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European Council, 16–17 June

My Lords, perhaps I can begin, as did the noble Lord, Lord Strathclyde, who said that he was not going to talk about Zimbabwe and then proceeded to do so, to remind the noble Lord that at the last General Affairs Council it was agreed to increase the numbers of those from Zimbabwe on the travel ban list. In relation to the specific two issues that were covered by the Statement, the noble Lord, Lord Strathclyde, in   talking about those Council discussions as being irrelevant to the future of Europe, got it completely wrong. There is nothing more important than having a Europe which is fit for purpose. In looking at those budget discussions, and in particular at the UK position in relation to those future financing discussions, we are looking ahead to the nature of the kind of world that we—as a European Union—will need to intercede in and have influence in. The discussions that were held last weekend, and the continuing discussions on those issues, will be very important for the future of Europe. The noble Lord, Lord Strathclyde, asked me whether it was our view that the EU constitution was dead. The treaty was agreed by 25 nations states; it is not for any one nation to declare it dead. Yes, it is in serious difficulties—there is absolutely no doubt about that. I believe that we would all agree that the people of Holland and France voted ““No”” for a range of reasons. I watched with great interest the interviews with individuals after those ““No”” votes, and the issues that they talked about ranged from concerns about the domestic economy, immigration, asylum, and the possibility of EU enlargement. Few people actually mentioned the treaty itself. With respect to a referendum here in the United Kingdom, the ratification process is not abandoned, but we see no point in proceeding with an EU Bill at present. That was made absolutely clear in the Statement made by my right honourable friend the Foreign Secretary. We need a period of time to reflect—and that was made clear in the Statement that I have just repeated. But I can confirm that the constitutional treaty will be ratified in the United Kingdom only after a referendum—but we do of course need a constitution on which to vote. I must say that I was not surprised at the comments made by the noble Lord, Lord Strathclyde, on the social chapter. However, they are not comments that I would make to the millions of workers who have benefited from the signing of the social chapter. As a Government, we believe in the opening up of markets and in greater flexibility, but we also believe in a degree of social protection. That is our position, and will remain our position. We have begun the process of addressing the distortions in the common agricultural policy. The noble Lord may remember that my right honourable friend Margaret Beckett was involved most recently, in 2003, in the reform of the common agricultural policy. The biggest part of that reform was to break the link between subsidies and protection. We are well aware of the need for further reform, because we want to see a European Union budget that helps those in the poorest countries and also better reflects the different ways in which individuals contribute to the European Union economy. Our approach is to push for a reform agenda from a pro-European standpoint, which we think will have much greater influence with our European Union partners. I agree with the noble Lord, Lord McNally, that this is an opportunity; and that is precisely the view being expressed by my right honourable friends the Prime Minister and the Foreign Secretary. We want to see an opening-up of markets, but we also want to see transitional mechanisms that will help the poorest countries. That is part of our wider G8 agenda. It is thought that opening up those markets, giving greater access and reducing subsidies would lift some 300 million people out of poverty. I am also delighted that the noble Lord, Lord   McNally, has found common cause on Europe for the first time with my right honourable friend the Foreign Secretary. However, I hope that the noble Lord will not mind if I do not draw that to the attention of the Foreign Secretary, just in case he does not see it as a career-enhancing move. I have addressed all the questions that have been raised.