Judiciary and Fundamental Rights

Debate between Matt Hancock and David Lidington

Tuesday 22nd November 2011 Commons Chamber

[Mr Lidington]

My advice is that that has to be a sovereign decision for the country concerned. I do not waver in my view that joining the euro would not be in the national interest of the United Kingdom, and I make no apology for having long held that view, but each country must take its own decision. Some countries with small economies, which are, perhaps, very dependent on trade with immediate European neighbours, would find it more difficult to see themselves outside the euro, at least over the longer term, than a country such as the UK. At the end of the day it must be a matter for each accession country to decide for itself in the course of EU negotiations.

The third argument for enlargement is an economic one and it is—

[Matthew Hancock (West Suffolk) (Con)]

Before my right hon. Friend moves on to that further point, is there not an important and slightly more domestic political benefit to support for enlargement of the European Union? There are more countries in the European Union that want to see a less deeply aligned European Union and more of a trading union, which we on the Conservative Benches also want to see. The more countries with that view of Europe, the better. Therefore accession countries with that view and that approach to markets should be encouraged.

[Mr Lidington]

My hon. Friend makes a very strong point indeed, although it would be a mistake to class all new accession countries as if they were of one mind and part of a bloc. The Government of the Czech Republic, for example, take an approach towards the European Union that on many issues is not dissimilar from that expressed by the United Kingdom Government. With the Slovak Parliament’s controversial debate over the future of the euro, we have seen the strong view that even a small member state is entitled to have a say and not be overruled by a directoire of the larger member states.

However, I caution my hon. Friend. If one looks at, say, Estonia, the ambition that it had to join the euro, and the celebrations on the streets when it joined the euro—[Interruption.] The hon. Member for Wolverhampton North East (Emma Reynolds) prompts me from a sedentary position about Poland, which is keen to be in the euro one day, but certainly not to be told what to do by other, older member states. There is a variety of different positions among member states.

The political value of enlargement is partly that it recognises the truth about the diversity of European political culture. It is important that as the EU evolves and reflects upon its own systems of governance and its institutional set-up, it does so in a way that takes full account of the diversity of European political and cultural experience. The model that may have served six member states in western Europe in the 1950s will not be the right one for a community of 27—soon to be 28—member states encompassing all parts of our continent.

The third argument for enlargement relates to economic interest. The economic benefits of expanding the single market are significant. British exports of goods and services to the 12 new member states of central and eastern Europe increased over the 10 years straddling their accession by more than two and a half times to over £11.6 billion in 2009. So there are advantages for our businesses and our people, as well as for the businesses and people of the accession countries. In Croatia’s case, meeting the single market rules means that British businesses will be better able to benefit from trade and investment opportunities in that country—for example, in Croatia’s expanding ports sector, its tourism industry and agriculture.