European Council

Lord Stoddart of Swindon Excerpts

Tuesday 2nd November 2010 Lords Chamber

[Lord Strathclyde]

My Lords, my noble friend said he had a short question, but it is a huge subject. I look forward to his debate. It is completely unacceptable that the European Court of Auditors has not been able to sign off the EU accounts. I understand that the majority of the errors are not due to fraud but to the sheer complexity of the rules and regulations. We need to address the root cause and press for simplification of EU financial management alongside reform of the budget itself.

[Lord Stoddart of Swindon]

My Lords, I wish to ask the noble Lord about economic governance and the German Chancellor’s proposal to revise the treaty. Why are the Government agreeing to that? Can any country now propose changes to the treaty? Will he assure me that the Government will indeed have a referendum if there is any change in the treaty at all?

[Lord Strathclyde]

My Lords, on economic governance, we take very seriously the stability of the eurozone. Some 40 per cent of our exports go into the eurozone and 50 per cent of our exports go to the EU, so it is a massively important market to us and financial stability is important. However, we maintain two things: first, we would rather not see a change in the treaty; and, secondly, we would rather not see any change involving a transfer of powers from the UK to the EU. We are not certain that a treaty amendment is required, but if it is and we are assured that there is no such transfer of powers, a referendum in this country would be unnecessary. If there were a transfer of powers, we would not agree to it.