European Council

Lord Kerr of Kinlochard Excerpts

Monday 5th March 2012 Lords Chamber

[Lord Strathclyde]

My Lords, my noble friend has a well earned reputation for finding these sorts of statistics that have passed so many others by, including me. He is right on the figure of 23 million small firms and 23 million unemployed. One each has an extra job, and that sweeps up unemployment. Of course, that is one of the reasons why, at last, many other European countries are joining us on deregulating and are accepting the case that what are called microenterprises—those that employ fewer than 10 people—are one of the basic engines for growth and employment. I am very grateful to my noble friend for pointing that out.

[Lord Kerr of Kinlochard]

I thank the noble Lord for repeating the Statement, and I agree with him about the importance of deregulation. I think it was in 1988 that I first wrote in one of these post-European Council prime ministerial Statements the sentence on deregulation. For the first time, we got a specific commitment. I am a little cynical about these European Councils. Of course, I think it is a wonderful idea that they should have talked about growth and the single market, but if you read the conclusions as avidly as my noble friend Lord Williamson, you discover that there is a sort of shopping list containing all the proposals that anybody ever had, including all those the Commission has had. For example, when we agreed the conclusions we appear to have agreed that work should be carried forward on the financial transactions tax, which seems to me to be one of the silliest proposals on the table now. I cannot think why we do not say, “Let’s just stop it”, because we can. It is on the legal basis of unanimity, and we can say that we are not going to agree. I think the conclusions are interesting, and it is good that the right subjects are being discussed, but they are a little bit of a ragbag.

I want to ask the Leader a completely different question. It is not about why we did not sign up to the treaty of 25, although the Statement is possibly a little suggestio falsi eye on that, in that it points out that the obligations apply only to the eurozone countries but does not point out that the Poles, the Swedes and six other member states thought it worth being in the room, at least, and are not committed to the obligations. I want to ask about Kosovo. I am sure the Leader is a great expert on Kosovo. I am not, but I see that the Statement speaks of a,

“process which can lead to a new contract between the European Union and Kosovo”.

Have all member states of the European Union recognised Kosovo? If they have not yet recognised Kosovo, how will this process work? Why do those who have not yet recognised Kosovo resist the independence of Kosovo? Could it be because they do not like secession movements, for example, in their own countries? Is this a point that the noble Lord will draw to the attention of his countrymen and mine?

[Lord Strathclyde]

My Lords, the noble Lord always speaks here with the voice of experience and knowledge, not least as an author of EU conclusions. I think that he said, in this rather empty House, that he is just a little bit cynical about these conclusions. It is easy to become cynical when you read these conclusions and you see the same words and phrases coming up again. I shall resist the temptation to join the Prime Minister in saying that this is a new dawn. However, the Prime Minister is very keen that when the EU says it is going to do something, it should do so. That is why he has very much been at the vanguard of making the arguments that he has, and I know that he will hold the Commission to account over the months and years ahead. Incidentally, I agree with the noble Lord about being a little bit cynical; I agree with him about the financial transaction tax. We are doing well today.

What about Kosovo? The noble Lord made a point that will be endlessly discussed over the next few years vis-à-vis the situation within the United Kingdom. I have not got an answer as to whether all the countries of the EU have recognised Kosovo. At the moment we are seeking to encourage both Serbia and Kosovo to maintain their constructive approach to further dialogue. This is crucial to the EU futures of both Serbia and Kosovo, and to stability in the region and improving the lives of its people.

One thing that came out, of course, was that the General Affairs Council gave impetus to Kosovo’s EU future this week—but I do not think that was necessarily the point the noble Lord was making, which was infinitely more subtle and will require a little bit more homework from my point of view. However, I am sure that other parts of the EU seeking to secede from their mother countries will want to see not only what is developing in Kosovo but in other parts of the EU as well.