G20

William Cash Excerpts

Monday 7th November 2011 Commons Chamber

[The Prime Minister]

I do not agree with the right hon. Gentleman, for this reason: I have managed to assemble a coalition for budgetary restraint in the European Union, and this year Britain, France, Germany and others have all agreed to freeze the EU budget in real terms. I would like to go much further, but I have to say that a freeze in the budget in real terms is not something we have been able to achieve in recent years, and is a breakthrough, so I do not accept the point about looking at rebalancing powers in Europe and fighting for a deal on the budget. We can do both.

[Mr William Cash (Stone) (Con)]

Given that the single market, including the City of London, is governed by qualified majority voting, how does the Prime Minister propose to achieve a majority to protect our interests in the context of the fiscal union that he advocates?

[The Prime Minister]

First, we need to disconnect the issues that my hon. Friend raises. The issue of the single market and the threat to the City of London and Britain’s financial services is a real threat. We have to work extremely hard to build alliances in the single market and in the European Council to stop directives that would damage our interests. I think it is extremely important that we do that work. Financial services matter hugely to this country, and this is one of the areas that I want to ensure we can better safeguard in future.

I do not support fiscal union. I do not think that Britain ought to join a fiscal union, as I do not think that is the right move for us. However, we have a single currency that is quite dysfunctional, and one way in which it could be made more functional is greater fiscal union. That is a statement of fact rather than our saying that we want in any way to join it: we do not. We want to safeguard the interests of Britain by making sure that the single market works for us.