European Council

Lord Lea of Crondall Excerpts

Monday 27th June 2011 Lords Chamber

[Lord Strathclyde]

My Lords, my noble friend is entirely right in saying that we are standing on the touchline so far as the problems within the euro are concerned and that we see the countries of the eurozone needing to deal with that internally. However, my noble friend would be wrong if he thought that we had an entirely neutral view on the future of the eurozone as an entity, which we do not. He is quite right in saying that our economic interests and those of the eurozone are extremely closely tied. Something like 40 per cent of our exports go to eurozone countries. We wish to see stability and growth, which is why a large part of the Council was given over to a discussion about growth right across Europe and not uniquely in the eurozone countries.

[Lord Lea of Crondall]

My Lords, I cannot help but be struck by the number of negatives in the Statement: the word “not” is in almost every sentence, certainly on the front page. Following up the general assessment made by my noble friend Lady Royall, could the Leader of the House not go so far as to say that we have to be engaged in quite a significant way? The alternative of a collapse of the Greek negotiation is difficult to contemplate with any equanimity. Will the noble Lord go one inch further and say something that is not in the Statement, even though Greece has its own sub-heading, which is that we wish the Greek Prime Minister well and hope very much that he wins his vote tomorrow in Athens?

[Lord Strathclyde]

My Lords, if that was the tiny inch that the noble Lord wanted, I can easily give it to him. Of course we wish the Greek Prime Minister well in winning his vote and, indeed, in succeeding in the policy of trying to reduce the budget deficit, bringing long-term benefits to the Greek economy and stabilising the eurozone. These things are in all our interests. I do not wish to give the impression that the British Prime Minister was standoffish in this Council—quite the contrary. That is why key conclusions on fiscal policy, on job creation and burdens on business, on Doha, on the European stability mechanism treaty and on development were all issues that were profoundly debated and, quite rightly, very much supported by the British Prime Minister.