European Council

Lord Grenfell Excerpts

Monday 22nd October 2012 Lords Chamber

[Lord Strathclyde]

My Lords, that is a very seductive question. But it is really not possible for me or the British Government to give a view as to when we think that those negotiations and discussions will be completed. Apart from being extremely good at counting the number of words, the noble Lord probably has also read many reports in the press over the past few days about the view of other countries on the banking union, and he will understand just how difficult and complicated that is. However, we will continue to play a lead role in the development of common rules for the single market and encourage our colleagues to come to an agreement as quickly as possible.

[Lord Grenfell]

My Lords, one of the less kindly remarks that Winston Churchill made about Stanley Baldwin was that he was a man who occasionally stumbled upon the truth and that he then got up, dusted himself off and hurried on as if nothing had happened. I think that that is a charge that one could probably level against this Prime Minister when it comes to Europe. Will the Leader of the House tell us whether he honestly has not understood the degree of irritation among our partners at the way in which the United Kingdom is behaving within the councils of the European Union?

The Prime Minister told us in one breath, for example, that he is prepared to do a deal with Chancellor Merkel over the budget but immediately went on to say that it would not be an increase, which is not a deal. That is not a deal in the minds of the rest of our European partners. Chancellor Merkel has offered a reasonable compromise. I notice that he says in his Statement:

“I don't believe that German voters want that”—

meaning an increase—

“any more than British voters”.

If you read about the rapturous reception that Chancellor Merkel got yesterday from, of all people, the Christian Social Union Partners in Bavaria when she went back to report on the results of what she had done at the summit, one would have the impression that probably she had a large section of the German population behind her.

Does the Leader of the House really believe that if the Prime Minister’s so-called deal, which is not a deal, produces no increase, he is prepared to veto the budget? Does the Prime Minister also understand Angela Merkel when she says that if he does that she will call off the budget summit anyway? I do not think that the Prime Minister has many of the attributes of Samson but surely he must understand that if he is going to pull the whole structure down around him because he insists on absolutely no increase, none of his European partners will have a good word to say for him.

[Lord Strathclyde]

My Lords, the noble Lord, with all his experience and knowledge, asks whether I understand how irritated other members of the EU are at the Prime Minister’s stance. I understand how irritated the British people would be to see budgets for austerity in this country and profligacy in the EU. That, of course, is what is uppermost in the Prime Minister’s mind.

The Prime Minister and Chancellor Merkel have agreed to meet early in November. There are, of course, huge budgetary pressures throughout Europe, including in this country. Let them meet. The Prime Minister said what he has said, echoing the words that Chancellor Merkel agreed and signed in 2010. Actually, I think that increasing the EU budget in real terms is a very fair deal for the people of Europe, particularly given that Britain is the second largest contributor to the EU budget.