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United Kingdom Parliament Treasury Committee Update: Committee Questions Chancellor Over Draft Proposals For New Settlement With EU

Date 12/02/2016

11 February 2016

Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, writes to Rt Hon. George Osborne MP, Chancellor of the Exchequer, to clear up important questions arising from draft EU negotiation proposals.

 

Chair's comments

Rt Hon. Andrew Tyrie MP highlights elements of the draft proposal for a new settlement for the United Kingdom within the European Union, published by Donald Tusk on 2 February 2016, that would benefit from clarification ahead of next week’s EU Council summit.

Commenting on the correspondence, Mr Tyrie said:

"There is a lot at stake in these negotiations. They could offer gains for the UK, but a lot of important and detailed questions need to be answered at the summit. 

The UK needs protection from the Eurozone countries pressing ahead with rule making and caucusing in ways which damage British interests.

The UK also needs very specific protection to enable the Bank of England, and other regulators, to do what is required to maintain financial stability. We’re still paying the price for a massive financial crisis – everyone felt its ill effects. With its own independent currency, the UK cannot be expected to rely on Eurozone regulation to secure financial stability – we must be fully responsible for making our own rules.

And the UK needs protection from mission creep – the ratchet effect of EU law making. There needs to be a two way street. Amendment or repeal of EU rules, not least to reduce the burden on business, should be in the EU’s bloodstream. It isn’t at the moment. The urge to legislate needs a counterweight. For that, the government should press vigorously for independent and continuous review of the EU’s rule book, and to ensure that it is built in to the way the EU makes law."

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