European Council

Lord Williamson of Horton Excerpts

Tuesday 2nd November 2010 Lords Chamber

[Lord Strathclyde]

I think that the whole House will agree—and if not, they should do—that he spoke with tremendous good sense in support of the Statement and of the Prime Minister. Of course, there are others in this House—in both Houses—who have a division of view between Euro-enthusiasts and Eurosceptics. However, that need not divide us on the broad direction that we should remain part of the European Union and that we should argue for change internally, which is what we have been doing in the past week in laying out a very clear framework for budgetary change over the next 10 years. We will be at the forefront of making those arguments. Following on from what my noble friend said, we are not alone in this or isolated in Europe in wanting a proper budgetary discipline. The noble Lords opposite had an opportunity, over the past 10 years, to get this right and spectacularly failed to do so.

[Lord Williamson of Horton]

My Lords, on the EU budget for 2011, I thank the noble Lord the Leader of the House for making it clear in the Statement not only that the European Council will not accept more than 2.9 per cent but that if the Parliament and the Council do not agree, there will be no increase at all. I think that would apply not only to EU policies but to the expense rates, travel allowances and things of that kind in the European institutions. Under the provisional twelfths regime, money at this year’s level—but no more—will be available on a month-by-month basis. In view of this, will the noble Lord the Leader of the House keep the House informed on the discussions between the Council and the European Parliament so that we know whether, from 1 January, there will be an increase of 2.9 per cent or a zero increase?

[Lord Strathclyde]

My Lords, the noble Lord, Lord Williamson, brings a wealth of experience to the House and real knowledge of the workings of the European Commission and European Parliament. What he outlined is entirely correct; if there is no agreement to the 2.9 per cent then there is agreement on no increase at all. The current spending pattern would be rolled over to next year and it would be paid on a monthly basis—it would be divided by 12 and paid out on those terms. It also includes all expenditure: expenses, allowances, salaries and so forth. We would greatly welcome that result and it would be very nice to hear from the noble Lords opposite whether they would welcome it too.