European Union Membership (Economic Implications) Bill [HL]

Lord Risby Excerpts

Friday 25th November 2011 Lords Chamber

[Lord Risby]

My Lords, I add my warm congratulations to the noble Lord, Lord Pearson of Rannoch, on the sheer timeliness of this debate. Whatever one’s view of the European Union is, as we survey it today it is certainly not a happy picture. We have a crisis of legitimacy; the rise of disconnect of the peoples of Europe from the institutions of the European Union; a collapse in economic growth, including now in Germany; a lack of competitiveness, big demographic challenges; high unemployment and high budget deficits and debts right across the European Union. I entirely agree with my noble friend Lord Ryder that it would appear that the euro is now fragmenting. I think that this is inevitable and, ultimately, desirable.

As we look at austerity in our own country, it is fair that any sizeable contribution by the British taxpayer to any external organisation should be looked at carefully. We also need to look at whether burdens on our businesses are generated from elsewhere, such as the European Union, or whether they are domestically generated or a mixture of both. That is certainly true, but it is also fair to say that in any objective assessment of our relationship with the European Union, we have to look at benefits that are difficult to quantify. For example, how do you measure freedom of movement or the mutual recognition of qualifications? Of course we need to co-operate in areas such as environmental protection, criminality, the drugs trade and money-laundering. It is difficult to quantify how the EU impacts on the life of this country in this regard, when also you consider these issues.

At another level, we need occasionally to take collective action. I have a particular interest in Syria. There is no doubt about it—EU-wide sanctions are an important force in trying to deal with the situation that is so tragically happening there. If we were doing that on an isolated basis, of course the impact would be much less. However, the Bill stresses economic implications and I simply point out that any overall assessment needs to look at non-financial aspects too.

Public opinion has quite rightly been enraged by the inability of the Court of Auditors to approve the EU accounts. The error is something like €4.6 billion. Indeed, it is the 17th year that the Court of Auditors has been unable to give an unqualified statement of assurance. Additionally, our net contribution to the European Union has trebled between 2008-09 and 2014-15 in a way that makes it difficult for many people to understand what the advantages of that process have been. A number of organisations have looked at the proportion of the cost of regulation from the EU that has impacted our businesses and they have concluded that it is substantial.

Any relationship between two countries, whether organisational, bilateral or multilateral, has to be based on a whole number of frankly unmeasurable criteria. This will include collective action on a global basis and co-operation in spheres that inevitably directly impact the well-being of individual EU states. However, there is another aspect. Are countries such as Switzerland or Norway, with populations that are smaller than Greater London, free of financial contributions and single market rules? They are not. Whether in consumer or environmental protection there is the internal market. If, for example, we were to seek membership of EFTA—we may not do so if we were to leave the European Union—would it necessarily accept us? The simple truth is that through our very long history and connection with the continent of Europe, this country has quite rightly been reluctant to be involved in European Affairs at different times. However, in the end, we cannot escape our geography and the links that bind us with our neighbours. Frankly, we cannot preclude or exclude ourselves. Of course, this does not stop us from fighting for our national interest in the European context. However, it would be unfortunate to believe that somehow we could wish away our geography and links.

I should like simply to end with two points. As we look at the EU and the turmoil today, it would be madness if we were to divorce ourselves from other major European countries when whatever happens will directly affect us. I am happy to say that that is not the view of the British Government because I believe that we are trying as hard as we can to be involved in trying to unpick the mess that the European Union has fallen into.

It was Willy Brandt who once said that politicians go into politics to resolve a given set of problems, but once those problems are resolved they fail to move on. That is the case with the European Union today. It is frozen in time and failing to adjust to the way that the world now operates. I do not know, as we enter into this very difficult time, whether we are in unknown unknown or known unknown territory, but it is vital that there is a new structure within the European Union; that may emerge out of the crisis that is happening now. It is important that we then try to draw the advantages of EU membership and reconnect the peoples of Europe with the lack of democratic underpinnings that exist. I believe, however, that that will be our role. What the peoples and markets of Europe and our country in particular are now saying is simply this: the European Union as presently constituted is past its sell-by date, but we should be there to influence the future.