European Affairs

Debate between Lord Hammond of Runnymede and Pat McFadden

Thursday 25th February 2016 Commons Chamber

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Philip Hammond)]

I beg to move,

That this House has considered European affairs.

In just under four months’ time, the British people will face a choice—one that has been denied to them for many years—that we pledged to give them in our election manifesto and that we are now delivering; a choice that will have profound consequences for this country for a generation or more—whether to remain in the European Union on the basis of the deal negotiated by the Prime Minister or to leave.

The last time the British people were consulted on this question, 40 years ago, the answer was a clear yes, but much has changed in that 40 years, and the fact that we are holding this referendum now is recognition of a growing unease at the direction in which the EU has evolved—a growing sense that Europe was pursuing a goal that Britain did not share, and that we risked being dragged into a level of political integration for which few in Britain have any appetite.

For 25 years, I have shared that sense of unease. I have always considered myself a sceptic, and I consider myself a sceptic today. Like most people in Britain, I do not feel any warmth or affection for the EU or its institutions. I am irritated by the tone of much of what I hear coming from Brussels and instinctively suspicious of anything that sounds like a “grand projet”. But we do not live in some ideal world; we live in the real world, and the EU is part of that real world. The question that we have to answer is not: do we like it? The question we have to answer is whether we are stronger, safer and better off in the EU rather than out of it. Stronger, because our global influence is enhanced by being a leading member of the world’s largest trading bloc. Safer, because working together with EU partners strengthens our defences against organised crime and terrorism. Better off, because Britain benefits from having a domestic market of 500 million consumers and the clout that a quarter of the world’s GDP gives the EU in negotiating trade deals.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

The Prime Minister has said in recent days that his view of the European Union’s impact on our collective security had changed over the years because of his experience as Prime Minister. The Foreign Secretary would probably be thought of by many people as having a Eurosceptic background. Has his experience as Foreign Secretary also changed the balance of his view on the European Union’s impact on our collective security?

[Mr Hammond]

Yes, it has. First as Defence Secretary, and now as Foreign Secretary, I have seen how, in practice, working with EU partners is an important tool in our armoury. Of course, the EU will never, in any way, replace the security benefit that we get from NATO; it does a different thing. However, we have seen in the conflict over Ukraine that economic sanctions—which, in reality, are the only practical weapon available to us in responding to the challenge of Russia—when properly honed and consistently used by the European Union, will prove to be a very important weapon in our armoury against Russian aggression.

--- Later in debate ---

[Mr Hammond]

Let me make my point, and then I will happily give way to my right hon. Friend. A vote to leave is a vote for an uncertain future. That is a simple fact. That uncertainty would generate an immediate and negative reaction in financial markets; on that, all market commentators agree. Indeed, the mere possibility of a leave vote will have a chilling effect on business confidence even before the referendum.

[Mr McFadden]

It is already happening.

[Mr Hammond]

As the right hon. Gentleman suggests from a sedentary position, we have had a foretaste of that this week in the currency markets.

A vote to leave would trigger a fixed two-year time period under the treaty for the UK to negotiate the terms of our exit from, and our future relationship with, the EU. We would, of course, seek to reach agreement with the other 27 member states during that two-year period. In the meantime, however, we would be able to offer British businesses that wanted to invest no assurance at all about their future access to EU or other markets. We would have nothing to say to Japanese, American or Chinese companies that come here looking for a base from which to produce for the EU market. That would be truly a leap in the dark, and the effect would be to put the economy on hold until the negotiations were completed. At the end of those two years, there is no guarantee that agreement would have been reached, but our exit would be automatic unless every single one of the remaining member states agreed to an extension of the negotiating period.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Pat McFadden

Tuesday 20th October 2015 Commons Chamber

[Mr Hammond]

There has been a lot of focus on ISIL, but it is important to remember that it is Assad’s persistent indiscriminate attacks on his own civilian population with chlorine gas and barrel bombs that have been the principal driver of this mass migration.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

The Prime Minister said in his conference speech that the problem with the EU was that it was “too big” and “too bossy”. Looking at the refugee crisis, however, we can see that his rhetoric was simply wrong. Does the Foreign Secretary not agree that the problem for the refugee crisis has not been a European Union that is too strong and overbearing, but rather one that has been too weak, too unco-ordinated and too ready to fall back into the old habit of nationalism? Do not the desperate scenes that we have witnessed all summer demand more co-operation between states rather than a retreat into the use of barbed wire and nationalism and a failure of collective, co-ordinated leadership precisely when it is needed most?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Pat McFadden

Tuesday 3rd March 2015 Commons Chamber

[Mr Philip Hammond]

I reiterate the commitment that the Prime Minister has already made that there will be a referendum by the end of 2017 if there is a Conservative Government. There is virtually no movement in polling evidence in the demand for a referendum. I will say something else to my hon. Friend: by creating the referendum we have—I will use the phrase again—lit a fire under our partners in Europe. They now know that they have to deliver change that is substantive and meaningful; not some backroom political deal, but something that will satisfy the British people in a referendum. That is what is driving the debate.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

It is clear that the European Union needs to reform to create more growth, more jobs and more competitiveness, so what is the Minister’s reaction to the warning issued this morning from the executive vice-president of Ford, Mr Jim Farley, who said, on the prospects of “Brexit”,

“We really hope that doesn’t happen and we believe that the UK being part of the EU is critical for business”?

Why does the Conservative party call for the march of the makers in one breath, yet pursue a policy that poses a direct threat to manufacturing jobs, manufacturing investment and trade? Is it that the Foreign Secretary does not see the contradiction, or is it instead a complete and utter absence of leadership when it comes to the European Union?

[Mr Philip Hammond]

It is that we need to resolve this issue. Of course, most people in this country recognise the value of the single market to Britain’s economy, but that comes at a price and it is a price we pay in loss of sovereignty and loss of control over many of our own affairs, including some that we do not need to lose control of. The debate will be on the correct balance between what is done at national level and what is done at European level, on the accountability of the European Union institutions to the people of the European Union, and on the European Union’s ability to drive economic growth across all our economies. That is what people in this country want resolved, and by resolving it we will create a more certain climate for business in the future.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Pat McFadden

Tuesday 20th January 2015 Commons Chamber

[Mr Hammond]

I do. I think European politicians are beginning to get the message after successive elections to the European Parliament in which the percentage of participation has fallen and fallen again. Politicians across the European Union understand that something has to be done to reconnect the EU with the people who pay for it and the people whom it is meant to represent. In our case, we believe that the best way of doing that would be to give a greater role to our national Parliament in overseeing the operation of the European Union.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

What progress has the Secretary of State made in his discussions on furthering the single market so that Britain can have greater access to trade and export opportunities for businesses based here? While he has been in those discussions, has he also made any assessment of the effect on the UK economy of being outside the single market, which is where we would be if we withdrew from the EU—an option that he has said he might favour?

[Mr Hammond]

Clearly, being inside the single market is of great and significant benefit to the UK economy. We want reform of the European Union that satisfies the requirements of the British people so that Britain can remain inside the single market and inside the EU. We want a European Union that is fit for the 21st century, rather than one that looks as though it was designed for the last one. And yes, we have made significant progress in our discussions on completing the single market, including the digital single market, the energy single market and, most importantly for Britain, the single market for services.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Pat McFadden

Tuesday 28th October 2014 Commons Chamber

[Mr Hammond]

Sunday’s elections were a clear demonstration of Ukraine’s commitment to democracy. We have made it clear, and the European Union again last week endorsed a collective position, that we will not recognise illegal elections organised by separatists. The only elections we will recognise are those organised by and operating under Ukrainian law.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

It is good to be back on the Front Bench after a short absence. I thank hon. Members for their messages of good will, especially those from some Government Members who are somewhat fearful of their own party’s direction at the present time.

In our current debates about the European Union, we should not forget that its expansion to include former Warsaw pact countries was a victory for peace and democracy. It was a foreign policy victory for the west, championed by the Conservative Government at the time, and it means that war between member states is almost inconceivable. However, for countries outside the EU, such as Ukraine, it can be a very different story. Following the elections, what more can we do with our European partners to stop the further undermining of Ukrainian sovereignty and ensure that a newly elected Government there is free to choose its own path for the country’s future?

[Mr Hammond]

First, I welcome the right hon. Gentleman’s return to his place on the Front Bench. We look forward to debating all these issues with him.

Of course the election on Sunday was important in underscoring the legitimacy of the Ukrainian Government. I have already set out our demands that the Russians comply with their obligations under the Minsk agreement—withdrawing their troops from Ukrainian territory, allowing proper monitoring of the border and ending their support to the separatists—but it goes further than that. It is about the more subtle forms of Russian control and influence over the Ukrainian economy and political system. We are working closely with President Poroshenko and his Government to ensure that Ukraine has a robust position in response to those forms of pressure. Although the European Union does not agree on all issues in relation to the Russia-Ukraine dispute, it is pretty much clear and unified in its view that Ukraine must be allowed to choose its own future free of external pressure.