European Council

Lord Liddle Excerpts

Monday 20th December 2010 Lords Chamber

[Lord Liddle]

My Lords, has the Leader of the House had an opportunity to study last week’s financial stability report from the Bank of England, which demonstrated the interconnectedness of the obligations of British banks and those of banks on the continent and suggested to the reader that, should there be any kind of sovereign debt default in a member state in the eurozone, Britain and British banks would be heavily involved in any debt restructuring that was necessary? In this case, is it not time that, instead of trying to pretend to their anti-European and Eurosceptic Back-Benchers that Britain can stand aside from the problems of the eurozone, the Government recognised that we are in these problems up to our neck, that if we want a credible growth strategy for Britain we must also have a credible growth strategy for the eurozone, and that we should be ready as the United Kingdom in our national interest to play a full part in that?

[Lord Strathclyde]

My Lords, I have not had time to study the stability report from the Bank of England to which the noble Lord referred, but I understand exactly what he was saying. With the greatest respect to him, I think that his question was misconceived. There is no fear from us that we are trying to appease anti-European or sceptical Back-Benchers. These are bogeymen that obviously exist in the noble Lord’s nightmares. We have no such nightmares and no such concerns. If any such concerns exist, they are partly dealt with by explaining that there will be a process in the British Parliament for agreeing the changes that we have made. Of course, as I laid out in the Statement and in reply to the noble Lord, Lord Hunt, we have a clear strategy for growth in the United Kingdom and believe that there should be a clear strategy for growth in the rest of Europe.