(10 years, 7 months ago)
Commons ChamberFollowing the Minister for Europe’s visit to Georgia last week, does he now discern a pattern of prosecutorial intimidation of Opposition politicians, and does he share my extreme concern that the highly respected Giga Bokeria was hauled in by prosecutors on Friday?
In my conversations with the Prime Minister and other Ministers when I was in Georgia last week, I repeated very clearly that it is in Georgia’s interests, as well as the expectation of the United Kingdom and Georgia’s other friends, that while no one should be exempt from due process, we should avoid any appearance or risk of selective justice of the kind we saw under the previous regime in Ukraine.
(11 years, 4 months ago)
Commons ChamberSo his remarks were also very well prepared, for which I give him credit.
Earlier, the Home Secretary responded to me on the issue of whether the opt-ins under the justice and home affairs provisions—if indeed we have opt-ins now—would trigger a referendum. She shared her view that they would not, but she did not give reasons and I do not believe she spoke to the specifics of the point. The European Union Act 2011 was ably taken through the House by the Minister for Europe, whom I am delighted to see in his place—he may be able to correct or assist me, or perhaps share some of the Government’s legal insight, which has eluded me to date on this issue. Section 4(1) deals with triggers for a referendum, and paragraph (i) refers to
“the conferring on an EU institution or body of power to impose a requirement or obligation on the United Kingdom”.
An even clearer trigger is section 4(1)(j), which refers to
“the conferring on an EU institution or body of new or extended power to impose sanctions on the United Kingdom”.
It strikes me that with those opt-ins, the Commission would have the right to enforcement action, and the European Court of Justice potentially to deliver fines.
My hon. Friend was right to read out those paragraphs of section 4(1) of the 2011 Act, but as its title makes clear, that section refers to “Cases where treaty or Article 48(6) decision attracts a referendum”. The decision we are debating this evening, which stems from specific provisions to the Lisbon treaty, is neither a treaty change nor an article 48(6) decision, and it therefore falls outwith the scope of section 4 of the 2011 Act.
I am not sure whether I have understood the Minister, but section 4(1) is of course subject to subsection (4), which states:
“A treaty or Article 48(6) decision does not fall within this section merely because it involves one or more of the following: the codification of practice…; the making of any provision that applies only to member States other than the United Kingdom; in the case of a treaty, the accession of a new member State.”
Subsection 4(4) does not appear to be triggered in this case.
I am sorry to intervene again on my hon. Friend, but the point I was seeking to make—I apologise if I was not sufficiently clear—was that this decision on the justice and home affairs 2014 measures is not the product of an initiative brought forward under article 48(6) of the European treaties. Article 48(6) provides for the simplified revision procedure of the European Union treaties; this is not a revision of the Lisbon treaty.
(12 years, 2 months ago)
Commons ChamberMy two hon. Friends have made other related comments, to which I would like to reply first. If they then wish to intervene on me, I will give way.
My hon. Friend the Member for Stone and the right hon. Member for Rotherham (Mr MacShane) said that the referendum pledge in the 2011 Act was meaningless because my right hon. Friend the Foreign Secretary could, in effect, decide on a whim whether a referendum was needed or not. They made reference to the requirement in the Act for the Secretary of State to make and publish a decision on whether a referendum was required. Those fears are wide of the mark, however. The Secretary of State is not permitted to act on a whim; he has to act in accordance with the law, and it is the 2011 Act that sets out in some detail precisely when a referendum is required. In making the statement to Parliament, the Secretary of State must say whether the referendum is or is not required under the terms of the Act.
My hon. Friend the Member for Rochester and Strood, in asking why no referendum was required in this case, pointed to what he saw as a contradiction in the Government’s approach. I need to divide my response to him into two parts. Paragraph 3 of the recitals or preamble to the decision of 25 March 2011 formally recalls the previous decision by the European Council that article 122(2) would no longer be needed and “should not be used”. The text of the decision comes after paragraph 6 of the recitals and is introduced by the words “has adopted this decision:”. The text of the amendment to the treaties is what is being ratified by this Bill. So the 2011 Act bites on the amendment to the treaties, which is the narrow addition to article 136 of the treaty on the functioning of the European Union. This measure would attract a referendum if it included one or more of the elements listed in sections 4(1) to 4(3) of the 2011 Act. Those subsections, which provide quite a long list, define what we mean by a transfer of competence or powers. This treaty amendment does not include any of those elements that require a referendum, so we do not require a referendum in this case.
That part of the Bill is included because it is a requirement of the 2011 Act that we bring this to Parliament to ask it to ratify formally the Government’s judgment as to whether or not a referendum is required. However, that judgment by the Government—that opinion embodied in the statement by my right hon. Friend the Foreign Secretary—followed a very careful analysis of the treaty amendment in the light of the provisions of the 2011 Act. Obviously I regret bitterly that I have clearly been unsuccessful in playing the role of Ariadne to guide my hon. Friend out of a labyrinth, but I somewhat suspect that he is not that keen to extract himself from it. The one thing he has not challenged me on is whether the treaty amendment contains any of the transfers of power or competence to the European Union from the United Kingdom specified in sections 4(1) to 4(3) of the 2011 Act. I am sure that we will have the delightful opportunity of pursuing those points further in Committee.
I will give way once more, but I do not want to pre-empt our discussions in Committee.
My concern is that in the statement provided to the House under section 5, the ministerial team has relied on section 4(4)(b), which states that a referendum will not happen when a treaty or article 48(6) decision applies only to member states other than the United Kingdom. The whole debate has relied on recitals from within that article 48(6) decision, saying that the provision gets us out of article 122 and that we will not have to contribute to further bail-outs. Surely the Government cannot have it both ways.
My hon. Friend is eliding two things. We have before us and are seeking to ratify through this Bill a treaty amendment. It relates to article 136, which applies only to those countries whose currency is the euro. Therefore, by definition, unless the United Kingdom were to join the euro, which would in itself require a referendum under the 2011 Act, it cannot apply to us. Alongside that treaty amendment, my right hon. Friend the Prime Minister successfully, and after a lot of hard work, negotiated agreement from all Heads of State and Government in the European Union that when the ESM comes into force, any future liabilities of the United Kingdom to bail out eurozone countries under the EFSM will be extinguished. That is a very significant gain for the British national interest and I hope that on reflection my hon. Friend the Member for Rochester and Strood will recognise it as such.
As I have said, in return for agreeing this treaty amendment, the Prime Minister secured agreement at the European Council that once the ESM is set up, article 122(2) of the treaty on the functioning of the European Union should no longer be used to safeguard the stability of the euro area as a whole. Our liability for future euro area financial assistance programmes under the EU budget will be removed and that is directly in the UK’s national interest. As my hon. Friend the Member for Camborne and Redruth (George Eustice) said, this gain for our interests should be considered as proportionate to the scope of the treaty change that we are considering, which is narrow and specific in what it seeks to achieve. We should also not ignore the fact that the ESM will provide the euro area with a permanent financial assistance mechanism to assist euro area member states in financial difficulty. We all share the enormous concern over the ongoing crisis in the eurozone and the chilling effect that it is having on our economy.
A stable eurozone is in the interests of the United Kingdom. We rely on those 17 countries for more than 40% of our trade, but that is only part of the picture. Confidence and stability in the eurozone are in our national interests and the resolution of the debt crisis in the eurozone would be the biggest single boost to business confidence that could happen in the British economy. That is precisely why the eurozone countries say that they need the ESM and why it is important to ensure, through all 27 member states ratifying the treaty amendment, that there is no room for doubt about that amendment’s and therefore the ESM’s compatibility with the European Union treaties.
We are not in the euro and the United Kingdom will not take part in the ESM, but it would harm our interests to stand in the way of the eurozone’s efforts to set it up and help sort out this crisis, a point made very strongly by my hon. Friend the Member for Stroud. No one is under any illusion that the European stability mechanism will be some silver bullet that will solve the eurozone’s problems overnight, but it is a step in the right direction.
When the right hon. Member for Paisley and Renfrewshire South (Mr Alexander), the shadow Foreign Secretary, spoke, he treated us to a lecture about the alleged failures of the Government’s economic policy. No Minister would stand at the Dispatch Box and say anything other than that the United Kingdom’s economic problems are deep seated and that they have been aggravated by the crisis in the eurozone, but what surprised me—perhaps I am insufficiently cynical—was the fact that there was not one word of regret from the right hon. Gentleman, let alone a morsel of contrition, for the contribution made by his Government to the economic woes from which the United Kingdom now suffers.
Some European comparisons are really quite interesting in this context. A number of hon. Members commented on the fact that some European Union countries have been more successful in recent years than the United Kingdom or the majority of EU member states have been, but it is telling to consider the contrast. Germany was paying down its debts when the Labour party was piling up the deficit here and maxing out the United Kingdom’s credit card. In the 10 years from 1997, Germany had annual growth in industrial production of 3% or more a year, while average growth in the United Kingdom over that period struggled to get above 0.2% annually. In the first decade of the 21st century, Germany maintained its share of world exports while the United Kingdom’s share almost halved thanks to the disastrous economic stewardship of the right hon. Gentleman and the Labour party.
The European Union, including the United Kingdom, needs a relentless focus on competitiveness and growth through deepening the European single market; building a single market in the digital economy, energy and services; cutting the costs of European regulation on businesses, especially small enterprises; and agreeing more free trade deals with Canada, Singapore, Japan, the United States of America and other regions of the world.
The legislation before us is one step forward, but it is only part of the strategy for renewing economic growth and competitiveness in the United Kingdom and in Europe as a whole. The Government will continue to pursue that strategy with vigour, energy and determination.
Question put and agreed to.
Bill accordingly read a Second time.
European Union (Approval of Treaty Amendment Decision) Bill [Lords] (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the European Union (Approval of Treaty Amendment Decision) Bill [Lords]:
Committal
1. The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee, on Consideration and Third Reading
2. Proceedings in Committee, any proceedings on Consideration and proceedings on Third Reading shall be taken in two days in accordance with the following provisions of this Order.
3. Proceedings in Committee and any proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the second day.
4. Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
Programming committee
5. Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on consideration or to proceedings on Third Reading.
Other proceedings
6. Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed.—(James Duddridge.)
Question agreed to.
(12 years, 5 months ago)
Commons ChamberI certainly give the hon. Lady that assurance. We will give all possible help and support to the Falkland Islands Government in their preparations for the referendum. She makes a good point about the young people of the Falkland Islands. Tomorrow the President of Argentina is due to appear before the United Nations special committee on decolonisation. I understand that the Falkland Islands legislators who will represent the views of the islanders at that meeting will bring with them some of the young men and women from the Falklands who can make it clear that they, too, see themselves as British and wish to remain so.
It is enormously welcome that the Falkland Islanders will decide by referendum whether to govern themselves. Does my right hon. Friend agree with the Chancellor that the time is coming for us to follow their example?
(12 years, 11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
No. We do not know the shape, let alone the detail, of any agreement that might be reached over the next 24 hours or longer. The risk alluded to by a number of my hon. Friends, which perhaps lies behind the hon. Lady’s intervention, is that of caucusing. The risk is that the greater economic integration of the 17, and of more countries over time as other member states join the euro, as is still their intention, will lead to caucusing on single market measures, so that the UK would in effect be presented with a “take it or leave it” option. That is certainly a theoretical risk and I do not want to pretend otherwise. The political reality, however, is, first, that that is not how the eurozone countries have operated up till now. We were given similar warnings when the United Kingdom took the decision to stay outside the euro when it was created, but those dire warnings have not been justified by the events of the years since.
Secondly, when I talk to Ministers from the other 26 member states, I find that neither the eurozone 17 nor the euro-out 10 are cohesive or monolithic blocs. Talking to Dutch, German—in particular—Finnish, Austrian or Irish Ministers, one finds that they all very much want the United Kingdom, with its championship of free and open markets and an outward-looking European Union, to be centrally involved in taking decisions. There is not that drive towards a caucus that a number of my hon. Friends fear.
I will not, I am sorry. I want to leave some time to my hon. Friend the Member for Harwich and North Essex, so I must conclude my remarks shortly.
I will write to those hon. Friends who have mentioned particular subjects, such as my hon. Friend the Member for Cheltenham (Martin Horwood) who spoke about energy. I assure my hon. Friend the Member for South Northamptonshire that we completely recognise the importance of financial services. A thriving City of London is an asset not only to the United Kingdom but to the European Union as a whole. We should go out and sell that case loudly and confidently. We have made it clear that, if a financial transactions tax introduced at EU level were to cost jobs and growth—that is on the basis of the Commission’s own impact assessment—we would veto it. If others wanted to go ahead, foolishly, on the basis of an enhanced co-operation measure, that would be a matter for them.
It is clear that the next few days will be important for Europe. We head into the summit with a clear objective. Yes, we support the eurozone in sorting out its problems, but we will not sign up to fiscal discipline in the eurozone without safeguards and certainly not at the expense of our industries or our independence.
(13 years, 4 months ago)
Commons ChamberMy hon. Friend puts his point well. There have been parliamentary by-elections where the total turnout was less than 40%, and I do not think anybody argued at that moment that the election of that Member was in any way invalid.
My right hon. Friend presumed earlier that the Lords had inserted the amendments to protect parliamentary sovereignty. Is it not possible that some noble Lords voted to insert the amendments because, in the circumstances outlined by the hon. Member for Luton North (Kelvin Hopkins), if 39% of people vote against something to do with the EU and 0% in favour, they would prefer it if the 0% won? In this context, is my right hon. Friend aware that some noble Lords are in receipt of EU pensions? Would it not have been better if that financial interest had been declared?
My hon. Friend has put matters on the record. I am content to take the arguments and reasons given by Members of the House of Lords as justification for the amendments in which they believed.
Providing the formal response to my hon. Friend’s question is clearly a treat that is yet in store for me. I will obviously give him a proper and considered response when the question reaches me, but everything I have observed about how my right hon. Friend the Prime Minister has acted in respect of the European Union since the general election has shown his utter determination to maximise the interests of the United Kingdom and the British people in every negotiation at European level in which he has taken part. Everything that he, the Deputy Prime Minister and other members of the Government do, from conversations with colleagues to meetings of the Council of Ministers, is about trying to get the best possible advantage for the United Kingdom from our membership of the EU.
In that case, although Ministers had such great success in preventing the use of the EU-wide financial stability mechanism in the case of the Greek bail-out, will the Minister explain why it was simply nodded through with respect to Portugal?
I think that I would test the House’s patience if I were to go into that in detail, particularly as there was a debate on bail-outs a few weeks ago, in which I think my hon. Friend participated, and to which my hon. Friend the Financial Secretary to the Treasury responded at some length. I am sure that there will be other opportunities to question Treasury Ministers about that.
(13 years, 8 months ago)
Commons ChamberNo, I am afraid I do not agree with my hon. Friend on that point. As I have said, it is in the interests of the United Kingdom for there to be stability in the eurozone. To some extent, the measures that the eurozone countries are now taking are a response to the kind of critique that he and other Members of this House made 10 or 11 years ago when the euro was first created. They—I was very much in this camp—argued that it would cause huge difficulties to create a currency union involving a single interest rate and single monetary policy that did not have some way of reconciling very different rates of growth, inflation and unemployment in the countries in that single currency area.
I want to finish on the procedural points and then move on to the content. If the draft decision is adopted by the European Council, all 27 member states will have to approve the treaty change and ratify it in accordance with their respective constitutional requirements before the decision enters into force. The treaty amendment cannot come into effect until we—and everybody else—ratify the adopted decision.
My right hon. Friend the Foreign Secretary and I have already given an assurance at this Dispatch Box that this and every other future treaty change will be considered in accordance with the terms of the European Union Bill, once that enters into force. That Bill will require Ministers to lay a statement before Parliament within two months of the commencement of part 1 of the Bill, explaining whether the treaty change would fall within clause 4 of the Bill—namely, whether it would involve a transfer of competence or power from the United Kingdom to the European Union.
The treaty change will then have to be ratified by primary legislation—a full Act of Parliament—before the United Kingdom is able to say formally that it has completed the ratification process, so even when we get to that stage, the final version, agreed by all 27 Heads of Government, has to come back to Parliament for ratification and will be debated in all the stages of primary legislation. Tonight is therefore not the only opportunity that my hon. Friends will have to debate the measure.
Surely the key point about this debate is that we have a veto, and that gives us a lever? Most people in this country feel that EU integration has already gone far too far. Is it not the case that the Minister’s refusal to use that lever can only mean that our relationship with the EU will, sooner or later, have to be resolved through an in/out referendum?