Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 26th October 2011 Commons Chamber

[The Prime Minister]

I have read that pamphlet too, and what it says is good, sound common sense. We do not know exactly when treaty change will be proposed and how great that treaty change will be, but I am absolutely clear, and the coalition is clear, about the fact that there will be opportunities to advance our national interest, and it is on those opportunities that we should focus.

[Edward Miliband (Doncaster North) (Lab)]

Does the Prime Minister agree that, at today’s European summit, we need not just the sorting out of their problems by Greece and Italy and the proper recapitalisation of Europe’s banks, but an agenda to help Europe, and indeed Britain, to grow?

[The Prime Minister]

What it will be absolutely necessary to do this evening is deal with the key elements of the eurozone crisis, which is acting as a drag anchor on recoveries in many other countries, including our own. That will require decisive action to deal with the Greek situation and a proper recapitalisation of the banks, which has not happened across Europe to date—and the stress tests that have been carried out have not had credibility—but, above all, it will require the construction of the firewall of the European fund to prevent contagion elsewhere. That is the most important thing. The right hon. Gentleman is right to suggest that a wider growth strategy across Europe is required. That was debated on Sunday, and all the Commission’s proposals—on completing the services directive, completing the single market, liberalising energy policy and cutting regulation—could have been written right here in London.

[Edward Miliband]

The point I would emphasise to the Prime Minister is that those are long-term measures, but we also need immediate action for growth, and that needs to happen not just at European meetings, but at the G20 next week.

We know that the Prime Minister’s real focus has, unfortunately, not been on sorting out the eurozone crisis; it has been on sorting out the problems on his own side. He said on Monday that his priority is to repatriate powers from Europe: which powers, and when?

[The Prime Minister]

One serious question, then straight on to the politics; how absolutely typical!

Let me make this point to the right hon. Gentleman: the idea that we could go into the meeting this evening about the future of Europe arguing that Britain should add an extra £100 billion to its deficit is a complete and utter joke.

Let me answer the question about our relationship with Europe very directly. The coalition agreement talks about rebalancing power between Britain and Europe. This coalition has already achieved bringing back one power: the bail-out power that the right hon. Gentleman’s Government gave away.

[Edward Miliband]

The Prime Minister said in this House on Monday:

“I remain firmly committed to…bringing back more powers from Brussels”—[Official Report, 24 October 2011; Vol. 534, c. 27.]

but yesterday the Deputy Prime Minister was asked about his plan and he said:

“It won’t work, it will be condemned to failure.”

So one day we have the Prime Minister saying yes to repatriation, and 24 hours later the Deputy Prime Minister says no. On this crucial question, who speaks for the Government?

[The Prime Minister]

Let me quote what the Deputy Prime Minister said yesterday. He said that there is a perfectly good case for

“rebalancing the responsibilities between the EU and its member states.”

What a contrast with what the leader of the Labour party said. Jon Sopel asked:

“Let me ask this single question. Yes or no answer. Has Brussels got too much power? ”

The right hon. Gentleman replied:

“I don’t think it has too much power.”

So the situation is very plain: there is a group of people on this side of the House who want some rebalancing, a group of people who want a lot of rebalancing, and a complete mug who wants no rebalancing at all.

[Edward Miliband]

Why does the Prime Minister not come clean about the split between himself and the Deputy Prime Minister? This is what the Deputy Prime Minister was asked:

“Is David Cameron wrong to promise at some point the idea of another treaty that might bring powers back?”

He said this:

“This Government, of which I’m a Deputy Prime Minister, is not going to launch some sort of dawn raid, some smash and grab raid on Brussels. It won’t work, it will be condemned to failure.”

So which is it: who speaks for the Government? It is no wonder the Prime Minister’s Back Benchers are saying there is no clarity in the Government’s position, and the secretary of the 1922 committee said the Government’s “position is politically unsustainable.” Is it the Prime Minister’s position to get out of the social chapter: yes or no?

[The Prime Minister]

It is this coalition that has worked together to get us out of the bail-out fund—to get us out of the Greek bail-out—and to deliver this year a freeze in the European budget. That is what this coalition has achieved. The split that we have is between the right hon. Gentleman and reality, and we have the greatest proof of that. I talked to the House about this on Monday, but it is so good that I have got to do so again. When he was asked if he wanted to join the euro, he said:

“It depends how long I’m prime minister for.”

That is the split: it is between the Labour party and reality.

[Edward Miliband]

The Prime Minister will be going to the Council in December to negotiate on behalf of Britain, and treaty change may be on the agenda. I ask him the question again. His Education Secretary said on the radio yesterday morning:

“I think we should take back powers over employment law”,

but his Deputy Prime Minister disagrees. What is the Prime Minister’s position?

[The Prime Minister]

I tell you what would be on the agenda if the right hon. Gentleman was going to the meeting in Brussels tonight. We would not be discussing Italy. We would not be discussing Greece. It would be Britain handing out the begging bowl asking for a bail-out. We know that he now wants to join the euro. The other thing that Labour Members want to do is leave the International Monetary Fund. They had the opportunity in this Parliament to vote for an increase in IMF funds, which was agreed at the London Council by their own Government—they rejected that. So we now have the extraordinary situation where they want to join the euro and leave the IMF. It is not France they want to be like—it is Monaco.

[Edward Miliband]

It is no wonder the Prime Minister had a problem on Monday, because the truth is that he led his Back Benchers on, making a promise that he knows he cannot keep and that is ruled out by the coalition agreement. We have a Prime Minister who cannot speak for his Government. On the day of the eurozone crisis, we have a Prime Minister who has spent the last week pleading with his Back Benchers, not leading for Britain in Europe.

[The Prime Minister]

I might have had a problem on Monday, but I think the right hon. Gentleman has got a problem on Wednesday. The truth is that if he went to that meeting tonight, his message to Berlusconi would be, “Ignore the markets, just carry on spending” and his message to the rest of Europe would be that Labour thinks that you should spend another £100 billion adding to our deficit—after they had finished laughing there would be no time for the rest of the meeting. [Interruption.]