Eurozone

Lord Lawson of Blaby Excerpts

Monday 9th July 2012 Lords Chamber

[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.

[Lord Lawson of Blaby]

My Lords, we all wish to see a successful European economy, but is my noble friend not aware that the so-called success of the European Council a fortnight ago has already disappeared, the financial markets have put the interest rate on Spanish sovereign debt back to where it was before, nothing was achieved, nothing can be achieved in this way and the sooner that it is realised that this project, however well intentioned, is a terrible mistake, the better?

[Lord Sassoon]

I certainly agree with my noble friend that we delude ourselves if we think that words coming out of one meeting of European leaders are going to solve all the problems. Part of the problem seems to have been a belief that the crisis can somehow be dealt with by fine words. I believe that in the underlying work— whether on the two pack, the six pack, or the intergovernmental treaty—there is the beginning of a construct of great significance to underpin the eurozone.