European Council

Lord Soames of Fletching Excerpts

Monday 5th March 2012 Commons Chamber

[The Prime Minister]

I am afraid I do not agree with the hon. Gentleman. Britain has leading industries in services, energy and the digital economy. If we can complete the single market in those areas, there are real opportunities for British business. The additions to gross domestic product that we would have through completing the single market in those areas would partly mean jobs, investment and growth here in the UK. When there is no room for fiscal stimulus, as there is not in the UK because the budget deficit is so big, and when we already have a very accommodating monetary policy, the right way for growth is to look at structural reform and changes, just as we are doing through the EU.

[Nicholas Soames (Mid Sussex) (Con)]

Does my right hon. Friend agree that ambitious companies looking for growth in Mid Sussex will be extremely pleased with the steps the Government took towards seeking to resolve the crisis in Europe through growth? May I suggest that he looks further back—to European Councils of the past 10 years—to see how many good ideas signed up to came to naught, and could well, with a bit of effort, have come to something good?

[The Prime Minister]

My right hon. Friend is correct about this. Of course, Europe has on many previous occasions signed up to wonderful rhetoric about single markets, energy and all the rest of it. That is partly what the Lisbon agenda—not the treaty—was all about. What is different this time is that there was real pressure from the 11 countries that signed the letter with Britain to insist on actions and dates by which those actions would be taken. We must still ensure that those things are achieved. Many countries will want to hold up getting rid of regulations on services and many will want to keep some of those regulations on small businesses, but we now have a majority in the EU to try to fix those things in a way that is good for our country.