---

European Affairs

I am grateful to the right hon. Gentleman for his intervention. The role that we played together on the leather and footwear industries all-party group 20 years ago will for ever be somewhere in the recesses of my mind. I am very grateful for that reminder; the memory has just been retrieved from somewhere. He is absolutely right: there is a strong cross-party commitment on EU enlargement, to which I want to turn later in my speech. I want to talk specifically about Croatia later. He used an important phrase about countries joining when they have met the conditions. It is important that they meet the conditions for membership, rather than the conditions being changed to suit a particular country. I very much agree with what he said. It is also our intention to approach European issues in a more coherent way across Whitehall than has sometimes been the case. In the three weeks for which I have held the office of Foreign Secretary, it has been apparent to my colleagues and me that under the previous Government, Departments could have worked together better, particularly more strategically. That point might also be relevant to previous Governments, and we intend to put it right. We are establishing a new Cabinet Committee on European affairs that I will chair, with the Secretary of State for Energy and Climate Change as the deputy chair. [Interruption.] It is another example of a good coalition in practice. That Committee will allow the new Government to take a more holistic approach to EU issues than was sometimes the case in the past, and I hope it will achieve better results for Britain. We must ensure that we are always ahead of the game in Brussels, unlike the previous Government, of whom that could not always be said; the position in which they left us in relation to the hedge funds directive is a particular example. In doing so, we will be aided by achieving a more collegiate feeling in a two-party Cabinet than in the previous Cabinet of one party.