EU: UK Membership

My Lords, I congratulate the noble Lord, Lord McNally, on the debate. Like him, I think it is important to remind ourselves from time to time that when the European ideal was introduced, for many of us it was a response to the distrust, prejudice and jingoism that had caused so much loss and suffering in the recent past. War again was unthinkable; peace was the first objective. So for people like me, the European journey is more a journey of the heart than of the mind. It means an end to conflict and strife. This is why all the arguments about economics and national interests are secondary. I suppose it is a little trite to say that we should not lose sight of the vision, but it is about the vision for Europe that I wish to speak. Human rights and democratic institutions have played, and still play, an important role in ending conflict and strife in Europe. But so does the single market. This is because the single market guarantees four fundamental liberties: the free movement of goods, of capital, of services and of people. Since its launch in 1986, by guaranteeing these four freedoms, a tremendous amount has been achieved. We have seen increased productivity and growth and greater wealth, not only in our own country but also in countries such as Spain, Ireland and Greece, which25 years ago were relatively poor and two of which were dictatorships. This has been achieved by opening up the market which is now the largest multi-member single market in the world. With a combination of rules and regulations and aid from the richer to the poorer states, we have all benefited from working together, referred to by the noble Lord, Lord Tugendhat. I do not share the disappointment of the noble Baroness, Lady Williams, in the promise of 1997. I agree that in the past few years progress seems to have slowed down. Perhaps this is because of all the new elements which other noble Lords have mentioned: enlargement, climate change, globalisation, mass migration, international terrorism and different sources of energy. Also during this time, science has progressed so that we are living longer and healthier lives, and technology has changed the face of business and industry. But new concerns are being raised. Although politics are rooted in the nation states, people are concerned about the extent to which national governments can operate without European institutions, a point touched on by the noble and learned Lord, Lord Howe. I agree with other noble Lords that, generally, there is less scepticism about Europe in Britain. But in the face of all these new elements, surely it is not surprising that in recent months many have turned their thoughts towards a revised version, a new vision, of the single market. This is welcome because my reasons for being pro-European mean as little to my children as they do to the children of the noble Lord, Lord McNally, even though mine are a little older. About a year ago, the European Commission launched a review of its vision for the single market, and in February it issued a communication calledA Single Market for Citizens. Its view seems to be that the vision of the single market should be that of the consumer citizen. It would like to see the workings of the single market made simpler and more practical, largely through the use of the single currency. This will encourage the free movement of goods and services so that the market functions better from the point of view of the consumer. I welcome this. I am not surprised as the Commission has committed itself to building bridges between its institutions and its citizens since the constitutional treaty was rejected. Pro-business organisations such as Business for New Europe agree. They, too, are seeking a new vision; they, too, want to see an end to excessive EU regulation, centralisation and red tape. But they see this from a corporate point of view, promoting prosperity and opportunity for individual companies rather than for citizens. So what will this mean as regards jobs, pay, living standards and quality of life for the consumer citizens? The European Parliament, too, is looking for a new vision. It is looking at the Commission’s single market review and has appointed a rapporteur. The rapporteur’s first report in April welcomes the Commission’s work on reviewing the single market and highlights the importance of including all stakeholders in the process. He speaks of stimulating innovation through increased competition and the research and technology to which the noble Lord, Lord Williamson, referred; and he speaks about the creation of a more business-friendly environment, especially for small and medium-size enterprises. He is also concerned, among other things, about intellectual property rights, harmonising retail financial services and some elements of taxation. But the vision is unclear. The Treasury and the DTI, too, are thinking about the future of the single market. I congratulate them on producing in January this year their vision of the single market for the 21st century. Their paper has the advantage of consistency. They voice their concerns about the slowing down of progress and how the single market needs to become more competitive, more skilled and more innovative in the face of globalisation. This more dynamic and competitive single market will promote jobs, growth and prosperity. Open and free markets are an important part of their vision, and most of us would agree. Some would ask, however: is there a political limit to that vision? We may be benefiting from the free movement of workers from the new member states, but those very states are complaining of a lack of skills in their own economies, which is hindering their own development. Some think that we are now going to see the very innovation on which we are depending being outsourced. That is what I mean by political limits. Some see the need for a political balance regarding globalisation. As well as being open to the opportunities of globalisation, we must be politically aware of the wish of some for physical and economic security against its threats. Finally, there is one more institution seeking a new vision for the single market: your Lordships’ House. Your Lordships’ EU Committee is on the case; more specifically, sub-committee B, whose remit is the single market. Its inquiry has already started. A call for evidence has gone out, and I see no reason why this debate should not also be considered part of its evidence. The committee does not have a view yet, but I am sure that one will emerge as it draws together all the various strands and views that I have tried to outline. My point is simple. Without a new vision, our aspirations will, of necessity, be modest. Without a vision, economic development is, as we are seeing, tentative, piecemeal and incremental. With a vision, we can address the problems of designing the most effective mechanisms for delivering the single market, and only then can we identify the gaps and the challenges. I remind your Lordships of where I started. For many, the EU journey is first of all a journey of the heart. So it is with the single market: the ideal comes first, and its mechanisms come after. I hope that the Minister agrees with me.