Eurozone Agreement

Lord Teverson Excerpts

Tuesday 10th January 2012 Lords Chamber

[Lord Howell of Guildford]

The frank and sensible answer given by much higher authorities than me to the question, “Has the time come?” is, “We do not know”. As far as the situation of the Club Med countries is concerned—this applies in particular to Greece, which is having great difficulties in its debt restructuring—we hope that they will achieve it but we do not know, and we are not at all sure whether the necessary measures are in place to meet that short-term need. The broader issue of the fiscal stability union is aimed at the longer-term attempt to make sure that the eurozone is not constantly vulnerable to future crises. However, in the short term, if I told the noble Lord that I knew exactly what would happen, he would not believe me—and he would be right.

[Lord Teverson]

Does my noble friend agree that it is important in European economic and financial affairs, as it is in personal and social affairs, that one is seen not to snub one's friends, particularly when one might need their help in future?

[Lord Howell of Guildford]

I have to agree with that general proposition. As far as I am concerned, no snubbing went on. The UK sought to protect its interests and the integrity of the European Union treaty. We will continue to work both for our interests and for the stable and orderly development of EU economies generally. That will require a lot of co-operation but certainly will not require the UK, for instance, to join the eurozone, and no snubbing is involved in saying that we would rather stay out of it.