Eurozone Crisis

Mike Gapes Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

I absolutely agree that there is a very important role for the EU27 to strengthen and deepen the single market and to promote free trade—the EU has just concluded a free trade agreement with South Korea that benefits the British economy directly. Also, the EU will have an important role in things such as financial services regulation, and it is important that that is discussed at the level of the 27, because we are such an important player in the financial services industry worldwide. So I completely agree with the hon. Gentleman. Britain has been absolutely clear in recent months that issues affecting the 27 should be discussed by the 27, not at the level of the 17 euro members. It has been partly through our insistence, with others, that there have been two European Councils and an ECOFIN this week to ensure that proper procedures are followed.

[Mike Gapes (Ilford South) (Lab/Co-op)]

The Chancellor said that British interests should be properly protected when the eurozone countries move towards giving up national sovereignty and towards greater fiscal integration. Will he clarify how that will happen?

[Mr Osborne]

This is the argument that we have to make over the coming months and as the discussions start on whether there is going to be a future treaty change—although what is being talked about is a treaty change of a limited nature. We have to look for ways of securing Britain’s influence and voice, and the influence and voice of the other nine EU member states that are not in the eurozone. That is absolutely top of our negotiating agenda. However, we also want to secure a rebalancing of the responsibilities between the EU and its member states, which will be another important part of the argument that we make.