European Council

Lord Tyrie Excerpts

Monday 22nd February 2016 Commons Chamber

[The Prime Minister]

I am certainly having that conversation. My message to businesses is: if you have a view, make sure you tell people. Talk to your customers and your suppliers, and above all talk to your employees, your staff and your colleagues, because this issue is so important.

In truth, the business voice, large and small, is very much in favour of Britain staying. Many of them have said quite generous things about this renegotiation because they recognise the dangers, particularly in the area of safeguarding ourselves against discrimination because we are not in the euro. Given that, I hope that business and enterprise will speak clearly in the next four months.

[Mr Andrew Tyrie (Chichester) (Con)]

Much of the protection of the euro-outs in this agreement rests on a safeguard mechanism that is set out in annex 2, but as far as I can tell, that requires nothing more than that a discussion be held about the UK’s concerns at ECOFIN—not even the European Council. That leaves eurozone members free to enforce their will by qualified majority voting. Will the Prime Minister explain what—beyond the discussion, which can be ignored—has been achieved by the safeguard mechanism?

[The Prime Minister]

I absolutely can answer that, and I think it is an important question. There are two things here. First, a set of principles is set out in section A on economic governance, and they are principles of non-discrimination, no cost, and no disadvantage. Crucially, paragraph 4—this was of real concern to the Bank of England and I know it will be of concern to my right hon. Friend’s Committee—makes it clear that the financial stability of member states whose currency is not the euro is a matter for their own authorities and own budgetary responsibility. Those principles are very important, and what is exciting about this is not only that they have been set out for the first time, and not only has Europe for the first time accepted that there are other currencies inside the European Union, but those changes will be incorporated into the treaties. The mechanism is something over and above a new way of ensuring that issues are raised, should we wish to raise them, at the level of the European Council. We do not have that protection today, but making the principles part of the treaty—already an international legally binding decision—is hugely important. If my right hon. Friend listens to people who speak on behalf of financial services, the Bank of England and others, he will recognise that this is really important progress for Britain.