---

European Affairs

I want to make some progress, but I will see whether I can squeeze the hon. Gentleman in a bit later. I want to cover the important issue of the banking levy, which the Foreign Secretary did not mention. The last European Council's conclusions noted""possible innovative sources of financing such as a global levy on financial transactions"." We have consistently been in favour of such a banking levy. The UK was the first major country to push for such a levy, at the G20 Finance Ministers' meeting in St Andrew's last November. We have also been clear about the need for such a levy to be agreed internationally. The former shadow Chief Secretary to the Treasury—now the Secretary of State for Transport, the right hon. Member for Runnymede and Weybridge (Mr Hammond)—agreed with that, saying:""We're very interested in the levy idea and we said so. We like what President Obama has announced but it's got to be done on an international basis."" Now is the time for the Prime Minister to follow through on that commitment. We urge the Government to concentrate of finding consensus for a global levy. The G20 summit will provide another opportunity to build such agreement. I hope that the Minister for Europe will address that issue when he replies to the debate, as it was not addressed by the Foreign Secretary. He might also like to confirm that there is cross-party agreement on the suggestion that a banking levy should operate as some form of insurance fund. We have some concerns about that. We believe that the way in which any proceeds from a levy are spent should be a matter for individual countries to decide. The European Council also has on its agenda the important preparations for the United Nations high-level plenary meeting on the millennium development goals. The Government have our full support in this area, and we are proud of our record on international development, to which the Foreign Secretary referred. The outlook for the goals is mixed. The right hon. Gentleman was poetic about his Government's commitments, but he also pointed out that some other European countries were falling back in their commitments. For example, the proportion of children under five who are undernourished has declined from 33 % in 1990, but it remained at 26 % when the last figures were taken. According to the UN's figures, the number of children in developing countries who were underweight still exceeded 140 million. There has been success in tackling hunger in parts of east Asia, but in sub-Saharan Africa, the poverty rate has remained constant at approximately 50 %. These are issues on which Europe's development budget, and its development work, have an important role to play, and I hope that we shall get a report back from the right hon. Gentleman, or from the Prime Minister when he returns from the European Council. On climate change, which the Foreign Secretary mentioned in passing, the Commission report presented by new Commissioner, Mrs Hedegaard, was important. We on this side of the House are committed to increasing the EU's target on emissions cuts as we move forward to a more comprehensive global agreement for the period beyond 2012. Figures released yesterday show that EU member states are halfway to cutting their emissions by 20 % by 2020, which shows good progress, but that represents progress over a 20-year period, and we have only 10 years to go. We also need to ensure that the targets are not shirked, and that loopholes are closed. In the light of the discussion yesterday, and of the terrible events that took place on Monday, it is right that I should dwell for a moment on the situation in the middle east. The European Heads of Government decided last year to devote one meeting a year to foreign policy, but that cannot lead to the exclusion of foreign policy from every other meeting. The Foreign Secretary spoke, quite legitimately, about the next meeting of the Foreign Affairs Council, but the European Council has especial weight when it comes to choosing some foreign policy issues and dedicating time to them. I would not support the development of a Christmas tree approach, whereby every foreign policy issue was discussed at every European Council, but I do believe that the crisis in the middle east that was catalysed by the events on Monday deserves the attention of the Heads of Government. We know that the EU is a big funder of humanitarian work on the west bank and in Gaza. We also know that it funds work for the Palestinian security forces on the west bank. Those are two ways in which the European Union makes like better for people in the occupied Palestinian territories. In political terms, however, Europe has not been a player of equivalent strength. The tragic events of this week bring into stark relief the consequences of stasis on the political track. These include limited progress on the implementation of resolution 1860, stalled proximity talks, and EU relations with Syria that are going backwards after the outreach early last year. Discussion has also been diverted from the important Iranian nuclear issue. International engagement in this arena is not blocked by a lack of consensus; in fact, there has rarely been consensus on the long-term solution to the Israel-Palestine issue. However, the engagement has not been turned into action on the ground. This is a massive test for the foreign policy of all four members of the Quartet, but we on this side support a stronger role for the Quartet as a representative of the international community, and more structured links with the Arab Quartet, which needs to be part of any drive to reverse the slide in confidence and commitment that has been evident for some time, and which will be accelerated by this week's events. The Foreign Secretary talked yesterday about making his and Britain's voice heard. The European Council offers a chance for Europe's voice to be heard, and I hope that the Prime Minister will take it. Europe needs a strong Britain, and we need a strong and successful Europe.