European Union Bill

The answer is that the hon. Lady completely misunderstands the nature of the European Union. That is the problem in a nutshell. I am afraid that she does not understand—I have to put this to her very bluntly—that the creation of a two-tier Europe on such disadvantageous terms would be very damaging to us. If, however, an association of nation states were to decide to go in one direction, while we retained our independence and did not acquiesce in treaty or other procedural arrangements that bound us into that association, I would be content, but that is not what is happening. What is happening is that we are being actively required to become and are acquiescing in becoming part of a new treaty arrangement that affects us all—all member states as a whole—but they get their solidarity and concentration of power with the new arrangements that they enter into; we are left within the legal framework, subject to the European Court of Justice and all that goes with it, without being party in practice to the arrangements that they devise. That is why the social and employment legislation, the fiscal arrangements and all the rest of it will have a disadvantageous effect on us if they proceed with those arrangements. My right hon. Friend the Minister may say that the proposed arrangements will be purely intergovernmental. We had a bit of a discussion about that in the debate on an earlier proposal, but that is a far too simplistic way to put it because, as I pointed out in an intervention on the right hon. Member for Rotherham (Mr MacShane), the proposals of the European conclusions of 4 February specifically state:"““Building on the new economic governance framework, Heads of State or government will take further steps””—" I now refer to an answer that I received from the Financial Secretary, who put a lot of emphasis on this—"““to achieve a new quality of economic policy coordination in the euro area to improve competitiveness””." So they are creating a new kind of co-ordinated arrangement. It continues:"““without undermining the single market.””" I believe that my right hon. Friend the Prime Minister was very insistent on including those words, so that the proposals would not put us at a disadvantage. My argument is that, whether or not those words are included, they will do so. The proposals then go on to say—this is all part of the manner in which the system is being devised, which I regard as extremely dangerous and implausible—"““Non-euro members will be invited to participate in the coordination.””" It then says in respect of the President of the European Commission:"““He will ensure that the Heads of State or government of the interested, non-euro area Member States are duly involved in the process.””" In other words, the appearance is given, contrary to what the right hon. Member for Rotherham said, that we would not be party to those arrangements. In practice, that is a perfect example of the two-tier system in operation. It requires some careful analysis, but it does us no favours whatsoever.