Eurozone

Lord Harrison Excerpts

Monday 9th July 2012 Lords Chamber

[Lord Sassoon]

My Lords, as we have discussed many times, 40% of our exports go to the eurozone. It is our most important trading bloc. The priority has to be to strengthen the eurozone countries. That is what they want to do and that is what we want to see them do and we must help them to achieve that.

[Lord Harrison]

The United Kingdom often blames the eurozone for the problems with the economy as it is being run by Her Majesty’s Government here. Why do we not do more to help? Does the noble Lord, Lord Sassoon, agree with Mr David Lidington, who stated in replying to the Select Committee’s interrogation last week that he welcomed more Europe if it meant the implementation of the full ambit of the single European market?

[Lord Sassoon]

On the question asked by the noble Lord, Lord Harrison, about the cause of the weaker growth in this country, the Office for Budget Responsibility and other commentators have identified the eurozone as a major source of threat to our growth and of weakness. Significant parts of the eurozone are plainly now in recession. I agree with my right honourable friend David Lidington about the need for more Europe in many areas including, particularly, more completion of the single market. That is why it is important that the four-presidency proposal referred to in the Council conclusions at the end of June will include,

“concrete proposals on preserving the … integrity of the Single Market”.

That is critical, as are the many growth initiatives included in those conclusions.