Jacob Rees-Mogg
Main Page: Jacob Rees-Mogg (Conservative - North East Somerset)Department Debates - View all Jacob Rees-Mogg's debates with the Cabinet Office
(12 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Prime Minister
We are making quite good progress on the financial services dossiers. We are having to deal with them one by one. There are some cases where we are actually arguing that countries ought to be able to regulate even further than the EU is allowing—for instance, in building up capital in our banks. However, there are some difficult financial services directives, which we have to deal with one by one, to make sure that they are proportionate and not threatening to our financial services industry, which, as I say, is not just an asset for Britain, but an asset for the whole of Europe.
Jacob Rees-Mogg (North East Somerset) (Con)
Will my right hon. Friend elaborate on what he means by “reserving our position” in relation to the fiscal compact? Does it indicate that Her Majesty’s Government doubt the lawfulness of the compact under EU law and are considering a legal challenge at some future date?
The Prime Minister
Let me try to shed some more light on that. The position is this. I think there are some major legal question marks over what the 25 EU members have signed up to. However, the best thing for Britain to do, instead of going for an outright legal challenge—which might be partly successful—is to say, “We have our misgivings and concerns. We’ve reserved our position, but we won’t challenge, so long as you are sticking to the elements of fiscal union and not the single market.” I have given this considerable thought and I think that that is the right way forward, not least because there are some things being done in the agreement that the EU treaties give permission for, because they allow member states, as my hon. Friend will know—he is a great expert on this—to do things together under some circumstances. Therefore, the legality is not completely black and white. That is why I think it is in Britain’s interest to use our leverage to make sure that those involved stick to the fiscal union and do not get involved in the single market.