UK Constituent Parts (EU)

Iain Stewart Excerpts

Wednesday 21st November 2012 Westminster Hall

[Iain Stewart (Milton Keynes South) (Con)]

It is a pleasure to serve under your chairmanship, Mr Crausby, and I congratulate the hon. Member for Glasgow North (Ann McKechin) on securing the debate. Although it may not be a regular occurrence, I concur with a lot of what she said.

I confess that I have always been puzzled by the Scottish National party’s policy of independence in Europe, or whatever its particular slogan is at the time. Although I profoundly disagree with independence for Scotland, there is logicality in believing that Scotland should be a master of its own destiny: that it should break away from a currency, a monetary and fiscal union, and a political union, and decide matters for herself. I do not agree with that, however. I think that the union has been one of the most successful political, social and economic entities that the world has ever seen, and it would be a tragedy if Scotland split away from it. There is, however, logic in saying, “We want to be masters of our own destiny and decide policies for ourselves.”

What I find illogical is the argument that being in one union is so disadvantageous to Scotland that we should split away, destroying 300 years of shared history and experience, and then rush straight into an even bigger one. That is illogical, and I contend that in such a union, Scotland would have a far weaker influence than it currently has in the United Kingdom.

[Mr Weir]

I do not understand the hon. Gentleman’s argument. The UK is part of the European Union and has surrendered some sovereignty to joint decision making, but that is different from an encompassing political union, which some in the EU want. I presume that he is very much against that, but that is the position in which Scotland finds itself within the EU, and there is nothing illogical in seeking to get out of the United Kingdom in order to join together with other nations in the EU, to a restricted degree.

[Iain Stewart]

I am tempted to go down the path of having a debate on the wider issue of the EU’s direction—I am sure that my hon. Friend the Member for Stone (Mr Cash) would be only too happy to join in—but I think I might exceed my five-minute allowance. The point is that if Scotland became an independent member of the EU—I will come on to why that will not be a straightforward process—it would be joining an ever-deepening union. I do not want the United Kingdom to be part of that, but that is what Scotland would be forced to sign up to. Under the terms of the EU treaties, all new member states are obliged to make the political and legal commitment to join the economic and monetary union, and to adopt the euro as a currency.

[Mr Weir]

That is simply not the case. Under the EU treaties, a nation has to join the exchange rate mechanism II before moving on to the euro. ERM II is voluntary, and in the case of Sweden, it has made it clear that it is not moving towards the euro, although it joined the EU later. Scotland would be in the same position. There is no obligation on Scotland to join the euro.

[Iain Stewart]

I profoundly disagree with that analysis. Sweden is obligated to join the euro once it has satisfied the economic conditions. That is the position, and I disagree profoundly with the hon. Gentleman’s position. He has said nothing that dissuades me from the view that an independent Scotland would be sucked in to a full economic and monetary union, and that would not be in Scotland’s interests.

It is far from certain that Scotland would become an automatic, independent member of the EU. There is no precedent for a current EU member state splitting up into constituent parts, with the part that broke away becoming a separate member. Therefore, we must look at what the treaty on European Union says, and article 4.2 is clear that the EU must respect the fundamental, constitutional and political structures and the territorial integrity of a member state, which has exclusive competence in such matters. The EU cannot therefore recognise a unilateral declaration of independence by part of a member state. Furthermore, according to article 49, the hypothetical new state would need to request membership and attain the unanimous support of the European Council for that request, and have its membership approved through an accession treaty, to be ratified by the Parliaments of all member states.

If one looks at the political reality of other member states in Europe, that is far from a foregone conclusion. Would Spain, for example, agree to it with its issues in Catalonia and the Basque country? Would Belgium, whose constitutional integrity is under question, agree? I do not believe that that process would be automatic. I am not suggesting that Scotland could not become an independent EU member, but I ask at what time and at what cost. Croatia’s accession to the EU has been mentioned, and that has been going on for over 10 years. Slovenia made an objection to that process, and although it was overcome, it took time.

I ask again what the cost to Scotland would be. What uncertainty would be created for business at a fragile time for the global economy? What else would she have to surrender to get membership agreed? I believe that euro membership would be inevitable. What about Scotland’s budget contribution, which is a topical issue? The SNP contends that Scotland has a budget surplus in the United Kingdom. I think that issue is far from settled, but for the purpose of the argument, let us accept that the SNP is correct and that Scotland pays more into the United Kingdom coffers than she receives from it. Does that not mean that Scotland would be forced to pay a much higher contribution to the EU budget? Has that been factored into anyone’s calculations? I do not believe so. What about other issues, such as Schengen and the common fisheries policy? What influence would Scotland have to protect her current freedoms? It is all uncertain.

As the hon. Member for Glasgow North said, the Scottish Government are making it up as they go along. There is no certainty, which I believe we should have. The United Kingdom should remain strong and intact. The debate about our position in the EU is a broader question; personally, I want to get us back to more of a common market, and certainly not into a deeper political and monetary union. However, we are better off fighting this together and not splitting up into component parts, when we would have no certainty and Scotland’s interests would be subsumed into the wider interests of Europe.