EU: Economic Governance

Lord Hannay of Chiswick Excerpts

Wednesday 27th October 2010 Lords Chamber

[Lord Sassoon]

At the moment, the proposals floating around sit within the various statutory limits for Europe. However, just because those statutory limits are set at some theoretical level, that does not mean that it is at all appropriate in the view of the Government for people to go around suggesting 6 per cent increases in the budget next year or anything remotely like it. At a time when the UK and many other members of the EU are tightening their belts appropriately, the EU budget should do the same.

[Lord Hannay of Chiswick]

Does the Minister agree that there are perfectly respectable arguments against treaty change at this stage that do not need to delve into the intricacies of Britain’s relationship with the European Union? Given that what is being sought is greater stability in the eurozone, which is in our interest, respectable arguments against treaty change—such as that the ratification by countries quite different from ourselves might be problematic and might lead to a loss of confidence in the euro as a result—ought to be deployable by any member state.

[Lord Sassoon]

My Lords, the task force has come forward with some significant proposals for strengthening the framework within the eurozone. I echo the noble Lord’s sentiments in respect of the task force proposals, but those proposals, which would be a significant step forward, do not themselves require any treaty changes. There may be other suggestions, such as the idea of a permanent crisis resolution framework, which may require treaty change. The UK Government absolutely support the euro area’s desire to take positive action to overcome its problems through the creation of an appropriate framework. If that has treaty consequences, we will look at it in that spirit.