European Council

William Cash Excerpts

Monday 24th October 2011 Commons Chamber

[The Prime Minister]

I have probably made more statements on European Councils over the last 16 months than many Prime Ministers, and I have always committed to come back and report to the House.

The point that the hon. Lady makes is absolutely right. Greece is just the most glaring problem that the eurozone has to deal with. As I have said, that has to be dealt with decisively. It needs to be backed by a firewall, and it needs to be backed by the recapitalisation of banks. But the fundamental problem of the eurozone is the issue of competitiveness and the very large current imbalances that are building up in some of the member states, particularly those in the south. As a result, what needs to happen above all, as I said in my statement, is an advance in competitiveness, in trade, and in completing the single market, which will help all those economies in the longer term.

[Mr William Cash (Stone) (Con)]

The Prime Minister has made it clear that he advocates fiscal union within the eurozone. Can he explain to the House how it is that fiscal union of that kind is not a fundamental change in our relationship with the European Union, bearing in mind that it is established that the constitutional position is clear that where there is fundamental change, there must be a referendum? How can he square that circle?

[The Prime Minister]

Let me be clear with my hon. Friend. I think that fundamental changes are coming in Europe; they are clearly coming in the eurozone. That may lead to pressures, as we saw over the weekend, for treaty change. That will present opportunities for Britain and we should respond to those opportunities. The question for the House tonight is whether it is right to go off down the path of having a referendum that includes an in/out option, just when there are big opportunities as the eurozone and the EU are changing.