---

European Affairs

I do not have proposals at this moment to address that, but the hon. Gentleman raises a legitimate point, so I will note it as something that the new Government will look at. From what I remember, it is not an easy problem to solve, but the point is legitimate and we can have further discussions about it. The hon. Member for Glasgow South West has gone—I was about to address his point. So much for his enthusiasm for an answer! As I was explaining, the major issue is the difficulties facing the eurozone. Given the extent of our exports to the eurozone, of course we will support our partners in their efforts to deal with the current difficulties, but without being drawn further into the eurozone. For example, while we recognise the importance of maintaining a dialogue on deficit reduction across the eurozone and the wider EU, we are firm in our view that our national budget must always be presented first to our national Parliament. We are listening to member states that are discussing institutional reforms to the eurozone—that is an ongoing debate—but I assure the House that the Government will maintain our position that there should be no further transfer of sovereignty or powers from Britain to the EU over the course of the Parliament. Sanctions for breaches of the stability and growth pact may be the right way forward for our partners in the euro area, but they should never apply to countries that retain their own currencies, and this country will retain its currency. The next question for all members of the European Union is, "From where will the growth that we need come?" The Government, working with our European partners, mean to address that question with vigour. We know that spending our way further into dangerous levels of debt is not the answer. We need to get Europe back to work, create jobs, attract investment and deal with the erosion of our long-term competitiveness. Those issues concern every member of the European Union, not just the eurozone. We will urgently make the case for the extension of the single market, better regulation that can lighten the burdens on businesses, and seizing opportunities to create freer and fairer trade between the European Union and third countries. In that context, we will particularly encourage greater economic engagement between the European Union and new, rising economic powers.