EU Council

Lord Bilimoria Excerpts

Tuesday 31st January 2012 Lords Chamber

[Lord Strathclyde]

My Lords, it is always nice to welcome a question from my noble friend on this matter. On this occasion, we chose to reserve our position on the treaty, at least in part, because we recognise that there are problems within the eurozone that need to be tackled. We believe that we are using that reservation to watch the operation of the treaty closely and, if necessary, we will be able to take action if our national interests are threatened. However, the principle that EU institutions can be used only when there is permission from all 27 member states has been safeguarded. Of course, we have a number of legal concerns on the use of the institutions but we do not want to hold up the eurozone doing what is necessary to solve the crisis, as long as it does not damage our national interests.

[Lord Bilimoria]

My Lords, first, in the Statement there is the intention finally to close these free trade agreements with countries such as India. The UK India Business Council, of which I am president, has been asking for this EU-India treaty for years now. Do the Government honestly think that, with the present crisis, it is realistic to be able to conclude such treaties at this time? Secondly, the Government keep talking about wanting fiscal discipline to sort out the eurozone crisis. Can the Government get real? In the growth and stability pact there was no discipline; even Germany did not fulfil the requirements to join the euro when it did so. When are the Government ever going to be able to impose fiscal discipline when there is no sovereign union throughout the united states of Europe? There will never be a united states of Europe. Do the Government think that the Greek crisis will just go away? If Greece defaults, will there be contagion throughout Europe? Are we prepared for that contagion?

[Lord Strathclyde]

My Lords, the noble Lord asks me a load of questions at the end of his intervention which are not my or the Government’s responsibility. They are very difficult questions to answer. We all have to hope that the steps that the eurozone countries are taking are the right ones to prevent the contagion of which he speaks. We hope that they have done that. People like me, who rather oppose a single currency, have pointed out these problems for many years. It is hard to see how a currency union can work without greater political and fiscal union. It may well be that the countries of the eurozone are heading in that direction.

On the noble Lord's first question about international treaties between the EU and other countries, including India, it is, at least in part, because of the state that we find ourselves in and the lack of moving forward on the Doha trade round that I feel confident that the statement made yesterday in Brussels is heading in the right direction. There is a lot of political force behind it and I am sure that the whole House will welcome this strong declaration of coming forward with a long-term treaty between the EU and India.