Eurozone Crisis

No, my Lords, I do not believe that is the difference. I will come back to engagement in a minute or two if my noble friend will permit me to carry on until I get there. It is important that we make a positive contribution, and indeed we do so. Linked to that, I agree with my noble friend Lord Maclennan of Rogart that the UK has played and can continue to play a catalytic role, with a positive effect on driving forward the single market. That goes part of the way to my noble friend’s point. On the other hand, I very much agree with the noble Baroness, Lady Valentine, my noble friend Lord Lawson and others about the vigour with which we need to defend the City. The financial transaction tax has been mentioned on a couple of occasions. The Government have made completely clear their opposition to that, it being a proposal that has been brought forward under an article which requires unanimity. Let me move on from our engagement, or lack of it, to the key area where it could become apparent: treaty changes, which were brought up initially by my noble friend Lord Lamont and others. I agree with the noble Lord, Lord Williamson of Horton, that a lot can be achieved to strengthen the eurozone’s economic governance within the existing treaty provisions. The Government do not think that this is a time for treaty change; instead, we need to devote all our time and energy to boosting the stability and competitiveness of Europe’s economies with a relentless focus on the priorities of our citizens; namely, growth and jobs. If it is agreed within the eurozone that treaty changes are necessary for the eurozone countries, the UK Government will need to consider how to secure UK national interest. Like other member states, we will pursue our national interest in any treaty change negotiations. I also emphasise, as my right honourable friend the Prime Minister has recently said—and this goes to the heart of the point made by my noble friend Lord Ashdown—that we are determined to play a strong and positive role within the European Union. That is set out in the coalition agreement which is at the heart of this Government. We want to make the case for a Europe that is fit for the challenges of the 21st century—my noble friend Lady Kramer shared with us some thoughts about how we should do that. That is the stance of this Government.