European Council

Malcolm Rifkind Excerpts

Monday 11th February 2013 Commons Chamber

[The Prime Minister]

I suppose we should take the welcome. We should take it from someone who never got a freeze, let alone a cut, who never protected our rebate but who gave it away, and who told us that we were going to be marginalised, isolated and picking fights in an empty room. But I welcome the right hon. Gentleman’s welcome. Thank you. I did not quite get a thank you, but I will give him a thank you for the non-thank you.

The right hon. Gentleman asked a lot of questions. Let me go through them. On agriculture, he asked whether there was more to do on reducing the budget, given that it represented only 1% of European industry. Yes, there is, although we have taken some steps forward. The common agricultural policy budget pillar one goes from €320 billion to €277 billion, which is a significant change. In terms of what grew in the budget that can help to deliver growth and jobs, we have the Connecting Europe Facility, which is about energy, transport and broadband networks. That goes from €8 billion in the last seven-year period to €19 billion in this period, so I do not think it is entirely fair to say that the right things were not increased or that the right things were not cut. I said in my statement that I was disappointed that we did not go further on the central bureaucracy.

We did have a discussion on north Africa and Mali. The right hon. Gentleman is wrong to say that the European development fund will go down; it will go up by €1 billion. On Mali, there was very little time left at the end of the marathon Council to discuss those issues, but I took the opportunity to praise the French President for the brave action that the French have taken, to offer our strong support, and to say that we would contribute by training troops from west African nations. I have spoken to the Nigerian President, who is in London today, about that issue. Most of all, however, a political strategy is needed alongside the military efforts.

On the gap between ceilings and payments, the gap is between €960 billion on commitments and €908.4 billion on payments. That is just over 5%, which is not untypical, given the experience of recent years. The European Commission thought that that gap was deliverable, so I think that answers that question. On EU-US trade, I spoke to President Obama about half an hour ago, and I think we are making progress. I will continue strongly to push and support that measure. On the issue of how we use the European Union to encourage growth, one of the greatest things we can do is to complete the single market in digital, in energy and in services, and it is this Government, working with allies, who are delivering precisely that.

On the overall deal, there is a real need to ensure that the European Parliament supports it. We are often challenged about the friends we have in Europe, but I would challenge the right hon. Gentleman about his friends there. What is he going to say to his friends in the Party of European Socialists who are condemning this deal, condemning the British action and saying that we should not be constraining European spending? Will he confirm today that Labour MEPs will be voting for this budget? Answer? The head moved a little bit. While he is at it, is it not time to confirm whether his party will back an in/out referendum? Labour’s claim is that the greatest problem is uncertainty, but what could be more uncertain than not knowing whether you are for it or against it? Any progress? It is not a day for answers, but it is a day for celebrating the fact that we have cut the budget for the first time in history.

[Sir Malcolm Rifkind (Kensington) (Con)]

The Prime Minister has been successful in winning the most important reform of the EU budget since Margaret Thatcher in Fontainebleau in 1984. Does my right hon. Friend agree that his achievement, and the success last week of a most acceptable reform of the common fisheries policy, demonstrates how many of the United Kingdom’s objectives can be achieved by serious and professional negotiation with our allies? Does he accept also that our objectives—for example, the working time directive—can be achieved, as he did with the EU budget and as the United Kingdom did with the CFP, by working with the close allies we have on so many of these subjects?

[The Prime Minister]

I agree with my right hon. and learned Friend, and it is worth paying tribute to Baroness Thatcher, because what makes the British rebate different from the other rebates is that it does not have to be renewed in each seven-year term: it is there as part of the architecture of the budget, and unless you are foolish enough to give some of it away, which the last Government did, it is there and can only be amended by unanimity.

I agree with what my right hon. and learned Friend says about working with allies, but I would also say this, which is relevant to what Margaret Thatcher achieved at Fontainebleau: everyone in the European Union has got to understand that you are prepared to say no if you do not get what you want.