EU Council

Pat McFadden Excerpts

Monday 28th October 2013 Commons Chamber

[The Prime Minister]

I thank my hon. Friend for her question. There are two points here. What the eurozone countries want is a sort of social score card to go with deeper integration. I said that we did not want to be involved in that and insisted on a voluntary system. We not only need to see that welfare issues remain for national Governments; we need to look at the habitual residence test and some of the problems with the welfare system. This is not now a uniquely British complaint about European systems. We hear it from German and Dutch Ministers and others, so we need to build an alliance to try to ensure that we have a better system in Europe.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

What progress—or lack of it—was made on banking union and did the Prime Minister find any support among fellow EU leaders for the idea that it would benefit Britain’s very important financial services industries to pull out of the EU and erect barriers between us and our most important market?

[The Prime Minister]

There was some progress on banking union, but this is an issue predominantly for members of the eurozone. A single currency necessitates some form of single bank regulation and resolution system, and that is what its members are putting in place. They are doing so quite tentatively, however, because they are beginning to realise what an enormous transfer of sovereignty it could amount to—theoretically, of course, it would see German citizens standing behind Greek banks and vice versa. Some progress was made. Britain is not taking part in this banking union, of course, but we have achieved some excellent safeguards to ensure that we have a real say over those parts of financial services regulation to which we are still subject. I suspect that progress towards full banking union will be fairly slow, but in any case Britain will not be involved.