We have to renegotiate our relationship with the EU
The Prime Minister showed remarkable strength of will and defied all predictions when he vetoed the EU treaty last week. European leaders, with the exception of the UK, have backed a tax and budget pact aimed at solving the eurozone debt crisis and preventing the implosion of the single currency last week at a crisis summit between all 27 EU countries in Brussels.
It is clear the Prime Minister was presented with proposals which he simply could not accept. He feared that the proposed “Merkozy” plans would undermine the City of London, a key part of the British economy. Part of this plan included the introduction of a financial transaction tax (FTT). This is a tax on banks financial products and because millions are exchanged every day, it could force banks to be more careful in their purchases or sales. Thus, since 75% of all financial transactions occur in the UK, British-based banks would have paid the vast majority of this proposed tax.
We are facing a very difficult situation – the credibility of the euro is at stake. The underlying problems require a strong position and there is no quick fix to the situation. However, believing that the UK will now be marginalised is certainly not right. I believe that even if the financial services have a difficult time, I am glad that Britain will now be able to focus on the manufacturing sector which is such an important industry in Britain. I believe David Cameron’s veto has in that sense been very instructing and will protect, if not enhance, our jobs and our industries. The Prime Minister has been clear all along that he would protect the national interest. We’ve done what we said we were going to do, and Britain is stronger for having stuck to that. We remain a committed member of the European Union and will continue to work to ensure that a strong and constructive British voice is heard in all discussions involving the 27 member states. It is in our national interest that the countries with the euro fix their problems, as the more this crisis continues, the more it will damage us. However, we do not support a treaty that is not in the best interest of Britain.
Our approach is very simple: we’ve legislated now so it is impossible for a British government to pass power from Britain to Brussels without asking the British people in a referendum first. If power goes from Britain to Brussels they get to say so first. It has proven that the concept of Europe as it stands is not able to respond to the increasingly complex market forces. In those uncertain times, a weak European government with a weak European currency is not only dangerous for the members within, but also for the countries that help to stabilise the situation.
As this is the last column of 2011, I would like to like to wish all my constituents a very Happy Christmas and a healthy and prosperous New Year.
(Published in the Wokingham Times – December 2011)