European Council

Lord Forsyth of Drumlean Excerpts

Monday 12th December 2011 Lords Chamber

[Lord Strathclyde]

Yes, my Lords.

[Lord Forsyth of Drumlean]

May I congratulate my right honourable friend the Prime Minister on standing up for Britain and speaking for the people of this country, as opinions show? May I also congratulate the Deputy Prime Minister on establishing a new principle that a weekend is a long time in politics?

[Noble Lords]

Oh!

[Lord Forsyth of Drumlean]

I think this may be the last time that I get called. On the substance of the meeting, why did no one address the immediate crisis, which is what to do about repaying the debt? If anyone is isolated, is it not Germany because Germany needs to realise that she needs to write a cheque or allow the European Central Bank to be the banker of last resort and print money? We will otherwise go into deep crisis. This crisis is being used as an excuse for further integration and as such is deeply irresponsible.

[Lord Strathclyde]

My Lords, I entirely agree with my noble friend that the substance of the issue is to solve this economic crisis—an economic crisis which has a chilling effect on the rest of Europe, including this country. In the first instance in the short term, you have to have a firewall of money to stop contagion. Secondly, we accept that there need to be clearer fiscal rules so that countries cannot get into the trouble they have got into in the past. Thirdly, far more work needs to be done on competitiveness within Europe and between countries of the European Union. It is the only way that we are going to succeed in the long term.