European Council

Lord Lea of Crondall Excerpts

Monday 20th December 2010 Lords Chamber

[Lord Strathclyde]

My Lords, my noble friend is right some of the conditions for entry into the euro that were laid out in the Maastricht treaty, and other conditions including those on deficits, have been broken. I believe that there is a sense of moral hazard because they have been bailed out, but it is in the interests of everyone within Europe to make sure that no further countries find themselves in financial trouble. That is why the eurozone is itself taking steps to try to manage its affairs in a more coherent way.

[Lord Lea of Crondall]

My Lords, I sympathise with the noble Lord, with the puppies snapping at his heels, but will he accept my congratulations on the first few paragraphs of the Statement which say that we indeed think that it is in Britain's interest to bring stability to the eurozone? That is an important signal for people in the City of London and elsewhere who think the opposite.

Secondly, President Sarkozy, Chancellor Merkel and our Prime Minister have written a joint letter on the budget. If we are going to have that close triangular relationship, does it not follow that that will probably be true of banking, energy policy and other areas? The question of creep towards Brussels running things, which is a bit of hyperbole, is one of evolution rather than any major revolutionary change.

[Lord Strathclyde]

My Lords, yes, we are in favour of stability in the eurozone, but we also feel that it is entirely right for nation states to stand up for their interests and to get together. That is in a way exactly what happened in this letter between Chancellor Merkel, President Sarkozy and others, who suggested—rightly, in my view—that it is time for the European budget to come under further control. That is not seeking to centralise power within Brussels; it is seeking to exert more pressure and more control from member states on the European Union. That is a very good direction of travel.