EU: UK Isolation

Lord Birt Excerpts

Monday 22nd April 2013 Grand Committee

[Lord Birt]

We thank the noble Lord, Lord Dykes, for allowing us to debate this highly pertinent issue. I have previously praised the Prime Minister’s speech on Europe as a cogent and elegant statement of all the reasons why it is in our interest to remain part of a reformed EU. He set out a positive vision, but I think his speech has created a significant problem for us.

In the past few months, going about my daily business in Europe and countries beyond, I have encountered, as I am sure others here have, senior officials and politicians from some of Europe’s major countries as well as many of the world's leading investors and some substantial business heads who can make investment choices about this country. To a person, they have concluded that the Prime Minister’s announcement of a referendum is the first step in a determined process on the part of the UK to extricate itself from the European Union.

I do not believe that to be the case. I routinely inquire, “Have you read the whole speech?” but, frankly, no one I have spoken to—and I am talking about many people over the past couple of months—has ever read the whole of the Prime Minister’s speech. That should not surprise us. In busy lives, people settle for the summary report, perhaps online, or skim-read and form a quick impression. I have no doubt—again, I am sure that this view will be shared by others here—that all the major players in Europe want us to stay part of the European Union and to engage, not least to help the present and continuing crisis. But in the short term, other major countries doubt our commitment. In the wider world, we risk being seen by major global investors as detaching ourselves eventually from the single European market. I am sure that this will be common ground among us, but we can ill afford an investment pause in the UK for the next four years.

The Prime Minister has now begun his sadly interrupted tour of major European capitals. I have no doubt that he will have conveyed a nuanced picture of our true position to his senior colleagues in Europe. But beyond that, I hope that he will fully engage the global media, which I do not think he has yet done, and seek to counter the damaging perception that has been formed about our true position. I hope that the Prime Minister will put over what I think is his essential message: that reform and commitment, not obstruction and exit, are the UK’s preference and intention.