UK-EU Summit

Baroness Meyer Excerpts

Wednesday 21st May 2025 Lords Chamber

[Baroness Smith of Basildon (Lab)]

I am grateful for that question and mindful that I did not properly answer the question on this point from the noble Lord, Lord Newby. When I was a Member of the other place, the defence industry was in my constituency, and I know that it is entrepreneurial, forward-looking and innovative. It does a great deal of technical research that has applications across the board, and the MoD will work with those companies. With the EU setting up the security action for Europe instrument, for which is proposed a €150 billion fund, we plan to make arrangements so that we can be part of it and benefit from it. Exports by the UK defence industry are going to benefit enormously from this, if we can ensure that its skills are recognised and we work in a joint partnership. It is that joint partnership that will allow us to bid for and be part of the €150 billion fund.

[Baroness Meyer (Con)]

My Lords, to look at the real world, France has a budget deficit of 5.8% compared to ours of 2.3%. France has an unemployment rate of 7.3% compared to our 4.5%, and France has 19% youth unemployment. Germany’s economy is going down rapidly, with exports going down a lot. So, I am confused when the Prime Minister and the Government call this a wonderful deal. How can it be a wonderful deal for our businesses and this country’s economy?

[Baroness Smith of Basildon (Lab)]

I am slightly puzzled by the noble Baroness’s question, if I am honest. Our economy is doing really well now. We are picking up, having been through a very difficult time over the last 14 years and with, I hesitate to say, a £22 billion black hole in current spending plans. By doing a deal with the EU on trade and the economy—I will answer the question from the noble Baroness if she will let me and not make hand signals at me—we have just done all the things we were told we could not do. We have a trade and co-operation agreement and a defence and security agreement with the EU; we have a trade agreement with India and a trade agreement with the USA. The noble Baroness told us last year that would never happen—it has, and we are delighted that we can deliver for the British public.