Below is the text of the statement made by John Major, the then Prime Minister, in the House of Commons on 18 December 1991.
I beg to move,
That this House congratulates the Prime Minister on achieving all the negotiating objectives set out in the motion that was supported by the House on 21st November; and warmly endorses the agreement secured by the Government at Maastricht.
In no other country of the Community have the issues that were decided at Maastricht been as hotly debated as they have been in this country. I have found in discussions with fellow Heads of Government that they have been frankly astonished by the amount of coverage in our media and by the intensity of the debate that we have had in this country over many months. I think that that coverage is not just a reflection of the measure of controversy ; it reflects also the Government’s determination to ensure that the fullest information was available to the House and the country before the European Council. It is perhaps also a reflection of a national characteristic–it is by no means a new one.
After meeting Macmillan in Bermuda in 1957, Eisenhower wrote : “Any conference with the British requires the most detailed discussion. They do not like to sign any generalisations in a hurry, no matter how plausible or attractive they may be, but once their signature is appended to a document, complete confidence can be placed in their performance.”
He went on, rather unkindly the House may think, to say : “French negotiators sometimes seem to prefer to sign first and then to begin discussion.”
In this country, every detail of the negotiations has been pored over both by hon. Members and by the press, and not only by them. I have had letters in recent weeks from the public–from schoolchildren, very well informed– on the pros and cons of a single currency, but I suspect that in a number of other Community countries the real debate is only just beginning.
Last month, I set out the issues that would be argued over at Maastricht. No one here or elsewhere in Europe could have been unaware of what we were arguing for. I explicitly said that we would not change our position at the very end of the negotiations. We did not, but we did achieve our objectives.
A full text of the treaty on European union is in the Library of the House. Jurists and linguists will ensure that the text is ready for signature at the beginning of February, but the treaty will enter into force only once all 12 member states have ratified it. The Luxembourg European Council last June agreed that this process should take place during 1992 so that the treaty can enter into force on 1 January 1993.
Before we shall be able to ratify the treaty, it will need to be incorporated into United Kingdom law by amending the European Communities Act 1972. As I assured the right hon. Member for Chesterfield (Mr. Benn) last week, it would not be right to carry through that legislation in the remainder of this Parliament. It will properly be a matter for the next Parliament.
This afternoon, I should like to set out what the agreement means and how I see the future development of the European Community. The misleading and controversial word “federal” has now been removed from the text of the treaty. Our partners agreed to return to the words of the original treaty of Rome–
“ever closer union among the peoples of Europe”.
That has a different connotation. It means that the interests of the Community’s citizens must come first and foremost.
That has always been the Government’s approach. That is why Britain drove the creation of a single European market to the top of the Community agenda. It is why we have argued for reform of the common agricultural policy, and it is why my right hon. Friend the Member for Finchley (Mrs. Thatcher) fought for and won a fair budget settlement for this country.
I believe that the Community has made a unique contribution to the development of post-war Europe. Our future is as a European power, albeit as one with continuing responsibilities in many parts of the world. The balance of national interests lies clearly in making a success of our membership of the Community, so we must work with the Community to make sure that the Community works for the whole of Europe, and especially in the interests of the people of Britain. The Community can fulfil its role properly only if it responds to the needs of its European citizens. It must respect national identity and national traditions. It must not, in the name of some wider European ambition, override the democratic wishes of the people of any one of its member states.
That is why the treaties now agreed at Maastricht were so hard-fought. Real British national interests were at stake in those discussions. The Government’s job was to safeguard and to advance those interests. It was not to sign up, without critical examination, to anything that was presented to us with a European label. I set out to the House a month ago exactly what our goals would be and what we could and could not accept. The outcome matches up to those goals and commitments in every respect. The most significant agreement of the Maastricht treaties is the agreement to co-operate in a legally binding but intergovernmental framework in the three key areas of law and order, foreign policy, and defence policy. Many of our partners would have preferred to conduct that co-operation through the institutions of the Community. That was not acceptable to us; nor, in my judgment, would it have worked. We have been able to draw a crucial distinction between those areas, such as the single market, where the Community institutions are the best tools for the job, and other areas, such as foreign policy and the fight against crime, where direct co-operation between national capitals is likely to produce the best result.
However, despite that satisfactory outcome, no one in the House should assume that that argument has been settled for all time. Some Community member states will go on pressing for a united states of Europe, with all co-operation within one institutional framework. We shall continue to argue forcefully against that proposition, and I believe that we will win the argument in the future as we have thus far.
The treaty on political union was a challenge as well as an opportunity. The challenge was to ensure that we checked the encroachment of the Community’s institutions. The opportunity was to make the Community work better. In the event, a large number of the agreements that were reached stemmed specifically from proposals that were put forward by the United Kingdom. It is worth stating the extent of those proposals. Our proposals were for stronger European security and defence co-operation, making the Western European Union the defence pillar of the European union, while preserving the primacy of the North Atlantic Treaty Organisation. For us, the prime importance of NATO was a vital national interest, and that has been secured.
Our proposals were also for a common foreign and security policy going beyond the Single European Act, but remaining outside the treaty of Rome and beyond the reach of the European Court. They were for co-operation on interior and justice matters, but also for co-operation outside the treaty of Rome and the jurisdiction of the European Court. They were also for co-operation for greater financial accountability, for a treaty article on subsidiarity–an article that specifically enshrines the crucial concept that the Community should undertake only those measures that could not be achieved at a national level–and for the right of the European Court of Justice to impose fines on those member states that fail to comply with its judgments, or with Community law, having previously signed up to it. We won agreement to all those proposals, and it was vital to the interests of this country that we did.
Mr. Tony Benn (Chesterfield) : Will the Prime Minister help with this paradox concerning the future of Europe? The west is moving towards union; the east is moving towards a looser association–a commonwealth idea. Is it not possible that the harmonisation of the interests of individual member states along commonwealth lines rather than by means of a union would offer a more durable future, given that the break-up in the east came about because centralisation occurred without the consent of the peoples of the countries involved?
The Prime Minister : I have much sympathy with what the right hon. Gentleman has said. It is for that reason that I regard the innovation of the pillared structure operating on a co-operative basis outside the Community institutions as a very desirable development in the negotiations at Maastricht. I believe that it opens up new opportunities in the future for a European co-operation, which I believe is in all our interests–but outside the centralising institutions of the Commission, and outside the influence of the European Court of Justice. It is because of the extent of my sympathy with the right hon. Gentleman–although I would not, I believe, go as far as he would in that regard–that I believe that the agreement at Maastricht is so important.
Mr. Nigel Spearing (Newham, South) : I am grateful to the Prime Minister for allowing me to intervene on the subject of centralised institutions. He mentioned subsidiarity, and article 3b of the treaty of union. Does he not agree that that unclear principle, on which it is very difficult to adjudicate, is totally limited by a phrase in the article? It applies to the Community only when the Community does not have matters “within its exclusive jurisdiction”.
Given that, by virtue of its powers of regulation, the Community has a very wide area of exclusive jurisdiction, does not that limit subsidiarity, whatever it be, to a very narrow range of topics?
The Prime Minister : Any action taken by the Community must not reach the level necessary to infringe the principle of subsidiarity. In essence, if it can better be done at national level, it ought not to be done at Community level. That is the principle that we have enshrined in the treaty. I shall return to that point in a few moments.
Mr. James Wallace (Orkney and Shetland) : Will the Prime Minister give way?
The Prime Minister : I will make a little progress. I shall return to that point; I ask the hon. Gentleman to be patient. Had it not been for Britain’s arguments, we would have had last week a treaty which brought foreign policy and interior and justice matters within the treaty of Rome. We would have had a Community setting itself up as a rival defence organisation to NATO. We would have lost our independent right to decide foreign policy. The European Parliament would have had equal rights with the Governments of member states to decide on the policies and laws of the Community, and the Community’s competence would have extended into virtually every area of our national life.
I do not believe that it would have been right to agree to all that. It would not have been acceptable to this House or this country, and it would have been a betrayal of our national interests. Let me turn to social issues, and set out in detail the reasons why we could not agree to the social chapter in the treaty. Let me first remove a misunderstanding. The issue with the Community is not the quality of social provision in the countries of the Community. In Britain, we have a national health service free at the point of use– [Interruption.] It is free at the point of use, and it is the envy of Europe. Only one other European country is in a position to say that.
We have a benefits safety net that puts many European socialist Governments to shame, and the issue before us is whether social policy should be dictated by Brussels or determined in this country. We have long accepted that there should be a social dimension to the activities of the Community. It makes sense, for example, to ensure that common standards of health and safety at work are observed. There are already agreed Community measures in the social area covering freedom of movement, collective redundancy arrangements and equal treatment for men and women in pay and social security.
Ms. Dawn Primarolo (Bristol, South) : Will the right hon. Gentleman give way?
The Prime Minister : Not at the moment, if the hon. Lady will forgive me.
They all help to make a reality of people’s freedom to seek a job anywhere in the Community, widening the opportunities open to all our citizens.
We have not only agreed those measures; unlike some of our partners, we have implemented them. With Germany, we are the only member state that has implemented all the 18 directives so far adopted by the Community. We have made it clear that we will adopt and implement the majority of the proposals in the Community’s existing social action programme. Nineteen of the 33 measures so far published have been agreed by the Council of Ministers, and the United Kingdom has not blocked a single one of them. We have played a full part in the social dimensions of the Community, and no one has gone further.
Mr. Tony Banks (Newham, North-West) : Will the Prime Minister make clear to the House and, perhaps therefore, the country something that is not understood? How is it that countries such as Greece, Portugal and Spain could put their names to the social chapter but the United Kingdom could not? Does the Prime Minister really want to be the leader of the “little boys up chimneys” party?
The Prime Minister : If the hon. Gentleman had been patient, I would have turned from the social dimension to the social chapter about which he is talking.
The social dimension exists under present Community competence. It is a matter in which we have been fully involved, and I have listed many of the areas of legislation that we have accepted, with a better record than anyone else in the Community. The social chapter covers the point raised by the hon. Member for Newham, North-West (Mr. Banks), and the point that others may have wished to raise. We have refused to accept that, in addition, the Community should intrude into aspects of social policy best decided nationally.
The Government will not support proposals that would destroy jobs by imposing damaging costs on British industry. Companies know best how much they can afford in relation to their competitors, not the social affairs directorate in Brussels. That is why we are resisting the proposed working time directive, which would cost British employers up to £5 billion in the first year alone. There is also the part-time working directive, which would require up to 1.75 million part-time workers to pay national insurance contributions. The effect of that directive would be to impose extra costs on those workers at modest levels of earnings whose contributions burden the House lightened as recently as 1989.
That single illustration gives the lie to the absurd notion that all proposals from Brussels are socially enlightened, and all resistance to them is from the dark ages. Who in this House wants higher national insurance contributions on low-paid workers? That is what the directive proposes. If the Opposition support that, let them say so. If they do not want to do so, let them support us in resisting its imposition.
Those are directives that the European Commission is endeavouring to make, even under its existing competence. That makes it abundantly clear why I was not prepared to accept a further massive extension of competence in this field.
Mr. Stuart Bell (Middlesbrough) : The Prime Minister is telling the House that he totally misunderstands the social charter and the social chapter. Europeans regard the social dimension, the social chapter and the social charter as one and the same. Will the Prime Minister tell me and the House how he will feel when he signs the treaty, and the protocol that deals with the social charter? He will not sign, but will exclude Britain from the institutions of the Community, from all its mechanisms and from every aspect of this policy. How will he feel when he does not sign that page?
The Prime Minister : The protocol is not in the treaty; it is adjacent to the treaty, but it is not in it. The protocol will not apply to us. It will not impose damaging costs on British industry and workers. I feel, as so many employers in this country and abroad feel, that it will give a competitive advantage to this country, not a competitive disadvantage. The social chapter would have implied that laws could have been imposed on the United Kingdom, by a qualified majority vote of member states, on working conditions, rights of information and consultation–including that of unions to block essential business decisions–and any action related to the provision of jobs for unemployed people. These would have ceased to be a matter for decision by this House and by British employers and employees, according to the needs of this country.
The Community’s ambitions would not have ended with those matters : social security and protection, union rights to representation of workers, union involvement in company management and the conditions of employment of non-resident workers from outside the Community would all have been explicit Community responsibilities. That, without a shred of doubt, would have been a recipe for a centralised Community social policy, which could not possibly have taken account of wide variations in traditional practice, culture and experience. It is clear that it would have enabled costly laws to be imposed, irrespective of the needs of our economy and our jobs, and I was not prepared to accept that.
Ms. Ruddock : Will the Prime Minister confirm that Britain has the lowest maternity pay of any country in the Community and, in the context of the remarks that he has just made, is he satisfied with that state of affairs?
The Prime Minister : Britain has the longest maternity leave, as the hon. Lady may know, of any country in Europe : this House decided that, and the hon. Lady has to recognise that point. It is for the House to determine that.
Let me turn to article 118b in the agreement of the 11, of which the Opposition are so fond. Let me explain to the House what the agreement that I rejected says about the role of collective agreements at Community level, rather than what some have led us to believe in recent days. It provides for such agreements between Community-level representatives of management and labour. That means, principally, the Union of Industrial and Employers Confederations of Europe and the European Trades Union Congress–a body whose combined membership is no more than one in four employees in the Community. It provides that such agreements shall be implemented in member states in one of two ways.
The first is to require such agreements to be implemented directly in member states according to their own procedures. Such agreements could cover any matter, including pay, the right to join a union and the right to strike. The only exclusions from those provisions are what Community-led employers and unions fail to agree on. The second way is to require the Council, at the request of these employers and unions, to implement these agreements through Community law, enforceable through the European Court. In this case all the matters within the huge range of Community competence that I have described could come within the scope of such agreements. Only pay, the right to join a union and the right to strike would be excluded.
The Opposition told us the exclusions, but they failed to mention the list of inclusions. The matters included run to union law as well as the laws affecting individuals–rights of recognition and negotiation, the right to block company decisions–and nowhere in the proposals tabled are collective rights excluded from action, and laws could be imposed on this country without the agreement not only of its Government but without the agreement of its Government, its employers and its employees. That is not acceptable.
The Opposition cannot credibly claim that such extraordinary provisions would not recreate precisely the kind of national bargaining–but now at a Community level–which created what was called the “British disease” of the 1960s and 1970s, so I rejected those proposals. I shall not turn back the clock to the failure of the corporatism of the 1960s and 1970s. I do not believe that the British people want to see Europe trying as national Governments tried in the 1960s and 1970s–
Mr. Tony Blair (Sedgefield) : Will the Prime Minister confirm that, in relation to the first way that he mentioned, the declaration attached to article 118 states that none of the agreements can impose
“any obligation to amend national legislation in order to facilitate their implementation.” ?
Will he also confirm that, in relation to the second way, they are all covered by article 118b, which specifically exempts the right to strike and union legislation?
The Prime Minister : The hon Gentleman is wrong on his second point. There is the possibility, the probability and even the certainty of supranational agreements being imposed on this country as a result of these agreements. I am not prepared to accept that on behalf of this country. Neither–on the basis of the experience of what is happening under the existing social provisions–was I prepared to trust the Commission not to stretch the new definitions of the proposed social chapter. We have seen what the Commission is doing with the working time directive under the health and safety article– [Interruption.]
Mr. Speaker : Order. I ask the House to settle down.
The Prime Minister : We have seen what the Commission is doing in terms of the present health and safety article, and I am not prepared to take the risk of that happening again, with the Commission stretching its responsibilities.
Finally, I am not prepared to envisage a situation in which labour regulation, I am not prepared to envisage a situation in which labour regulation could be imposed on the United Kingdom even if the Government of the United Kingdom, the Confederation of British Industry in the United Kingdom and the Trades Union Congress in the United Kingdom had all voted against it, yet that is what the Opposition wish to support.
Mr. Rees rose–
The Prime Minister : I told the House on 20 November– [Interruption.]
Mr. Speaker : Order. There are many people outside the House who are very interested in the debate and who want to know what the Prime Minister has to say. I ask the House to settle down.
Mr. Rees : On such an important issue, on which the Prime Minister went three ways, would it not be a good idea if he were to ask the learned Attorney-General to give his view to the House?
The Prime Minister : The learned Attorney-General’s view is that which I have expressed to the House.
The proposal is unacceptable, and that is why we rejected it. It is also the view of British industry and commerce and of other people all around Europe that we have made the right decision. Perhaps the Opposition would be interested to hear what the rest of the world says. The Environment Commissioner, Mr. Carlo Ripa di Meana, said that the agreements that we have reached would make Britain “the most attractive country for foreign investment.”
The Japanese equivalent of the CBI has expressed concern about the consequences of the social chapter on labour flexibility and wage costs–we know how proud the Leader of the Opposition is of the Japanese investment in his constituency.
The director general of the CBI has said that the agreement has achieved “exactly what business needs”. The director general of the Institute of Directors has described the outcome as
“a triumph for British business”.
The chairman of British Petroleum has said that he is “delighted”, and the chairman of ICI that this is probably as good an outcome as could have been hoped for.
All those people with direct experience of industry are right, and the Opposition are wrong.
I told the House on 20 November that, on economic and monetary union, there must be a provision to allow this country to decide whether–not just when–to join a single currency. That is what we have achieved–precisely, and in legally binding form. As a result, we are uniquely well placed to make a sensible judgment on this important question at the right time. If we do not wish to join, we are in no way obliged to do so. If we wish to join a single currency, it will be open to Parliament to decide to do so at exactly the same time as any of our partners.
Let there be no doubt : Britain is among those who will meet the strict convergence conditions. We took the lead in setting them and will continue to be involved at every stage leading up to the decision whether to launch a single currency.
Mr. Frank Cook rose —
The Prime Minister : There are some who argue that the treaty creates such a strong momentum towards a single currency that, whatever our doubts, we shall be compelled by economic pressure to join when the time comes. I do not believe that. The balance of economic advantage will depend heavily on the circumstances in which a single currency is created–how many member states are involved, and whether the Community has met the convergence conditions. No one can judge now what the situation will be in five or six years’ time. No economic pressure could compel this country to join a single currency if Parliament judged the political disadvantages to be too great.
Mr. Alex Salmond (Banff and Buchan) : Will the Prime Minister give way?
The Prime Minister : I believe that it has been right for this country to maintain, as we have done, a two-way option–to go in if we judge it right to do so, but to stay out if we judge it right to do so. The debate about the European Community is littered…
Mr. D. N. Campbell-Savours (Workington) : Does the Prime Minister believe that the existence of the two-way option will help Britain to attract the central bank to the United Kingdom?
The Prime Minister : I think that it will do no harm whatever to our prospects. Many other countries believe that we are wise to have this option. We have all the advantages of determining the conditions up to entry and–uniquely–the right to go in or not, depending on whether it is right for our country. The debate about the European Community is littered with labels for people- -anti-European, pro-European, Euro-fanatic, Euro-sceptic or Europhobe. Those labels are echoes of a healthy debate, but they should not destroy our sense of purpose.
No country has a greater capacity than ours to commit itself to a cause that it believes to be right–the history of this century clearly shows that. Many people in this country have committed themselves to membership of the Community with a similar sense of dedication. They made a commitment to an organisation which they believed would be a powerful force for good. I believe that they were right to do so.
It was right to join, not just for the opportunities that the Community offers as a common market, not even for the economic strength of the Community collectively, but for the collective power of the European democracies to improve the general weight, politically and economically, of European opinion throughout the world. Nothing that has happened in the almost 20 years of our membership causes me to doubt the rightness of the original decision to join the Community.
Mr. Frank Cook : Will the Prime Minister please, please, please give way?
Mr. Speaker : Order. Will the hon. Gentleman please sit down?
The Prime Minister : I have given way on nine or possibly even 10 occasions. I suspect that there are more than 600 hon. Members to whom I have not given way, and the hon. Member for Stockton, North (Mr. Cook) is one of them.
As I said earlier, we attach great importance to the principle of subsidiarity. It is not only a defence of our national freedom of action but a statement of our willingness to co-operate. Such co-operation does not mean compromising our national traditions or institutions–far from it. It means not allowing sentiment to stand in the way of real interests. It is right to be hard-headed in our dealings with Europe, and that was our approach in the negotiations. At Maastricht, we ensured a safer Europe, and we reaffirmed the primacy of NATO. We set the framework of a stronger and more coherent European foreign policy, in which our national independence of action is assured. We strengthened the rule of law in the Community. We established more efficient and more effective institutions, with stronger arrangements for budgetary control.
We gave the European Parliament a greater role in monitoring the Commission. We obliged the Community to respond more directly to the needs of the citizen. We equipped ourselves to fight international crime, terrorism and drug trafficking. We secured provisions that will be good for British industry, and a Community that will be open to the rest of the world.
Our role consistently has been to ensure that the Community does not become self-regarding, inward-looking and over-regulatory. Brussels is a means to an end; it is not the end itself– [Interruption.] From their policies and comments, Opposition Members clearly feel differently. In their view, if Brussels says it, it must be right irrespective of the national interest.
There is one critical agreement among the Twelve, which is outside the treaty but in the presidency conclusions, and which I believe is vital for the future of Europe. As we reach the end of the century, it becomes even clearer that the Community does not end with the Twelve. I do not accept– [Laughter.]
Mr. Speaker : Order. These are not matters of hilarity, as many people outside would agree.
The Prime Minister : I do not accept the conflict, which is often referred to, between deepening the Community and widening it. If the Community ignores what is happening beyond its boundaries and simply concentrates on internal development, it will not become deeper; it will just become shallower. We must broaden it and open its doors. It would be a tragedy if historians could look back and say that the Community had been sleepwalking through a year of revolutions elsewhere. That tragedy would be compounded if historians were to look back and say that, if only the Community had reached out to the fragile democracies of the east, disasters in those democracies could have been averted.
At Maastricht, the Community committed itself to further enlargement. It did so at Britain’s initiative. That commitment will be seen as one of the most significant of the agreements to which we signed up last week. In six months’ time, Britain will hold the presidency of the Community. In that six months, we hope to start negotiations leading to membership of the Community for Austria and Sweden, and other European Free Trade Association countries. We shall start to pave the way for the eventual membership of the countries of eastern Europe. We shall put in place the last measures needed to complete the single market–a single market that will extend way beyond the borders of the Twelve, even before the new member states join.
In the treaty of Rome, the free countries of Europe wove their own lifeline. We now have a responsibility to the other countries of Europe to throw that same lifeline to those countries now embarking on a perilous journey towards stability and democracy. If we were to fail in that endeavour, we should put at risk all the achievements of post-war Europe. The prize if we succeed in that endeavour is enormous.
I see the main task of our presidency next year as being to ensure that the Community matches up to this, its greatest challenge and opportunity–the achievement of a Community open to all the democratic countries of Europe and reducing, perhaps even eliminating, the risk of conflict within the whole of our continent from one end to the other.
That was the kind of Community that we fought for at Maastricht. That is the kind of Community that we wish to build. We can take pride in achieving our goals in this negotiation, and I commend the outcome to the House.