European Council

Mark Pritchard Excerpts

Monday 20th December 2010 Commons Chamber

[The Prime Minister]

I do not accept that the only way we can make progress with helping partners in eastern Europe is by having an ever-rising EU budget. Indeed, there are countries in eastern Europe that support the position we take that the budget should not go up and that we should spend the money better. As I have argued before, we should be making more progress on transparency and using it as a weapon to shine a light on the EU budget and some of the disastrous ways in which it is spent. It is an absolute counsel of despair to say that the only way we can help other countries in Europe is with an ever-rising budget: it is not.

[Mark Pritchard (The Wrekin) (Con)]

Whilst the new bail-out mechanism has thankfully comforted the markets, do not many of our EU partners need to rein in their public spending, follow Britain’s example and introduce some meaningful financial austerity measures?

[The Prime Minister]

To be fair to other countries in Europe, the conversation around the Council table is very much about the action that everyone is having to take. Britain has set quite a pace in setting out a five-year programme about how we are going to do this and what we have seen in Britain is market interest rates coming down since the election, whereas in other European countries they have sometimes gone up. What is required is some credible fiscal plans. Fiscal consolidation alone will not settle down the eurozone but that has to be a part of it.