European Union

Julian Lewis Excerpts

Tuesday 13th December 2011 Commons Chamber

[Mr Dodds]

The hon. Gentleman makes a good point. He is right: in the rush to set up the euro, which was a political project from the beginning—it was believed that it would ultimately lead to political and fiscal union—those behind it permitted countries that they knew were not capable of meeting the requirements to join. What they are trying to do now will not succeed in patching the whole thing together.

[Dr Julian Lewis (New Forest East) (Con)]

The right hon. Gentleman is being extraordinarily generous in giving way. To support what he has just said, does he remember Romano Prodi, then President of the European Commission, on that fateful new year’s eve when the euro was brought into effect, being asked, “This is a political project, isn’t it?” and his replying, “It is an entirely political project”? Is that not why those people are so desperate to continue with it, even though it is leading to economic disaster?

[Mr Dodds]

Absolutely. The hon. Gentleman is right to remind the House of Prodi’s words at that time, of the fact that the nature of the project is explicit, and of what lies behind it.

Some people say that the Prime Minister acted to protect the City and the big banks. If it was all about that, I would not be standing here supporting the motion. We need more regulation of the banks and of those who contributed greatly to the mess in which we find ourselves. One of the questions that arises from the Vickers report is how to regulate banks more strictly, and we need to be able to go further, unfettered by the EU. I also believe in the so-called Robin Hood tax—provided that it is applied universally and not targeted mainly at London and the UK to prop up the failing euro, of which we are not part.

--- Later in debate ---

[Mr Peter Bone (Wellingborough) (Con)]

rose—

[Dr Julian Lewis]

rose—

--- Later in debate ---

[Mr Jenkin]

rose—

[Dr Julian Lewis]

rose—

[Emma Reynolds]

Now we find that the UK is in a position whereby decisions affecting us could be taken without us even having a seat at the table.

[Mr Jenkin]

rose—

[Dr Lewis]

rose—

[Emma Reynolds]

Sometimes the veto—

--- Later in debate ---

[Emma Reynolds]

As my hon. Friend has eloquently pointed out, the Government’s attempt to get agreement at the summit was amateur—they did no preparation. As a result of the Prime Minister walking out of negotiations, it is even more likely, not less, that vital British interests will not be taken into account when key economic decisions are taken at EU level. The eurozone 17 and the other nine non-eurozone countries will meet more frequently and take decisions that affect the UK, without the UK being in the room. How on earth do Conservative Members think that is a success? Without a voice, British business is more vulnerable to decisions that our Government are powerless to change or influence.

[Dr Julian Lewis]

I much admire the hon. Lady’s verve and style, but everything that she says points to the conclusion that, given a choice between the only two options—to sign or not to sign—she would have signed. Is that conclusion right or wrong?

[Emma Reynolds]

I point out to the hon. Gentleman that nothing was signed at the European summit and negotiations are ongoing. A likely text might appear at the March European summit, but a text is not yet on the table. Yes, we would have stayed in the negotiations, because it is not in the national interest for decisions to proceed without us.

It is no wonder that businesses are concerned about what has happened over the last few days. Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, underlined the point:

“We need the government to develop a clear strategy for engaging with other member states when in theory it could find itself isolated on occasions.”

John Cridland of the CBI has called for the Government to

“redouble its efforts to ensure that the UK is not put at an economic disadvantage”.

Angela Knight—a former Conservative Member of the House—chief executive of the British Bankers Association, has stressed:

“We do not know yet what impact this new arrangement is going to have on the UK’s ability to secure agreements on sensible regulation—but that is critical.”

The penny is also starting to drop with some parts of the British press that originally welcomed the outcome of the summit. Even The Daily Telegraph states in its editorial today that it is unclear

“whether threats to the City really have been deflected”.

The Times laments in its editorial that the Prime Minister

“has not set out a vision of where Britain now stands in the world”.

In grave economic circumstances, the prospects for families, jobs, businesses and banks across our country are now all the more stark. Growth is flatlining and unemployment is at a 17-year high. Against the backdrop of that dire economic situation, the Conservatives want us to be further isolated, as if the reckless action of the Prime Minister at last week’s summit was not enough to isolate the UK from its largest export market.

--- Later in debate ---

[Martin Horwood]

The hon. Gentleman makes a very good point. The Liberal Democrats supported the initial negotiating position. The mystery of last week’s summit is why we seemed to have so few friends in the negotiating chamber who would support those reasonable initial demands. That is why I am suggesting that we have a process of much more active and positive diplomacy in the run-up to what might be future summits.

[Dr Julian Lewis]

Will the hon. Gentleman give way?

[Martin Horwood]

No. I have taken two interventions, I am afraid, and time is short.

The reason we can go forward positively within Europe is that in Europe there are means of building alliances that do not depend on treaty changes or such complex and confrontational tactics. I cite in evidence the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Kingston and Surbiton (Mr Davey), who, by collaborating with European counterparts, has lifted onerous accounting rules from the smallest businesses in Britain and created a like-minded growth group, which the UK has joined with the Czech Republic, Denmark, Estonia, Finland, Germany, Ireland, Latvia, Lithuania, Malta, the Netherlands, Poland, Slovakia, Slovenia, Sweden and Romania to tackle common priorities and establish common negotiating positions on everything from the digital sector to services, impact assessments and smarter regulation.

We have the prospect, as the Europe Minister has pointed out, of rules over fisheries being returned increasingly to the local and national levels, and that is a positive development. There is the prospect also of co-operation leading perhaps to the reform of the EU’s budget processes, and there are plenty of opportunities for a common reform agenda.

If I may finish on a positive, coalition note, I think that mainstream Conservative MPs and Liberal Democrats can absolutely unite on the need for reform.

[Dr Lewis]

Before the hon. Gentleman sits down, can he tell us whether his party will vote for the motion, against the motion, in both Lobbies or not at all?