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European Council

My Lords, my noble friend is quite right to say with regard to the proposed new bailout proposals that they affect only the eurozone and do not affect us, so there is no change in our position and no need to consider a referendum on the issue. However, it is probably worth pointing out that, with regard to the eurozone, the proposed changes would be very substantial indeed. The new proposals empower the EU to enforce strict conditionality, which the Wall Street Journal says today is bureaucrat-speak for telling a country what it must do on taxes, spending and economic policy as a price for being rescued. Those are very substantial changes.