HC Deb 13 November 1973 vol 864 cc246-7
Q4. Mr. Wyn Roberts

asked the Prime Minister if he is satisfied with the progress made in implementing the European summit decisions of October 1972.

The Prime Minister

Yes, Sir.

Mr. Roberts

Does my right hon. Friend agree that the need for a united European approach within a democratic framework to our problems, ranging from oil supplies to inflation, has grown more pressing since last year's summit? Although progress has been commendable to date, is not the need more urgent now than ever before?

The Prime Minister

I agree about the urgency of and need for the matters which we settled at the summit. Considerable progress has been made in the 10 months or so of this year since the Community has been enlarged. The Community has reached agreement on its approach to the GATT negotiations. It was the first to be ready to negotiate. We have successfully opened negotiations under Protocol 22 for the new association agreement involving so many of the countries of the Commonwealth. There is a comprehensive Community environmental programme. There has been the institution of the European monetary co-operation fund. In addition, on the political side we have successfully achieved a common position on the European Security Conference, on the response to the United States for its Year of Europe and now also on the Middle East. This is a considerable degree of progress in these 10 months.

Mr. Joel Barnett

Given the current economic situation, does the Prime Minister agree that, whether one wanted to go into the Market or not, this is no time—indeed, it is absurd—to be considering negotiation of an economic and monetary union?

The Prime Minister

I do not accept that. I am perfectly prepared at any time to hear the arguments from the hon. Gentleman as to why this should be so. However, we stand to benefit from a greater degree of economic union in Europe. I believe that in the second stage we can agree on a considerable amount of progress.

Mr. Callaghan

Does not the increase today in the minimum lending rate to 13 per cent. show how hollow is the pretence that we are moving towards a monetary union?

The Prime Minister

I do not think it does, because at the moment there is no agreement in Europe. There has been no attempt to get agreement in Europe about the common handling of interest rates. This does not mean that there are not other spheres of economic union in which we can make progress.