National Parliaments and the EU

Debate between William Cash and Emma Reynolds

Tuesday 16th July 2013 Westminster Hall

[Emma Reynolds (Wolverhampton North East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Chope, in a debate that is of great interest to you. I congratulate my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) on securing the debate and on a characteristically thorough and forensic speech, which drew on not only 17 years in the House, but many weeks and months—I do not know how many—on the Convention on the Future of Europe. She is a real expert and it was a great pleasure to hear her this morning.

I agree in particular with my hon. Friend’s overall argument that national Parliaments need to play a much greater role in holding to account not only the European Union, but our own Government’s decisions on Europe and the formulation of European legislation and policy. She and many other right hon. and hon. Friends, some of whom are here this morning, want parliamentary scrutiny of the EU and what our Government do in Europe to be enhanced and improved. That objective unites pro-Europeans and Eurosceptics, and hon. Members from different parties alike.

I agree with my hon. Friend’s specific point that it is regrettable that one of the first actions of the Government when they came into power in 2010 was to do away with pre-European Council debates. It is unsurprising that she, and others present and beyond our debate today, complained repeatedly about the decision, but unfortunately it was to no avail. While other member states are improving their scrutiny of their Governments’ decision-making and negotiating strategy ahead of European Councils, our Government have taken a retrograde step and have in effect decreased scrutiny. The Government have not simply done away with the pre-Council debates, but the post-Council debates are now combined with major issues of concern—whether Afghanistan or the horrific murder in Woolwich. Such subjects and the post-European Council report need to be separate. They are too important to be combined. Notwithstanding the scrutiny of the European Scrutiny Committee, it is vital that scrutiny also takes place on the Floor of the House, as she set out, so that all right hon. and hon. Members have the opportunity to scrutinise how the Government represent the UK in the EU.

The starting point from which I approach the debate is perhaps different from that of some hon. Members who have spoken. I am a passionate believer in our membership of the EU. I am both pro-European and passionately in favour of reform. Just because I believe in our membership, that does not mean that I think the EU is perfect—far from it. I spent six years of my life working and living in Brussels; I have seen at first hand the many imperfections of the EU. A vital part of EU reform lies in the issue that we are focusing on today: strengthening the accountability that national Parliaments have over European decision-making.

The shadow Foreign Secretary, my right hon. Friend the Member for Paisley and Renfrewshire South (Mr Alexander), in a speech in January this year, set out proposals for a red card system. It took the Government five months to come to the same conclusion, but we were encouraged—better late than never. As hon. Members are acutely aware, the current yellow card system was introduced by the Lisbon treaty, which the Labour Government negotiated. It gives national Parliaments the ability to force the European Commission to reconsider its proposals if they believe that a proposal violates the subsidiarity principle.

[Mr Cash]

I do not think that anyone could honestly say that the yellow card system has been a stunning success, given the number of occasions we have reached the threshold. That is also a problem with respect to any possibility of a red card system, leaving aside the federalisation they both imply.

[Emma Reynolds]

I do not claim that the yellow card system has been a stunning success. As the hon. Gentleman set out, it has been used successfully on only one occasion —the so-called Monti II proposals, which were then withdrawn by the European Commission. Just because the yellow card system is not a success at the moment, that does not mean that it could not be made to work better. I will move on to that and better co-ordination of national parliamentarians in a moment.

The Labour party is committed to pushing for a red card system when in government. It would, in effect, turn the yellow card into a red card, by stating clearly that a third of national Parliaments being against a proposal is a veto. It would not force the European Commission to reconsider, but would say, “No. Stop. Stop that proposal. One-third of national Parliaments have great concerns, therefore withdraw it.”

Even within the current treaties, the yellow card system could be made to work better, which brings me to the hon. Gentleman’s intervention. Charles Grant, the director of the Centre for European Reform—a think-tank that is well reputed and thorough on such matters—has suggested creating a national parliamentary forum in Brussels of MPs from different member states. I would be interested to know whether the Minister for Europe has considered that proposal. I regret to hear that European Commissioner Viviane Reding did not turn up to the meeting when the hon. Gentleman was in Dublin. Perhaps a new forum, made up of MPs—not necessarily including Chairs of Scrutiny Committees—meeting in Brussels could better hold to account European Governments, who have permanent representations. As my hon. Friend the Member for Birmingham, Edgbaston suggested, there should be better political oversight of such representations.

[Mr Cash]

Holding a gathering of MPs to talk about issues is not the same as holding people to account. Holding people to account means that there is a vote, within a constitutional structure that requires people to answer questions, and if the people who have the numbers on their side do not like a proposal, the Government’s position changes, as happened last night. The hon. Lady is suggesting a Parliament of fools.

[Emma Reynolds]

The hon. Gentleman has not even allowed me to finish my point. If he considers the proposals from the Centre for European Reform, he will see that they are not about a talking shop. With great respect, I know that he sits on COSAC, which my hon. Friend the Member for Birmingham, Edgbaston mentioned, and that committee needs to be vastly improved from its current formulation and in its make-up. Mr Grant says that it does not give MPs a big enough stake, is only consultative and is often treated “disdainfully” by MEPs—his word, not mine.

There is clearly a great—[Interruption.] Would the hon. Member for Stone (Mr Cash) at least give me the courtesy of listening to my response to his intervention? There is clearly a great problem with the current set-up, and having a presence in Brussels of national parliamentarians who could have a vote and scrutinise more closely the decisions taken by our and other Governments deserves closer consideration, rather than just saying that it would be a gathering of fools—a statement with which I profoundly disagree.

I recently met the Speaker of the Dutch House of Representatives, and she has an appetite, as do colleagues in other member states with whom I have discussed the matter, for Parliaments to work more closely together. The Government could give greater consideration to the successes in the Dutch, Danish and German Parliaments. For example, in the Netherlands, the standing committees—akin, I think, to our Select Committees—choose proposals from within the Commission work programme that they see as priorities and about which they might have concerns, and they refer them to their European affairs committee.

Our departmental Select Committees are not involved enough in proposals at an early stage, or even at later stages, and I would be grateful if the Minister could say something about what the Government could do to drive greater consideration and scrutiny on a policy-by-policy basis, given that, as has been said, a lot of European policy is not foreign policy—as my hon. Friend the Member for Birmingham, Edgbaston said, it is an anomaly that it is often treated as such. Our departmental Select Committees could learn from the experience of the Netherlands.

European Union (Approvals) Bill [Lords]

Debate between William Cash and Emma Reynolds

Monday 4th February 2013 Commons Chamber

[Mr William Cash (Stone) (Con)]

I first want to refer, in the context of the Bill, to the referendum announced by the Prime Minister. We have heard much about the 2011 Act. I opposed it during many of its stages, because I believed that although it had a so-called referendum lock, in practice it would not deal with the kinds of things we are now besieged with, particularly those measures that are being introduced into the political core of Europe—the eurozone—that affect the United Kingdom but that, because they do not refer to the United Kingdom, do not require a referendum, however significant their impact on the United Kingdom. In fact, the European Scrutiny Committee, which I have the honour to chair, produced a report on that very question and we remain extremely concerned about the effect of allowing legislation to go through without a referendum on the specious grounds that a transfer of powers is not taking place. This is not just about a transfer of powers; a referendum is required when there is a fundamental change.

Interestingly, the referendum announced by the Prime Minister, which I think should take place during this Parliament, is a very good example—indeed, it is a perfect example—of something that does not fall under the 2011 Act. However, it is the opinion of the Prime Minister—it is certainly my opinion and that of many hon. Members present—that the proposals that are about to be announced, or that he thinks are likely to be announced, as well as what has already been transferred, the structure of the treaties and the impact of the provisions, past and present, on the United Kingdom, should be subject to a referendum, because of the unfortunate, aggregate effect that they continue to have on the United Kingdom.

[Emma Reynolds (Wolverhampton North East) (Lab)]

The hon. Gentleman is extremely kind, as ever, in giving way. Would he like a referendum on the Bill under discussion?

[Mr Cash]

I did not say that. What I said was that the referendum that the Prime Minister has announced goes outside the provisions of the 2011 Act, and I am glad to say that that demonstrates that, where there is fundamental change, he recognises—with some help from his friends— that a referendum is a requirement, even though it is not taking place as early as some of us would like.

Europe

Debate between William Cash and Emma Reynolds

Wednesday 30th January 2013 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

We have heard some excellent contributions to this debate.

Former French President Charles de Gaulle famously asked how it was possible to govern a country with 246 types of cheese. The same could be said of the Conservative party on the EU. As my hon. Friends the Members for North Durham (Mr Jones) and for Plymouth, Moor View (Alison Seabeck) stressed, the timing and the content of the Prime Minister’s speech last week were clearly motivated by an attempt to manage his party, rather than to serve the national interest. His speech was both a delaying tactic and a diversionary tactic designed to kick the can of a Tory split over Europe down the road and to divert attention from the Government’s ongoing economic failure.

When the Prime Minister set the original date for his much delayed EU speech, there was a failure to notice the clash with the anniversary of the Élysée treaty, but it was clear that the speech was deliberately timed to divert attention from last Friday’s GDP figures, which were, as expected, disappointing. [Interruption.] Government Members may laugh, but the situation is serious in my constituency and throughout the country. We were told last week that our economy contracted in the last quarter of 2012, but today, instead of discussing the possibility of the economy slipping into a triple-dip recession, we are talking about Europe.

The Prime Minister’s policy last week was to buy himself some time, keep his party quiet and stem the tide of rumours of leadership challenges. Unfortunately for the Prime Minister, it would appear that the hon. Member for Windsor (Adam Afriyie) and several other Back Benchers did not get the memo. This week’s leadership rumours show that behind the paper-thin veneer of unity afforded by last week’s speech, the Conservatives remain a deeply divided party. Today’s debate has shown that, too.

There are many factions in the Conservative party over the EU. There are those who want us to leave no matter what, although I am slightly confused by the position of the hon. Member for Stone (Mr Cash)—I would have put him in that group, but now I do not know whether he is a Camembert or a Roquefort. Another faction is led by the Fresh Starters.

[Mr Cash]

Would the hon. Lady recognise that some of us seek to address this question in the context of the national interest? When she speaks about GDP, does she recognise that the challenges to GDP in this country are largely driven by the lack of growth in the eurozone? We run a deficit with the EU member states of £47 billion a year.

[Emma Reynolds]

Germany’s EU membership has not prevented its economy from growing more than 4% in the past two years, nor has France’s membership prevented its economy from growing by more than 1.5%.

I return to the divisions in the Conservative party. There are different factions with different shopping lists. There is an interesting faction that actually quite likes the status quo, but will not admit it, and various Members—not least the Minister for Europe—who are pro-Europeans, but would never call themselves that. I will not name any others, because I might get them in trouble with their local Conservative associations, but it is clear that the gap between what the Prime Minister’s party is demanding and what he can renegotiate with our European partners is unbridgeable.

The Prime Minister’s announcement of an in/out referendum in four years—on an arbitrary time scale, an unknown set of demands and an unknown outcome—will create economic uncertainty. Many of my hon. Friends have made that point. Many business leaders are concerned about the UK drifting towards an exit. A leading group of business leaders warned that to call for a wholesale renegotiation would

“put our membership of the EU at risk”

and cause

“damaging uncertainty for British business”.

Interestingly, back in November 2011, the Chancellor, when talking about a slightly different referendum, said:

“The instability and the uncertainty that hangs over the Scottish economy”

is the result of the First Minister

“raising the prospects of independence without actually providing any detail of when he wants to have his referendum or what the question will be.”

It seems curious that the Prime Minister and the Chancellor cannot see that there is a direct parallel with their commitment to a referendum on Europe.

Commission Work Programme 2013

Debate between William Cash and Emma Reynolds

Monday 7th January 2013 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

I welcome the opportunity to discuss the European Commission’s work programme for 2013. In opening, I apologise to you, Mr Speaker, and the House for missing the first couple of minutes of the Europe Minister’s speech, but I promise him that I listened attentively to the rest of it.

As set out in the European Scrutiny Committee report, the work programme follows on from the Commission President’s annual speech last September and serves as a blueprint for the Commission’s activities over the next 12 months. I agree with the Committee’s assessment that the work programme is a useful tool for the departmental Select Committees. The Liaison Committee has underlined that examining Commission proposals is one of the core tasks of the departmental Select Committees, and as such the proposals in the work programme will, I hope, be a useful starting point for further scrutiny.

I echo the Europe Minister’s welcome for the 2013 work programme’s improved coherence and greater strategic focus compared with previous years. Last year there were 129 policy initiatives; this year there are 58. It is right that the Commission focuses on the areas in which it can be most effective. The initiatives are largely grouped into seven strategic areas and I will start by considering the first and most important of those areas, namely the establishment of a genuine economic and monetary union.

The eurozone crisis will rightly continue to dominate the EU’s thinking and activities in 2013. Last year ended with some positive steps towards banking union being taken at the December summit, and the measures set out in the work programme will build on those positive steps. Putting the single currency on a stable long-term footing is in the interests not only of eurozone countries, but of non-eurozone countries such as the UK. It is therefore right that that is a priority.

The eurozone crisis was triggered by a crisis in the global financial sector. Concerns remain about the solvency of some of the larger medium-sized European banks, so it is necessary to establish the means to separate the link between weak and undercapitalised banking systems and sovereign debt. Such an agreement will help to build confidence in the eurozone and bring about greater long-term stability. We therefore support the progress towards building a genuine economic and monetary union in the proposals contained in the work programme for 2013. Within that process, it is crucial that the interests and rights of non-eurozone member states such as the UK are respected, and that the integrity of the single market is protected. We welcome the Commission’s commitment in the same section to

“take action to fight tax fraud and evasion, including an initiative on tax havens”.

I turn to the Commission’s proposals on deepening the single market. The European Union’s single market is a great success story. In a world dominated by economic giants such as the US, China and India, countries around the world are co-operating more closely with their neighbours. Increased regionalisation has become a defining force. For example, south America has Mercosur and south-east Asia has the Association of Southeast Asian Nations. The European single market is often a model from which others take inspiration.

The European Commission is right that to remain competitive in the global economy, the single market must continue to adapt and develop. Without reform, the potential of the single market will not be realised. That is why we continue to support the completion of the single market, particularly with regard to the digital economy and the services sector. It is our view that the progress in those areas is often too slow.

[Mr Cash]

I imagine that the hon. Lady does not recall the White Paper published by the European Commission in June 1985—a huge great thing about an inch deep—on completing the internal market by 1992. Here we are in 2012, some 30 years later. Does she believe that there has been progress?

[Emma Reynolds]

I was alive during that year, but I know that the hon. Gentleman was already reading documents and making speeches on these issues then. We must consider the complexities of the markets in question and the number of member states—as a country, we pushed for a European Union of 27 member states. No other regional co-operation in the world has produced a more successful single market. As I have said, many bodies around the world that want to co-operate more closely and to form similar internal markets are looking to the EU as a source of inspiration. I hope we can now get back to 2013.

UK Constituent Parts (EU)

Debate between William Cash and Emma Reynolds

Wednesday 21st November 2012 Westminster Hall

[Emma Reynolds]

I beg to differ with the hon. Gentleman. The four nations of the United Kingdom are a member of the European Union, by virtue of being part of the United Kingdom. I will quote another European Commission President, Romano Prodi, who was a very respected President. He confirmed that

“a newly independent region would, by the fact of its independence, become a third country with respect to the European Union and the treaties would, from the day of its independence, not apply any more in its territory.”

Beyond the pronouncements of European Commission Presidents current and past, there is the brutal truth that the SNP must face up to—that this decision about a separate Scotland’s membership of the European Union would be a political decision and one taken by all of the other 27 member states, who are soon to be 28.

I have to say to the hon. Gentleman—he should listen to this carefully—that, as has already been stressed in this debate, the pronouncements by the Spanish Foreign Minister are not encouraging. That is hardly surprising. My hon. Friend the Member for Glasgow North has already pointed out that the context in which we find ourselves in the European Union is one in which we are going through the most challenging and volatile period in European history. In September, 1.5 million Catalans took to the streets in Barcelona in an independence rally.

[Mr Cash]

Will the hon. Lady give way?

[Emma Reynolds]

I will give way, in a minute.

It is therefore unsurprising that the Spanish Government are concerned about any precedent being set and it is equally unsurprising that the Spanish Foreign Minister recently told the Spanish Senate that an independent Scotland would need to “join the queue” and negotiate its accession as a new member state. In addition, as the hon. Member for Milton Keynes South (Iain Stewart) set out in his very eloquent speech, there are other EU member states that would also have great concerns about any precedent being set by Scotland; Belgium is one of them. Furthermore, the EU member states that do not wish to recognise the independence of Kosovo—namely Cyprus, Greece, Romania, Slovakia and Spain—would be concerned about a precedent being set by Scotland. It is within that context that the framework of any hypothetical case in which an independent Scotland—if there were one—applied to join the European Union must be seen.

Unfortunately—I say this with regret—there is enlargement fatigue in the European Union. For example, France has said that for any future accession beyond that of Croatia there will be a referendum in France. Two weeks ago, we discussed the case of Croatia and we know that for a period of 10 years there has been negotiation about Croatia’s accession, and the last member state to join the EU in less than five years was Finland, which joined in 1995.

Consequently, it is absolutely clear that the SNP and the Scottish Government have no basis on which to make the claim that Scotland’s membership of the European Union would be automatic. They also have no basis on which to make the claim—made by the First Minister in the interview with Andrew Neil earlier this year—that a separate Scotland would also inherit the United Kingdom’s opt-out from the single currency and Schengen. The facts fly in the face of that assertion. There has been no member state since 1973 that has negotiated an opt-out, since the agreement in Maastricht, from the single currency. With regard to Schengen, an opt-out from that agreement would have to be negotiated.

It is also clear that Scotland would have to negotiate its own contribution to the European Union budget, and according to the House of Commons Library—[Interruption.] Maybe the SNP Members want to listen to the objective facts, as set out by the Library. According to the House of Commons Library, without a rebate Scotland’s contribution to the European Union is likely to rise from £16 a head to £92 a head.

Leaving the United Kingdom would leave a separate Scotland in limbo in Europe. There would be no automatic accession and no automatic opt-outs. Instead, there would be a sensitive and difficult negotiation with the 27—soon to be 28—other member states of the European Union.

EU-UK Relationship (Reform)

Debate between William Cash and Emma Reynolds

Tuesday 18th September 2012 Westminster Hall

[Emma Reynolds]

The hon. Gentleman seems to understand me better than the hon. Member for Wellingborough (Mr. Bone). Our position is that a referendum at this time would be a distraction from the Government’s priority of getting the economy back on track. The question about what our relationship with the EU will become is open now, given the nature of Mr Barroso’s speech last week, mentioned by the hon. Member for Stone (Mr Cash). We will see how that relationship develops in terms of what kind of political and fiscal union the eurozone states want to form.

[Mr Cash]

Does the hon. Lady recognise that the timetable has been accelerated by that speech and those who thought that it might be better to keep the matter open, including the Prime Minister, are now effectively finding that time has overtaken them—or soon will.

[Emma Reynolds]

The hon. Gentleman makes an interesting point. It is not yet clear at what point the European Commission, the German Government or other Governments will want to put treaty change on the table.

[Mr Cash]

It is. He said so.

[Emma Reynolds]

In his speech, Mr Barroso mentions putting that treaty change on the table before the 2014 European parliamentary elections—I have read his speech closely—but it is still unclear whether that will happen in time for those elections. There will be a report by Herman Van Rompuy to the Council in December, which will be an important time for our Government to start to have a policy on the European Union. I shall come on to that.

Many of the hon. Members present who argue for withdrawal offer a false choice between trade with emerging markets and EU membership. They say, “Remain in the EU, or trade with the likes of China, India, Brazil and Russia.” We must of course improve our export performance to the rest of the world, but we will not build real export success if we start by cutting ourselves off from our largest existing market and our largest collective negotiating tool. The EU provides the collective political weight that we need to maximise our influence in negotiations. Hon. Members need not take that from me, they can take it from the Europe Minister, as set out in written evidence to the Foreign Affairs Committee as recently as May of this year, when he said:

“On trade, one voice representing half a billion consumers is heard more loudly in Beijing, Delhi and Moscow, than 27 separate ones.”

British businesses, workers and consumers will see the benefit of EU free trade agreements, such as the recent FTA with South Korea, which is worth £500 million to UK exporters, or the potential future agreements with the US, Canada, Singapore and India.

EU Charter of Fundamental Human Rights

Debate between William Cash and Emma Reynolds

Thursday 12th July 2012 Commons Chamber

[Emma Reynolds]

I agree with my hon. Friend that the protection of the human rights of the Roma community is incredibly important and that those rights are at risk in Hungary. Their human rights have been threatened in other member states, too—I will not mention a former President of the French Republic and some of the things he said about that community.

The fundamental law extends the Hungarian Government’s control over various bodies that should be independent, such as the central bank and the courts. In particular, there are concerns about the independence of the judiciary. We believe that an independent judiciary is a vital safeguard of human rights. The European Parliament and the Commission have raised concerns about democracy and the accountability of the Hungarian Government, and it is clear that human rights must be protected within the EU and its member states, if the EU is to have an authoritative voice on human rights in external countries. I would appreciate it, therefore, if the Minister could shed some light on these matters by answering the following questions: does he think that the situation in Hungary weakens the EU’s voice on democracy and human rights in third countries; and will he update the House on what discussions he and his colleagues, including the Foreign Secretary and the Prime Minister, have had with the Hungarian and other EU Governments about the new Hungarian fundamental law and its the implications for the human rights of the Hungarian people?

[Mr Cash]

Is the hon. Lady aware of the enormous majority that the President, Prime Minister and Government of Hungary have as a result of free and proper elections? Does she think it the right and duty of the EU or the Venice Commission to tell a member state how it should behave, when it has such a massive democratic mandate? This is a very serious question.

[Emma Reynolds]

I agree only that it is a very serious question. The EU must promote and protect human rights within its member states, regardless of the majority that a President or Government have received from the electorate. We should not tolerate the judiciary, the media or other such institutions being under the control of whatever Government in whatever member state. Labour Members are proud of our record on human rights while in government. We passed the Human Rights Act and prioritised the promotion of human rights in our external policies, particularly our development policy. Further back in history, the UK was one of the leading architects of the European convention on human rights. We remain proud that the UK is a signatory to that convention, and we are a full and active member of the Council of Europe.

Although we welcome the Government’s position on the documents before the House, it seems that the Government are not always entirely consistent in their commitment to human rights. The Minister has said positive things today, but his Conservative MEPs in Brussels say and vote entirely differently. Regrettably, they sit with a rag-bag of anti-Semites, holocaust deniers and homophobes.

European Council

Debate between William Cash and Emma Reynolds

Thursday 26th January 2012 Commons Chamber

[Emma Reynolds]

As the right hon. Gentleman knows, the Opposition voted against the IMF contribution last time. I think that he might have been in the Lobby with us. We think that the European central bank should be the lender of last resort and that IMF money should concentrate on countries with severe economic problems outside the eurozone.

The Prime Minister’s walk-out also resulted in risks to foreign direct investment. Businesses investing from the US and Asia have chosen the UK for their operations because it gives them access to European markets. But if the UK’s position in the single market were in doubt, foreign direct investment would also be under threat. Moreover, as the Deputy Prime Minister rightly said on the Sunday after the December Council, if the UK stands tall in Brussels, we stand tall in Washington. It is also true that if we stand tall in Brussels, we also stand tall in Beijing and the other major emerging economies. With economic power moving south and east, to countries the size of continents, it is nostalgic longing for the empire to think that the UK can go it alone. It was the Minister for Europe, in a recent Opposition day debate, who said that

“without the size of the EU behind us, the United Kingdom on its own is unlikely to be able to secure the same deep and ambitious free trade deals with other regions or trading countries around the world.”—[Official Report, 13 December 2011; Vol. 537, c. 724.]

[Mr Cash]

Will the hon. Lady give way?

[Emma Reynolds]

I will in a minute.

The task of Monday’s European Council is both urgent and long term—urgent in that it must address the lack of confidence in European markets, but alongside that the EU must enhance the resilience and capacity of the single market to get back to a sustainable footing in the long term.

We welcome the intention to focus on jobs and growth on Monday, as well as agreeing a fiscal compact. We would prefer the Government, rather than merely commentating on the outcome of the European Council, to be setting the agenda. We hope that their failure in diplomacy will not involve a failure of policy and economics. After all, in the coalition agreement, the Tories and the Liberal Democrats stated that Britain should play a leading role in the EU. The Prime Minister clearly did not have that in mind in December.

[Mr Cash]

Will the hon. Lady give way?

[Emma Reynolds]

When the Minister replies, will he clarify one issue? The Deputy Prime Minister has been organising his own meetings, and in some cases he seems to be running his own parallel foreign policy. While it is right for the Government to be building bridges, it is disappointing that the Deputy Prime Minister has thus far chosen not to report the outcome of the meetings to Parliament. Would the Minister therefore confirm whether the Deputy Prime Minister was speaking for the Government when, at the recent European Liberal forum, he said that:

“We believe—

the treaty—

“should, over time, be folded into the existing EU treaties so you don’t get a permanent two parallel treaties working separately from each other”?

At next Monday’s European Council, the British Government at least have observer status, but that is thanks to Chancellor Merkel and Prime Minister Monti, who want the UK back in the room. They see the UK as a leading member state, advocating an extension of the internal market. It is testament to past British diplomacy and previous Governments that many other member states share the view that, with Britain isolated and excluded from these talks, the push for further liberalisation and reform becomes harder.

[Mr Cash]

Will the hon. Lady give way?

[Emma Reynolds]

The hon. Gentleman is frustrated, but he will understand that because interventions eat into my time I will continue.

Britain’s standing in the world—economically and politically—must be reinforced and strengthened, not weakened. The resolution of the eurozone crisis is manifestly in our national interest. It is also in the national interest for the UK to be at the heart of the EU, a large member state with an open economy, arguing for and securing an extension of the single market, arguing for and securing reform of the EU. The UK now needs to regain that position and start rebuilding bridges.

On Monday the Prime Minister should seek to undo the damage caused by what he did in December, diminishing our standing in Europe and the world. It might not please his Back Benchers, but it would be of benefit to businesses, jobs and employees throughout the country. The Prime Minister must start to put the national interest before his party’s interest.

European Council

Debate between William Cash and Emma Reynolds

Thursday 8th December 2011 Westminster Hall

[Mr Cash]

I agree. People were not listening back in the days of Maastricht and they are not listening now. That is the problem. I give special thanks to my hon. Friend the Member for Harwich and North Essex not only for this debate but for the consistency that he has shown since the days of the Maastricht rebellion, which I had the honour to lead all those years ago and of which he was a very important member. He was a new Member of the House and he understood the position immediately, as did my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) and a number of others who have remained in the House.

This is not only an historic question but a national question. The now absent hon. Member for Luton North (Kelvin Hopkins) mentioned Peter Shore and Bryan Gould. When I set up the Maastricht referendum campaign, it was hon. Members on the other side of the House, such as Peter Shore and Bryan Gould, who joined me in that campaign. We presented a petition, which many people may recall, of well over 500,000 signatures; in fact, we reckon that we got 700,000 signatures all told. The petition was deposited, calling for a referendum on the Maastricht treaty. I was delighted that my right hon. Friend the Prime Minister said only a couple of weeks ago that there should have been a referendum on that treaty. As one who was very deeply engaged in the whole of that process, from beginning to end—much to the dismay of those who have now, in my opinion, lost the argument—I believe that the necessity of knowing the views of the British people remains implicitly entrenched in the arrangements that are now coming forward and that therefore a referendum is essential.

I should now like to move on to the present time. I want to address the question facing us today in terms of the broad landscape. I wrote a pamphlet that was published in effect in this very room when we had a conference between the leading Eurosceptics and the leading Europhiles. It involved Charles Grant of the Centre for European Reform, Roland Rudd of Business for New Europe and a galaxy of others. Both sides regarded it as essential that we should get together and properly debate the questions on both sides of the argument with many of the best people from the two sides of the debate. In that pamphlet, I set out details that I will not go into today, but I say to those who are interested and who read the transcript of these proceedings that it is available. Indeed, the Prime Minister has written to me, saying that it is a substantial document and effectively, therefore, it has to be answered. He has said as much to me, and it does have to be answered. I assume that my right hon. Friend the Minister for Europe will do so in due course.

This is an historic turning point for both the country and the Conservative party. The dream of ever-closer union and, indeed, political and economic union has failed, and the root of that trouble is the fantasy world, which has persisted for so many decades, of trying to create economic and political union among so many diverse countries with diverse cultures, diverse economies and diverse democratic traditions.

Only today I witnessed Mr Barroso on the television screens berating everyone in the most dictatorial language. He was saying that everyone had to come together for the sake of saving this project. They themselves are responsible for having created it and they are now attempting to save it, despite the fact that the causes of the present discontent come from the creation of this project in the first place by the very people who are now berating everyone else.

I will go further and refer to two documents that I have just obtained. One is dated 6 December. It is Mr Van Rompuy’s document, entitled “Towards a stronger economic Union”. There is not one word about democracy anywhere in that document—the word “democracy” does not appear. Similarly, in the letter written to the President of the European Council—Mr Van Rompuy, no less—by Mr Sarkozy and Angela Merkel, there is not a single reference to the democratic question. There is not one iota, not one jot of a reference to democracy in either of those documents, yet they are demanding that this failed project be continued with greater—deeper—integration. All the mistakes that have been made in the past are being reinforced in the new arrangement, which clearly will not work. It did not work before and it will not work now. It is a tragedy— I say that—that we are in the current position. I trust that the Prime Minister will address that during the next 48 hours.

This is not some theoretical experiment. It is about the daily lives of the British people and about our democratic traditions and economic performance. The idea that a fiscal union of 17 would be stable is simply and emphatically wrong. It will concentrate and increase the dangers of centralisation and will be fundamentally unstable. Germany will not be able to bail out the other countries, and it is a complete strategic failure for people, including the coalition Government, to think that it can.

Germany of course wants to preserve the euro, because it is doing so well out of it. One has only to consider the foreign direct investment by the Germans in other countries, the extent to which those countries are in effect economic satellites of Germany and the fact that the structural funds—I have the figures from the Library—are so incredibly important in generating investment backed by German contracts in those other countries, from which they then repatriate the profits. This is actually a German economic hegemony. Equally, I do not think that the Germans are inherently hostile about this. I say what I say without any hostile spirit, but I do say that we have to be realistic. We are desperately at risk. The British nation is in peril under these arrangements.

Furthermore, the impact of this economic conglomeration in the hands of one country in particular has led not only, in effect, to the dismissal of two Prime Ministers, whatever their merits or demerits, but to the voting arrangements, which follow from the qualified majority voting system. I am talking about the number of votes that are available to Germany when it wants to pursue a policy, because of its influence and, in effect, its control over the countries in question, which are dependent on it. That is the case not only in the eurozone of 17, but in so many of the other countries, including— I say this without any disrespect for them, because I love these countries—Poland and Denmark. Then of course there are Bulgaria, Romania, the Baltic states, Hungary and so on. The truth is that that is inherently in German national interests. Indeed, we have to look only at what Chancellor Kohl had to say in the 1990s, which I have included in a pamphlet that I wrote, called “It’s the EU, stupid”, to see the political determination behind Germany’s desire to ensure that the euro survives. Angela Merkel is now using that very language in the same context.

I do not blame the Germans. I have said in this Chamber that I recognise the fact that to a great extent they have shown their commercial nous—they have taken advantage of the system to ensure that they get the best out of it. The organisation is not a European union, but effectively a greater Germany.

We, above all other countries in Europe, ought to recognise that we should defend our own interests—not, as I said, in a hostile manner, but in a realistic and down-to-earth manner. We ought to get across the message that there should be, inherent in the proposed arrangements, a fundamental change in our relationship with the European Union. We and, if I may say so, the Prime Minister, have an absolute duty to protect the national interest that he says he wants to protect; to ensure that there is fundamental reform in the European Union, which he called for at the Mansion house the other day, to generate the growth that we need, with our 40% of trade with the Union and to guarantee that we are not drawn into an arrangement by which, through a majority block vote, we are consistently outvoted and become completely and utterly controlled by the system. It just does not make sense, and I believe that the system will not work.

It needs to be pointed out that not only is voting power naturally going to Germany, with its economic investments—it is doing extremely well out of the system—but Germany believes that it can require countries to obey rules. That is a much deeper question, a matter of attitude. We cannot require countries to obey rules just because we prescribe them. That is where I think the whole philosophy and the attitudes in the Eurocracy and in Germany go wrong. As we have heard, the Germans themselves have not obeyed the rules on the stability and growth pact when it suited them not to. An inherent dishonesty lies at the heart of the arrangements: someone disobeys the rules when it suits them, but insists that the rules be obeyed when they can benefit out of those rules. That cannot be right.

Countries are made up of individuals and individual companies, which have their own ideas as to how they should be democratically governed. Those ideas do not by any means fit within the rules prescribed from above or the conditions that are imposed. The Eurocrats, Germany and those who go with it on the matter simply do not understand that the lack of democracy is a fundamental flaw in the entire European project.

[Emma Reynolds]

Is the hon. Gentleman not a little unfair in singling out Germany? Germany is obviously the largest country to have done quite well out of the euro, but other eurozone countries in the group of healthy economies are doing pretty well economically. It is slightly unfair of him to single out Germany.

[Mr Cash]

I do not think it is. If the hon. Lady investigates, as I have, German FDI into the other countries, and then looks at the countries that are growing, she will see that there is a correlation with the amount of money that the Germans have provided. I give them credit for doing so on good investment projects, but some of them have been bad, as in Greece. The growth in some of the countries is buttressed and underpinned by German investment. That is the problem.

European Union Bill

Debate between William Cash and Emma Reynolds

Tuesday 25th January 2011 Commons Chamber

[Emma Reynolds]

That is certainly true, but I remind the hon. Gentleman that both the Single European Act and the Maastricht treaty involved a much greater transfer of powers than anything we have seen since and the Foreign Secretary voted against a referendum on such matters. Let us talk not only about consistency on this side, but about consistency by those on the Treasury Bench, too.

The Government have decided to opt in to eight pieces of justice and home affairs legislation since the general election. The hon. Member for Daventry has mentioned one of them—the European investigation order. The Opposition would have liked to have had a say on the Government’s decision not to opt in to the EU directive to combat human trafficking. Indeed, we judge the Government’s decision not to opt in to be a dereliction of duty as regards combating this modern form of slavery. I imagine that some Back Benchers sitting behind the Minister—as I have said, the hon. Member for Daventry has mentioned this—would have liked more time on the Floor of the House to discuss not only the European investigation order but the other seven measures that the Government opted into.

Another area that the Government have totally neglected to mention in the Bill is the wholesale transfer of the body of justice and home affairs legislation to the jurisdiction of the European Court of Justice. The decision that the Government have to take in 2014 either to opt in to the body of legislation in its entirety or not to do so was also referred to in the Minister’s written ministerial statement last week, but it is not mentioned in the Bill and is surely of equivalent significance to many of the changes in clause 6. In fact, the Conservative party manifesto stated that the Conservatives wanted to repatriate powers in employment and social affairs and criminal justice.

In his ministerial written statement, the Minister said there would be a vote in the House on the decision in 2014—we welcome that. However, I am sure that some of his Back Benchers will tell him that it is his best chance to repatriate powers in the field of criminal justice. Such a move would be unilateral and could be carried out with relative ease. The Government will not be able to do the same in the field of employment and social affairs without the unanimous agreement of all the other 26 member states. Given that this is the Government’s only chance to fulfil that manifesto commitment, are they minded to take up this opportunity? Are not these changes more important than those in clause 6?

[Mr Cash]

Perhaps the hon. Lady is getting to this point, but I should like to know whether the Opposition are going to push this issue to a vote, or at least encourage one.

[Emma Reynolds]

We are not in favour of repatriating power; I am simply pointing out that according to their manifesto, the Conservatives committed to doing so. Far be it from me to intrude on private grievances, but I am simply trying to point out that there may be disagreement on these issues between those on the Government Front and Back Benches.

[Mr Cash]

The hon. Lady has been talking with great eloquence about opt-ins and the number of opt-ins that have taken place and she has referred to the excellent amendments of my hon. Friend the Member for Daventry (Chris Heaton-Harris), which reflect the views of the European Scrutiny Committee. In the light of her eloquence and determination, and the expressions of support she has given to my hon. Friend and therefore to the Committee, I should like to know whether the Opposition would be interested in voting on these matters.

[Emma Reynolds]

I was simply pointing out inconsistencies and contradictions in the Bill.

--- Later in debate ---

[Emma Reynolds]

I have read it, and it is unforgettable, but perhaps that is not for this debate. We have become more sensible since then.

[Mr Cash]

The hon. Lady may not remember the precise terms of the 1983 Labour manifesto, but it was described as

“the longest suicide note in history”.

On the treaties, the Maastricht treaty indeed represented a massive transfer of powers. As Professor Simon Hix confirmed, in his view it should have been subject to a referendum. There are very few on the Conservative Benches now who do not agree that we were right when we pressed for one at the time. However, the Lisbon treaty contains the ingredients of the Maastricht treaty. That is where the problem lies. A referendum was required on that because of the things that are now entrenched in the Lisbon treaty which come out of Maastricht, Amsterdam and Nice, plus all the add-ons that the Front-Bench team of the Labour party in government put through.

[Emma Reynolds]

I know that the hon. Gentleman is disappointed that back in 1993 he did not manage to win the vote on securing a referendum on the Maastricht treaty. I would like to look forward, rather than look back. I shall continue and conclude my remarks.

The changes outlined in clause 6 and other parts of the Bill pale into insignificance compared with the wholesale transfers of power in the Maastricht treaty and the Single European Act, as I outlined. In the House, on the Second Reading, both the Foreign Secretary and Minister for Europe reiterated the Government’s commitment, as set out in the coalition agreement, not to agree to any transfer of power from Westminster to Brussels for the duration of this Parliament. If the Government are so committed not to transfer power, why do we need the Bill? Is it that their own Back- Benchers do not trust them to keep to the text of the coalition document?

The Bill is unnecessary. It is a dog’s breakfast. It is a political gesture to calm the fears of the Eurosceptics on the Conservative Benches. The Government have failed to achieve their objective.