European Council

Lord Clarke of Nottingham Excerpts

Monday 22nd February 2016 Commons Chamber

[The Prime Minister]

I thank the right hon. Gentleman for his contribution. He and I disagree on many, many things—economic policy, social policy, welfare policy and even the approach we should take within Europe, as he has just demonstrated in his response—but we do agree about one thing: Britain should be in there, fighting for a good deal for our country. I worry a little for him because he is going to be accused of all sorts of things, some of them fair, some of them unfair. I fear that if he takes this course, he will be accused of being a member of the establishment, and that would be the unfairest attack of all.

On what the right hon. Gentleman said about the deal, I will make two points about why he should welcome it. The first is that, as far as I can see, it implements almost every pledge on Europe in the Labour manifesto—I am looking at the former Labour leader when I say that. Labour pledged to complete the single market. It pledged “tougher budget discipline”. It said

“we will ensure EU rules protect the interests of non-Euro members.”

That is absolutely right. The manifesto went on to say:

“People coming to Britain from the EU to look for work are expected to contribute to our economy, and to our society. So we will secure reforms to immigration and social security rules”.

I therefore hope Labour will welcome the things in this agreement. [Interruption.] I am just reminding my new friends what they said at the election. They said this:

“We will work to strengthen the influence national parliaments over European legislation, by arguing for a ‘red-card mechanism’ for member states”.

Excellent, that is another thing that has been achieved.

The right hon. Gentleman was unfair when he said that this deal was really all about Britain, and not about anyone else. The Slovakian Prime Minister said, good,

“the myth about ever-closer union has fallen.”

The Hungarian Prime Minister said:

“The UK managed to put an end to the practice of ‘creeping power withdrawal’ from national member states.”

Romano Prodi, the former President of the Commission, said this:

“The real consequence of the summit is extraordinarily important: Brussels has officially enshrined a multi-speed Europe.”

That is beneficial to Europe as well as to Britain.

Where I disagree profoundly with the right hon. Gentleman is that I think these trade deals are good for Britain and that the sooner we do the deal with America the better. He is wrong about financial services. There are more people working in financial services in our country outside the City of London than there are inside it. Crucially, what the single market means is that, with one establishment in Britain, we can trade throughout the European Union. If we lose that, we will see jobs going from Britain to other countries.

Let me end on a note of consensus. Labour Governments and Conservative Governments standing here have all had their difficulties with Europe. We have all wanted to get the budget down. We have all wanted to get powers returned. We have all found that, because of our love for this House of Commons and for British democracy, this process can sometimes be trying, but, at the end of the day, we have always known that, when it comes to our economy, prosperity and security, we are better off fighting from the inside.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

Does the Prime Minister agree—I am sure that he will—in referring to the continental press, that he has demonstrated the influence of a British Prime Minister, as he has forced some concessions that will be quite difficult for fellow Presidents and Prime Ministers to sell to their own political establishments? Does he agree that future generations will benefit from some of those concessions, particularly those on enlarging the single market, guaranteeing our access to parts of it, deregulating, and engaging in major trade deals with outside? Does he also agree that it is not the politics of fear to point out that those who advocate a no vote do not seem to know what a no vote means? They continually imply that all the benefits that flow from Europe in terms of jobs, investment and security will somehow continue to come here when they have swept away the obligations that previous British Government have always accepted.

[The Prime Minister]

I am grateful to my right hon. and learned Friend for what he has said. It has been interesting to see what some of the foreign newspapers have made of this. Let me give one example. A Spanish paper said:

“British exceptionality reached new heights yesterday. No other country accumulates so many exceptions in Europe.”

I am proud of the fact that we have a different status in Europe and that that status has become more special with the changes that we have made.

The point that my right hon. and learned Friend makes is absolutely right. I recognise that there are disadvantages to being in the European Union. I make no bones about that, but I can look the British people in the eye and say, “This is what it will be like if we stay in. It will be better because of the deal that we have done.” The people who are advising us to leave must spell out the consequences of leaving. The absolute lodestar is this: no country has been able to get full access to the single market without accepting either paying into the EU or accepting free movement. If people do not want to accept those two things, they have to start accepting that they will not get as good a trade and business position as we have today. People who want to leave must start making up their minds: do they want a Norway deal, a Switzerland deal or a Canada deal? Frankly, I do not mind which deal they go for, but they must start telling people because they deserve an answer.