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'--The Government will not take any steps to foster relations between the European Union the WEU with the view to the possibility of the integration of the WEU into the Union, as contemplated by Article 1, paragraph 10 [Article J.7] of the Treaty of Amsterdam, without first tabling a motion in each House of Parliament which shall be subject to affirmative resolution.'.

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New clause 38--Common foreign and security policy--


'--The Government shall not take any steps to participate in the decision making arrangements as set out in Article 1 paragraph 10 [Article J.13 1 and 2] of the Treaty of Amsterdam, without first tabling a motion in each House of Parliament which shall be subject to affirmative resolution.'.

Mr. Howard: Today, we begin our detailed examination of the treaty of Amsterdam. That treaty was the first major test of the Government's attitude to important international negotiations. We can assess their performance by reference to a number of criteria. How successful were they in achieving their declared objectives? Did they press and persuade our partners in the European Union to come round to Britain's way of thinking when they might initially have been disposed to take another view? Were they steadfast in resisting the views of our partners when those views did not reflect this country's interests or represent the best way forward for Europe as a whole?

On all those criteria, the previous Government's record was impressive. We demonstrated that it was possible to take a leading role in Europe--hon. Members need look no further than the single market for an outstanding example of that--while successfully safeguarding Britain's interests.

I hope that, after the Foreign Secretary's extraordinary revelations on Tuesday we shall hear no more about the wonderful spirit of co-operation that has supposedly been brought about by the Government's attitude to Europe. Last Tuesday, we were told that, after the summit had ended, Spain and the Dutch presidency had reached a bilateral agreement. That deal made a significant change in the treaty and one that was detrimental to Britain's interests. Moreover, it is in direct contradiction with what the Prime Minister told the House on his return from Amsterdam on 18 June. It is an extraordinary allegation to have made. If true, it gives the lie in the clearest possible way to the Government's pretensions and so-called achievements in Europe.

Let us examine the present Government's performance against those criteria.

Mr. Mike Gapes (Ilford, South): Is the right hon. and learned Gentleman saying that the previous Government, with their policy of stopping the show at the negotiations, would have got a successful agreement with all the other European Union countries? Or is he saying that he disagrees with the policy of the former right hon. and learned Member for Edinburgh, Pentlands and would not have adopted that approach if he had been Foreign Secretary at that time?

Mr. Howard: I have no doubt that the previous Government would have obtained a successful outcome at Amsterdam and one that would have differed significantly from that obtained by the present Government.

Some of the most important aspects of the Amsterdam treaty are dealt with in the amendments and new clauses that we are considering today. Hon. Members will be aware that not all parts of the treaty are amendments to the European Communities Act. Those parts which do not need to be incorporated in our legal system can be agreed by the Government without the approval of the House. Treaty articles which are held to be intergovernmental in

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structure come into that category. Yet, although nominally intergovernmental--I shall come to that shortly--those provisions will have a significant impact on the sovereignty of this House and Britain's place within the European Union.

The amendments and new clauses tabled in my name and those of my right hon. and hon. Friends would, if accepted, make it clear that, although the House cannot override the Government's right to use the Crown's treaty-making prerogative, it does not accept the principle set out in article 1 of the Amsterdam treaty. That article contains measures which give rise to serious concerns about the treaty among Conservative Members. Many were measures that the Conservative party promised to oppose in its manifesto, and many were measures that Labour, too, claimed it would resist.

Three main aspects of the article concern us. The first is the role and powers of the European Court of Justice, the second the measures on human rights and the third, the moves towards further integration in foreign policy and defence. I will deal with each in turn, but I shall begin by exploring a little further the supposed divisionof the Amsterdam treaty into supranational and intergovernmental sections--the distinction which limits the extent to which the House has any real say over the ratification of that part of the treaty.

At Maastricht, foreign and security policy and justice and home affairs policy were hived off into the so-called second and third pillars. They were to be intergovernmental matters, with the question of the jurisdiction of the European Court of Justice left open. The Amsterdam treaty does much to undermine that pillared structure. Article K.7, for example, explicitly involves the European Court of Justice in the third pillar, seriously undermining the valuable distinction that we had agreed at Maastricht. I apologise to hon. Members if this seems abstruse and esoteric, but it is important.

The involvement of the European Court of Justice in that area of policy represents the difference between collaboration among nations and supranational authority. It is the difference between co-operation and integration. Since neither the Prime Minister nor the Foreign Secretary made any mention whatever of that article, I can only conclude that its importance has eluded them. However, I cannot believe that even they can have missed the significance of article K.2 on policing. The previous Government were proud to have agreed measures on common action against international terrorism. We played a key role in the establishment of Europol. At a time when Germany and France held completely different views about its nature--they were at an impasse--I helped to bridge the differences and bring them together.

6 pm

We were always aware that some of our European partners had ambitions to create a European army and a European police force. Some members wanted Europol to be a superior federal force, a sort of European FBI. Article K.2 is a step in that direction. It empowers Europol personnel to join in national policing operations in a support capacity. That is a significant change. What status will those personnel have? Will they have diplomatic

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immunity? How, and to whom, will they be accountable? Those are serious questions to which I hope the Minister will respond.

Our reservations are reinforced by the provisions in the treaty that relate to the European Court of Justice. All parties should be able to agree on reform of the court. All parties should cherish the impartiality and efficiency of judicial institutions. This debate has nothing to do with whether one believes in a Europe of nations, as we do, or wants to hand over yet more powers to Brussels, as the Government do. The Conservative party believes that the European Court of Justice must remain the guarantor of the single market. Common rules require a supreme authority to interpret them. Without a strong, independent court, we could neither ensure the even application of Community law nor prevent the abuse of power by other EU institutions.

It is equally important that the European Court of Justice remains within the remit given it by member states. That much is, or ought to be, common ground to left and right, federalists and non-federalists. There is concern across the EU that the European Court of Justice has taken to exceeding its competence and to adopting its own political agenda. Several judgments, such as that in the Francovich case, have gone beyond what is provided for in the text of the treaties. Some have had serious consequences for national exchequers. In a series of controversial judgments, the court has extended its jurisdiction beyond what was specifically bestowed on it by member states. That should worry all democrats, especially as there is no right of appeal beyond the court.

The court's recent ruling on the 48-hour week is a clear example of the treaty being interpreted in a way that was not intended. Of course, there is an argument to be had about such measures. We believe that such labourmarket regulations can destroy jobs, and that Britain's employment record backs that up. The Labour party takes a different view, as it is entitled to. The argument in this case is clearly about social policy. For the European Court of Justice to rule that it is a health and safety issue stretches legal credibility.

Dr. Nick Palmer (Broxtowe): The right hon. and learned Gentleman said that there was widespread concern across Europe about the alleged extension of the powers of the European Court of Justice, and mentioned the 48-hour week. Can he name a country whose Government have expressed concern about preventing their citizens from being forced to work more than 48 hours a week?

Mr. Howard: Many employer organisations and other people in Europe recognise the damage that arbitrary provisions of this nature can do to job creation.

To take another example--on which I hope there will be some cross-party consensus--the European Court of Justice recently ruled that Britain could not reserve its fishing quota for its own fishermen. Again, that ruling violated the clear intention of the treaties. When Britain gave up its exclusive right to fish its waters, it did so in return for a guaranteed quota of the total stocks. For that remaining quota to be fished by foreign vessels flying British flags of convenience undermines the basis of the fishing agreement; but the court ruled that the Merchant Shipping Act 1988, designed to return to the intention of the treaties by requiring British-registered vessels to be

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largely British, was illegal. If, like us, the Labour party believed that such decisions were wrong, why did it not join us in pressing for reform of the institution that gave rise to them?

It was precisely to tackle such problems that the previous Government placed such emphasis on reforming the workings of the court. At the intergovernmental negotiations, we tabled a package of measures aimed at improving its effectiveness and curtailing any possibility of political bias. We wanted to limit the retrospective application of its judgments; to introduce the principle that member states should be liable for damages only in cases of serious and manifest breaches of their obligations; national time limits in cases based on EC law; and streamlined procedures for the rapid amendment of EC laws that have been interpreted in ways in which member states had never intended. Those comprehensive, sensible proposals would have streamlined the court and eliminated many of its most egregious flaws, without affecting its position as supreme guarantor of the treaties.


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