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Intergovernmental Conference (White Paper)

3.31 pm

The Secretary of State for Foreign and Commonwealth Affairs (Mr. Malcolm Rifkind): With permission, Madam Speaker, I should like to make a statement on the forthcoming intergovernmental conference.

Britain has a vision of Europe that is reflected in the White Paper that we are publishing today, which is entitled "A Partnership of Nations". We want to see a Europe that respects cultural and political diversity; that does only those things at the European level that need to be done at that level; and that is outward-looking, free-trading, democratic and flexible--a partnership of nations working together to advance their national interests. The intergovernmental conference is, of course, only one means available to us through which we intend to realise our objectives. We shall continue to work tirelessly in all the other forums for the same goal.

Successive British Governments have seen the European Union as a means of safeguarding stability and creating prosperity in Europe. There have been frustrations and controversies, but, overall, the United Kingdom has greatly benefited from more than 20 years of membership.

The Government approach the launch of the intergovernmental conference in Turin on 29 March unambiguously committed to our membership of the European Union. We shall play a leading role in the Union as one of Europe's biggest and most powerful nations. Britain's voice is influential and it has helped shape the European Community in the past. Britain was the pioneer of the single market. We have been one of the leading advocates of enlargement and of a European Union open to the world. The Government believe that the European Union will succeed only if it respects the integrity of the independent democratic nation states that comprise its membership and if it is flexible enough to accommodate their political and cultural differences. The Government are totally opposed to a monolithic, centralised, federal Europe.

The treaty on European Union--like the original treaty of Rome--calls for an


not, let it be noted, among the states of Europe or among their Governments. That aspiration for strengthened co-operation and friendship across the whole of Europe is a noble one, and is fully shared by the Government. However, it should not mean an ever closer political union in the sense of an inexorable drift of power towards supra-national institutions, the erosion of the powers of national Parliaments or the gradual development of a united states of Europe. The Government reject that conception of Europe's future. That is why it is crucial that national Parliaments remain the central focus of democratic legitimacy. Europe must develop with the instincts of free people in free nations. As the European Union matures, it needs a clearer sense of what it is and of what it should never aspire to be. Those principles are closely adhered to in the White Paper.

The intergovernmental conference is obviously important to the European Union's future, but it is not the only, or perhaps even the most important, challenge

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confronting the Union. Outside the intergovernmental conference, we must prepare for the enlargement of the Union to the east and the south, which will involve the Herculean task of reforming the Community's agricultural and regional policies. Meanwhile, we cannot ignore the urgent need to strengthen Europe's competitiveness and thereby generate new jobs. There will also be hard choices to make on a single currency and on the Union's future financing. Those crucial matters do not fall within the scope of the intergovernmental conference, although the United Kingdom is developing clear and robust policies in each area.

The Maastricht treaty came into force little more than two years ago. We agree with the conclusion of the study group that was set up to prepare for the IGC that


British objectives, such as a major reform of the common agricultural policy, do not need treaty amendment and will be pursued in other negotiations.

The IGC has yet to begin. In common with other member states, the Government are still considering their detailed approach. We may have further proposals to make as the negotiations proceed. The following represent our specific proposals for this intergovernmental conference.

First is subsidiarity. That is the key to ensuring that the Union concentrates single-mindedly on doing what needs to be done at a European level, and only that. The United Kingdom introduced that vital concept into the treaty of Maastricht. The principle has been developed at subsequent European Councils. It is having the effect that we intended, but more clarity is needed in the treaty. We shall therefore make proposals at the intergovernmental conference to entrench subsidiarity still further in the treaty.

Secondly, we are concerned at the way in which certain directives have been used or may be used for purposes that were never intended by the Governments who agreed to them--for example, health and safety articles that may be used for social policy, or fiscal measures that may be added on to single market or environmental proposals. Another example is the common fisheries policy, where the practice of "quota hopping" is preventing fishing communities from enjoying a secure benefit from national quotas, thereby undermining their entire purpose. The Government do not believe that directives, once enacted, are irreversible, and will press for treaty amendment if that proves to be the best way of ensuring that the original purpose of those directives is fully respected.

Thirdly, the President of the Commission, Jacques Santer, has said that the Union should do "less but better". Britain agrees. The volume of new legislative proposals being put forward has been falling rapidly, with only19 proposals for principal legislation expected in 1996 compared with 61 in 1990, but there is also an urgent need to improve the quality of European legislation, and we shall be pressing for a range of measures to achieve that, including much wider consultation of interested parties via the Commission before proposals are put forward, and the automatic withdrawal of proposals that are not adopted by the Council within a given time.

Fourthly, national Parliaments are the primary focus of democratic legitimacy in the Union. The House, like the Government, rightly attaches importance to the role of

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national Parliaments in European Union decision making. We have taken careful note of views expressed in several helpful reports by Committees of the House.

We are examining a range of ideas, including a binding period for Parliaments to scrutinise Community documents before decisions are taken in the Council, and a greater role for national Parliaments in the justice and home affairs pillar.

The European Parliament, by contrast, already has a major role in the European legislative process, including a number of new powers acquired at Maastricht, some of which have yet to be fully tested. The Government do not, therefore, see the case for new powers for the European Parliament at the expense of national Parliaments or Governments.

Fifthly, we believe that foreign and defence policy must remain the responsibility of national Governments. The common foreign and security policy has, since its inception, achieved more than many had expected. It is in this country's national interest that members of the European Union should speak and act together on the world stage where our objectives are the same. Our joint support for the middle east peace process or for democratic institutions and market economies in central and eastern Europe is an obvious example. We shall be pressing for a more effective common foreign and security policy at the forthcoming conference. But, crucially, Britain believes that the common foreign and security policy must remain based on unanimity and be intergovernmental in character if it is to succeed. As the House knows, I put forward our ideas in a speech in Paris last week. Ultimately, the common foreign and security policy will carry weight internationally only if it represents a genuinely common policy, not a majority one.

Sixthly, the intergovernmental conference will also be considering the arrangements for European defence co-operation. The Government set out their approach in a full memorandum last year. That memorandum has been attached to the White Paper that is being issued today. We believe that it would be useful to improve defence co-operation in Europe by closer co-operation between the European Union and the Western European Union. We do not, however, believe in the integration of those two bodies or in the subordination of the WEU to the European Union. NATO must remain the bedrock of western security. The European Union, four of whose member states are neutrals, and which are neither in NATO nor in the WEU, cannot expect to take decisions on defence policy or on the use of military forces.

Seventhly, co-operation in justice and home affairs will be of particular importance in the intergovernmental conference, because terrorism, organised crime, illegal immigration and drug trafficking are among the greatest challenges facing modern society. They require a co-ordinated, multinational response. Substantial progress has been achieved in the past few years in that area, and Britain has proposals for improving that co-operation. But, as with foreign policy, the Government believe that those issues must remain intergovernmental and subject to unanimity if they are to carry the support of the peoples of Europe. Those are matters of high political sensitivity, involving questions of national sovereignty.

Eighthly, the European Court of Justice is another area in which we shall be pressing for improvements at the intergovernmental conference. Britain is committed to a

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strong and independent Court, without which it would be impossible to ensure even application of Community law or to prevent abuse of power by the Community's institutions. But the functioning of the court can and, in the Government's view, must be improved. There is very great concern that the court's interpretations sometimes seem to go beyond what Governments intended when laws were framed.

The Government are working up a number of proposals to enable the court to address those concerns better. They include: strengthening the ability of the court to limit retrospective application of its judgments; introducing the principle that a member state should be liable for damages only in cases of serious and manifest breach of its obligations; applying national time limits to all cases based on European Community laws, except where the member state's failure to implement a directive is in serious and manifest breach of its obligations; an internal appeals procedure; streamlined procedures for the rapid amendment of European Community legislation that has been interpreted in a way that was never intended by the Council; an accelerated procedure for time-sensitive cases; and a treaty provision clarifying the application of subsidiarity in the interpretation of Community laws. The Government will shortly be issuing a memorandum setting out their proposals in detail.

Ninthly, certain changes to the Council voting system will be necessary if the Union is to continue to function democratically in an enlarged Union. At present, the system of weighted votes is biased against the larger member states. There is growing acceptance across Europe that a way must be found to address that imbalance. Possible alternatives include changing the number of votes of larger countries so that population is better reflected. What is clear is that the system must not allow countries representing a significant percentage of the European Union's population or the major net contributors as a group to be outvoted.

Tenthly, as the Union enlarges to as many as27 members, it will be necessary to change the current policy whereby every member state, however small, has a Commissioner and is responsible for a six-month presidency. Such a structure would quickly become unworkable in an enlarged Union.

As the White Paper makes clear, there are a number of other specific areas where the Government see scope for improving the treaty at this intergovernmental conference. Those areas include animal welfare and possible changes to the common fisheries policy, as announced by my right hon. and learned Friend the Minister of Agriculture, Fisheries and Food last week. There are many areas where the countries of the Union could and should co-operate more closely in their own national interests, and in the interest of Europe as a whole. But at a time when there is concern about Europe trying to do too much, we do not believe that the rules on qualified majority voting in the treaty should be changed to make it easier to override national concerns in matters of particular sensitivity. That is why we shall oppose the extension of majority voting at the intergovernmental conference.

Nor do we favour further harmonisation or the extension of Community competence in the area of employment. The need to create jobs is one of the highest priorities facing the European Union. But jobs cannot be wished into being simply by legislating for them; it is

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businesses that make jobs. That is why the Prime Minister negotiated Britain's social chapter opt-out at Maastricht--and our opt-out is here to stay.

The Government approach this intergovernmental conference with confidence and determination. This country's national interest is the starting point for our approach as, for all free nations, the national interest can be defined as the collective expression of the democratic process. In many spheres, our national interest coincides with that of our European partners and, in those spheres, working with our partners enables our collective effort better to achieve our ends. We shall argue constructively for treaty changes to improve the operation of the Union. We want to strengthen the treaty so that Europe can face and overcome the challenges ahead and, in particular, so that we can prepare for further enlargement.

As I have said, the conference is only one forum where we shall press for our vision of Europe. There are others and we shall argue robustly in all of them. Britain will be at the heart of the debate about the future of the European Union, because it is our future and we can best shape our national destiny by working with our closest neighbours to make a strong and effective partnership of nations.


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