Select Committee on European Scrutiny Twenty-Seventh Report



APPENDIX 1

Letter from the Minister for Europe (Mr Keith Vaz) to the Chairman of the Committee

General Affairs Council: Brussels: 18 - 19 September

As Parliament is not sitting, I am writing to inform you of the outcome of discussions at the General Affairs Council (GAC), in place of the usual inspired PQ.

The GAC adopted the "A" points listed in document no. 11342/00 and noted the resolutions, decisions and opinions adopted by the European Parliament in its session of 3-7 July in Strasbourg listed in document no. 9490/00. Copies of these documents will be placed in the House libraries as soon as they become available.

Western Balkans

The GAC agreed the text of a "Message to the Serbian people" ahead of the FRY elections on 24 September. The message emphasised that these elections give the Serbian people an opportunity to vote for democratic change; it is up to them to seize that opportunity by turning out to vote. The message reaffirmed that a choice leading to democratic change will entail a radical change in the EU's policy towards Serbia. The Council received a report from the Presidency on its plans for the EU/Balkans summit on 24 November in Zagreb. The Council adopted the Autonomous Trade Measures (ATMs), giving the Western Balkans significantly greater duty free access for their exports to EU markets.

External Aid

There was general support for the Presidency's approach, for the timetable proposed, and for measures to improve efficiency. The Presidency concluded that there should be a substantive debate, drawing conclusions, at the 9 October GAC; and noted the need to co-ordinate with ECOFIN and the Development Council.

MEDA II

Agreement was reached on the nine points put to the GAC by the Presidency. The Regulation will now go back to Coreper and the Working Group with the aim of adopting the Regulation at the 9 October GAC.

Barcelona Process

The Commission presented its communication on reinvigorating the Barcelona process. It emphasised the importance of speeding up negotiations and ratification of Association Agreements, developing South-South trade and applying the disciplines of the single market. The Presidency explained that they would be touring Mediterranean partners to consult them in the run-up to the November Euro-Med Ministerial in Marseilles.

Bananas

The Commission provided a brief update on its efforts to find a solution using a "first-come first-served" system of quota-allocation. It planned to produce clear recommendations for the 9 October GAC.

IGC

Ministers considered the issues of the extension of Qualified Majority Voting, and the size and structure of the Commission after enlargement. Much work remains to be done on both issues before December. Officials will take discussions forward in the regular IGC Preparatory Group.

Enlargement

The Presidency provided a report on the state of play in negotiations, which emphasised their intention to make as much progress as possible in negotiations, including tackling some of the applicants' requests for transition periods. Member States reaffirmed their commitment to enlargement, including to the principle of differentiation agreed at the Helsinki European Council; countries which started negotiations this year had the possibility of catching up with those which had started them earlier, they were able to do so. The Presidency reiterated the importance they attached to a successful IGC to prepare the EU for enlargement.

MEPs Statute

The Council took note of the Presidency's work on a Statute to regulate the salaries, expenses and conditions of MEPs. The Presidency wants an agreement with the European Parliament by December. I reiterated the UK's position, in particular the need for a proper expenses regime.

I am copying this letter to Elizabeth Flood (Clerk of your Committee) and to Tom Mohan (Clerk of the Lords Scrutiny Committee).

29 September 2000



Letter from the Minister of State for Energy and Competitiveness in Europe (The Rt. Hon. Helen Liddell) to the Chairman of the Committee

I represented the UK at the Internal Market, Consumers and Tourism Council in Brussels on 28 September.

The Council discussed working methods for the Cardiff economic reform process and endorsed the Presidency's plans and timetable for the IMC to make its contribution on economic reform to the Stockholm Summit and the Broad Economic Guidelines. The IMC will reach conclusions in March 2001 allowing assessment of national reports produced as part of the annual Cardiff cycle.

The Commission gave a presentation on its update of the 1996 communication on services of general economic interest. In the open debate that followed, most Member States stressed the importance of good quality public services and I and a number of others stressed the benefits of liberalisation in a properly constructed regulatory framework and cautioned against seeking to disapply competition rules. The Presidency concluded that the Treaty provided for protection of public services and the enforcement of competition rules and that both applied fully. There will be a further discussion at the Council on 30 November.

The Presidency reported progress on the Regulation on data protection within EU institutions, which is intended to apply rules on the protection of personal data to the EC institutions and bodies, and was confident that an agreement could be reached with the European Parliament at First Reading.

The Commission presented its proposal for a Community Patent and stressed its importance for stimulating competitiveness and innovation. The regulation would introduce a unitary patent system with effect for the whole of the Community and make patent protection simpler and cheaper. Member States expressed general support for the proposal, which was called for at the Lisbon summit, although there are issues regarding centralised jurisdiction and the language regime which will need to be resolved. The Commission made a progress report on its proposals relating to the use of phthalates in toys and childcare articles, and presented its Green Paper on the environmental issues of PVC and its proposals to consolidate and update EU food hygiene legislation, which were warmly welcomed.

Over lunch, the Council discussed preparations for the introduction of euro notes and coins.

24 October 2000



Letter from the Home Secretary (Rt. Hon. Jack Straw) to the Chairman of the Committee

Outcome of the Justice and Home Affairs Council Meetings, 28 September and 17 October 2000

The purpose of this letter is to advise the Committee of the outcome of the two Justice and Home Affairs Council meetings which took place during the summer Recess, on 28 September and 17 October. These were the subjects of two Parliamentary Questions which you tabled recently and I answered on 31 October.

I apologise if we have misunderstood the procedures which apply during the Recess. However, I enclose copies of the two Parliamentary Answers which I hope will be acceptable to the Committee.

Extract from Hansard: 1 November 2000 Cols. 419W-422W

Mr. Hood: To ask the Secretary of State for the Home Department what the outcome was of the Justice and Home Affairs Council held in Brussels on 28 September; and if he will make a statement. [136031]

Mr. Straw: Nigel Sheinwald, the United Kingdom's Permanent Representative to the European Union, represented the United Kingdom at the 28 September Council. The main matters dealt with at the meeting were as follows:

The list of A points was adopted in full, except items on the Schengen Information System, Sirene, on which one Member State maintained a Parliamentary Scrutiny Reserve, and on minimum standards for the security of passports.

Common Visa List:

The Council agreed to a mechanism for deferring the entry into force of a visa exemption for certain third countries.

Further discussion would take place in Committee of Permanent Representives (COREPER) and the European Parliament would be reconsulted. This is a measure in respect of which the United Kingdom has not sought to opt in.

Europol: money laundering:

Political agreement was reached on extending the Europol Convention to cover all money laundering and the accompanying Council declaration on predicate offences, subject to consideration of the European Parliament's Opinion. This would formally be adopted at the Council's meeting on 30 November.

Commission Proposal for a draft Council Directive on minimum standards on asylum procedures:

The Commission presented this proposal as its first response to the call by the Tampere European Council in October 1999 to create a common European asylum system. The proposal set out minimum procedural guarantees to ensure that Member States could process cases quickly and fairly at a national level and that secondary movements of asylum seekers were avoided. Common standards and time limits would assist in dismissing inadmissible and unfounded cases. Member States gave a general welcome to the proposal, which was remitted to the Asylum Working Group for further consideration.

Reception conditions for asylum seekers:

This was an orientation debate on key points in the Presidency's discussion document. No conclusions were drawn but the Presidency stressed that this was a key priority and it would be seeking to agree conclusions at the Justice Home Affairs (JHA) Council in November in order to provide a background to an anticipated legislative proposal from the Commission.

Council Decision to create a provisional Eurojust Unit:

Political orientation was reached on key elements of the text, subject to consideration of the European Parliament's opinion which had not yet been received. The text was remitted to COREPER for resolution of some technical issues and the language regime at the request of one Member State. A new Article was agreed which would allow the Commission to be associated fully with the general work of the unit, particularly in relation to the development of the permanent Eurojust and which would also enable the Commission to lend its expertise to cases considered by the unit where these fell within Commission competence. The United Kingdom maintained its Parliamentary scrutiny reservation.

Framework Decision relating to the status of victims in criminal proceedings:

This text was remitted to COREPER to resolve the outstanding issue on compensation. One Member State lifted its scrutiny reserve provided that a recital was included to the effect that the Decision did not imply an obligation to treat victims as parties to criminal proceedings. The UK maintained its Parliamentary scrutiny reservation.

Commission proposal to create a European Judicial Network in civil and commercial matters:

The Commission presented this draft Council Decision which was aimed at improving and developing existing judicial co-operation arrangements and providing the public with practical information about access to justice in cross-border litigation. The Civil Law Committee would discuss this further.

Protection of the environment through the criminal law: orientation debate

There was general support for the introduction of measures to combat environmental crime, in order to establish an European Union acquis in this area. The Presidency would produce an initiative for a new instrument incorporating the aspects of the 1998 Council of Europe Convention on Environmental Crime which were acceptable to all Member States.

Preparation for the joint JHA/European Council of Finance Ministers (ECOFIN) Council:

Over lunch, the Council prepared the joint ECOFIN/JHA Council meeting of 17 October on financial crime. The Presidency explained that this would feature a debate on a common and coherent European Union strategy towards more effective co-operation in the financial sector, law enforcement and judicial co-operation.

Brussels Regulation:

The Presidency urged Ministers to pursue this dossier in their capitals as it was a key element of the mutual recognition programme on civil law. The Commission advised that it would be issuing modified proposals during the next week on the e-commerce aspects of mutual recognition in light of the European Parliament's Opinion.

Other items:

The Council noted a communication from Germany on the need for Community-level action on fighting dogs, calling for a Commission initiative on this matter. The Commission doubted whether there was a legal basis for Community action but undertook to examine this in greater detail.

Mixed Committee with Iceland and Norway:

The Committee heard progress reports on the draft Common Visa List, which Iceland and Norway would apply, and on the application of the Schengen arrangements to the Nordic countries.

Mr. Hood: To ask the Secretary of State for the Home Department what the outcome was of the Justice and Home Affairs Council held in Luxembourg on 17 October; and if he will make a statement. [136032]

Mr. Straw: I attended this Council meeting. The main matters dealt with at the meeting were as follows: The list of A points was agreed in full, including the three items outstanding from the Justice and Home Affairs Council (JHA) held on 28 September.

Draft framework decision on money laundering, the identification, tracing, freezing, seizing and confiscation of instrumentalities and the proceeds of crime:

There was a broad political orientation, subject to certain parliamentary reserves and the European Parliament opinion to a common minimum maximum penalty of four years and that all Member States should be obliged to lift reserves in respect of tax offences to the 1990 Council of Europe money laundering Convention's provisions on confiscation of assets. The Council also agreed a declaration to the effect that minimum maximum penalties would be considered on a case by case basis for future instruments.

Draft Convention on improving mutual assistance in criminal matters, with particular reference to the fight against organised crime, the laundering of the proceeds of crime and financial crime:

There was broad agreement, on the basis of a Presidency discussion document, to the principle that legal assistance should not be refused solely on the grounds that an investigation concerned a tax offence or involved the lifting of bank secrecy. A number of Member States considered that such measures should be subject to judicial control; others also raised the practical difficulties involved in supplying lists of bank accounts in the absence of a central register. The Commission acknowledged that Member States would have flexibility in how they chose to abolish grounds of refusal founded in bank secrecy or tax matters; they should none the less aim to establish efficient systems for providing assistance in such matters. Work on the Convention would continue at expert level on the basis of the discussion document.

Presentation of the conclusions of the seminar from 13-15 September on the laundering of the proceeds of organised crime in Europe:

The Presidency presented the conclusions. There was no discussion.

Proposal for a council decision establishing a community mechanism for the co-ordination of civil protection in the event of emergencies--presentation by the Commission:

The Presidency and the Commission presented their respective proposals. Two Member States welcomed the call for an assessment of respective national capabilities with a view to greater co-ordination between existing national structures. Others argued for a European Civil Protection Agency and a third for more European Union-financed training.

Other items:

I proposed a greater operational role for the Chief Police Officer's Task Force and proposed using a Council Decision to place this work on a more formal footing. The Presidency concluded that the Council should return to this as necessary.

One Member State registered the need for Justice Ministers to have greater involvement in discussions concerning Organization de Lutte anti-Fraud.

Finally, the Council adopted conclusions regarding the ETA murder the previous night in Spain.

On the afternoon of 17 October, the Justice and Home Affairs Council met jointly with the Ecofin Council. I represented the United Kingdom.

Following a debate on strategy towards more effective co-operation in the financial sector, law enforcement and judicial co-operation, the Council adopted conclusions, a copy of which have been placed in the Library.



Letter from the Economic Secretary (Miss Melanie Johnson) to the Chairman of the Committee

Reporting on the ECOFINS held on 29 September and 17 October

In line with normal practice, I am writing to you with statements on the outcome of Council of Ministers' meetings held whilst Parliament is in recess.

I attended the meeting of the Economic and Finance Council of Ministers in Brussels on 29 September.

Political agreement was reached on the second Money Laundering Directive. Ministers agreed that within three years of the entry into force of this Directive the definition of criminal activity provided for shall be amended in order to bring it into line with the definition of serious crime of the Joint Action 98/699/JHA.

It was agreed that professionals such as lawyers and accountants should, for the first time, be covered by the provisions of the directive. In addition, it was agreed that the principle of legal privilege, central to the lawyer-client relationship, and enshrined in UK Common Law, should be preserved.

The Council considered the preparations for the joint ECOFIN/Justice and Home Affairs (JHA) Council on 17th October 2000 and agreed the topics set out in the Presidency's text were suitable as the basis for a discussion.

The Council endorsed the action plan on EMU statistical requirements that had been put forward by the Commission with co-operation from the European Central Bank.

Vice-President Kinnock presented the Commission's reform proposals for both new staff and the rollover of the existing pay system (the "methode"), the costs of which would remain below the Financial Perspective ceiling for administration. Ministers showed interest in the work and asked for more details, and the Presidency has conveyed this to Commission President Prodi in a letter.

The Paymaster General attended the Economic and Finance Council of Ministers in Luxembourg on 17 October.

A progress report on the Taxation of Savings Directive was given by the President of the High Level Working Group. Good progress has been made, but a number of issues needed to be discussed further. The Presidency called for the Working Group to present a proposal on the substantive content of a Directive to ECOFIN on 27 November.

The Paymaster General, as Chair, reported on the work of the Code of Conduct Group since the July ECOFIN. The Council asked for a further report by 27 November.

There was a further discussion on the precise arrangements for VAT payments relating to e-commerce products sold by non-EU firms. ECOFIN will return to this subject on 27 November.

The Employment packaged was broadly welcomed, and the Economic Policy Commission (EPC) was invited to continue its work.

The Chairman of the EPC reported on the Commission's work on sharing examples of best practice in the area of tax and benefit reform.

The Commission presented its Communication on Environment and Growth, which sets out proposals for integrating environmental issues with economic policy. The Cardiff European Council had requested that all relevant Council formations establish their own strategies for integrating environmental issues and sustainable development into their own areas. ECOFIN will reflect on this issue and report to the Nice European Council.

Political agreement was reached on a Directive to amend the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. The UCITS Directive sets out harmonised rules for open ended collective investment schemes (unit trusts and open ended investment companies). The proposed amending Directive would bring the UCITS Directive up to date with market developments and widen the investment powers of harmonised funds to enable them to invest in a wider range of assets including deposits and financial derivatives.

15 November 2000




Letter from the Minister for Transport (Lord MacDonald of Tradeston) to the Chairman of the Committee

I am writing to inform you of the outcome of the Transport Council in Luxembourg on 2 October. I represented the United Kingdom.

The Council adopted a Resolution on air passenger rights, setting out desired improvements, to be achieved principally through voluntary commitments by airlines, backed up if necessary by Community legislation. I emphasised the importance of better treatment for passengers, pointing out that the UK competition authorities had recently secured improvements in IATA's recommended conditions of carriage.

A number of other aviation issues were discussed. The Commission reported on its proposal for an EU Aviation Safety Agency to help draw up Community aircraft safety standards. The Presidency undertook to make progress as soon as possible and the December Council will address the issue again. During discussion of airport slot allocation, the Commission noted the need for progress on better use of airport capacity and invited delegations to submit written comments to help it formulate a revised proposal. The Commission reported on the continuing discussions with Russia on the issue of royalty payments for flights over Siberia, and on progress in the High Level Group on a Single European Sky.

There was a debate on the Commission's recent Communication on road transport. During discussion of the need for a specific working time directive on road transport, I made clear that UK support for the directive depended on the way it dealt with our concerns on night work, the maximum working week, and individual opt-outs. A particular concern of ours has been coverage of the self-employed. I, with a majority of other Ministers was able to accept the provisional exclusion of the self-employed from the directive, pending a review two years after transposition. There was general agreement with the Presidency's suggestion that limiting driving time (rather than working time) rules should be clarified and simplified to ensure consistent application across the EU. All of the Minsters were in favour of greater efforts to combat illegal employment of third country drivers. There was similarly broad support for Commission ideas on the enforcement of existing rules and on driver training. The Presidency concluded the consensus existed for action on those points. It also concluded that there was broad agreement to the provisional exclusion of the self-employed from the road working time directive. Work will continue with a view to reaching common position on that Directive at a future Council on this basis.

The Council further debated two of the legislative proposals arising from the loss of the Erika tanker off the Brittany coast last year. The debate opened with a discussion of the proposal on port state control of shipping, which would give the Commission responsibility for recognising Member States' appointed ship inspection organisations. The Presidency noted that there was a general agreement among Member States. The Commission was concerned that Council had weakened the impact of its proposal. The matter will be further debated in the light of the European Parliament's first reading. The Council agreed a common EU approach to negotiations in the International Maritime Organisation on the timetable for the accelerated phasing out single-hulled tankers, with the objective of alignment with current US legislation.

The Council went on to discuss the proposals contained in Presidency paper on further measures in maritime safety (the "Erika II" package). During that debate, I joined other Ministers in emphasising that, because of the international nature of shipping, it was necessary for negotiation to take place at global level. Following the debate, the Presidency drew the following conclusions: surveillance of ships with hazardous cargoes should proceed in accordance with international law; improvement in levels of compensation for oil spills was necessary, with appropriate action being taken within existing international conventions, but with the possibility of an additional EU compensation régime if necessary. The Commission would make further proposals on maritime employment and training, and on a European maritime safety structure, which would work with national authorities and improve co-operation and transparency. The Erica II package was further discussed at the European Council in Biarritz on 13 October.

The Council discussed the proposed Galileo satellite navigation system, concentrating on four issues — financing, system architecture, management structure and services to be provided — which will need to be agreed if the project is to continue. The Commission presented some figures on the costs and benefits of the system, suggesting that it will be funded primarily from EU budgets and through the European Space agency until the launch phase in 2006 - 2007. I joined other Ministers in stressing the need for more detailed information on all aspects of the project, including a thorough cost-benefit analysis, in good time for the Council's decision in December on whether to proceed beyond the current definition phase of the project. The Commission promised to submit a Communication on Galileo within a few weeks.

There was discussion of a draft regulation on allocation of Swiss transit permits for HGVs. The Presidency noted the remaining disagreements and concluded that Coreper should aim to reach a decision by November on the permit allocation question.

The Commission presented two linked legislative proposals on public transport services. The intention of the proposal on public service requirements was to address the reality of the Single Market in the provision of public transport services. The other proposal relates to state aid in public transport. In its statement on this, the Commission said that it would look favourably on infrastructure investment, and the proposal would take into account the needs of small islands. The Presidency concluded that there would be an orientation debate at the December Council.

7 November 2000



Letter from the Minister for Small Business and E-Commerce (Ms Patricia Hewitt) to the Chairman of the Committee

I am writing to inform you of the outcome of the Telecommunications Council of Ministers meeting that took place in Luxembourg on 3 October.

There was an orientation debate on the proposed Local Loop Unbundling Regulation. During the debate all Member States stressed their commitment to the Regulation and a rapid time scale for its adoption. I strongly welcomed the Regulation as an enormously important issue for the development of e-commerce across the European Union, and confirmed the UK fully supported and would be fully compliant with it. The Presidency hopes that the Regulation will be adopted at the very latest at the next Telecommunications Council in December.

The Council adopted a Resolution calling for a more co-ordinated EU approach within ICANN (the Internet Corporation for Assigned Names and Numbers). Welcoming this, the Commission now intends to establish a network of European expertise on Internet naming and addressing issues.

The Commission gave a progress report on the creation of a .eu top level domain name, and it is expected that a Commission Proposal will follow in October. The Council also took note of a Presidency progress report on the programme to improve the exploitation of public sector information, facilitate access to venture capital and boost multilingual content on the Internet. The Presidency hopes a Council Decision will be adopted in December. There was also a Presidency progress report on the state of discussions on the new measures under the 1999 Communications Review.

The Council also discussed the Commission's postal services proposal, the main provision of which is to reduce the area reserved for incumbent national postal operators (the 'reserved area') from deliveries weighing less than 350 grams to those under 50 grams. During discussions, Member States were divided on whether the proposal offered an acceptable pace of liberalisation, with several Member States calling for a target date for full liberalisation. The Presidency hope for agreement at the next Telecommunications Council in December.

I am writing in similar terms to Lord Tordoff and copying this letter to the Leader of the House of Commons, Keith Vaz, the Chief Whip of the House of Commons, Sir Richard Wilson and the Clerk to your Committee.

1 November 2000



Letter from the Minister for Europe (Mr Keith Vaz) to the Chairman of the Committee

General Affairs Council, Luxembourg, 9 - 10 October

As Parliament is not sitting, I am writing to inform you of the outcome of discussions at the General Affairs Council (GAC), in place of the usual inspired PQ.

The GAC on 9-10 October adopted the "A" points listed in document no.11913/00 and noted the resolutions, decisions and opinions adopted by the European Parliament in its sessions of 4-8 and 20-21 September in Brussels listed in document nos. 11043/00 and 11046/00. Copies of these documents will be placed in the House libraries as soon as they become available.

The effectiveness of the EU's external action

The GAC agreed conclusions on improving Member State and Commission co-ordination, information gathering and the management of external assistance. It also called for an orientation debate in January 2001 to discuss the principles and policy objectives of future external assistance.

Western Balkans

The GAC issued a Declaration welcoming Mr Kostunica's election as President of the Former Republic of Yugoslavia (FRY). The Presidency would invite him to the Informal European Council at Biarritz on 13-14 October. The GAC agreed to lift all sanctions imposed on the FRY since 1998, except for the provisions affecting Milosevic and his associates. The FRY would now benefit from the EU's new assistance programme for the Balkans (CARDS) and the work of the European Agency for Reconstruction. The GAC asked the Commission to submit proposals for extending the asymmetric EC trade preferences to the FRY, and to coordinate the EU's economic and financial assistance to the FRY with the World Bank. It also invited the FRY to participate in a Joint EU/FRY Task Force to examine ways of progressing towards a Stabilisation and Association Agreement. The GAC asked the Coordinator of the Stability Pact to submit proposals for the FRY's full participation in the Pact.

The GAC welcomed the preparations for the Zagreb summit. It invited its competent bodies to examine the draft CARDS regulations presented by Commissioner Patten.

Bananas

The Commission presented to the Council their latest proposal for a first-come, first-served, transitional quota regime for the importation of bananas to the EU. The Council agreed that the proposal provided a basis for settling the banana dispute, which could, and must, be resolved rapidly. The Council asked the relevant competent bodies to examine the technical aspects of their latest proposal, taking particular account of the various concerns expressed at the GAC. The Council also invited the Commission to submit, in good time, the outcome of negotiations to be held under Article XXVIII of the GATT. The Council intends to take a decision when it has seen that report, taking into account the situation of Community producers and consumers, and the Union's commitments towards the ACP countries. The Council called on the European Parliament to comment on the Commission's proposals in order to allow the Council to examine the proposal in depth with the aim of finalising its proceedings.

LDC market access

The Commission outlined its proposal to extend duty-free access to the EU for all products, except arms, from Least Developed Countries (they proposed, however, that three sensitive products — rice, sugar and bananas — would be subject to a three-year transition period). The UK broadly welcomed the proposal but noted that detailed questions, particularly about the effects that the proposal might have on non-LDC African and Caribbean Producers, needed to be considered carefully.

Barcelona process

The Presidency announced that the Marseilles EuroMed Ministerial will now take place on 15-16 November. A senior Presidency diplomat would visit Mediterranean partners' capitals before the end of October to prepare for it.

MEDA II regulation

There was no agreement on a financial reference figure. Work will continue at official level to find a figure acceptable to all. Otherwise, the text of the new Regulation was approved.

Middle East peace process

Over lunch, Foreign Ministers discussed recent events in the Middle East. These discussions led to the GAC issuing a strong statement urging the parties to take measures to de-escalate the tension in the region. Foreign Ministers also decided to send Dr Javier Solana, the Secretary General, High Representative for CFSP, to the region to help to build confidence between the partners.

IGC

Ministers took part in a general exchange of views with the President of the European Parliament. Discussion was preceded by a Conclave on Sunday, 8 October dealing with the reweighting of votes, closer co-operation and Article 7 TEU. Discussions would be taken forward by officials in the IGC Preparatory Group and the Biarritz Informal European Council.

Preparation of Biarritz

The Presidency confirmed the arrangements for the Informal European Council in Biarritz on 13-14 October, which was expected to focus on the IGC.

Oil

President Prodi presented a Commission Communication on oil supplies to the Council. It was agreed to study the issues raised further at Biarritz.

Communicable diseases

The Commission presented its strategy on combatting the major communicable diseases (HIV/AIDS, malaria and TB). The strategy highlighted the link between poverty and these diseases as well as the need for enhanced co-ordination and consistency within the EU in fighting them.

Any Other Business:

Enlargement and nuclear safety

Austria raised the issue of the levels of nuclear safety in applicant countries. They said this was particularly relevant for Austria in view of their concerns about the start-up of the Temelin nuclear power plant in the Czech Republic planned for 10 October.

The Moluccas

The Netherlands welcomed Indonesia's agreement in principle to a visit to the Moluccas by an EU evaluation mission. They hoped security arrangements could be put in place to enable a visit on 11-13 October.

Budget rectifying letter

The Commission presented a Letter of Amendment to the 2001 budget to provide for 400 new posts. These were needed to complete the Commission's internal reforms to make itself more transparent, accountable and efficient; other reforms proposed include the redeployment of existing staff and a programme to facilitate early retirement. The Commission's Letter of Amendment was referred back to Coreper for further discussion.

I am copying this letter to Elizabeth Flood (Clerk of your Committee).

23 October 2000



Letter from the Minister for the Environment (The Rt. Hon. Michael Meacher) to the Chairman of the Committee

I am writing to report the outcome of the Environment Council in Luxembourg on 10 October 2000, at which I represented the UK. This was the first Environment Council under the French Presidency. One common position and two sets of Council conclusions were agreed, and a public orientation debate was held on a proposed environmental noise directive.

Agreement was reached on a Daughter Directive under the Air Quality Framework Directive to set target values and long-term objectives for ground-level ozone, to protect human health and the environment. By 2010, Member States will have to attain as far as possible ground-level air ozone concentrations that do not exceed 120 microgrammes per cubic metre on more than 25 days per annum. Some flexibility will be allowed in recognition of the difficulty of reducing ozone formation. The agreement reached is based on the World Health Organisation guideline values and a closely related EC proposal setting national emissions ceilings for ozone precursor pollutants. The Directive also lays down monitoring requirements and provides for dissemination of information to the public.

Council conclusions were agreed on common and co-ordinated policies and measures which could reduce greenhouse gas emissions and help to ensure that the EU and its Member States meet their Kyoto targets. These build on previous Council conclusions, and give guidance to the Commission, and the work of the European Climate Change Programme, on priority areas for action, including transport, renewable energy, combined heat and power, the elimination of environmentally damaging subsidies, and economic instruments. The Presidency also reported the outcome of the Lyons subsidiary bodies meeting on climate change in October. An extraordinary Environment Council on 7 November 2000 will prepare for the forthcoming sixth Conference of the Parties to the UN Framework Convention on Climate Change (COP6), taking place between 13-24 November 2000.

The Presidency gave a progress report on global environmental governance, and a short set of procedural Council conclusions were agreed. Ministers agreed that further consideration of option for improving the existing institutional arrangements was needed and that financing was a central issue. I stressed the importance of a step by step approach, and the need to secure developing countries' commitment to change. The Presidency plans to develop conclusions for adoption at the December Environment Council to guide EU involvement at UNEP's Administrative Council in February and the build-up to Rio + 10.

A public orientation debate was held on a proposed directive to establish common methods for measuring and assessing environmental noise, in order to collate and map comprehensive information about noise exposure levels across the EU. Ministers recognised the significance of noise as a health and quality of life issue and broadly welcomed the proposal, which would enable accurate comparisons of noise levels in all Member States to be made. In noting the importance of taking action to reduce noise levels, most commented that plans were already provided for at the national or local level and stressed the importance of local solutions. The Presidency indicated that it intends to reach a common position on this proposal at the December Environment Council.

The Presidency gave progress reports on two related directives which aim to increase re-use, recovery and recycling rates of waste from, and limit the use of certain hazardous substances in, electrical and electronic equipment. The Presidency aim to reach common position in December, subject to the European Parliament delivering its opinion before then. The Commission updated Council on the development of its planned proposals on the traceability and labelling of genetically modified organisms (GMOs), which are expected later this year.

There were a large number of any other business items. Ministers agreed to consider Council conclusions at the extraordinary Environment Council in November setting out the EU position on the revision to the Convention on Persistent Organic Pollutants (POPs). Germany proposed that the European Commission should prepare for the early transposition into Community law of the International Maritime Organisation global ban on organotins in marine anti-fouling paints, and the Commission should also submit proposals for extending restrictions on the marketing and use of organotins in a range of consumer goods, such as textiles. They also called for prohibition on the use of the azo-dye Navy Blue. The Austrian delegation reminded Council of its concerns about the Temelin nuclear power station in the Czech Republic; the Italian delegation called for a joint Environment/Transport Council to resolve measures to tighten rules on oil tanker safety; and the Finnish delegation outlined its environmental concerns about the construction of a new oil terminal at Primorsk in Russia.

The Presidency updated Council on a proposed resolution on the Precautionary Principle, to be submitted to the Nice European Council in December, and on preparations for the Intergovernmental Conference for the Cartagena Protocol on Biosafety, also taking place in December. The Presidency indicated plans for further Ministerial debate on the Commission's White Paper on environmental liability in December.

Other items included Commission progress reports on revised guidelines on state aids and the environment and the introduction of environmental requirements into public procurement guidelines. The Commission also briefly presented its Green Paper on the environmental issues of PVC, its Communication on water pricing policy, and its Communication on integrated coastal zone management.

18 October 2000



Letter from the Minister for Employment, Welfare to Work and Equal Opportunities (The Rt. Hon. Tessa Jowell) to the Chairman of the Committee

I am writing to inform the Committee of the outcome of the Employment and Social Policy Council (ESPC) held in Luxembourg on 17 October 2000. I represented the UK along with Alan Johnson.

This was a busy Council with a full agenda. Political agreement was reached on the Employment (anti-discrimination) Directive brought forward under Article 13 (TEC). This establishes a general framework for equal treatment in employment and occupation. A letter to Lord Tordoff, dated 25 October and copied to you, sets out in detail the Government's negotiating stance on this issue. The letter notes the UK's success in achieving all its objectives. Council also agreed the establishment of an action programme under Article 13, which tackles all forms of discrimination. The programme is to be launched in January 2001 and runs for 6 years.

The Commission introduced the Autumn Employment Package comprising the draft Employment Guidelines for 2001, the draft Jjoint Employment Report for 2000 and the Commission Recommendation on Member States' employment policies. The Council gave its first reactions to the package which will be discussed again by the Council on 27-28 November in Brussels.

Political agreement was reached on a number of other important issues. The Council agreed on the implementation of the agreement between the European social partners on working time in the civil aviation sector, replacing the provisions in the Working Time (Excluded Sectors) Directive.

The Council reached outline political agreement on the Directive concerning protection of health and safety for work at heights (Scaffolding Directive). This will set minimum standards for the selection and use of scaffolding, ladders and ropes. It is hoped that this will be adopted by the European Parliament on second reading.

The Council reached political agreement on a series of objectives in the fight against poverty and social exclusion. These objectives will be forwarded to the European Council in Nice for approval. The Council also adopted Conclusions on the structural indicators for employment and social cohesion. These welcome the Commission's communication on structural indicators and note the work of the Employment Committee and the High-Level Group on Social Protection. The Conclusions will be included in the annual synthesis report for the Stockholm European Council.

The Presidency introduced its summary paper on the current state of play of the negotiations on the proposed directive establishing a national framework for informing and consulting workers. The UK stated its continued opposition to the proposed directive on the grounds that it breached subsidiarity. The Presidency will consider written comments from delegations in preparation for renewed discussion at the Council on 27-28 November.

The Presidency gave a procedural update on its work towards the agreement in Nice of a New European Social Agenda. The Presidency intends to circulate a paper in the near future, following the recent tour of capitals and contacts with social partners, NGOs and the EP.

I look forward to discussing these matters further in my meetings with the Committees on the 1 and 15 November.

I am copying this letter to Alan Johnson and the Clerks of Committees of both Houses.

30 October 2000



Letter from the Minister of State at the Department of Agriculture, Fisheries and Food (The Rt. Hon. Joyce Quin) to the Chairman of the Committee

Parliamentary scrutiny of EC proposals

I am writing to let you know of nine proposals adopted during Recess, or expected to be adopted, prior to consideration by your Committee. Also to let you have details of four negotiating mandates which have recently been agreed. Details are set out below:

Council regulation amending Annex II of council regulation (EC) No. 2377/90, which establishes maximum residue levels (MRLs) of veterinary medicinal products in food (10526/00)

This Regulation adds recombinant bovine somatotropin (rBST) to Annex II of Council Regulation (EEC) No. 2377/90. Annex II is a list of substances used in veterinary medicinal products which are not subject to maximum residue levels. The use of rBST is prohibited in the EU (Council Decision 1999/879/EC). Nonetheless, the Court of First Instance of the EC has ruled that the Commission is under an obligation (to Monsanto and Elanco, producers of rBST) to propose the addition of rBST into Annex II of Council Regulation (EEC) No. 2377/90.

The Commission's proposal was considered by the Standing Committee on Veterinary Medicinal Products on 4 February when it did not receive qualified majority support. The independent Veterinary Products Committee had advised the Government that the use of rBST poses a small human health risk. The UK, therefore, and nine other Member States, voted against the proposal. The proposal was then referred to Council in accordance with the usual comitology procedures.

In accordance with the Regulatory Committee procedure laid down in Article 8 of Regulation (EEC) No. 2377/90, the Council was required to take a decision by 13 October 2000 on the action to be taken on the proposal. The Council, on the basis of the precautionary principle, proposed that it was inappropriate at this time to fix an MRL for rBST and would call upon the Commission to continue further studies on the matter. This proposal was adopted as an 'A' point at the Internal Market Council on 28 September.

Explanatory Memorandum 10526/00 was submitted on 25 September.

Proposal for a council decision concerning the extension of the international agreement on olive oil and table olives, 1986 (11276/00)

This proposal for a Council Decision, authorises the Commission, on behalf of the European Community, to vote in favour of the extension of the International Agreement on Olive Oil and Table Olives for a further two year period until 31 December 2002. The Agreement, which entered into force on 1 July 1986, is designed to foster international co-operation for the integrated development of the world olive products economy. Its executive body, the International Olive Oil Council based in Madrid, supports research and development, carries out market analysis and promotion of olive oil consumption and aims to modernise olive cultivation and processing through a series of publications and training courses. The current signatories of the Agreement are Algeria, Croatia, Cyprus, Egypt, the European Community, Israel, the Lebanon, Morocco, Slovenia, Syria, Tunisia and the Federal Republic of Yugoslavia.

The Agreement was amended and extended in 1993 until 1998, under the 1993 Protocol to the 1986 Agreement. The 1993 Protocol provided for the Agreement to be extended by the International Olive Oil Council for successive periods of up to 2 years after that date. The two-year period of extension decided in 1998 is due to expire on 31 December 2000.

The French Presidency is keen that the proposal be adopted at this week's Agriculture Council. As the proposal is uncontroversial and merely an extension of existing arrangements, we propose to agree to its adoption as an 'A' point, prior to consideration by your Committee.

Explanatory Memorandum 11276/00 was submitted on 9 October.

Council regulations relating to agricultural concessions between the EU and Bulgaria, the Czech Republic, Slovakia, Latvia and Romania (10733/00, 10729/00, 10730/00, 10731/00 and 10732/00)

The purpose of these Regulations is to implement further concessions on imports of agricultural products from these countries into the EU. They provide for full liberalisation of imports of agricultural products into the Community where tariffs are already below 10%. They also increase concessions granted within tariff quotas. The Regulations are intended to be autonomous and transitional measures pending the entry into force of a new Additional Protocol to the Europe agreement with these five applicant countries. Parallel measures with Estonia and Hungary are already in force.

These measures aim to make it easier for the applicant countries to align their trade with that of the Community prior to accession. The concessions had been negotiated over a long period, and the Commission was eager for them to enter into force without force. The UK is in favour of trade liberalisation and, so as not to be seen to be delaying progress in this area, agreed to the adoption of the Bulgaria proposal as an 'A' point at the General Affairs Council on 9 October and the other four proposals as 'A' points at the ECOFIN Council on 17 October.

Explanatory Memoranda were submitted on 28 September.

Proposal for a council decision concerning Isle of Man special import licences for sheepmeat, beef and veal (10586/00 and 10587/00)

This proposal (10587/00) renews Council Decision 82/530/EEC authorising the UK to permit the Isle of Man authorities to apply a system of special import licences to sheepmeat and beef and veal for a further five years until 31 December 2005. The Commission's Report, Document 10586/00, endorses the effectiveness of these import arrangements.

If Council agrees to extend Council Decision 82/530/EEC before the end of the year, the special licensing will, from 1 January 2001, have potentially no authority in Community law. Unless there is some import control, the effect of the Isle of Man's obligations under the Treaty of Accession and Council Regulation No. 706/73/EEC to accept meat from Member States and Third Countries would seriously threaten the position of its sheepmeat and beef producers.

The current authorisation expires on 31 December 2000. The proposal for the extension was discussed and agreed in the Special Committee on Agriculture early in September. It is expected to go as an 'A' point to the Agriculture Council this week, prior to consideration by your Committee.

An Explanatory Memorandum was submitted on 25 September.

Proposal for a council regulation authorising the commission to allow Finland to grant aid for certain quantities of herbaceous seeds (11277/00 and 11278/00)

Council Regulation (EEC) No. 2358/71 on the common organisation of the market in seeds allows measures to be taken to stabilise the market and ensure a fair income to producers. Under this Regulation, EC Seed Production Aid is payable on specified species to offset part of the production costs.

Severe climatic conditions in Finland restrict the number of varieties suitable for cultivation as seed crops. This proposal would allow Finland to continue paying until 31 December 2005, national production aid on indigenous varieties of herbaceous seeds to safeguard their supply situation because of the absence of suitable alternative varieties elsewhere in the Community. Document 11278/00 is a report from the Commission to the Council on Finland's justification for seeking to grant national aid on certain varieties of herbaceous and cereal seeds.

The UK's ability to supply Finland with suitable alternative varieties is extremely limited. The effect of the proposal on the UK seed industry, is, therefore, negligible. In these circumstances, we propose to agree to its adoption as an 'A' point at the Agriculture Council this week.

An Explanatory Memorandum was submitted on 2 October

Negotiating mandate on the review of the agriculture protocols to the Euro-Mediterranean agreements with Morocco, Tunisia and Israel

The Budget Council on 20 July adopted a negotiating mandate authorising the Commission, in respect of matters within Community competence, to participate on behalf of the Community in the negotiations with Morocco, Tunisia and Israel to review the agricultural protocols of three Euro-Mediterranean Agreements.

The EU-Tunisia Association Agreement came into force in March 1998 with the EU-Morocco Association Agreement and EU-Israel Association Agreement taking effect from 1 March 2000 and 1 June 2000 respectively. These are trade agreements which include transitional periods for the gradual removal of tariffs leading towards development of free trade areas over a 12 year period. The Agreements also provide for political dialogue between the parties, primarily through annual Association Councils at Ministerial level.

The Association Agreements give Tunisia, Morocco and Israel limited agricultural concessions on quotas and tariffs for access to the EU. Similar concessions apply to imports of EU products into these countries. The agriculture protocols in each Agreement provide for the parties to progressively introduce greater liberalisation of trade in agricultural products. To meet this objective the partner countries will review the protocols and agree new measures to be applied from 1 January 2001 to trade in agricultural products.

In relation to exports of agricultural products from Tunisia, Morocco and Israel, the mandate aims to extend product coverage (with or without tariff quotas), improve existing concessions and the abolition of reference quantities. In return, it will improve market access to the partner countries for EU exports with a better balance in reciprocal preferences.

In accordance with the usual procedures, an Explanatory Memorandum will be submitted once the negotiations are completed.

Negotiating mandate between the EU and the government of Denmark for a fourth fisheries protocol covering the years 2001 and 2006

The current Fisheries Agreement with Greenland dates back to 1985, shortly after Greenland left the EC. It provides for the EC to receive fishing opportunities in Greenland waters in exchange for financial compensation. The detailed arrangements are set out in multi-annual protocols, the current one covering 1996-2000. The UK has substantial shares in the fishing quotas allocated to the EU. In view of the importance of this Agreement it was in the UK's interest to agree the mandate in order to allow negotiations to commence at the earliest opportunity. Failure to agree a new Protocol before the current Protocol expires could have resulted in the UK fishing sector being unable to utilise the UK quota.

A decision to authorise the Commission to negotiate a Fourth Fisheries Protocol with Greenland was therefore adopted by written procedure on 4 August.

In accordance with the usual procedures, an Explanatory Memorandum will be submitted once the negotiations are completed.

Negotiating mandate on the negotiation of a new international coffee agreement

On 18 September, the General Affairs Council adopted a mandate for negotiation of an international agreement to succeed the International Coffee Agreement 1994.

The International Coffee Agreement 1994 has been extended and will expire on 30 September 2001. It established a forum for international co-operation on world coffee matters, through the International Coffee Organisation (ICO). The UK is legally obliged to be a member of the International Coffee Agreement through membership of the EU. Within the organisation, the UK is the seventh largest importing member, and London is a major centre for the world coffee trade. The ICO exists to put the aims and objectives of this agreement into practice. The UK is advised by the trade, and represents their interests within the overall context of promoting and protecting the world coffee economy. The ICO has its headquarters in London and participation in this agreement has historical and political importance.

Negotiations were completed on 28 September and, in accordance with the usual procedure, an Explanatory Memorandum will be submitted as soon as possible.

Negotiating mandate on the negotiation of a new international cocoa agreement

On 18 September, the General Affairs Council also adopted a mandate for negotiation of an international agreement to succeed the International Cocoa Agreement 1993.

The International Cocoa Agreement 1993 has been extended and will expire on 30 September 2001. It established a forum for international co-operation on world cocoa matters, through the International Cocoa Organisation (ICCO). As with the International Coffee Agreement, the UK is legally obliged to be a member of the International Cocoa Agreement through membership of the EU. Within the organisation, the UK is the fifth largest importing member, and London is a major centre for the world cocoa trade. The ICCO exists to put the aims and objectives of this agreement into practice. The UK is advised by the trade, and represents their interests within the overall context of promoting and protecting the world cocoa economy. The ICCO has its headquarters in London and participation in this agreement has historical and political importance.

Negotiations are expected to be concluded at a United Nations Cocoa Conference in Geneva in November. In accordance with the usual procedure, an Explanatory Memorandum will be submitted once the negotiations are completed.

I am copying this letter to Lord Tordoff, Margaret Beckett, Keith Vaz, Ann Taylor, Sir Richard Wilson and the Clerk to your Committee.

25 October 2000


 
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