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European Council: 15–16 December 2005

My Lords, I join in thanking the Minister for repeating the Prime Minister’s Statement here. I ask her to agree that while the new budgetary framework will not help to reform the direction of EU expenditure, as the Prime Minister declared he wanted, on the promotion of growth through expenditure on research and development, education and innovation, the final agreement has averted a crisis over the budget which would have damaged particularly the new member countries of the European Union. Although it has to be said that the Official Opposition have not shown willing to support us in this, we attached high importance to those countries being full members of the Union with the consequential underpinning of democracy, the increase of their prosperity and the preservation of peace across the whole continent of Europe. Is it not clear that if, as the Conservative Opposition implied we should have done, we had walked away from the deal, which it was always clear the French would be in a position to obstruct, we would simply have accentuated the difficulties not just for the new countries but for the whole European Union? Is it not clear—perhaps the noble Baroness will repeat this; I think she stated it—that the agreed framework budget will result in the net contributions of France, Italy and this country being broadly equivalent from 2007? Is that redistribution not entirely welcome? Is it not also the case that, as a result of this budget, the richer countries will redistribute wealth from 2007 to the countries in need? The position of this country today is very different from what it was in 1984, when the budget rebate was first agreed and we were one of the poorer European countries. Today we are one of the richer countries. Has the Minister given any consideration to the impact on the further discussions about the restructuring of the budget in the European Parliament when Conservative Members accept the lead and suggestion of their new leader in another place that they should withdraw from membership of the European People’s Party and join the fringe elements of that Parliament? Do the Government think that Britain’s interests will be helped by the marginalisation of the Conservative Party in the European Parliament?