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European Council

The right hon. Gentleman talks about grandstanding, but for the past couple of years we were told endlessly that we were going to be isolated in Europe, that we would have no allies in Europe and no friends in Europe, but when we put together an alliance of the three biggest countries in Europe for budget restraint, the first thing he ought to do is stand up and congratulate us. Let me take the right hon. Gentleman's three questions in turn. First, on the budget, he talked about some inconvenient facts. Let me give him some inconvenient facts from last year. Last year, when we had a Labour Government, a 3.8% increase was proposed by the European Council and supported by that Government. The European Parliament then came forward with a 9.8% proposed increase, and they split the difference so the budget went up by 6%. That is what happened last year, supported by Labour. The difference between that and what we achieved is hundreds of millions of pounds. That is what this Government's actions have saved. When it comes to changing positions, I note that in her statement after the European Council the shadow Foreign Secretary said that ““Labour voted against”” this budget rise ““from the beginning””. That is simply not true—Labour MEPs opposed our call for a freeze in the European Parliament. Secondly, on treaty change, the right hon. Gentleman does not seem to understand that this very limited treaty change is in our interests so we should support it. We should use this opportunity to get rid of the risks of Britain being drawn further into eurozone support in the future. We are liable to that because of the weak actions of his Government before the last election. It is absolutely right that we use our negotiating capital to make sure that Britain is not liable when the new mechanism comes in. What we are doing, once again, is clearing up the mess left by Labour. The third issue that the right hon. Gentleman raised was the economy. He says that we should call for measures that will achieve greater stability in Europe, but that is exactly what we are doing. Just imagine what stability we would get in Europe if he were sitting at the Council table saying that we should not be bothering with deficit reduction. We would be putting ourselves in the same camp as Ireland, Portugal and other countries. Finally, the right hon. Gentleman tells me how unhappy my Back Benchers are, but I would swap their unhappiness for that of his Back Benchers any day of the week. I am sure that they will want to remember that important thing at Christmas time—always keep your receipts in case you want to exchange for something bigger.