Lords debate EU committee report “genuine economic and monetary union and the implications for the UK”
Report declared EU proposals to rescue big failing banks were not enough to break the vicious circle
Members of the House of Lords, including chair of the EU Sub-Committee on Economic and Financial Affairs Lord Harrison, will tomorrow, Wednesday 2 July, debate the Lords report ‘Genuine Economic and Monetary Union' and the implications for the UK.
Lord Harrison (Labour), who has tabled and will open the debate, said:
“While we commend the efforts of the EU to establish banking union, what has been agreed is not enough to break the vicious circle linking banking and sovereign debt. The complexity of the bank resolution mechanism and the limited funds available in the event of a bank collapse could prove its undoing. The failure to take forward a common deposit insurance scheme means that the risk of the financial crisis reigniting remains a real and present danger.
Our report found that the Eurozone remains on the road towards greater integration and the implications of this for the UK are immense. A strong and prosperous Eurozone is in the interests of all EU members, as is a strong and engaged UK and a strong City of London. Yet achieving all three outcomes simultaneously will require close care and attention, together with goodwill on all sides. The events in Brussels over the past fortnight demonstrate more than ever the tricky situation that the UK finds itself in.
‘Genuine Economic and Monetary Union' is not an issue that the UK can ignore. Wednesday's debate will provides a timely opportunity to expose these proposals to the scrutiny that they deserve.”
Lord Newby (Liberal Democrat) will respond on behalf of the Government. Other Members scheduled to speak include:
- Earl of Caithness (former HM Treasury Minister)
- Lord Davidson of Glen Clova (Opposition Treasury spokesperson)
- Lord Davies of Stamford (former MP and Defence Minister)
- Lord Dykes (former MP)
- Lord Hamilton of Epsom (former MP and Defence Minister)
- Lord Jay of Ewelme (former Head of the Foreign Office)
- Lord Maclennan of Rogart (former MP and Minister)
