European Investment Bank

Lord Balfe Excerpts

Tuesday 31st October 2017 Lords Chamber

Asked by

[Lord Balfe]

To ask Her Majesty’s Government, in the light of the comments by Alexander Stubb, vice-president of the European Investment Bank (EIB), that loans worth €3.5 billion from the United Kingdom to the EIB are not due to be repaid in full until 2054, whether they intend that the United Kingdom will remain a member of the EIB.

[Lord Balfe (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. I draw attention to my entry in the register of interests. There has to be a limit to what is set out in the register, but I should add that I have been friends with members of the EIB for almost 40 years. That is probably relevant to this Question.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the UK’s relationship with the European Investment Bank will need to be resolved as part of our withdrawal from the European Union. The Government are going through the UK’s potential rights and obligations line by line and are committed to getting the best deal for this country and a fair settlement for UK taxpayers.

[Lord Balfe]

My Lords, I thank my noble friend for that Answer. It has been made fairly clear in another place that the UK wants continuing access to funding, and indeed the Brexit Secretary has used the phrase, “an ongoing relationship with the EIB”. May I counsel that we should be cautious in how we withdraw? Although there are some people who wish us to cut ourselves off from every European institution, a strong case could be made for us to negotiate our continuing membership of the EIB, or at least access to its machinery.

[Lord Bates]

The Chancellor of the Exchequer would echo those words. He has made it clear that a continued relationship with the EIB may be possible and indeed desirable, but that is a matter to be negotiated because at present the EIB’s constitution and formation does not allow for it to happen. Changes will need to be made, but in the meantime it is important that we make clear that we believe that the full rights and obligations which come to the UK as a member of the EIB and its partner organisation, the European Investment Fund, should remain fully intact and that UK borrowers should have equal access with other members while we are exiting the European Union.