This week, Michael Fallon MP, Minister for Business, announced that he is chairing a Business Task Force on EU Deregulation. Other members are experienced and respected businessmen including the Chief Executives of Marks and Spencer and Kingfisher. Michael is asking anyone with suggestions for regulations that should be simplified to submit them to their MP as soon as possible. This is important work. The Prime Minister has pointed out that Europe’s share of world output is scheduled to fall over the next two decades and this is partly due to overcomplicated EU regulation and excessive rules.
The Eurozone crisis has shown up the very different economies which operate in certain parts of Europe. For a large country such as Germany, centrally located with a very skilled workforce, plenty of capital and modern efficient industries, the low exchange rate for the Euro gives huge trading advantages, the product of which we are seeing in Germany’s growth. However a moment’s thought shows that if the Deutschemark were still the German currency, its exchange rate would be sky high, making life difficult for German business.
For smaller countries such as Greece, life is not so easy. Normally a currency union succeeds where there are capital transfers from the wealthier parts to more disadvantaged areas, labour mobility follows and a united fiscal policy would exist. Looking at it on a micro scale, within the UK taxes are taken from Herts and spent in less fortunate parts of the country, people move to find jobs and all parts of the union have the same fiscal policy. However this is not true of the Eurozone and these structural issues need to be addressed. It is only when a sensible package is hammered out, that this Eurozone crisis will be resolved.
The photograph shows Europe Minister David Lidington speaking to the Council of Europe in Strasbourg about Britain’s plans, as this year’s Council Chairman, to reform the European Court of Human Rights. It is good to be here helping to argue for common sense change. The Prime Minister arrives tomorrow.
On the subject of the Irish recently voting against the EU Constitution, the so-called Lisbon Treaty, I just think it’s wrong that we have not had our chance in the UK to have our say on this treaty.
As Frederick Forsyth, the author and my best known constituent, was saying to me on Sunday, it is a denial of democracy that the Labour Government went into the last General Election promising a referendum on the EU Constitution but now they have backed out. We Conservatives will continue to press for a referendum in Parliament and I still hope that the House of Lords will come to the rescue of the people on this fundamental issue.
Of course, it shouldn’t be like that, it should be the House of Commons that is standing up for the people’s rights.