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EU: Recent Developments

I am very grateful to the noble Lord for having, after two and a half months, actually managed to extract an answer to some questions that I have been asking. The answer is, alas, unconvincing, because it does not relate to the text of the treaty that is going to be signed in March; it relates to the wonderful Cheshire cat smile protocol which we are not allowed to see, which the Prime Minister put forward on 9 December, and which there seems to be a singular lack of enthusiasm for communicating to Parliament, despite Parliament’s role in scrutinising matters which are liable to become EU law, which was obviously the intention of the Government. Naturally I respect what the noble Lord said about the reasons relating to the protocol, but they do not relate to the treaty. However, I move away from that. Myth No. 4 is that, in some mysterious way, the events of 9 December have strengthened the British Government’s hand in negotiating single market legislation regulating the financial services industry. The Government’s refusal to share with Parliament the text of the proposals they put forward on 9 December in that respect means that we cannot judge their value. What we do know is that they were rejected by all other member states. The situation with regard to financial services regulation thus remains exactly as it was on the day before the December Council. That, too, seems to be the view taken by the City in the briefing that the City Remembrancer has sent, I think, to all Members of this House, and which I received yesterday. Myth No. 5 is that the treaty somehow makes improper use of the EU’s institutions, in particular the Commission and the Court of Justice. Fortunately, the Government have decided not to pursue that legal will o’ the wisp for the moment. If we really have ended up somewhere where it is not in Britain’s national interest to be, as I believe is the case—on the outside looking in, as decisions that could have a considerable impact on this country’s economy are taken—what is to be done? The simplest answer would be to sign the treaty, but I have no illusion that the Government are currently prepared to run the gauntlet of their rebellious Eurosceptic Back-Benchers. Alternatively, the Government could, if and when this treaty enters into force following ratification by 12 of the eurozone countries, give serious and constructive consideration to triggering the provisions of Article 16 of the new treaty, which envisage it being brought within the EU treaty structure. That is the course that follows the logic of the conclusions of the report that your Lordships’ EU Select Committee has made to the House, and I hope that the Minister who is to reply—and I am not asking for an immediate response—will recognise that and reflect carefully on it. It may not be surprising that the eurozone crisis has dominated all other policy aspects at recent meetings of the European Council and seems set to continue to do so, but it obscures the fact that events in the world outside the EU continue to occur at a dizzying rate. The EU is now far too important an international player to be able to take time out from those events. Nor has it been doing so, and the Minister very reasonably brought us up to date on a number of the things that the EU has been doing. Recent decisions to tighten economic sanctions against Iran and Syria, and contemplating relaxing such sanctions following the welcome easing of repression in Burma, are all decisions of considerable significance and are welcome. They underline how much more effectively the EU can work in the foreign and security policy field when its members act together. The admission of Croatia in 2013 is a reminder, too, of the unfinished business of further enlargement, which holds the key to the stability of the Balkans and the eastern Mediterranean. I conclude my remarks with a plea to the Government to put more effort and eloquence into promoting a positive agenda for the European Union. If Britain has plenty of positive ideas in addition to those that I have already mentioned, as I believe it does—such as completing the single market in services, energy and the digital industry, pushing ahead with negotiations for freer and fairer international trade, supporting the Arab spring and strengthening the EU’s strategic partnerships with the main emerging powers, such as China, India, Indonesia, Brazil and Mexico—the Government should surely be speaking out about these ideas, loud and clear.. They should do it not only outside this country but inside it, where so much that is negative about the EU dominates the public commentary. Above all, the three main parties that support our EU membership should be finding ways of articulating the fundamental political and economic case in terms that update for a modern audience but do not supersede the arguments that led us to join the EU 40 years ago—I pay tribute the noble Lord, Lord Bates, who reminded us that those early arguments on the foundation of the European Union have not lost their value—and which were endorsed in the 1975 referendum by a two-to-one majority.