European Union

Neil Carmichael Excerpts

Tuesday 13th December 2011 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

The debate is important, and I congratulate the right hon. Member for Belfast North (Mr Dodds) on securing it. It has been thoughtful and measured, and it paves the way for a succession of debates in the same vein, which we will have to hold. As the previous speaker noted, much has yet to happen.

The Prime Minister made what he intended to do absolutely clear, and we should salute him for getting on and doing it. Not only did hon. Members and other members of the Government know it, but the Chancellor of Germany and the President of France knew it too, because they reacted calmly as if they had been pre-warned. Therefore, it must be recognised that our position was clear and the Prime Minister acted.

It is important to amplify some issues, one of which, of course, is that the events of last week mean that we will not have a referendum in the immediate future. There is no treaty to sign, and therefore no transfer of any power in any direction. Effectively, a line has been drawn under the referendum debate, unless or until another treaty is signed or another significant power is transferred. We should recognise that and move on to the next phase.

The next phase is something to which my hon. Friend the Member for Cheltenham (Martin Horwood) referred: renewing relations with many of our partners and establishing good, effective bilateral relations so that we can have a sensible dialogue on the kind of Europe we want to build. It is critical that we start thinking in terms of the competitiveness of Europe and the single market, but to do so we must have friends, a proper understanding and a long-term plan that makes sense. I therefore urge the Government to redouble their efforts to make good contacts and friends out of the 26 members.

Our interests are clearly associated with the fact that the euro must survive and become a sustainable currency, because if it does not we will all be in a big mess. We should say that and mean it. Of course, we must ensure that the compact that leads to further decisions is good enough and appropriately structured, but we also know that the US is equally interested in the future of the euro, because it, too, recognises that the world’s largest market—with the eurozone within it and a key part of it—is not the best place to have a major currency crisis.

That brings me to the use of EU institutions. The Minister for Europe made it absolutely clear that there is plenty to do in connection with the compact and beyond, so it is far too early to talk about who should or should not use EU institutions. I have two things to say about that. First, Germany, France and other countries have made their mind up to do something. If they do not use EU institutions, they will do what they want nevertheless, and we might have even less influence over what happens. We must think carefully about that fact. Secondly, if we want to repatriate powers—we have said very clearly that we do—we will want friends who will help us to do so. I do not believe that taking an intransigent view on the use of EU institutions will help in that respect at all.

My final remark is this: we have a clear and obvious interest in ensuring that the single market works and that it works well for us. We must understand its strategic importance not just to the whole of Europe, but especially to our industry and services, which depend on it. We therefore must make it one of our key objectives to play ball with those who want to make that market even more competitive and effective.