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European Council

My Lords, I know that the noble Lord, Lord Kerr of Kinlochard, is trying to be constructive and helpful in guiding the Government through all this. He asked a number of questions, but I will not be able to answer them all in the time allowed. However, he is right on the financial transaction tax, and I am sure that he is right about us never being outvoted under QMV over the past 20 years. As for the question that he posed at the end about John Major and the opt-outs, I supported the opt-outs. The opt-outs were an excellent thing. However, as soon as the Labour Party got into office they got rid of the opt-outs, and they got absolutely nothing in return. We want something far firmer and longer-term than that. There are two key questions. First, on the EU institutional proposals and whether we should consider using Article 136, it is, of course, still the earliest possible days in how all this plays out. Even the French President and others have agreed that this process will last until March. There are at least three countries that need parliamentary approval before they can sign up to these treaties, so there is plenty of time to look at these things. As I said earlier, the exact role being proposed for the institutions is not yet clear to anyone. We will need to look carefully at the detailed proposals as they emerge to ensure that Britain’s interests are safeguarded. The noble Lord also asked about our view overall of the eurozone. Let me say most emphatically that we hope that the new treaty can play a significant role in stabilising the euro and putting it on a strong, sustainable path. That is in the interests of Europe, and it is in British interests as well.