European Council

Bernard Jenkin Excerpts

Monday 22nd October 2012 Commons Chamber

[The Prime Minister]

This issue has been discussed at great length by the Home Secretary, who set out in great detail in the House of Commons recently that we are minded to exercise the opt-out that the previous Government put in place, but there are safeguards that we want to seek for the arrest warrant.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Does my right hon. Friend share my concern that the development of a eurozone banking union demonstrates how the UK is increasingly finding itself in the worst of all possible worlds—bound and directed by a qualified majority that is solid in the eurozone? May I remind him that we already have a European Banking Authority which is based in London and operates by qualified majority vote?

[The Prime Minister]

I go a certain way with my hon. Friend, but the point is that the proposals for banking union have to be agreed by unanimity, so that is an important safeguard for Britain. But I do not think it would be in our interests to stop the eurozone putting in place something that a single currency needs in order to function. Our economy is suffering today because of uncertainty in the eurozone. Those high interest rates in Spain, Italy, Greece and Portugal affect us too, and they need action, including a banking union. We in the United Kingdom have a single currency—the pound sterling—and we are going to keep it. It works—and it works partly because we have a banking union. The countries of the eurozone need one too, so blocking it just for the sake of it does not make sense.