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Mr. MacShane: I entirely agree with the right hon. and learned Gentleman. Could he have a word with his fellow Liberals in parties around Europe to get them to support that policy?

Mr. Campbell: Most certainly. I am afraid that such issues are decided on a national, rather than a party political basis, but that does not make them any less urgent. If the Minister wants to sign me up, among others, to go to make that case to parties elsewhere in Europe, I shall be happy to do so, for the reasons that I indicated.

Another point is worth making in relation to the CAP. At the moment, as the German Government are the largest net contributor to the European Union, Germany is essentially the paymaster for the CAP. Those arrangements have to be reviewed in 2007. If I may say so, the German economy will have to be in a somewhat healthier condition than it is now if it is to be able to continue that kind of financial commitment to the CAP, but I rather fancy that it will not be. That may provide a break in the argument that will allow for reform.

I said previously that I was of the view that foreign and security policy must remain intergovernmental. However, that does not undermine the desirability of seeking common positions. In my judgment, the

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amalgamation of the jobs that are being carried out by Javier Solana and Chris Patten makes considerable sense. The person who occupies that role should be answerable to the Council. However, there are questions of funding that I hope can be resolved to ensure that the individual, whoever he or she may be, will not find himself or herself being restricted in their activities by virtue of the fact that financial control and responsibility lie elsewhere. Although it makes sense for Javier Solana to produce a strategic doctrine, we should bear in mind that, as the Foreign Secretary hinted, if Europe is serious about its own security there will have to be some serious thinking about levels of defence spending. Some countries' contributions are, if not negligible, at least very insignificant by comparison with some of the political aspirations that they are willing to articulate.

In the course of the past couple of days, a common position has been adopted on weapons of mass destruction, and there will be a real opportunity to see the extent to which that is effective when we deal with the issue of Iran. The Foreign Secretary mentioned Iraq, but not the Iranian problem. Perhaps the Minister will be able to clarify the extent to which those issues are currently under consideration. I am in no doubt that a new security bargain has to be struck between the United States and Europe—one that is more of a partnership than a competition. The European Union may have a significant role to play in the forging of that bargain.

I understand that Mr. Putin is to visit. I hope that the Prime Minister will take the opportunity to say that the relationship between Russia and the European Union will to a large extent depend upon Russia's attitude towards Chechnya. The Prime Minister confirmed during Question Time that he would raise that issue directly. There will be relief and gratitude throughout the whole House that that is now the position, although it may have been slightly different in Westminster Hall earlier today.

On the single currency, I imagine that both the Prime Minister and the Foreign Secretary are likely to be asked about that by other EU members. I am one of those who believe unashamedly that it would be in Britain's interest to join. I thought that the Chancellor was at his most persuasive and eloquent when he argued the principle of the single currency from the Dispatch Box some 10 days ago. However, it is important not only to embrace the principle, but to work towards achieving the convergence that the five tests set out. If the Government still take the view that they wish the United Kingdom to be truly at the heart of Europe, they should recognise that we will truly be at the heart of Europe and truly able to exercise political influence only when we have joined the single currency. We will then find at Councils such as the one that is due to take place in the next couple of days that we are rather more influential than we appear to be at present.

4.29 pm

Mr. Jim Marshall (Leicester, South): I have given you a commitment, Madam Deputy Speaker, to try to abide by the 10-minute rule that applies between 5 pm and 6.30 pm. I understand that, after me, you intend to call someone who has been a member of the Convention and may wish to take longer than 10 minutes. I accept a self-imposed restriction.

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The right hon. and learned Member for North-East Fife (Mr. Campbell) mentioned his discussions with politicians in Berlin and Paris and said that they found it difficult to understand the argument in the United Kingdom. With the greatest humility and respect, that is hardly surprising because their long-term agenda is totally different from that of the UK Government. The German and French Governments unashamedly pursue a federalist agenda, whereas the UK Government tell us that they have succeeded in the past few weeks in eliminating all references to "federal" from the Convention's articles. The lack of understanding is inevitable because those countries do not share the UK's aspirations.

However, I echo the right hon. and learned Gentleman's point about defence and security and taxation. Those matters should be ring-fenced, remain intergovernmental and out of the European Commission's clutches. I should love to continue the political banter, but perhaps I should get down to the subject under consideration.

The Convention may nearly have finished its work and I believe that most of us could agree with 90 per cent. of its proposals, but disagreement will continue on the remaining 10 per cent. Those disagreements will resurface with a vengeance in the IGC round that starts later in the year.

Although the Opposition do not accept it, the Government may be correct in their assertion that the Convention's proposals do not involve a further major constitutional shift in power from national Parliaments to the European Union. However, from my experience, the evidence of the past 40 years points to an inexorable drift in power to EU institutions. In the medium term, I suspect that the same is likely to occur with the Convention proposals.

I accept the Foreign Secretary's comments that the UK will oppose attempts gradually to eradicate national vetoes and make qualified majority voting the norm for EU policy making; the introduction of majority voting on taxation matters; moves to create a mutual European defence policy that could undermine NATO, and attempts to harmonise criminal law. I also accept that the UK Government will seek firm guarantees that the charter of fundamental rights will not override national law and create new rights.

I sincerely hope that the Government succeed in achieving those objectives. However, we all know—I am sure that that applies to the Minister, with his involvement in negotiations around Europe in the past few months—that, in the negotiations and horse-trading at the IGC, the Government may have to concede some of their aims to obtain concessions on other matters. I am not therefore as sanguine as the Foreign Secretary appears to be about the Government's long-term ability to achieve their objective.

I should like to be a little more welcoming of at least two of the proposals. I welcome the proposal that the Council must in future sit in public when legislating. This should at least ensure that the situation will no longer arise in which a Minister comes out of the Council saying that he has voted in a particular way

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when we all know that he has voted in a completely different way, contrary to his own country's public position. The Council's sitting in public when legislating should remove the possibility of that happening.

I also welcome the proposal to invoke national Parliaments in the EU decision-making process at the very earliest stage. As my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) said, the Commission will have to send each national Parliament every one of its proposals, explaining the reasons for Europe-wide action and what the likely implications will be. Parliaments will have six weeks to examine the texts, and, as my right hon. Friend the Foreign Secretary said, if one third of the Parliaments oppose a proposal, the matter will have to be reviewed, or given the so-called yellow card. I only hope that we can succeed in establishing the possibility of turning the yellow card into a red one, because it is only through the ability to issue a red card that we can really begin to hold the Commission to account. Parliaments throughout the 25 member states will, however, have to ensure that their security procedures are adequate to make the new system work properly. We all have a vested interest in ensuring that all the national Parliaments are able to cope with that new proposal.

On security and defence, I would like to underline everything that was said by the right hon. and learned Member for North-East Fife. The United Kingdom must continue to support the intergovernmental structure of the common foreign and security policy. I have been a delegate from the House to the Parliamentary Assembly of the Western European Union for the past 10 years, and I have witnessed the increasing pressure for defence Europe from many continental politicians. I accept that the European Union should be able to undertake the so-called Petersberg tasks when NATO does not wish to be involved, but the European security objectives must be complementary to, not in competition with, those of NATO. The primary security architecture of Europe must remain NATO, and we must resist moves to make the European Union a rival military power to the United States. I believe that we shall be assisted in that objective by the expansion of the European Union in 2004, and I understand that the Foreign Secretary believes that as well.

I agree with what the Foreign Secretary said about Turkey, which has been a staunch ally of ours in NATO over the past 50 years. During the past 18 months, it has introduced a raft of new legislation to protect human rights there. Now is the time for Turkey to be given a firm guarantee that it will be admitted to the European Union. That would be good for Turkey, and for the reputation of the European Union in the Islamic world, which would then see that the European Union was not just a Christian club.


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