European Council

Lord Trimble Excerpts

Monday 21st June 2010 Lords Chamber

[Lord Strathclyde]

My Lords, I cannot confirm that there was a discussion at the European Council but clearly the situation in Kosovo is immensely tense and the noble Lord has great expertise on it. The words that he has spoken today will of course be taken fully into account by my colleagues in the Foreign and Commonwealth Office.

[Lord Trimble]

Further to the point made earlier by my noble friend Lord Higgins, I draw the attention of the Leader of the House to what happened under the Bretton Woods system of fixed exchange rates whereby on occasions Germany revalued the deutschmark upwards, thus taking account of the changes between it and other countries on competitiveness. Surely what we need in the eurozone is some mechanism of that nature whereby one can adjust for changes in competitiveness rather than force countries, as is proposed to be done, through incredibly tough measures which they probably are incapable of sustaining.

[Lord Strathclyde]

My noble friend raises a point that we could debate and discuss for a very long time. He is right to mention the Bretton Woods arrangements. As to whether there should be an automatic mechanism to adjust for competitiveness, that is a matter not for the Government but the European Bank. It must take into account all the needs of all the economies within the eurozone and it is one of the reasons—only one—why we supported the view of the then Government that we should not join the euro in 1999.