Speeches, etc.

Margaret Thatcher

Written Interview for Kathimerini (Greek newspaper)

Document type: Speeches, interviews, etc.
Source: Thatcher Archive (THCR5/2/318)
Editorial comments:

Item listed by date of publication.

Importance ranking: Minor
Word count: 1093
Themes: European Union (general), Economic, monetary & political union, European Union Budget, Economic policy - theory and process, Trade, Foreign policy (Western Europe - non-EU), Foreign policy (Middle East)

Q1

Prime Minister, how do you see the future of the European Community? What do you think that we all, as Europeans, should be aiming for?

A1

I set out my views on this in a recent speech in Bruges which has attracted a certain amount of comment. Basically I believe that the European Community must develop with the grain of history rather than against it. That means that it must be built on willing and active cooperation between member states. The countries of Europe should work more closely on the things we can do better together than singly, because Europe is stronger when we do so. But that does not require power to be centralised in Brussels or decisions to be taken by an appointed bureaucracy. I am sure that Greece, as the country which gave birth to democracy, would be the first to recognise that.

We must also be ready to tackle problems in a practical way, however difficult they may be. This means that we must not shrink from necessary reform of the CAP and the Community's finances. If we fail to do that the Community will only damage itself in the eyes of its own people and of the outside world.

We must also have policies which encourage enterprise, if Europe is to flourish and create the jobs of the future. The lesson of the 1970s and 1980s is that centralised planning and detailed control don't work and that personal endeavour and initiative do. That means action to free markets, to widen choice and to reduce government intervention - all areas in which Britain has given a clear lead.

Finally, Europe must not be protectionist. It would be a betrayal if, while breaking down constraints on trade within Europe, the Community were to erect greater external [end p1] protection. Europe has a particular responsibility towards the developing countries in this field.

In summary, I want Europe to be a genuine Community of nations, outward-looking and relishing our national identity no less than our common European endeavour.

Q2

Yet, Prime Minister, you recently said that you consider European union to be an “airy-fairy” idea. Could you explain what you meant? And how do you reconcile, for example, your rejection of a European Central Bank with the recent issue in London of ecu bonds?

A2

No-one has ever been able to define the expression &oq;European union&cq; satisfactorily to me. As I made clear in my previous answer I want to see a genuine Community of nations, united by a strong sense of common purpose and working closely together, while preserving their sense of nationhood. Europe will be stronger precisely because it has Britain as Britain and Greece as Greece. It is the different national traditions and sense of pride in one's country which has been the source of Europe's vitality through the centuries.

You ask about our attitude to a European Central Bank. Let us just look at the facts on monetary cooperation. The immediate requirements are:

- to implement the Community's commitment to free movement of capital - we have it in Britain;

- to abolish exchange controls throughout the Community - we abolished them in Britain in 1979;

- to establish a genuinely free market in financial services in banking, insurance and investment - which we have had for many years;

- to make greater use of the ecu. [end p2]

It is precisely with this last point in mind that we will become the first member state to issue ecu denominated Treasury bills. We very much hope other member states will follow suit. When others in the Community have taken all these steps, and sustained them for a period of time, we shall be in a better position to judge the next moves.

Q3

Greece has the Presidency of the EEC at the moment. How would you want or expect Greece to use this position?

A3

I would like to see Greece take forward the Community's work in an efficient and business-like manner, as indeed it is doing. Over the period of your Presidency, we need to concentrate on next steps on the Single Market, on the negotiations for the new Lom&eacu; Convention and the Uruguay Round, and on implementing the reforms agreed at the European Council last February. I am looking forward to the European Council in Rhodes, and very much hope that Mr. Papandreou will have recovered sufficiently to chair it.

Q4

Greece and Britain are at opposite ends of the Community in every sense. Geographically Britain is one of the northern states, Greece is a southern Mediterranean member. You have a Conservative Government, Mr. Papandreou heads a Socialist Government. Do you think that there can be any common ground between countries with such widely diverging interests?

A4

To start with, there are actually a lot of subjects on which we do think alike and cooperate. We both want to get rid of unnecessary agricultural surpluses, so that resources can be freed for other policies. Because we are both on the periphery of Europe, we have very similar views in the field of road transport. Like Britain, Greece has strong reservations about the Commission's proposals for harmonising indirect taxes. We are at one on the need for international cooperation to fight terrorism. Britain has given full support to Greece in this area during her Presidency of the EC [end p3] and our officials are in frequent contact within the Trevi framework. We also cooperate over the regional funds and other programmes to benefit the less prosperous member states, programmes to which Britain is a major contributor.

Of course there are other areas we have different points of view. But the Community works on the principle of reconciling divergent interests through discussion between the member states, and on the great majority of issues we end up in agreement.

Q5

For many years Greece has seen Turkey as the main threat to its security. Turkey now wishes to join the EEC. Greece has linked the issue to developments in Cyprus. Do you think that there is a place for Turkey in Europe and if so how should Greece react?

A5

Turkey has applied to join the European Community. The application is being studied by the Commission which will, in due course, submit its opinion. This will be the basis of further discussions within the Community. That is exactly the same procedure which has been followed in all other applications for membership.

The question of Cyprus is quite separate. But I am encouraged by the start of talks between President Vassiliou and Mr. Denktash to restore a unified state of Cyprus and I very much hope they will succeed.