stage, but supports greater central oversight of national budgets within the eurozone as a way to export German fiscal discipline.
Emma Reynolds (Wolverhampton North East) (Lab)
I congratulate the hon. Lady on securing this important debate. Does she recognise that the second largest party in Germany, the Social Democratic party, is in favour of eurobonds? The position of the German Government might well change after the federal election to be held at this time next year.
Andrea Leadsom
The beauty of democracy is that it is not over until it is over. It is important to think about who is in power now and not who might be in power in the future. In June, Angela Merkel said:
“I don’t see total debt liability as long as I live.”
She also said:
“Apart from the fact that instruments like eurobonds, eurobills, debt redemption schemes and much more are not compatible with the constitution in Germany, I consider them wrong and counterproductive.”
Angela Merkel has been clear on the fact that she does not believe that debt pooling is the way forward. That does not mean that Germany is opposed to eurobonds in principle; but from Berlin’s point of view, a full fiscal union must be established first. German Finance Minister Wolfgang Schäuble put it very clearly when he said:
“We have to be sure that a common fiscal policy would be irreversible and well coordinated. There will be no jointly guaranteed bonds without a common fiscal policy.”
Italy’s Prime Minister Mario Monti, who is a technocratic, not a democratically elected leader, has said that his position is quite similar to that of Germany in that he believes that central oversight of national budgets is a necessary precondition to eurobonds.
In Spain, the centre-right Government are keen on introducing eurobonds in the next few years and seem to be ready to accept losses of budgetary sovereignty to achieve that. Mariano Rajoy has proposed a three-stage path towards debt pooling: in 2013-14, eurozone countries should adopt measures to meet the fiscal and economic convergence criteria imposed by the European Council; in 2015-16, a European fiscal authority should be created that would oversee national budgets; and in 2017-18, when fiscal targets would be imposed on the eurozone in its entirety, full eurobonds could be issued.
France has not made its position entirely clear. It tends to favour more solidarity immediately and fiscal union later down the track, but in the name of Franco-German solidarity, it seems to have dropped the idea of Eurobonds, at least for the moment.
Most importantly, what about the UK? At the Lord Mayor of London’s banquet, the Prime Minister called for a looser EU
“with the flexibility of a network, not the rigidity of a bloc.”
That is an important indicator of where the UK stands. It is important to recognise that the EU is already multi-layered.
Andrea Leadsom
I absolutely agree with my hon. Friend; he makes a very good point. That was never more true than in relation to the working time directive. Having recently carried out an inquiry with all the royal colleges, I know that the evidence is overwhelming that the training of doctors is suffering seriously as a result of the negotiated on-call hours, which the last Government presided over and allowed to happen, to the detriment of our NHS. They should be ashamed of that.
Emma Reynolds
I am sure it was not deliberate, but that is not exactly an accurate account of what happened. We negotiated an individual opt-out, which this country retains. The European Court of Justice interpreted the rules on doctors’ on-call hours in a way that we felt was against our national interest, so we were then trying to negotiate whether being on-call constituted working time. It was no fault of our Government.
Emma Reynolds (Wolverhampton North East) (Lab)
It is a great pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for South Northamptonshire (Andrea Leadsom) on securing today’s debate. I also congratulate the Minister on his appointment. I did not realise that we would have such an early opportunity to debate such an important issue.
The hon. Lady’s debate concerns the reform of the relationship between the UK and the EU, but it is worth mentioning briefly that we are against the nuclear option of reform: leaving the EU, as some Government Members have called for. We Opposition Members believe that the UK should remain in the EU. We reject many of the arguments advanced by hon. Members today, saying that it would be in the UK’s national interest either to leave the EU or reduce our relationship to one based on trade.
Emma Reynolds
I did no such thing. Perhaps if he listened a little more attentively to what I said, the hon. Gentleman would not make such pointless interventions.
The EU remains the largest and richest single market in the world and accounts for more than half of our total exports. We export more to the German Länder of North Rhine-Westphalia than to China and India combined. We do more trade with Ireland than with the so-called BRICs—Brazil, Russia, India and China—put together. Without our exports to the EU and the rest of the world, the British economy would have gone back into recession a year ago.
Dr Julian Lewis
Given the hon. Lady’s typically robust response to my hon. Friend the Member for Wellingborough (Mr Bone), are we to take it that the Labour party is not ruling out giving an in/out referendum to the British public?
Emma Reynolds
The hon. Gentleman seems to understand me better than the hon. Member for Wellingborough (Mr. Bone). Our position is that a referendum at this time would be a distraction from the Government’s priority of getting the economy back on track. The question about what our relationship with the EU will become is open now, given the nature of Mr Barroso’s speech last week, mentioned by the hon. Member for Stone (Mr Cash). We will see how that relationship develops in terms of what kind of political and fiscal union the eurozone states want to form.
Emma Reynolds
The hon. Gentleman makes an interesting point. It is not yet clear at what point the European Commission, the German Government or other Governments will want to put treaty change on the table.
Emma Reynolds
In his speech, Mr Barroso mentions putting that treaty change on the table before the 2014 European parliamentary elections—I have read his speech closely—but it is still unclear whether that will happen in time for those elections. There will be a report by Herman Van Rompuy to the Council in December, which will be an important time for our Government to start to have a policy on the European Union. I shall come on to that.
Many of the hon. Members present who argue for withdrawal offer a false choice between trade with emerging markets and EU membership. They say, “Remain in the EU, or trade with the likes of China, India, Brazil and Russia.” We must of course improve our export performance to the rest of the world, but we will not build real export success if we start by cutting ourselves off from our largest existing market and our largest collective negotiating tool. The EU provides the collective political weight that we need to maximise our influence in negotiations. Hon. Members need not take that from me, they can take it from the Europe Minister, as set out in written evidence to the Foreign Affairs Committee as recently as May of this year, when he said:
“On trade, one voice representing half a billion consumers is heard more loudly in Beijing, Delhi and Moscow, than 27 separate ones.”
British businesses, workers and consumers will see the benefit of EU free trade agreements, such as the recent FTA with South Korea, which is worth £500 million to UK exporters, or the potential future agreements with the US, Canada, Singapore and India.
Mr Laurence Robertson
When will that happen? I take a deep interest in Irish politics, and we export more to Ireland’s 4.5 million people than we do to more than a third of the world’s population in those emerging markets. We keep hearing how good it will be, but when will it happen?
Emma Reynolds
That question might be more appropriate for the Foreign Office Minister. The point that I am making, if the hon. Gentleman will listen, is that it is more likely that we will be able to prise open markets and change the rules of the game on intellectual property rights and other issues if we are part of the collective weight of the European Union. China, with 1.3 billion people, has much more interest in forming a trading relationship with a European Union representing 500 million consumers than with a single country within that Union.
Alec Shelbrooke
I am listening carefully to what the hon. Lady said about being in Europe to negotiate such trade terms. Will she clarify whether that means that we should have much further integration to open up those markets?
Emma Reynolds
That was not my point. We have much more influence and weight in international trade negotiations acting as part of the European Union than we do alone. I now want to make some progress.
Our membership of the European Union is also vital to attracting foreign direct investment. I want to agree with one point made by the hon. Member for South Northamptonshire, which is that it would not be in our national interest to be in the position of Norway. A recent report by some Norwegian academics pinpoints a democratic deficit in Norway’s relationship with the EU, because the country is bound by the single market’s rules, regulations and laws, over which it has no say. If we were to put ourselves in that position, it would not be in our national interest, so I agree with the hon. Lady on that.
We are in favour of our membership, but we are not defenders of the status quo. We would like to see a Europe that is more outward looking, that is stronger in the world, that is—crucially, at the moment—better able to deal with the eurozone crisis and that reforms some of its internal policies. We would like to see the multi-annual financial framework more focused on growth and job creation, a reform of the common agricultural policy and, crucially, a completion of the single market in services. The only way to achieve such reform, however, is to have influence in the EU and not to be stranded on the sidelines.
Regrettably, as a result of the Prime Minister’s walk-out at the European summit in December, our stock in Europe sits at an all-time low. [Hon. Members: “ Rubbish.”] If hon. Members visited European capitals and discussed with other politicians the stock of UK influence, they would have a pretty bad surprise. Negative tactics such as vetoes and empty chairs are instruments of last resort; they are open to member states and we should be prepared to consider their use in defence of a vital national interest, but in December no vital national interest was defended. The Prime Minister’s protocol on financial services was rejected as a retreat from existing single market rules, and the rest of Europe simply carried on without us. The Prime Minister’s action therefore incurred a loss of influence for no tangible gain. Ironically, as a result of what he did in December, the Government are more reliant on an institution that many Conservative Members love to hate, the European Commission, which we must now depend on to protect the single market and its integrity.
Andrea Leadsom
I have to disagree completely with the hon. Lady. The Prime Minister’s use of the veto, far from giving us less influence in Europe, had the opposite effect. What was astonishing was the complete wall of ambassadors and others from the European Union coming to see many of those known to be interested in the EU to find out what the problem is, what was going on and what it is exactly that Britain wants. So she is completely wrong—what the Prime Minister did was a wake-up call and definitely in the interests not only of the City but of Britain.
Mr Philip Hollobone (in the Chair)
Order. Before the hon. Member for Wolverhampton North East (Emma Reynolds) responds, she needs to think about bringing her remarks to a close. She has about two minutes left.
Emma Reynolds
I could not disagree with the hon. Lady more—I have made that clear.
Today’s debate is reminiscent of the 1990s: the divisions of the Tory party have not yet healed. We have seen three different positions on the Government side: no change and stay in; stay in and argue for repatriation and renegotiation; and to get out. The Conservative party is utterly divided. As long as the Government put the party interest before the national interest our stock in Europe will remain low and our ability to argue for reform will remain incredibly limited. It is regrettable that the Government are divided at home and weak in Europe, and that they are therefore incapable of being a strong and effective voice for reform in Europe.
Mark Simmonds
It is clear that the UK’s agenda and priorities—I hope to come to them in a moment—are about driving global competitiveness and economic growth to alleviate some of the problems that are prevalent in the eurozone. That includes further trading with the eurozone and—my hon. Friend the Member for Mid Norfolk (George Freeman), who is no longer in his place, made this key point—not just with the eurozone, but further afield. This debate is extremely timely, and provides an early opportunity to discuss the issues. It is clear that events in the eurozone will have wide-ranging implications, and its ultimate shape is unknown and uncertain. The Prime Minister made it clear on the Floor of the House in June that as Europe changes to meet the current challenges, our relationship with it may also change. It is vital for Britain’s national interest, and for the European Union’s strength and prosperity, that we meet those challenges.
The coalition agreement that was set out at the beginning of this Parliament stated that the UK should be a positive participant in the European Union, working with our partners to ensure that all European nations are equipped to face the challenges of the 21st century, by far the most important of which is global competitiveness. I am the first to acknowledge that there is still much more to do to restore growth, both inside and outside the eurozone. The Government remain vigorously committed to developing the European single market, to smarter and less costly EU regulation, and to more free trade between Europe and the rest of the world. We need a Europe that delivers prosperity, job and wealth creation, and security, and a Europe that is more outward-looking, more dynamic and more competitive on the global stage.
Emma Reynolds
Would the Government not have more authority and influence when talking about growth in other European countries if we had growth here in the UK?
Mark Simmonds
The hon. Lady makes an interesting point. It is vital in a globalising world to remain on the competitive side of the line. The reforms that this Government have put in place since the May 2010 election will make a significant contribution to that. They include making our tax system the most competitive in the G20, making the UK the best place in Europe to start, to finance and to develop a business, encouraging investment and exports as a route to balancing the economy after the shambolic economic mess that the Labour Government left to the coalition Government, and creating a more educated work force. Over time, those changes will deliver economic growth.
Aligned with that, the single market is a significant driving force for prosperity. That is why we will continue with an ambitious programme of deepening the single market while seeking to reduce unnecessary burdens. The single market supports UK jobs, prosperity and growth through increased trade and, vitally, helps the UK to attract inward investment from inside and outside Europe. We want the single market to continue to encourage competition and innovation throughout Europe, to help to increase productivity in the UK, and to bring down prices for consumers so that UK businesses can benefit from a single regulatory regime, simplifying regulation, liberalising services and developing a single digital market that will bring benefits to the UK.
Our national interests, our influence and our values are all advanced internationally through the co-operation of states. However, as many hon. Members have rightly said, there is no doubt that the EU requires reform, and we certainly do not agree with everything the EU does. It is absolutely clear that reform is required now more than ever. In our view, the UK should champion growth and the single market, and take the opportunity to shape Britain’s relationship with Europe in a way that advances our national interest in free trade, open markets and co-operation.
We have led the debate on reducing the burden of EU regulation on business, and securing agreement on a breakthrough step to exempt micro-businesses from new EU proposals, but clearly more needs to be done. We have secured agreement on a unitary patent after 23 years of EU negotiation. Amid all that change, my right hon. Friend the Foreign Secretary announced an analysis of the balance of competences between member states and the EU. That vital review will be an audit of what the EU does and how it affects us in the United Kingdom. It will look at where competences lie, how they are used, whether exclusive, shared or supporting, and what is important for our national interest. The process will begin in the autumn, and I urge all right hon. and hon. Members to participate.
European Union (Approval of Treaty Amendment Decision) Bill [Lords]
Emma Reynolds Excerpts(11 years, 8 months ago)
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Keith Vaz
I, too, wish to be brief, and my point arises from the comments made by the hon. Member for Basildon and Billericay (Mr Baron). I hope that the Bill will proceed, because I support the Government’s proposals, and the hon. Gentleman may know that the Home Affairs Committee has written on a number of occasions about the problems facing countries such as Greece in dealing with migration. Will the Home Affairs Committee have any say or be able to make suggestions about how funds will be deployed under the European stability mechanism? If we feel that not enough attention is being paid to the borders of Greece and Turkey because they do not have sufficient funds, will we be able to make such comments? I gather from the Minister that we cannot be part of the process but will we, at the very least, be able to comment on how the funds are to be spent?
Emma Reynolds (Wolverhampton North East) (Lab)
It is a great pleasure, as ever, to debate with the Europe Minister.
As my right hon. Friend the shadow Chancellor and I explained on Second Reading, we are in favour of the Bill and clause 1 specifically, which provides for article 136 of the treaty on the functioning of the European Union to be amended to allow the eurozone to set up a bail-out fund—to be financed and operated by the eurozone—to support eurozone countries when they need it.
The permanent bail-out fund, whose establishment was agreed by EU leaders at the European Council in March 2011, will replace the two existing temporary funds. The Opposition have concerns on conditionality, which I will go into in some detail later, but we believe that the ESM will enhance the stability of the eurozone if it is used appropriately. Given that our economy is so closely connected to eurozone economies through both trade and the exposure of our banks, we believe it is in the UK’s national interest that the fund is allowed to be set up.
Mr Lidington
I rise to respond briefly to the points that have been made. I am grateful to the hon. Member for Wolverhampton North East (Emma Reynolds) for her support for clause 1 and I shall respond to the points to which the right hon. Member for Rotherham (Mr MacShane) alluded when we debate amendment 1.
I should tell the right hon. Member for Leicester East (Keith Vaz) that the purpose of the ESM is not to provide an addition to structural and cohesion funds or any of the spending instruments to help with any problem, including Frontex, which rightly concerns him. The ESM is a way of providing a firewall or bail-out facility for a eurozone economy that might run into serious economic problems and have difficulty financing itself.
The direct answer to the right hon. Gentleman on the UK opinion is that we are not a member of the euro and have no intention of joining it, and therefore would not qualify for membership of the ESM. However, there are plenty of ways in which British Ministers and officials, both bilaterally with our fellow member states and at EU gatherings, can make constructive and informed suggestions and have good ideas. It is important that we acknowledge that the eurozone countries are potentially putting their taxpayers’ money on the line in the stability mechanism. Therefore, any suggestions that we might choose to make in future need to take account of that very important truth.
My hon. Friend the Member for Basildon and Billericay (Mr Baron) will forgive me if I do not follow him by giving a detailed analysis of the origins of the eurozone crisis. There are a number of different reasons behind it. In some countries, the problem is public sector debt, but in other stricken countries, the banking system is at the root of the difficulties.
However, I should take my hon. Friend up on his point about economic growth. He was right that the Bill is not the answer to Europe’s economic problems. I have said repeatedly—and, much more importantly, my right hon. Friends the Prime Minister, the Chancellor and the Foreign Secretary have said repeatedly—that the salvation for Europe must lie in its restoring competitiveness and economic growth, and above all in its becoming competitive in a world in which economic power and influence is shifting dramatically to Asia and Latin America. The inventiveness of European nations can stand them in good stead, but we need the right policies at both national and European level to restore competitiveness. I ask my hon. Friend to take note of the European Council commitments made in the March and May summits which, in terms, called for the further development of the single market, and in particular the creation of a single market for the digital economy, and for deregulation measures.
Last year, the Government achieved something of a breakthrough—a new precedent was set—in the European agreement to spare micro-businesses from future European regulations. We are taking that campaign forward with like-minded member states to get Europe collectively to address the burden and complexity of regulation imposed on businesses large and small at an EU level, just as we are committed to reducing the costs and complexity to business of regulation here in the UK.
Kelvin Hopkins
First, let me say that I entirely support what the hon. Member for Hertsmere (Mr Clappison) said, and I was pleased to sign his amendment.
The idea that we are being difficult by talking about delaying our effective support for this European Union measure is wide of the mark. We are being asked for a favour in respect of something that does not technically affect us, because we are neither contributors to nor beneficiaries from this new mechanism. We as a country are being gracious by putting this Bill forward, as we are helping out. It is absolutely sensible that the eurozone countries, who are very different from this country, should make sure that they have approved this mechanism and that there is no possibility of legal challenges before we say, “Yes, okay, as you’ve all approved it, we’ll sign on the dotted line to help you out”—and we should do that at the end of the day rather than at the beginning.
If we were to rush ahead and do this, the left-wing Eurosceptics in Holland would rise up to derail the Dutch situation, or the German constitutional court would decide it did not like the system, and we would be left having approved something that the eurozone countries do not even like very much themselves. We would be in a very silly position. It is therefore entirely sensible that we and other countries outside the eurozone should only go along with any decisions once the eurozone countries have agreed to them.
However, I must say that I still believe this mechanism is simply another measure for kicking the can further down the road and putting off what some think of as the evil day when the euro comes to an end. I do not say that simply because I have been sceptical about the euro from the beginning and disagree with the whole principle of the single currency, because it is not just me saying this now; other people agree. Indeed, this week George Soros said that Germany should leave the euro. It would be daft of the Germans to do that, however, because if they did, the new Deutschmark would immediately appreciate in value and Germany would become very uncompetitive in comparison with other member states.
Emma Reynolds
I read reports of that George Soros quote as well, and will my hon. Friend clarify that what he actually said was that Germany should either lead or leave, and that he would prefer the former, not the latter?
Kelvin Hopkins
I stand corrected, but George Soros leaves open that possibility of leaving, and by talking of Germany leading he presumably means the country putting vast amounts of German funding into saving the euro.
Others have also been looking at the future of the euro—which I think is doomed. There was an interesting article by Anthony Hilton in last Tuesday’s Evening Standard. He said that, in a sense, the euro is already dead, because a genuine currency has a number of features. It should be a medium of exchange, and some people are starting to mistrust it as a medium of exchange and want to be paid in other ways. Indeed, some economic advisory bodies are advising their clients not to accept especially long-term payments in euros, but to accept other currencies—sterling or dollars, for instance. That is understandable.
Currencies should be a store of value. Even Greek politicians, as I understand it, are buying gold because they do not trust the euro. Greek people do not want their euros to be devalued into drachmas overnight, so quite sensibly, they are buying gold. Trust in the euro as a store of value is dying by the day; so, let us wait a little. This could all happen very quickly, of course. It could happen over 10 days or over a year, but at some point a decision will be made that the euro is no longer going to function.
Mr Baron
The hon. Gentleman is absolutely right, as he has been so many times; he has a long track record of being fundamentally right on this subject.
Although it can be argued that the ESM does not really affect us, that this is just a treaty change and that we should not get involved, I ask the Minister to reflect on the fact that we are actually playing a small part in prolonging the agony of the euro. We need some fresh thinking on this issue, because, to return to a point made earlier, by not facing reality we risk a very disorderly break-up of the euro, which cannot be good for this country or, indeed, eurozone members generally.
Emma Reynolds
The hon. Gentleman has outlined the case for Greece leaving the euro. What is his response to the fact that opinion poll after opinion poll shows that the Greek people, by a very significant majority—about 85%, according to a recent poll—want to stay in the euro?
Mr Baron
That is up to the Greek people. Unlike many initiatives relating to the eurozone crisis, one is not trying to replace the democracy that exists in Greece, although if we look at what has happened in Italy and, it could be argued, to a certain extent in Greece, we see that it is very much the bureaucrats who are in charge. However, ultimately Greece will have to make a decision; it cannot have it both ways. We have seen the high social cost of Greece remaining a member of the euro, and it is very saddening, with the suicide rate going through the roof and the economy collapsing. Perhaps someone needs to explain to Greece that a course of devaluation would do its economy a power of good.
Mr Stewart Jackson (Peterborough) (Con)
I had not intended to contribute to the debate, but frankly I am astonished by the insouciant comments and complacent remarks of some Opposition Members. They ask, “How can this country have the temerity to make a value judgment on legal proceedings with regard to this mechanism?”
There seems to be a fundamental dichotomy for those unable to see the wood for the trees and who will support any initiative from the European Union. They tell us, “Well, this is just one more signature, treaty or concordat that we need to sign up to for us to be at the top table of Europe, and it may be in the UK’s interests or to the contrary.” Yet they then ask us, how dare we make a value judgment on the Pringle case at the Irish High Court—on which, incidentally, the European Court of Justice constitutional decision may hang?
Whatever happened to subsidiarity? Whatever happened to the autonomy, authority and independence of the 27 EU nation states’ own judicial systems? I am concentrating on the amendment tabled by my hon. Friend the Member for Hertsmere (Mr Clappison) in saying that it is absolutely right for us to be certain of our facts and for us to respect the decisions taken by other countries.
I defer to no one in my admiration for the hon. Member for Luton North (Kelvin Hopkins), who is the Nostradamus of Eurosceptics. He has ploughed a lonely furrow on the Labour Benches for many years. He has been saying unfashionable things. The unfortunate thing, from the point of the view of the Labour party, is that he is a socialist and can see the catastrophic economic calamity being visited on working people in Portugal, Spain, Greece and Italy. For what? For a Franco-German political construct. The lives of millions of our fellow Europeans are being sacrificed for the sake of a dead idea and the creation of a political entity called Europe.
It ill behoves the hon. Member for Wolverhampton North East (Emma Reynolds) to quote opinion polls. There was an opinion poll on the Lisbon treaty that said that we should have a referendum and give the people their say. That was the policy of her party in the previous Parliament, and her party reneged on it. Opinion polls say consistently, as they have over a number of years, that we should have a plebiscite on giving the British people the right to make a decision as to whether they wish to remain part of the European Union. That decision is coming, because the people’s voices will be heard by the end of this Parliament. Any party, including my own, that disregards the voice of the people and thinks that they know better will pay a very heavy price at the ballot box.
This is about kicking a can down a road. It is about putting the welfare, careers, vision, energy and lives of a plutocratic Euro-elite before the lives of real people. Real people’s lives are being wrecked. Children in Greece are being adopted because their parents cannot afford to feed them. People are going hungry in Greece because of the economy. That is the human cost of the words of a desiccated calculating machine, as Aneurin Bevan put it, that came out of the mouth of the right hon. Member for Rotherham (Mr MacShane). It is not just about a political idea; it is about real people. It is time that the House of Commons understood what the European Union is doing to the lives of those people, because we are complicit in that crime in allowing it to go on.
It is time that Her Majesty’s Opposition and the Government understood that this is not an academic issue or a matter of simply saying that it is in our interests to support the continuation of the euro at any price There is a world out there—Latin America, south Asia, the far east. We are a global trading nation, but we are locking ourselves into a sclerotic, backward-looking, high-tax, high-regulation customs union. It is destroying people’s lives, and we have a moral obligation to say that. It is appalling that the Government do not have more courage and determination to say that what is going on in Europe is wrong and we should not be part of it.
Emma Reynolds
When EU leaders agreed to set up the permanent bail-out fund, the ESM, the intention was to introduce it earlier this year. Regrettably, the original date has been delayed owing to the constitutional issues mentioned by the hon. Member for Hertsmere (Mr Clappison), such as the court cases going on in Ireland and Germany. I agree with him to the extent that he raised some important issues about the EFSF and the EFSM on which I look forward to the Minister’s response. However, while it is important that those constitutional issues are ironed out, they should not in themselves delay the UK’s ratification of the treaty change. As the hon. Member for Cheltenham (Martin Horwood) suggested, if each member state were to delay their ratification in order to wait for the ratification of the next member state, we would have a mass stalemate. Ultimately, that would produce an inertia that perhaps the supporters of the amendment would like to produce—but I will not make any judgment on that. I do not want to intrude on the private grief of Conservative Back Benchers and the Minister, but there seems to be a contradiction between saying on the one hand that the Government got a good deal while on the other arguing for a delay. I am sure that the Minister will tackle that.
On the ESM and more widely, it is regrettable that there have been several delays and that there has been a lack of political leadership and inertia and inaction at a European level which has served to deepen the eurozone crisis. As my hon. Friend the Member for Caerphilly (Wayne David) set out, we believe that the stability of the eurozone is in the UK’s national interest and that the ESM will, if used appropriately, contribute to that stability. Any further delay, such as that proposed by the amendment, would act manifestly against that stability and our national interest. It is complacent to suggest that we should not ratify the Bill, so we oppose the amendment.
Mr Lidington
The purpose of the amendment, which was moved with characteristic courtesy and understanding of the issues by my hon. Friend the Member for Hertsmere (Mr Clappison), is to delay the coming into force of the Bill until the constitutional requirements of all EU member states have been complied with and all related legal challenges have been disposed of. I am grateful to him for saying that this a probing amendment, intended to examine various issues connected with the Bill, and that he does not intend to press it to a Division. I am happy to accept that his points are significant and worthy of debate.
It is the Government’s view that to accept the amendment and the consequent delay in the ratification of the change to article 136 would harm the interests of the United Kingdom. It would also not achieve the purpose lying behind the amendment. I will respond in detail to the points that my hon. Friend and others have made.
As my right hon. Friend the Foreign Secretary and I both stated on Second Reading, the decision to amend article 136 is in the interests of the United Kingdom. It benefits the UK in two ways. First, the Prime Minister has secured agreement that once the decision enters into force and the ESM is established, no further commitments will be made under the European financial stabilisation mechanism, which is the mechanism under which the United Kingdom has contingent liability.
Secondly, the Bill and the creation of the ESM serve the interests of the United Kingdom because they will provide euro area member states with a permanent financial assistance mechanism to assist in their quest for stability. My right hon. Friend the Prime Minister has talked frequently about the need for the eurozone countries to put in place an effective and credible firewall. The creation of the ESM is a significant step by the eurozone countries in the direction that my right hon. Friend and this Government have been advocating. We therefore believe that it is in the interests of this country that this treaty change is ratified and the ESM set up as soon as possible.
Mr Lidington
Clause 2 simply declares that the Bill extends to the whole of the United Kingdom and will come into force on the day on which it is passed, and gives its title.
Question put and agreed to.
Clause 2 ordered to stand part of the Bill.
New Clause 1
Impact of the European Stability Mechanism on the UK
‘The Chancellor of the Exchequer shall make a report to Parliament within one year of the Act coming into force and annually thereafter setting out an assessment of the impact of the European Stability Mechanism on the risks to the interests and obligations of the United Kingdom from eurozone instability.’.—(Emma Reynolds.)
Brought up, and read the First time.
The Temporary Chair (Mr Joe Benton)
With this it will be convenient to discuss new clause 2—Report on the use of the European Stability Mechanism
‘The Secretary of State shall, whenever a loan is made to a beneficiary Member State by virtue of the decision in section 1(2), lay before Parliament a report setting out the nature and terms of the use of the European Stability Mechanism and its potential effect, both direct and indirect, on the interests and obligations of the United Kingdom.’.
Emma Reynolds
It is a pleasure to serve under your chairmanship, Mr Benton. We are seeking to add two new clauses to the Bill to underline the importance of the European stability mechanism to the British economy. New clause 1 would require the Chancellor of the Exchequer to provide an annual assessment of the impact of the ESM on the British economy. For instance, in the best case scenario we would hope that if ESM funds were needed and used appropriately, they would enhance the stability of the specific member state they were put in place to support, and therefore also have a positive effect on our economy.
We have some concerns about the conditionality of the ESM, for example if the conditions attached to granting ESM support were too harsh. It would, therefore, be beneficial to have an assessment of the impact of that austerity on the eurozone member state in question and—importantly for new clause 1—of the knock-on effect on the eurozone more widely, and on the British economy. Given that 40% of British exports go to the eurozone, and that our financial sectors and banks are closely connected, it is important that the Government provide systematic assessments of the operation of the ESM and its impact on our economy.
New clause 2 would introduce a specific and timely requirement for an analysis of each instance of ESM activity, without having to wait for the Chancellor’s annual report that is provided for in new clause 1. For example, if the ESM is triggered to provide support for Spain, Italy, Ireland or Greece, there will be varying levels of economic impact on UK trade and growth. An analysis of the downstream impact that each instance of ESM activity might have on the UK would give Members of this House and the other place, as well as the public, a clearer sense of the nature of the conditions imposed and the indirect impact of the ESM’s operation on our economic prospects.
The ESM conditions are to be detailed in a memorandum of understanding between the European Commission and beneficiary member states that will outline specific economic policy and fiscal adjustment conditions. The Committee should be informed of those conditions, and should have the opportunity to debate and scrutinise whether they are fair and reasonable, and whether Ministers should make their own representations on the nature of those terms and conditions.
It is imperative that any conditions imposed are not detrimental to the fragile recovery of the economy of the member state in question, and that any effects of those conditions do not have an indirect negative impact on our economy.
Regrettably, the Government have isolated themselves to such an extent that they might be unable to exert the requisite leverage in debates on conditionality. Nevertheless, the Europe Minister is conducting a charm offensive—he has written various articles, including one written in beautiful French for Le Monde and one written in Swedish for a Swedish newspaper—with the intention of rebuilding bridges with our European partners.
The Opposition applaud the Minister for that initiative —Conservative Back Benchers might not applaud him, but we do not want to intrude on private grief by going through the differences of opinion between those on the Treasury Bench and Conservative Back Benchers who do not agree with them—but we fear that the charm offensive might be too little, too late. We wish the Minister the best in his endeavours.
Mr Love
It is important that the Minister speaks seriously to his European counterparts in his charm offensive about the role that austerity can play in depressing the eurozone economy to our detriment. Is it not critical that the Minister speaks up for growth strategies so that Europe can grow and we can grow off the back of that?
Emma Reynolds
I could not agree with my hon. Friend more and I recommend that the Minister takes his advice. The Government would have more authority to speak to our European partners about the importance of European growth if our economy were growing, but unfortunately it is not—it is one of two G20 economies to be back in recession, which is a great shame. That unfortunately diminishes the authority of our Government’s voice in proposing the useful measures that my hon. Friend suggests.
I mentioned the Minister using his multilingualism to build bridges with our European partners, which the Opposition believe is essential. Even if it runs against the wishes of Conservative Back Benchers who are nervous about the Government’s continued commitment to European membership, the Minister is right to reassure our European partners that our place is firmly in the EU.
Wayne David
On dialogue, which I agree is extremely important, our dialogue with Ireland, which has the same language, is vital. Will my hon. Friend speculate on what would happen to our good relationship with Ireland if the closeness of our two economies were not fully realised? What detrimental impact beyond the economic could that have on our long-term relations with Ireland?
Emma Reynolds
Our relationship with the Republic of Ireland, which is incredibly important, is testament to the temporary mechanisms put in place in May 2010, which had cross-party agreement. Conservative Members like to tell Labour Members that the mechanisms were agreed unilaterally, but there is proof in a note by the former Economic Secretary—she is now Secretary of State for International Development—of cross-party agreement on setting up the EFSM at a time when the eurozone looked like it might collapse. The EFSM has been incredibly important to Ireland’s recovery, so much so that Ireland has been able to sell Government bonds on the international markets again since July this year.
Emma Reynolds
I could not agree more with my hon. Friend. There were some naysayers on the Government Benches who thought the Government were wrong to give a bilateral loan to Ireland, but Opposition Members agreed with the Government, because our economies and financial systems are so closely intertwined. It was therefore incredibly important to make that bilateral loan to Ireland. As I said to my hon. Friend the Member for Caerphilly (Wayne David), it pleases all hon. Members that Ireland’s economy looks like it is getting back on track. That is important for the Irish people—our neighbours—but, given the close links between our economies, it is also important for people in our country.
Given the Minister’s fantastic charm initiative, we hope the Government are in a better position to influence conditionality on the use of ESM funds, as I have suggested. The Opposition do not believe that harsh conditions would be in our interests or in the interests of the member state to which support is given.
Wayne David
Both new clauses call for reports to be made to Parliament. There is a strong case to be made for in-depth reports to be debated on the Floor of the House, but there is also room for debate in Committees, and particularly the European Scrutiny Committee. Does she envisage that the debate should be conducted not just on the Floor of the House, but elsewhere?
Emma Reynolds
I agree with my hon. Friend. New clause 1 would mean an annual report by the Chancellor on the economic impact to the UK economy of the operation of the ESM, and new clause 2 would mean the Foreign Secretary submits a report when a loan is made. As my hon. Friend suggests, the reports would be discussed not only on the Floor of the House and the other place, but in the European Scrutiny Committee and other Committees that deem them important.
The success of the ESM is in our national interest. If it is used effectively and appropriately, it could have a positive effect on our economy as well as on the member states to which it gives support. However, what if the ESM’s conditionality is misguided and imposes austere measures?
Mr Love
On conditionality, there is currently a discussion on easing the conditions of receiving support from the European Central Bank. Would my hon. Friend welcome Government support for such easing? Will she go further, and suggest that it could spark growth in the southern European economies?
Emma Reynolds
Conditionality should not be too severe. The ECB’s initiative to buy Government bonds, which was announced by Mario Draghi last week, would be linked to support provided by the ESM. That is why it is vital that the reports asked for in the new clauses are made to Parliament—there is an interaction between the ESM and the initiatives announced by the ECB last week.
Wayne David
That is important. The situation is volatile, nobody knows with any certainty what will happen next, and the interrelationship and co-ordination between different financial instruments—the ECB bond market initiative has a relationship with the ESM facility—are important. That makes a regular, ongoing review to find out how compatible they are in practice all the more important.
Emma Reynolds
I agree with my hon. Friend. The new clauses would introduce annual systematic assessments of the impact on our economy of the ESM and, in specific cases, of loans granted by the ESM. As he suggests, that is becoming ever more important, given the complicated interaction with the ECB’s other initiatives. If ESM conditionality is too harsh, we fear that it could have a detrimental effect not only on the member state to which the support is being granted but indirectly on our own economy, and could shrink the eurozone economy.
Emma Reynolds
It is regrettable that, in a way, we are a test case for the detrimental effect of severe austerity. Since we left government, the economy has slipped back into recession and we have seen high unemployment, including an unemployment crisis among young people. My hon. Friend is right that unfortunately Europe is looking to the UK to see what it should not do in its economic policy. I am glad that there has been a shift, to a certain extent, within the European Council, in that member states on the centre left, such as the French Government, are now arguing for growth and job creation, not austerity alone. His suggestion is critical.
Mr MacShane
Are not the IMF and World Bank loans, to which Britain fully subscribes—we will be subscribing absolutely nothing to the ESM—also worthy of scrutiny? Would it not be a good idea to extend this concept and invite the Chancellor of the Exchequer to present to Parliament an annual review of all IMF and World Bank loans, the conditionality of which has a huge impact on the British economy and worldwide developments? I am interested in this notion that we are now advancing, which I fully support, that Parliament should debate all the external loans and financial instruments that Britain provides to help other economies get going, as well as those in Europe to which we do not subscribe a penny.
Emma Reynolds
My right hon. Friend makes a good suggestion, but I would not want to comment in too much detail on other external loans, given the remit of the debate. I am sure, however, that those on the Treasury Bench will have heard his suggestion.
In either scenario—whether best or worst case with regard to the operation of the ESM—it would be reasonable and enhance scrutiny in this House and the other place were the Chancellor to provide an annual report of the economic effects on the UK, as set out in new clause 1.
Emma Reynolds
That would be important, but, for reasons I have set out, I fear that the Government’s voice and influence will not be as strong as it should be on these matters, because unfortunately they have chosen, through their actions, to isolate themselves—I think of the walkout at the European Council meeting last December and the Prime Minister winding up the French President by telling him, for some reason, that he would roll out the red carpet for French taxpayers. I am not clear why he thought that that would be in the national interest, given that he had already refused to see the French President earlier in the year. For all those reasons, it is clear that the Government place much more importance on keeping their party together—the Conservative party—than on the British national interest. Regrettably, therefore, our influence over ESM conditionality is severely weakened.
Andrew Bridgen (North West Leicestershire) (Con)
Is the hon. Lady saying that her party supports UK taxpayers’ money being used, through the ESM, to support the eurozone?
Emma Reynolds
It is nice that the hon. Gentleman has made a late entrance but, had he been here from the start, he would have known that the Opposition are not in favour of the Government paying into the ESM. He was not here when I mentioned it, so I shall say again that in May 2010 the then Economic Secretary, the now International Development Secretary, admitted that there was cross-party consensus that if the eurozone collapsed, we would have to agree to the emergency measures drawn up at the last Council, when the then Labour Chancellor, in the interim period after the election, was still in place. So there was cross-party agreement—I can show him the documentary evidence, if he wants to see it.
On new clause 2, it is also important that the Foreign Secretary provides a report whenever a loan is made under the ESM. Both reports will enhance scrutiny in the House.
Wayne David
There is one important element of the ESM with which I am not familiar—I frankly admit—and that is the degree of private sector involvement. In this respect, the IMF is an example of good practice, but given that I and—I suspect—many other Members are not familiar with this element, an effective annual report would be crucial.
Emma Reynolds
I agree that it would be important. It is not clear when the ESM will be introduced—the constitutional court in Germany will rule on Wednesday —or what the significance or extent of the interaction with the private sector will be. It is important for those reasons as well, therefore, that the Chancellor and the Foreign Secretary produce reports in the way suggested by the new clauses. It would enhance the scrutiny of these important subjects in the House and the other place and make it clearer to the general public exactly how the ESM will operate and how its operations will affect the British economy.
Martin Horwood
I will not trouble the Committee for long. It is sometimes tempting with a simple Bill to think of things to put in amendments to provoke debate—it can be helpful—and asking someone to make a report is always quite a good one, but we need to be a little careful with civil servants’ time. To ask the Treasury to make a report to Parliament annually on
“the impact of the European Stability Mechanism on the risks to the interests and obligations of the United Kingdom from eurozone instability”,
and to ask the Foreign and Commonwealth Office
“whenever a loan is made”
to report on the
“potential effect, both direct and indirect, on the interests and obligations of the United Kingdom”,
will involve days and days of civil service time.
Martin Horwood
No, I will not. I am not going to take up a lot more of the Committee’s time.
The proposals are superfluous, given that we endlessly debate the impact of the eurozone and of the various bits of European constitutional and financial architecture on the United Kingdom and its economy. We also endlessly debate the individual bail-outs, and there are always statements to the House on such matters. If these reports were produced by the Treasury and the Foreign Office, I suspect that Her Majesty’s Opposition would disagree with them anyway. There will be plenty of opportunity to question Ministers on what they think of the indirect or direct implications of any bail-outs.
Wayne David
I absolutely agree with my hon. Friend.
This is an important matter, and it should be debated not only on the Floor of the House but by the European Scrutiny Committee. We should also encourage other Select Committees—the Treasury Committee in particular —to debate these issues. It is one of the weaknesses of the House that, all too often, we tend to put European issues into a neat compartment without fully appreciating the fact that they are cross-cutting, cross-departmental and cross-Committee in nature. If we are fully to appreciate their impact, and the need for them to be changed, we need to discuss them in a number of different Committees.
Emma Reynolds
Does my hon. Friend agree that it is regrettable that the Liberal Democrats—who are now in government, not in opposition—should not want increased transparency and scrutiny of the effects of the ESM on our economy? Had they still been in opposition, I am sure that they would have been calling for that today.
Wayne David
I can see that the hon. Member for Cheltenham (Martin Horwood) is straining at the leash to intervene on me. I will give way to him, so that he can give my hon. Friend a comprehensive answer. She has made an astute point.
Jacob Rees-Mogg
I am all in favour of scrutiny. I am a member of the European Scrutiny Committee, and I am the greatest admirer in the House of my hon. Friend the Member for Stone (Mr Cash), who scrutinises with an eye like a hawk and ensures that every aspect of scrutiny is carried out to the fullest, most proper and deepest effect. However, I thought that the new clause might be an example of the socialist sense of humour, which involves tabling a motion that is completely and utterly meaningless and, indeed, the opposite of what the Bill is all about.
Perhaps the Members concerned did not listen to my right hon. Friend the Minister, who explained—beautifully, elegantly and with charm—what the Bill was all about. He also explained what the treaty was about, namely getting us out of responsibility and liability for the eurozone mess so that we would not have to pay to prop up the eurozone. The new clause proposes that the poor old Chancellor of the Exchequer, who has quite enough to do—for instance, he has a growth strategy to draw up, and his infrastructure Bill will be presented to us next week—must write a report on why a fund of which we are not part, and to which we do not contribute, has had an effect on the propping up the stability of the eurozone, which is a matter for the people—
Emma Reynolds
I could not agree more with the hon. Gentleman. The Government need to cut through the dither, and the Chancellor needs to see to that as a matter of urgency. However, I do not really understand why the hon. Gentleman objects to the Treasury’s conducting an impact assessment of the operation of the European sustainability mechanism. He takes a great interest in European matters, and I find it surprising that he does not welcome further transparency and further scrutiny of such an important issue.
Jacob Rees-Mogg
The hon. Lady flatters me. I do indeed take an interest in the issue.
It is extremely important for the Government to be scrutinised on what they do in terms of European policy, but I do not think that we should scrutinise Her Majesty’s Government in relation to what the Germans or the French do, because that is a matter for them. We are outside this mechanism. The whole point is that a new mechanism is being set up to ensure that there is no liability for the UK taxpayer. What is the Chancellor supposed to say? Must he send a letter to Parliament saying “Something over which I have no authority, something to which we have made no contribution, something which is not actually British in any sense, has worked”, or has not worked? We can read that for ourselves in the Financial Times, or in other reputable newspapers.
We really do not need the Chancellor to be bogged down in more bureaucracy. There is a difference between scrutiny and bureaucracy. Scrutiny is about challenging Her Majesty’s Government to ensure that the Government’s decisions are in the best interests of the British people. These decisions—the European stability mechanism decisions—will not be Government decisions in any sense once the treaty is passed, and once this Act is enforced. They will be decisions over which we will have no control, and that is the whole point. We do not want to have any control, because we are not part of the eurozone, and most sane and sensible people hope that we never will be. It is our aim and ambition to be out of the eurozone.
Emma Reynolds
I remind the Minister for Europe that it was our Government who did not take this country into the euro, and that is a matter of fact, not opinion. I also remind him that as the shadow Foreign Secretary and I set out on Second Reading, and as I set out earlier today, we are in favour of the European stability mechanism precisely because it will be a bail-out fund operated by the eurozone for the eurozone and, crucially, financed by the eurozone.
Both new clauses introduce a requirement for the Government in the first instance to assess annually the ESM’s impact on the British economy and, in the second instance, to assess the impact on it of loans made by the ESM. I was disappointed and surprised to learn that the hon. Member for North East Somerset (Jacob Rees-Mogg) does not share our desire for additional scrutiny of European matters. We look forward to his future speeches on Chinese monetary policy. He should not underestimate himself—I am sure there is a member of the Chinese Communist party listening carefully to what he is saying, even if they do not take the advice he is proffering.
The Opposition believe that it is incredibly important that the impact on our economy of the European stability mechanism be assessed, and that both new clauses would add to the scrutiny by this House, the other place and the greater public. For that reason, I would like to divide the Committee on new clause 1.
Question put, That the clause be read a Second time.
Emma Reynolds
I beg to move, That the clause be read a Second time.
New clause 3 would require the Government annually to update the House on their assessment of the impact of the ESM on the economic performance of the EU. Our economy and those of the member states of the eurozone, as well as those of the wider EU, are closely entwined through trade and our financial sectors. We also use the collective weight of the EU to negotiate free trade agreements with both developed and emerging economies. We therefore believe that it is reasonable to require a regular update from the Chancellor on how the ESM arrangements are affecting our major trading partners in the EU.
We welcome last week’s decision by the European Central Bank to set out its approach to outright monetary transactions, which is an example of the lender-of-last-resort role that such a eurozone central bank ought to have reached many months ago. However, the operation of OMTs will be tied to the operation of the ESM. It is therefore imperative that the operation of the ESM is undertaken appropriately and that any strict conditionality does not harm the delicate path back to economic growth.
As we explained on Second Reading, we are in favour of the Bill, which provides for the treaty change necessary to enable the establishment of the ESM by the eurozone, but we have concerns about the conditionality of the ESM. We will continue to argue that ESM and ECB support needs to avoid the punitive austerity that undercuts confidence and demand in an economy, pushes an economy back into recession, reverses the generation of tax receipts and increases welfare costs. Regrettably, that is exactly what has happened in the UK owing to the severe austerity that our Government have chosen to impose, despite the fact that the Business Secretary admitted yesterday that there is a problem of demand in the economy and despite the fact that he and his party agreed with us before the general election that cuts that went too far and too fast would choke off the recovery.
The question of ESM conditionality is at the heart of the divisions between right-wing and centre-left Governments across Europe. Germany holds a veto on the operation of the ESM, because its share of contributions converts to a blocking vote share. Germany’s representative on the ECB board was the only dissenter to the new ECB policy on OMTs that was announced last week and, incidentally, this week its constitutional court is expected to rule on whether the ESM is constitutional according to German law.
Mr Lidington
New clause 3 would require the Chancellor of the Exchequer to make a report to Parliament, within a year of the Act coming into force and annually thereafter, setting out an assessment of the impact of the ESM on the EU’s economic performance. To some extent that touches on issues similar to those we addressed when debating the Opposition’s previous two new clauses.
My argument to the Committee is that the requirement the Opposition are seeking to impose on the Government is simply unnecessary and otiose. The ESM treaty—the intergovernmental treaty among the 17 eurozone member states—requires the publication of annual accounts, so we fully expect information on the financial assistance that will be provided by the ESM to be made publicly available. That would be done in the same way that information on the use of the EFSF and its financial assistance programmes is currently made available on a public website. Furthermore, every EU member state is already required, as part of the assessment known as the European semester, to submit annually to the Commission a report on its own economic plans and performance. Therefore, the information that the Opposition are seeking will be in the public domain anyway.
We seem once again to have a proposal that would create an unnecessary reporting obligation and use civil service time in the UK on a mechanism of which the UK is not part. Parliament, through its Select Committees, the scrutiny system and the powers of the Backbench Business Committee, will continue to have plenty of opportunity to require Ministers to come to the House to be held to account for Europe’s economic performance and the United Kingdom’s place in shaping the EU’s economic policies. We do not need the new clause to give Parliament those powers. I hope that the Opposition, on reflection, will choose to withdraw the motion.
Emma Reynolds
The objective of new clause 3, as I have set out, is for the Government to monitor closely and assess the impact of the European stability mechanism on the wider economy of the European Union. Our economy is closely connected to the other 26 economies of the EU, with regard to both trade and, crucially, our banking sector. Our banks are heavily exposed to developments in the financial sectors of the other member states. It is therefore important that the Government allow the House to scrutinise the impact of the ESM, as well as their own decisions on the level of influence they choose to have on these discussions, even though we are not a member of the eurozone. It is not our policy that we should join the euro, just to clarify that for the Minister once more. Even though that remains the case, as a big member state in the European Union we should have a significant voice in all its developments, including the conditionality imposed on eurozone member states that seek support from the European stability mechanism.
Such matters may not be our primary responsibility as a non-eurozone member state, but we would nevertheless like the Government to be less isolated and to have more influence on the discussions about conditionality, because, as I set out earlier, we have reservations about the harsh austerity that is being imposed on Greece and other member states and that will probably be attached to support from this fund as well as previous mechanisms. It is for that reason that we tabled new clause 3. We believe that it is important that the Chancellor of the Exchequer monitors these developments closely and gives this House the opportunity to comment on and debate them.
Question put, That the clause be read a Second time.
Jacob Rees-Mogg
It is a real pleasure to speak in favour of this Bill, because it is surprisingly important. The more we have debated it, the more clear its importance has become. It is important because it saves the British taxpayer risking substantial amounts of money. When the treaty was agreed, I was disappointed that we had not asked for more, because Her Majesty’s Government had a strong negotiating position and might have been able to start the process of renegotiation and ask why we did not have a more à la carte Europe, to use a French term, if I may, Mr Deputy Speaker, against the preferred guidance of “Erskine May” that one should stick to English.
The Government have achieved something considerable by appearing to be very modest. We have seen the clawback of powers from Europe for almost the first time. Under article 122 of the Lisbon treaty, we had opened ourselves up to substantial and potentially unlimited liabilities for the failures of the eurozone. Once it was accepted that article 122 could be used for emergency bail-outs and the regulation was not challenged, it was conceivable that further regulations could be introduced and that, although each one would have been subject to challenge individually, once the first was accepted, there could have been a continuous chain of bail-outs, resulting in billions and billions of pounds’ worth of liabilities for us.
If I may make a cheap party political point—there is an occasion for such a thing—it is worth noting that it was the previous Labour Government who signed us up, during their dying days, to this almost unlimited liability.
Emma Reynolds
It is always a pleasure to intervene on the hon. Gentleman. I have in my hand an explanatory memorandum by a previous Economic Secretary, who is now the International Development Secretary. It states:
“The Government regrets that the Scrutiny Committee did not have time to consider this document”—
meaning the document on the establishment of a European financial stabilisation mechanism—
“before it was agreed at Council. It should be noted that whilst agreement on behalf of the UK was given by the previous administration,”
to which the hon. Gentleman has referred,
“cross-party consensus had been gained.”
Jacob Rees-Mogg
When the hon. Lady started with, “I have in my hand”, I thought she was going to say, “a piece of paper”, and that we were going to be promised peace in our time, but, sadly, she offered party political disagreement instead. It was more like a battle than peace. All I would say is that the Government of the day were Labour. I accept that the incoming Government failed to challenge the use of article 122—they should have done that and it was a pity that they did not—but that was where we were: socialist extravagance spending our money and signing us up to bailing out the whole of Europe over and over again.
What did we get in place of that? We got a sound Conservative Government, with the help, for once—the worthwhile, marvellous and delightful help—of our Liberal Democrat coalition partners, who were robust enough, which some might say is most out of character, to support us in getting powers back from the European Union, which has almost never happened before. That is important because the whole basis on which the powers of the EU have been built—the acquis communautaire—has been one whereby it gets powers and never gives them away again. It is the doctrine of the occupied field that once Europe has taken over a policy area, it is in control of it and it never goes back to the nation state.
It is therefore a real triumph for the Government to have got this agreement on the treaty on the functioning of the European Union and that the article 122 mechanism has been cast to history. Although that is not being said officially—we do not have a signed document saying that article 122 will not be used—we have a very strong political agreement between all the Heads of Government and Heads of State, signed up to by the Commission, and, most importantly of all, a new mechanism.
The other good thing about the mechanism and the treaty approach that has brought it to us is that we have a proper parliamentary procedure to ratify it. It is so marvellous and commendable of this Government that they are taking parliamentary accountability and democracy seriously. They could have done it differently. They could have just bulldozed it through on a quiet Wednesday afternoon in a debate lasting an hour and a half or two hours, but they chose not to do that. They introduced a Bill that required a proper process and they actually allowed time for the debate—so much time that we may even finish early. That is another good argument for parliamentary scrutiny—time is not used up unnecessarily in the House of Commons; it is used for proper consideration of what the Government are doing.
This new Session’s resolution can therefore be: let us support this marvellous Government and let us support the Front Bench and Treasury Bench representatives as they go boldly forth. They stand up, show backbone and act like a lion—not, as somebody may have once said, like Bagpuss—against Europe. They make sure that the British position is put clearly and forcefully and that powers are returned home.
There is a great lesson for Her Majesty’s Government in this: when they show backbone, force and courage, not only do they receive rapturous support from Members on the bustling Back Benches, but they receive support from the country at large. As the Brussels directives are sent away and batted back home, so the opinion poll rating rises. I hope that the Government will learn from this and act on it in future.
Emma Reynolds
As always, it is a great pleasure to follow the hon. Member for North East Somerset (Jacob Rees-Mogg). On behalf of the Opposition, I, too, would like to thank all right hon. and hon. Members who have taken part in today’s and last week’s debates on the Bill.
The Opposition support the Bill, as my right hon. Friend the shadow Foreign Secretary and I set out on Second Reading. Indeed, there seems to be a worrying level of harmony between those on the Opposition Front Bench, the Government Front Bench and the Liberal Democrat Benches. It even extends to the hon. Member for North East Somerset, to whom I say, in French, c’est un plaisir. To return the compliment, it is a pleasure to be in agreement with him. That agreement, however, does not extend to all of the Conservative party’s Back Benchers. As ever, there is some disagreement between those on the Treasury Bench and Conservative Back Benchers, but let us not dwell on that.
The Bill does not deal with the substance of the eurozone’s new bail-out fund, the European stability mechanism; it deals only with the treaty change required to allow for its establishment. To make our position clear, we do not believe that the UK should stand in the way of the eurozone setting up a fund that will be financed by the eurozone, operated by the eurozone and used by eurozone countries should they need that support. We believe that the eurozone must be allowed to take responsibility for this new, permanent bail-out fund.
Forty per cent. of British exports go to the eurozone, and many British businesses rely on the wider consumer market of 500 million people offered by the European Union. We therefore support immediate and decisive action by the eurozone to stabilise the single currency, because we believe that that stability is firmly in the UK’s national interest. The European stability mechanism is one necessary element of that decisive action. For too long there has been an absence of concrete action by eurozone leaders. Political inaction has, unfortunately, become the norm. As the eurozone’s problems developed, that inaction served only to deepen the crisis.
As many commentators have noted recently, had the European Central Bank announced its support for the eurozone two years ago and used the unequivocal terms that we have heard recently from Mario Draghi, who said that the ECB would provide a fully effective backstop for the currency, it is possible that the crisis would not have reached this stage and that it would be nearing its end.
As the OECD stated last week,
“weakness in the periphery is spilling over to the core.”
It continued that
“further policy action is needed to instil more confidence in the monetary union.”
Although the ESM is certainly not a silver bullet to solve the eurozone crisis, its establishment is definitely part of the solution and is exactly the type of action that the OECD has called for.
Speculation on the future of the euro and uncertainty about the political will of eurozone leaders to save the currency have driven instability in Europe’s financial markets. Without that essential market confidence in the eurozone’s readiness to protect its weaker members, borrowing costs for countries on the periphery have rocketed. Coupled with the weak and under-capitalised banking systems of certain countries in the eurozone, that has led to a vicious circle of financial instability.
The OECD has emphasised that:
“Solvency fears for banks and their sovereigns are feeding on each other.”
It also stated:
“Concerns about the possibility of exit from the euro area are pushing up yields, which in turn reinforces break-up fears. It is crucial to stem these exit fears.”
It is clear that as banking systems have become increasingly weakened, pressure has grown on sovereigns, and that as the financial uncertainty has grown, the cost of sovereign borrowing has risen, which has raised borrowing costs for businesses and individuals. As economic growth has stagnated, the Governments of certain eurozone countries have had to borrow more, and as they have become more indebted, fears about their sustainability and ability to support their banking sectors have risen. That has driven an increased cost of borrowing, and the cycle begins again.
In the short term, it is extremely difficult to break that vicious circle without action from an external body, such as the EU, the ECB or the IMF. In Greece, Italy and Spain, the circle has become almost impossible to break without the financial markets believing that the eurozone as a whole is acting as guarantor.
Six weeks ago, the president of the ECB, Mario Draghi, said that he would do “whatever it takes” to save the euro. Only with that guarantee does the ECB believe it can break the vicious circle and begin to lower the cost of borrowing in the eurozone periphery. To that end, the ECB last week announced plans for a new scheme of Government bond buying, which will operate alongside the ESM. Along with other voices around the EU, including our Government and other Governments, we welcome last week’s announcement. Indeed, the French President, Francois Hollande, said in reaction to Mario Draghi’s announcement that “the euro is irreversible” and that the eurozone is now solving problems that have been pending for too long.
Mr Clappison
The hon. Lady is giving a most interesting analysis of the situation. What is her view, as the Opposition spokesman, on the means by which the ECB’s interventions will be financed?
Emma Reynolds
It was important that in its announcement, the ECB emphasised that there would be some sterilisation of its additional spending, which was intended to allay fears about inflation, particularly in Germany.
Mr Clappison
How credible does the hon. Lady think those promises of sterilisation are?
Emma Reynolds
The market reaction to Mario Draghi’s announcement suggests that they are very credible, because in the days afterwards, the markets rallied.
Steve Baker
People in the markets have a much shorter-term view than is generally suspected. They will always be grateful to know that there is a willing buyer with unlimited funds for whatever they are holding.
Emma Reynolds
I agree that they will be happy about that. That is why it is important that what the ECB president set out last week is carried through and supported by the eurozone Governments. It must not be seen as an announcement that will come and go. I believe that Mario Draghi and the ECB have set out important steps that have been needed for some time to provide a back-stop for the single currency.
Geoffrey Clifton-Brown (The Cotswolds) (Con)
The ECB’s announcement was made alongside the fact that it would impose conditions on the buy-outs of bonds. There is concern in some countries that they will not be able to meet those conditions. Is my hon. Friend the Member for Wycombe (Steve Baker) not right to say that the market is taking a very short-term view? Unless there are strict fiscal conditions so that the situation improves, the buy-outs of bonds will not solve the problem.
Emma Reynolds
I thank the hon. Gentleman, because he brings me on nicely to the next part of my speech, which is about the conditionality of the ESM and the bond buying that was announced last week.
The conditionality of the ESM requires further scrutiny. As with our Government’s economic failings, we are concerned that the ESM will impose harsh austerity on countries that receive its support, and thereby choke off economic growth and recovery. In the UK, the effect of such “austerity alone” economics is acutely felt by the 2.65 million people who are unemployed. The former US Treasury Secretary, Larry Summers, last week reflected on the Government’s economic mismanagement at a conference in London:
“We have avoided the prospect of a 1930s-like experience in the US. I cannot say the same with respect to Great Britain. The downturn in British output is more sustained than at any point in the twentieth century. In such an environment, to radically slash public investment is, I would suggest, to violate the Hippocratic Oath—first, do no harm.”
Although he was referring to the catastrophe of our Government’s economic policy, he could have been talking about other countries within the eurozone that have been the subjects of severe austerity.
Although it is true, as the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) suggests, that the fiscal position of countries in the medium term must be looked at—the level of debt to GDP in Greece, which has been over 100% since the early 1990s, is certainly unsustainable—Greece and other countries must be allowed to get back to growth as a means of reducing their deficits and debts. As we are seeing in this country, without that growth, it is more difficult to bring down a country’s annual deficits and longer-term debt.
Thankfully, the debate in Europe is beginning to shift towards a focus on growth and job creation, rather than austerity alone. In particular, we welcome the growth measures agreed at the European summit in June. However, we note that the debate is ongoing in Europe between those who argue for growth and job creation, and those who believe in austerity. It is regrettable that our Government are still very much on the wrong side of that debate.
The Government try in vain to blame the eurozone for their own economic failure, but even their own Back Benchers are not convinced. Last week, the right hon. Member for Haltemprice and Howden (Mr Davis) told an audience in the City that it was wrong for the Government to blame the eurozone for their current economic failings. Before the summer recess, the hon. Member for Bury St Edmunds (Mr Ruffley), a member of the Treasury Committee, said that the Government must not use the eurozone crisis as an alibi. The Opposition recognise the importance of the eurozone and of Britain’s place within the EU in building growth and prosperity. However, the Government’s failure to deliver growth two years ago and their continuing failure to focus on it have left us more vulnerable to the escalation of the eurozone crisis.
I will reflect briefly on the wider future of the eurozone and the role that the ESM will play. In contrast to the unequivocal statements of support for the euro from Mario Draghi and Francois Hollande that we have heard in recent days, some hon. Members have called today and throughout the Bill’s passage for the break-up of the euro and have argued against the establishment of the ESM. However, the break-up of the eurozone is not an easy, cost-free way out of the crisis.
If Greece were to leave the eurozone, the consequences could be disastrous for Greece and for the rest of the EU. If the euro were replaced by a new currency in Greece, the value of that currency would in all likelihood plummet, causing a further disaster in the Greek economy. Moreover, the contagion effect following that could be hugely damaging for the rest of Europe. Far from stabilising the eurozone, a Greek exit might serve only to deepen the sovereign debt crisis. International lenders, seeing Greece cut loose from the euro, may become wary of lending to other struggling states in the eurozone. Greece may become only the tip of the iceberg as investor panic drives up borrowing costs for Italy and Spain, the eurozone’s fourth and third largest economies.
Mr Clappison
I am grateful to the hon. Lady for giving way; she has been most generous. Throughout the debate, I have been interested in how the various measures will be financed. She has now turned from Mr Draghi’s proposals to those that we have in front of us today. What is her view of the fact that Italy and Spain seem to be significant contributors to the ESM, even though she has just mentioned them as being prospective beneficiaries?
Emma Reynolds
It is not impossible for them to be beneficiaries and contributors at different points, so I do not really see the difficulty that the hon. Gentleman is trying to point out.
Depositor confidence would also be damaged by the contagion effect that I mentioned. In the past year alone, 10.9% of deposits have been withdrawn from Spanish banks, which is a staggeringly high amount. In the event of a Greek exit, it is unlikely that such banks would be robust enough to survive if there were a sustained run. In that scenario, the Greek bail-out could appear small in comparison with the sums that may be needed to support other states in the eurozone.
For the reasons that I have given, we support the Bill. The establishment of the ESM is not a silver bullet, but it is nevertheless a key part of the solution that is so urgently needed to resolve the eurozone crisis. It is manifestly in the UK’s national interest that stability is restored to the eurozone, so we welcome the Bill.
Question put and agreed to.
Bill accordingly read the Third time and passed, without amendment.
Oral Answers to Questions
Emma Reynolds Excerpts(11 years, 8 months ago)
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Emma Reynolds (Wolverhampton North East) (Lab)
I remind Government Members that it was the previous Labour Government who kept this country out of the euro. There has been recent speculation in the German press that the German Chancellor will push for a new treaty to create closer fiscal and political union in the eurozone. What is the position of the Government on this proposal, and what discussions have the Minister and his colleagues had with their German counterparts about this proposal?
Mr Lidington
There are all sorts of exciting media reports, but there are no proposals for treaty change on the table at present. I simply remind the hon. Lady, however, that while the Government parties have supported giving the British people the final say over any proposal from any Government to join the euro, her party leader has said that securing the objective of Britain joining the euro will require only his remaining as Prime Minister for long enough.
European Union (Approval of Treaty Amendment Decision) Bill [Lords]
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Emma Reynolds (Wolverhampton North East) (Lab)
It is a great pleasure to be back from holiday, although I do not lament the end of the cricket season in quite the same way as the hon. Member for North East Somerset (Jacob Rees-Mogg). We have had a wide-ranging debate, some of which concerned the short Bill before us. It is an enabling measure that will amend article 136 of the treaty on the functioning of the European Union, and allow member states to set up a permanent bail-out fund—the European stability mechanism.
We have heard speeches from many right hon. and hon. Members. My right hon. Friend the Member for Rotherham (Mr MacShane) reminded us of the great dangers of what he called a “Grexodus”—an exit by Greece from the eurozone—and of the fact that the vast majority of Greeks want to stay within the eurozone. My hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow (Mr McCann) warned of the great dangers of a wider euro collapse, and we heard also from my hon. Friend the Member for Luton North (Kelvin Hopkins), who takes a somewhat different position, as was reflected in his original opposition to the euro.
From the Government Benches we heard a characteristically detailed and lengthy critique of both the euro and the EU by the hon. Member for Stone (Mr Cash), and the hon. Member for Camborne and Redruth (George Eustice) reminded us that the UK is not bound by the ESM. We heard an uncharacteristic speech—it was almost gushing and positive—about the Government from the hon. Member for North East Somerset, and a somewhat more critical speech from the hon. Member for Rochester and Strood (Mark Reckless). The hon. Member for Stroud (Neil Carmichael) reminded us that it is in the national interest that the euro survives and does not collapse.
As the shadow Foreign Secretary, my right hon. Friend the Member for Paisley and Renfrewshire South (Mr Alexander), set out at the start of the debate, the Opposition are in favour of the Bill and the European stability mechanism not because the ESM is a silver bullet to solve all the eurozone’s problems, but because it is part of the solution. We are, however, concerned about the delay in its introduction, and about the insufficient scale of the firewall. Since the start of the crisis, political inaction has produced uncertainty in the markets, which in turn has deepened the eurozone crisis. Markets need to know that European leaders have the political will to tackle the crisis. Therefore, alongside the establishment of the ESM, further measures are urgently needed to restore stability to the eurozone, and to provide a greater role for the European Central Bank, a recapitalisation of European banks, and a greater emphasis on growth rather than austerity alone.
The British Government and other European Governments have imposed collective austerity. That has provoked a simultaneous shrinkage of our economies and produced a downward spiral with a devastating recession in Greece and an unemployment crisis afflicting many European countries.
The International Monetary Fund and several ratings agencies have been clear in their criticism of austerity-alone economics. Last April, the IMF stated:
“Austerity alone cannot treat the economic malaise in the major advanced economies.”,
and Standard and Poor’s has stated that
“austerity alone risks becoming self-defeating.”
Thankfully, a number of changes of Government in the rest of the EU have led to a recent shift from severe austerity towards a focus on growth, and we welcome the growth package agreed by European leaders in June. The UK Government, however, have little authority in promoting growth in Europe, given that they have produced a double-dip recession at home.
Growth and stability in the eurozone are manifestly in the UK’s national interest—40% of our exports go to the 17 members of the eurozone, and the wider EU is our biggest trading partner. The Government like to lay the blame for their economic mistakes at the doors of others, and Ministers have blamed everybody but themselves—the banks, the royal wedding, bank holidays, the rain and, of course, the snow. The eurozone is the latest smokescreen for the Government’s economic mistakes, but the uncomfortable truth is that, had it not been for our exports, our economy would have gone back into recession a year ago.
Several hon. Members have called for the break-up of the eurozone, but that is neither in the British national interest, nor an easy, cost-free way out of the crisis, just as “I told you so” is not an economic policy. Several hon. Members have suggested that Greece leave the eurozone. However, the consequences would be disastrous both for the Greek people and the rest of the EU. A new Greek currency would be likely to plummet in value. Imports, on which Greece relies heavily for both food and medical supplies, would become prohibitively expensive and, without a huge injection of capital, the Greek banking sector could collapse, wiping out ordinary people’s savings. Further severe spending cuts would be needed to enable the Greek Government to finance its deficit and pay public sector salaries and pensions.
More widely, the contagion effect of a Greek exit could be disastrous for Europe. The eurozone’s largest banks, not to mention the European Central Bank, have huge exposure to Greek debt, and British banks would also be affected. Moreover, by setting a precedent for eurozone exit, a Greek exit would seriously damage depositor confidence. At best, this would introduce greater uncertainty to the eurozone, and at worst it would precipitate a run on Europe’s biggest banks. Finally, a credit event, which might follow a Greek exit, would cause turmoil on financial markets. Far from stabilising the eurozone, a Greek exit might serve only to deepen the crisis, and there is no possibility that Britain would be completely insulated from that.
As ever, today’s debate has highlighted yet again the deep divisions in the Conservative party over Europe. Clearly, the wounds of the last 20 years have not healed. We have the usual suspects making speeches that sound oddly reminiscent and the party leadership is having trouble managing some of its Back Benchers. I might not agree all of the time with the hon. Member for Stone, but at least he is consistent. The same cannot be said for the Government, who try to placate their Back Benchers while at the same time trying to rebuild bridges with our European partners.
I welcome the Europe Minister’s new found linguistic skills which he has used to pen articles in several European newspapers—Le Monde, entre autres—in which he extols the virtues of the UK’s membership of the EU and reassures the reader that the Government are wholly committed to the UK remaining in the EU. Perhaps he could clarify when he is going to write a similar article for the British press.
I am happy to leave the Tories squabbling amongst themselves: we are clear that enabling the setting up of the ESM is in the UK’s national interest, as is a return to growth and stability both in the UK and the rest of the EU. For that reason, we support the Bill.
Court of Justice of the European Union
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Emma Reynolds (Wolverhampton North East) (Lab)
I welcome the opportunity to discuss the revised rules of procedure for the European Court of Justice. The Minister said that the Government are happy with what he calls a modest package of reforms that should improve the functionality of the Court without incurring any significant costs. We are pretty much in agreement with his analysis of the revised rules of procedure. We hope that the changes will make the ECJ’s procedure more efficient, and we appreciate that the Court itself was keen for the reforms to be agreed before the partial renewal of judges in October.
As the Minister outlined, there has been an increase in the Court’s work load, so the reforms are necessary. In its report, the European Scrutiny Committee noted the increased work load and said that it is due to the development of European Union law in new areas and the increase in the number of member states. As the Minister said, in the past year the number of new cases referred to the ECJ from national courts has increased, as has the number of commercial disputes, tax disputes and intellectual property cases. We are concerned that the backlog of cases is gradually continuing to grow.
It is clear that an enlarged Court requires more streamlined rules. We therefore welcome some of the changes proposed, in particular the removal of the requirement to read the report of the judge-rapporteur at the hearing, and the modifications of the composition of the Grand Chamber to ensure greater consistency. We also welcome the proposal to allow a member state bringing proceedings against another member state to use its own language, rather than that of the defending state. It is, however, questionable whether the reforms go far enough. It is to be hoped that procedural reforms will eliminate some of the delays, but structural reforms might be necessary.
In his letter to the Chair of the European Scrutiny Committee, the Minister says that a friends of the presidency group will be established to examine wider potential reforms to the Court, including the proposal to increase the number of judges. I listened attentively to the right hon. Gentleman, but I am not clear about the Government’s position on the proposal to increase the number of judges in the General Court, and I would welcome clarification of that when he winds up. The proposal was controversial and was dropped by the Danish presidency in order to expedite the reforms we are discussing today.
The motion refers to the appointment of temporary judges to the EU civil service tribunal. Seven judges serve on that tribunal, which adjudicates disputes between the European Union and its civil servants. The proposal is that temporary judges be appointed in the event that one of the judges must take an extended leave of absence. That administrative change to cover absence seems sensible.
The Opposition agree with the Minister that the rule changes are modest and welcome. We hope that they will streamline the decision making of the ECJ, as we want no further increase in the backlog of cases. The Court is the arbiter between member states and is key to the effective functioning of the single market, so we also agree with the Government that improving the functionality of the Court will be good for British business operating in the EU. Hopefully, it will prevent delays in the enforcement of single market legislation.
Both the European Court of Justice and the General Court have proven effective in enforcing competition rules and in ruling against protectionism. It is vital that they continue to do so do so in future. It is important to British business, consumers and workers that both Courts perform their duties as efficiently and cost-effectively as possible. That is why we support the motion.
EU Charter of Fundamental Human Rights
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Emma Reynolds (Wolverhampton North East) (Lab)
I welcome this second opportunity to discuss a European motion, this time on the EU’s role in promoting human rights and democracy and the EU’s external policy. In the context of the Arab spring and with the ongoing crisis in Syria, those issues are highly relevant and the EU’s role is more important than ever.
Three subjects are central to the motion: the new EU human rights strategy; the corresponding action plan; and the appointment of an EU special representative on human rights. The Opposition agree with the Government that the EU should use its collective weight to maximise its influence in promoting human rights and democracy around the world, and that the EU’s new human rights strategy will serve as a multiplier of the UK’s voice. The size of the European economy and the fact that the EU is the world’s largest provider of development aid gives it significant influence and leverage in the promotion of human rights.
We also agree with Baroness Ashton that human rights must be the silver thread running through the EU’s external strategy. For the first time, one document summarises all aspects of EU human rights work. The strategy emphasises the universality of human rights and the importance of making them central to the EU’s external policies. It is vital that promoting and protecting human rights is not considered an add-on to the EU’s external policies, so we welcome the fact that they will be mainstreamed into all EU external policies.
We welcome the strategy’s commitment to include human rights considerations in trade, investment, technology, telecommunications, internet, energy, environment, corporate social responsibility and development policy. The mainstreaming of human rights is further strengthened by the commitment for the geographical working groups in the Council to have responsibility also to fulfil the action plan. The EU will increase its support for freedom of expression, association and assembly. That is important, because, as the strategy says,
“democracy cannot exist without these rights”.
We welcome the increased emphasis on supporting the fair and impartial administration of justice—another important way of promoting the independence of the judiciary. More generally, there is an encouraging emphasis in both the strategy and the action plan on the need for the EU to evaluate the impact of its human rights policies. The EU’s annual human rights report will now evaluate the EU’s progress in meeting its objective as well as the human rights record of third countries. That is welcome in terms of increasing both transparency and accountability. Another positive development is the commitment to develop indicators for human rights dialogues.
The action plan further acknowledges the division of competence between the EU and member states on human rights and recognises that the role of the EU is to complement the work done by member states. Finally, both the strategy and the action plan underline the importance of the EU working even more closely with civil society in its human rights work.
The role of the new EU special representative on human rights will enhance the EU’s effectiveness and visibility in protecting and promoting human rights—this special representative will be the first to have a thematic role. Whoever is appointed will have a broader remit and a more flexible mandate than the existing EU special representatives. We agree with the Government that the person chosen to be representative should have
“an established track record and international experience in human rights”
and that he or she
“should have an excellent ability to maintain diplomatic relations at a senior level”.
The motion refers to the charter of fundamental rights and the Commission’s 2011 report on the application of the charter. The report underlines that progress has been made in ensuring that all EU institutions, bodies and agencies comply with the charter. It also contains a number of observations and recommendations. It notes that positive steps have been taken on, for example, disability rights, child protection and preventing human trafficking.
On disability rights, the EU has joined the UN convention on the rights of persons with disabilities, which is a welcome development. On child protection, the EU has adopted an agenda on the rights of the child, which is a prelude to developing new rules on combating the sexual exploitation of children and child pornography.
The report details the EU directive on the prevention and combating of trafficking human beings and protecting its victims, which came into force in 2011. As the report recounts, the directive took a human rights and gender-specific approach and sought to achieve more effective prosecution of human traffickers by national authorities across borders. The Commission also appointed an EU anti-trafficking co-ordinator.
The report highlighted areas for improvement, namely on gender equality, and to this end the Council of Ministers adopted a European pact for gender equality calling for equal participation of women in decision making and repeating the importance of integrating a gender perspective into all policies, including in the external actions of the EU. Progress has certainly been made, but there remains much to do.
It is important to consider the role of human rights not only in the EU’s external policies but inside EU member states. In that context, I would like to ask the Minister about the situation in Hungary. Last year, the Commission used its legal powers to raise concerns with the Hungarian Government about media law, because the Commission had serious concerns that the law would severely restrict freedom of expression. Fortunately, the Hungarian Government were persuaded to agree to a raft of changes to ensure that those concerns were addressed.
Nevertheless, there remain ongoing concerns about the actions of the Hungarian Government, in particular over the introduction of the new fundamental law, which came into force at the start of the year and replaced the constitution that had transformed Hungary from communist dictatorship to liberal democracy.
Jeremy Corbyn
I appreciate what my hon. Friend says about the media laws in Hungary, but does she also share my concern about the disgraceful systematic treatment of the Roma in Hungary and the many cases reported at a very high level to human rights organisations? There is a case for the strongest possible statements to be made by both the EU and the Council of Europe.
Emma Reynolds
I agree with my hon. Friend that the protection of the human rights of the Roma community is incredibly important and that those rights are at risk in Hungary. Their human rights have been threatened in other member states, too—I will not mention a former President of the French Republic and some of the things he said about that community.
The fundamental law extends the Hungarian Government’s control over various bodies that should be independent, such as the central bank and the courts. In particular, there are concerns about the independence of the judiciary. We believe that an independent judiciary is a vital safeguard of human rights. The European Parliament and the Commission have raised concerns about democracy and the accountability of the Hungarian Government, and it is clear that human rights must be protected within the EU and its member states, if the EU is to have an authoritative voice on human rights in external countries. I would appreciate it, therefore, if the Minister could shed some light on these matters by answering the following questions: does he think that the situation in Hungary weakens the EU’s voice on democracy and human rights in third countries; and will he update the House on what discussions he and his colleagues, including the Foreign Secretary and the Prime Minister, have had with the Hungarian and other EU Governments about the new Hungarian fundamental law and its the implications for the human rights of the Hungarian people?
Mr Cash
Is the hon. Lady aware of the enormous majority that the President, Prime Minister and Government of Hungary have as a result of free and proper elections? Does she think it the right and duty of the EU or the Venice Commission to tell a member state how it should behave, when it has such a massive democratic mandate? This is a very serious question.
Emma Reynolds
I agree only that it is a very serious question. The EU must promote and protect human rights within its member states, regardless of the majority that a President or Government have received from the electorate. We should not tolerate the judiciary, the media or other such institutions being under the control of whatever Government in whatever member state. Labour Members are proud of our record on human rights while in government. We passed the Human Rights Act and prioritised the promotion of human rights in our external policies, particularly our development policy. Further back in history, the UK was one of the leading architects of the European convention on human rights. We remain proud that the UK is a signatory to that convention, and we are a full and active member of the Council of Europe.
Although we welcome the Government’s position on the documents before the House, it seems that the Government are not always entirely consistent in their commitment to human rights. The Minister has said positive things today, but his Conservative MEPs in Brussels say and vote entirely differently. Regrettably, they sit with a rag-bag of anti-Semites, holocaust deniers and homophobes.
Emma Reynolds
I do not think it is rubbish at all.
We need a Government who will consistently champion human rights in the UK, in Brussels and around the world. The new EU strategy, the action plan and the appointment of a special representative for human rights will hopefully make the EU’s promotion of human rights and democracy more effective. We therefore support the motion.
UK-Turkey Relations
Emma Reynolds Excerpts(11 years, 10 months ago)
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Emma Reynolds (Wolverhampton North East) (Lab)
I welcome today’s debate on UK-Turkey relations and Turkey’s regional role. I congratulate the Foreign Affairs Committee, of which I was briefly a member, on its excellent report on the issue.
Right hon. and hon. Members on both sides have made thoughtful contributions. The Select Committee Chair gave a comprehensive overview of the report. My hon. Friend the Member for Ilford South (Mike Gapes) underlined the need to resolve the Turkish question, and the hon. Member for North Dorset (Mr Walter) stressed that Europe’s neighbourhood is Turkey’s neighbourhood. My right hon. Friend the Member for Cynon Valley (Ann Clwyd) reminded us that we can be both a friend and critic of Turkey’s. The hon. Member for Penrith and The Border (Rory Stewart) demonstrated, as ever, that he is the Foreign Office’s keenest human resources critic.
We also heard from my right hon. Friend the Member for Rotherham (Mr MacShane) and the hon. Members for St Austell and Newquay (Stephen Gilbert), for Enfield, Southgate (Mr Burrowes), for Peterborough (Mr Jackson), for Stroud (Neil Carmichael), for Poole (Mr Syms) and for Romford (Andrew Rosindell).
Turkey is vital to the UK, geographically, strategically and economically. Geographically, it is at the crossroads between east and west and it remains one of the most important transit countries for the movement of goods and people anywhere in the world. It is as important now as when the merchants of the silk road travelled the country exchanging goods, philosophy and culture between Europe and the east.
Strategically, Turkey is its region’s rising power and it is vital to the UK, Europe and the United States. It is a key NATO partner, given not only its geography but the size of its military. It has the second largest army in NATO in terms of personnel, second only to the United States. Turkey is a democratic, secular Muslim country that offers hope and inspiration to countries in the region—especially those going through radical transformation as a result of the Arab spring. In the middle east, Turkey is central to securing stability across the region and, crucially, to solving the conflict in Syria and securing a nuclear-free Iran.
Economically, Turkey is a rapidly rising force. In the past 10 years, its economy has grown, on average, by more than 5% a year. Its gross domestic product has tripled. Trade and direct investment have increased dramatically. By 2050, it is set to be one of the world’s top 10 economies, with a vibrant, young and growing population, more than 50% of whom are under 30.
Turkey is already an important member of the G20 and its influence is growing. Its economic rise is impressive, especially given the dark economic days that it suffered in the late 1990s and early 2000s. Turkey’s democratic development is also impressive given the military dominance of the past century, with four coups in the past 50 years. The so-called deep state has now been successfully dismantled.
Given Turkey’s ever-increasing prominence and importance, we fully support the continued strengthening of the UK’s bilateral relationship. Labour Members are proud that in 2007 the then Prime Minister agreed the first UK-Turkey strategic partnership. In 2010, British exports to Turkey totalled over £1 billion. About 2 million British nationals visit Turkey every year. There are over 150,000 Turkish nationals and about 500,000 people of Turkish origin in the UK. In cities across the UK, we can see evidence of the contribution that these Turkish communities make to the fabric of British society. There continues to be a strong cultural exchange between our countries. We therefore support the Select Committee’s assertion that the Government are correct to seek to strengthen the UK’s relations with Turkey as a strategic partner. This partnership covers agreements on a range of issues including education, defence, regional stability and culture—from managing migration flows to the development of low-carbon technologies.
We welcome the Foreign Office’s commitment to increasing its diplomatic presence in the country. We also welcome the recent military co-operation treaty agreed and signed by the Government and the Turkish Government. The Select Committee is right to note that the strategic partnership is a means of measuring the success of the Government’s policy on our bilateral relations with Turkey. Two years on from his Government’s launch of the renewed strategic partnership, I look forward to hearing the Minister reflect on the key achievements to date and the key objectives for the years to come.
Alongside Turkey’s economic rise, its regional and international prominence has also been significantly enhanced. I echo the comments of the hon. Member for St Austell and Newquay in saying that Labour Members commend Turkey for its ongoing commitment to the mission in Afghanistan. Turkey has supported many NATO, UK and EU foreign policy objectives. Today, crucially, Turkey is central to resolving the horrific conflict in Syria. We welcome Turkey’s involvement in the Friends of Syria group; it hosted the group’s second meeting in April. We welcome the steps that Turkey has taken to encourage dialogue between opposition leaders by hosting talks in Istanbul. Turkey has accepted over 36,000 Syrian refugees and, crucially, it has offered a safe haven for defectors from the Syrian military. As a fellow member of NATO, we welcome Turkey’s moderation in its reaction to Syria’s unprovoked and unacceptable attack on a Turkish aircraft on 22 June. As my hon. Friend the Member for Ilford South emphasised, Turkey’s restraint in this matter was exemplary.
On Iran, Turkey has been proactive in trying to find solutions to securing a nuclear-free Iran. It recently hosted a P5 plus 1 meeting in Istanbul and this week it has been hosting a meeting of technical experts.
Turkey’s wider role in the region is also important. The hon. Member for North Dorset stressed its influence in the Balkans. The Kosovan Foreign Minister recently praised Turkey for its positive role in the region in recognition of its efforts in helping to establish better relations between Serbia and Kosova—a relationship that we and, I am sure, the Government will want to be improved.
Following the dramatic transformations triggered by the Arab spring, Turkey played a leading role in supporting democratic change. The Turkish Prime Minister was the first international leader to call for President Mubarak to stand down. The Select Committee is right to underline the importance of a democratic, secular and Muslim state such as Turkey acting as an inspiration to moderate political forces in north Africa and the middle east.
Finally, let me turn to Turkey’s EU membership. We welcome the continued cross-party consensus in this House in favour of Turkey’s EU membership. The Select Committee rightly focuses on this issue in the second part of its report. When Labour was in government, we were a strong advocate of Turkey’s accession, and we are pleased that the current Government have continued this policy. However, as several right hon. and hon. Members have pointed out, we must recognise the difficulties in this area, not all of which relate to the acquis communautaire. It is regrettable that for the next six months the negotiations will be suspended. It is encouraging that relations between Turkey and France seem to be on a better footing since the election of François Hollande in May. President Hollande has accepted the invitation of Prime Minister Erdogan to visit Turkey, which will be the first such visit by a French President for 20 years.
There are also problems with regard to the acquis communautaire, as was highlighted by the European Commission’s recent progress report. Turkey has a great deal of progress to make on human rights, as has been pointed out by several hon. Members, in particular with regard to the freedom of expression and the reform of the judiciary. I welcome the Select Committee’s recommendations in that area, in particular that the Foreign Office should ensure that Turkey is left in no doubt that the shortcomings in its justice system are damaging to the country’s international reputation. We also agree with the recommendation that the Foreign Office should suggest that the Turkish Government encourage prosecutors and judges to exercise restraint in the use of pre-trial detention while the reforms to the justice system are being carried out.
We are concerned about the Select Committee’s finding that some improvements in human rights have been reversed, especially with regard to the limiting of media freedoms and freedom of expression. To echo the comments of the hon. Member for St Austell and Newquay, there are also concerns about LGBT rights. In its recent accession report, the European Parliament urges the Turkish Government to ensure that LGBT rights are guaranteed by the law effectively enforced and respected by the police.
The Select Committee is right that a settlement on the relationship between the Turkish state and Turkey’s Kurdish community is vital. It is of great concern that over the past year the level of violence in that decades-long conflict has increased. It is estimated that over the past 30 years 45,000 lives have been lost. As recently as last month, 34 people were killed at a military border post. However, there are also encouraging signs. As my hon. Friend the Member for Ilford South outlined, there is a greater level of co-operation between the Turkish Government and the Kurdish regional government in northern Iraq, including plans to build an oil pipeline between the two areas. I echo the question put to the Minister by the Chair of the Foreign Affairs Committee: what do the Government think the prospects are for a settlement on this issue in the months and years to come?
Kelvin Hopkins (Luton North) (Lab)
I have not heard the whole of my hon. Friend’s speech, but she has not touched on the Cyprus problem in the last part of it. I know that the matter has been discussed in the debate, but she has not mentioned it. Will she say something about Cyprus?
Emma Reynolds
I thank my hon. Friend for his late intervention. There has been quite a lot of discussion of the Cyprus question. It is clearly an obstacle to progress in Turkey’s accession negotiations. I referred to it somewhat obliquely when I talked about political problems, rather than problems relating to the acquis communautaire, in Turkey’s membership negotiations.
In conclusion, today’s debate has underlined the many reasons why Turkey is an important strategic and economic partner to the UK. As I touched on earlier, as a result of the Arab spring there is a high degree of hope for a democratic future in the middle east and north Africa, but also a high degree of uncertainty. The ongoing crisis in Syria and the problems with Iran serve only to exacerbate that instability. Turkey is a vital ally in that key region and beyond. It is a stable, democratic, secular, Islamic state, a beacon of democracy and an inspiration for countries such as Egypt and Tunisia. For all those reasons, it is clear that Turkey is a strategic partner of growing importance to the UK. I look forward to hearing how the Minister and the Government will continue to strengthen our bilateral relationship with this important country.
Oral Answers to Questions
Emma Reynolds Excerpts(11 years, 11 months ago)
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Mr Lidington
I entirely endorse what my hon. Friend says. It is particularly important that sporting champions—who can, perhaps, cut through to parts of society that will not listen to speeches by politicians—set an example in the way the England players did.
Emma Reynolds (Wolverhampton North East) (Lab)
The trial and ongoing detention of Yulia Tymoshenko has widely been denounced as politically motivated. Further to the question asked by my hon. Friend the Member for Erith and Thamesmead (Teresa Pearce), why do the Government appear still to take the position that human rights do not matter at the knockout stages of the European championships? Is it because they do not have confidence in their own policy, or because they do not have confidence in our team?
Mr Lidington
I am afraid the hon. Lady must have written her question before she listened to my answer to her hon. Friend the Member for Erith and Thamesmead (Teresa Pearce). We have made it clear in every conversation at official and ministerial level with our Ukrainian counterparts that if they want to have the democratic future and the closer links with Europe that the Ukrainian Government say they want—and that we believe need to happen—they have to show they are serious about democratic, as well as economic, reform.
Sergei Magnitsky
Emma Reynolds Excerpts(12 years, 2 months ago)
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Emma Reynolds (Wolverhampton North East) (Lab)
I congratulate the hon. Member for Esher and Walton (Mr Raab) on securing this debate and commend all right hon. and hon. Members who have supported the motion.
In all parts of the House, there is strong and unequivocal condemnation of the brutal treatment and alleged murder of Sergei Magnitsky. Mr Magnitsky, as the hon. Member for Esher and Walton has explained, was a young Russian lawyer working on behalf of a British firm in Moscow. He is thought to have uncovered the biggest corruption case in Russian history—a case that implicated politicians, the police, judges, and members of the Russian mafia. Days after Mr Magnitsky filed a criminal complaint and testified on the involvement of the tax police, among others, he was arrested on spurious tax charges by the same tax police officers against whom he had testified. He was held in pre-trial detention for nearly a year. In prison, he was mistreated, denied medical treatment and beaten. He died just days before the one-year limit within which he could be held without trial expired.
As the motion underlines, this is one of several cases in Russia in which human rights defenders and those exposing corruption have been brutally murdered. World-renowned journalist Anna Politkovskaya, human rights activist Natalya Estemirova, and human rights lawyer Stanislav Markelov have all been killed in cold blood for pursuing the truth. The brutality of the killings has even extended beyond Russia’s borders, with the murder of political exile Alexander Litvinenko on British soil five years ago.
Jo Swinson (East Dunbartonshire) (LD)
The hon. Lady mentions cases including that of Natalya Estemirova. A couple of years ago, I was fortunate enough to be able to travel to Chechnya and, unfortunately, to see at first hand some of the appalling human rights violations there, including what had happened about the assassination of Natalya Estemirova. We may know who is responsible in the case of Sergei Magnitsky, but does the hon. Lady agree that one of the major problems is that investigations into such cases to get to the root cause of who has committed these appalling crimes are not undertaken, and that we need to use all diplomatic efforts to encourage the Russian authorities to do so?
Emma Reynolds
I do agree, and I will turn to the so-called investigation very soon.
I have given a shameful list of crimes in which justice never seems to be done. While those who bring to light allegations of corruption and abuse by the Russian state run a high risk of being murdered, those responsible for their murders appear to run little risk of being caught and punished. On the contrary, they seem to operate in a climate of impunity. These cases must be accounted for by the Russian Government.
The case of Mr Magnitsky has rightly been condemned around the world. Motions similar to the one that we are debating are being considered in other Parliaments in Europe, notably in Italy, Poland, the Netherlands and Sweden; and the European Parliament has agreed on a resolution. A private Member’s Bill has been presented to the Canadian Parliament, and in the US, Senators Cardin and McCain have introduced a Bill in the Senate. Our debate is about what the British Government are able or willing to do about the Magnitsky case and others in which a culture of impunity prevails.
In the UK, we have a long and proud tradition on human rights. A Conservative politician, David Maxwell Fyfe, was instrumental in drafting and introducing the European convention on human rights. Right hon. and hon. Members on both sides of the House have been outspoken on the Magnitsky case and on other human rights abuses. Britain cannot turn a blind eye to the Magnitsky case.
I sincerely hope that the Minister, in responding to the motion on behalf of the Government, will not repeat the same line that that we have heard countless times—namely, that it would be inappropriate to comment on this case until the official Russian investigation has reached a conclusion. That goes back to the point made by the hon. Member for East Dunbartonshire (Jo Swinson). In June last year, a Home Office Minister, the hon. Member for Ashford (Damian Green), said that the British Government were waiting on the report of the Russian investigation, which was due in August last year. In January this year, the Under-Secretary of State for Foreign and Commonwealth Affairs, the hon. Member for North West Norfolk (Mr Bellingham), restated that position and said that the investigation was now expected to report on 24 January.
Given that the investigation into Mr Magnitsky’s death opened in November 2009 and has been delayed 11 times since, I hope that the Minister now accepts that the delays are unacceptable. Will he assure me and the House that we will not hear the same wait-and-see policy from the Government today? There are good reasons to doubt that the investigative committee will ever get to the truth of who killed Sergei Magnitsky. A delaying tactic by the Russian Government must not be allowed to become a convenient delaying tactic for our Government. In the light of that, what measures will the Government take to increase the pressure on the Russian Government in the Magnitsky case and many others?
Beyond that case, it is important that this debate takes account of the broader concerns about the horrific conditions in Russian prisons, which are well documented. According to Russia’s Federal Penitentiary Service, 4,423 people died in Russian prisons in 2010, and a huge number of Russian prisoners suffer and die from tuberculosis.
In July last year, President Medvedev’s human rights council reported that Sergei Magnitsky’s arrest was unlawful and that his detention was marked by beatings and torture aimed at extracting a confession of guilt. The only action of the Russian authorities in response to that evidence has been a decision to put the dead victim back on trial. That is unprecedented in Russian legal history. It is not only a grotesque parody of justice, but a gesture of contempt for the international community and the human rights norms on which it is built.
The motion refers to the international covenant on civil and political rights, reminding us that raising human rights issues is not about interfering in the affairs of the Russian Government, but is a way of holding Russia to its international obligations. Russia has signed the European convention on human rights, the universal declaration of human rights, the charter of Paris and the EU-Russia partnership and co-operation agreement, to name but a few. In signing each of those agreements, Russia made a solemn commitment to respect human rights. As a result, it has enjoyed the privileges that go with being a member of the international community. It is therefore reasonable to ask whether the Russian Government are living up to their side of the bargain.
Turning to foreign affairs, Russia is a permanent member of the UN Security Council and is soon to become a member of the World Trade Organisation. It has a key role to play in foreign policy in aiding the stability of Afghanistan and preventing Iran from becoming a nuclear power. Russia’s role is also important in the case of Syria. As the Minister said this weekend, its refusal to co-operate with the international community is prolonging the horrific situation in Syria.
In conclusion, we recognise that only 22 years have elapsed since the collapse of the Soviet Union and the 70-year domination of communism, and that a period of deep economic turmoil accompanied the transition. We want to see Russia back on the path of reform, not going backwards, which is what the cases of Sergei Magnitsky and many others demonstrate. We want a successful, open, democratic Russia, free of endemic corruption, where the rule of law is protected, not eroded; a Russia that has a strong voice in the world and that works with the international community, not against it.
In the run-up to Sunday’s presidential elections, Vladimir Putin promised to root out corruption and to guarantee human rights. We want to see those promises delivered. If the Russian Government do not put Russia back on the path of reform, their economy is likely to stagnate, their population will continue to decline, discontent will grow, and Russia’s stability will be at risk. That is not in Russia’s interests, nor is it in ours.
We support the motion as a signal of our condemnation of the impunity for those who disregard human rights in Russia and our condemnation of those who are responsible for Sergei Magnitsky’s death. We urge the Government to continue to press the Russian authorities using all the available channels and all the upcoming opportunities, including through the European Union. It is important to note that the motion sets out steps that go beyond the precedents set by this and previous Governments in acting on such matters. We are less convinced by those points and urge the Government to reflect on how best to exert influence on the Russian Government to encourage them to meet their human rights obligations, including in the Magnitsky case. However, we share and echo the overriding emphasis of the motion. It unites the House in its condemnation of the criminal and brutal acts perpetrated against a brave and committed man. It rightly calls for pressure to be increased on the Russian Government to deal with the case in a fair and just manner, without delay and without equivocation.