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European Affairs

There are several parts to my hon. Friend's question about the reasons for low economic growth in the European Union. One of those reasons is the extent of regulation, inflexibility and bureaucratic burdens. I think that is true in most, if not all, the countries of the EU, for a mixture of reasons. Some of that regulation is at EU level and some is at national level. I was going to deal with that issue. Winning the argument for appropriate regulation is a very important part of the plans that we have put forward to revive economic growth in the EU, and sometimes that will mean having lighter regulation. That can be addressed partly through the European Union regulating more effectively and in a less burdensome way, and partly by nations doing so individually. The extent to which we can deal with the issue by changing the balance of competencies between the EU and member states is something that we now have to examine as a coalition. My hon. Friend has a long-held view on the subject, and I have expressed views about it. We are a coalition Government, and he and I must accept that there is not necessarily a majority in the House of Commons for every single thing that we would have wanted to do. We must examine the issue as a coalition, and we are now doing so.