Tragically, this particular report makes the Government’s task even more difficult. These are real problems that need to be dealt with very quickly.
The levers of monetary policy within the single currency have been almost completely exhausted: with interest rates at just 0.25%, it seems that the Commission’s only response is a further push for integration. It is as though it were blinkered like a racehorse. It is aiming in only one direction which everyone believes will lead to failure, but its duty is to ensure that jobs for the boys in the European Commission continue to be its prime objective. That problem is caused by the fact that—as we all know—the European Parliament has so little control. The answer is not to give it greater control, but to ensure that control is sent back to sovereign Parliaments where democracy is alive and well, and, I am delighted to say, living in Westminster. At least, I hope that that is what the Government will try to prove.
The proposals for banking union are chaotic, underfunded and unnecessarily complex. How can a single banking union operate in the context of national vetoes? We do not know the answer. Why is there still no agreement on responsibility for the collective costs? We do not know the answer to that either. If the banking union proposals lack credibility, they will not enhance the prospects for growth and prosperity; indeed, they will do the reverse. These proposals were made on the edge of desperation, in an attempt to give some stability to a market that clearly did not believe in a European currency.
We need a different relationship with the European Union as never before, and we need it more urgently than ever before. I call on the Government and the Minister to ensure that we start talking very soon about the red lines of negotiation. That does not mean talking about the details of renegotiation, but it does mean talking about the overall areas in which we need to renegotiate. Sadly, the Government have been immensely silent about that, and I fear that unless they start talking about it before the European elections, it could well rebound on us.
I appeal to the Minister to ensure that we have a proper discussion, so that we can present to the British people a vision of genuine negotiation on issues that genuinely matter to them. That may well enable this Parliament to do one of the greatest services that it has ever done to this country.
6.2 pm