INTERGOVERNMENTAL CONFERENCE ON INSTITUTIONAL
REFORM
(21825)
CONFER 4790/00
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Progress Report on the Intergovernmental Conference on Institutional Reform.
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| Legal base:
| — |
| |
| Document originated:
| 3 November 2000 |
| Forwarded to the Council:
| 3 November 2000 |
| Deposited in Parliament:
| 24 November 2000 |
| Department: |
Foreign and Commonwealth Office
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| Basis of consideration:
| EM of 24 November 2000
|
| Previous Committee Report:
| None |
| To be discussed in Council:
| 7-9 December 2000 |
| Committee's assessment:
| Legally and politically important
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| Committee's decision:
| Cleared |
Background
15.1 On 3 November 2000 the Presidency submitted
to the Council a Progress Report on progress to date in the Intergovernmental
Conference on institutional reform (IGC). The Progress Report
contains, in the words of the Presidency,
"a detailed collection
of the texts under discussion on the various topics dealt with
in the Conference without binding any delegation at this stage
or prejudging the final outcome".
15.2 The Progress Report does not contain draft
texts on the weighting of votes in the Council, the size and composition
of the Commission, or the allocation of seats in the European
Parliament. The Presidency considered it "premature"
at that stage to produce draft texts on these issues, since they
were "politically highly sensitive" and because it was:
"generally acknowledged
that these issues still require detailed analysis and discussion
with a view to reaching an outcome which is in line with both
the Union's requirements and the legitimate interests of all the
Member States on the basis of the various options on the table".[38]
The document
15.3 The Progress Report contains a list of Treaty
provisions which are described as "provisions to be examined
with a view to a possible move to qualified majority voting".
These concern Articles 23(2) and 24 of the EU Treaty, and a range
of Articles of the EC Treaty[39].
15.4 The Progress Report contains a number of
proposals in relation to the European Parliament[40].
These concern the elimination of the co-operation procedure, a
provision enabling the Council to "lay down regulations governing
political parties at European level and in particular the rules
regarding their funding" and a provision allowing the European
Parliament to seek an opinion from the Court of Justice as to
whether an envisaged agreement between the Community and one or
more non-member States or an international organisation is compatible
with the EC Treaty.
15.5 Proposals for amendments relating to the
Court of Justice and the Court of First Instance are set out in
paragraph 5 of the Progress Report. In our earlier report[41]
we suggested that it would be appropriate to move to qualified
majority voting for the approval by the Council of the Rules of
Procedure of the Court of Justice, and provision is made for this
in a draft Article 223 EC. We also considered that particular
attention should be paid to the Court's proposals to enable specialised
categories of preliminary ruling to be transferred to the Court
of First Instance and to create specialised tribunals. The Progress
Report contains draft provisions to achieve these objectives in
Article 225 EC and Article 225a EC respectively. The latter provides
for the creation of 'judicial panels', with a right of appeal
on points of law only, or, when provided for in the decision establishing
the panel, a right of appeal also on matters of fact, before the
Court of First Instance.
15.6 The Progress Report also contains suggested
texts to make a number of detailed changes to the composition
of the Court of Auditors, the Economic and Social Committee and
the Committee of the Regions.
15.7 The question of 'enhanced co-operation'[42]
is addressed in paragraph 7 of the Progress Report. This contains
a number of suggested amendments to the relevant provisions of
the EU and EC Treaty. Enhanced co-operation is to be subject to
'General Principles' set out in Clauses A to G and these would
apply generally to co-operation under the EC Treaty and under
Titles V and VI of the EU Treaty. The General Principles set out
the general conditions for enhanced co-operation (such as respect
for the acquis communautaire, that co-operation must be
within the limits of the powers of the Union, that it does not
affect the competences, rights and obligations of non-participating
States and that it may be engaged in only when it has been established
in the Council that the objectives of the co-operation cannot
be attained within a reasonable period by applying the relevant
Treaty provisions) and largely restate the existing provisions[43].
It is also suggested that the minimum number of participating
States should be eight.
15.8 As far as co-operation under Titles V and
VI of the EU treaty is concerned, the provisions of Article 23(1)
and (2) EU are still to apply, so that it remains possible for
a Member State to abstain from a decision of the Council on a
CFSP matter without affecting the unanimity of the Council, and
in respect of CFSP and Title VI matters to have the matter referred
to the European Council for decision by unanimity.
15.9 For enhanced co-operation under the EC Treaty,
the texts set out in the Progress Report do not expressly preserve
the effect of Article 11(2) EC under which a Member State may
oppose enhanced co-operation by others, so that a vote is not
taken and the matter stands referred to the European Council for
decision by unanimity, if the Council so decides by qualified
majority[44].
Instead, there is a provision in Clause G under which a Member
State may request that the matter be referred to the European
Council before the Council takes a decision.
15.10 The Progress Report also contains proposals
for an amendment to Article 7 EU to permit the Council to address
recommendations to a Member State where the Council has determined
that there is 'a risk of a serious breach by a Member State of
the principles mentioned in Article 6(1) EU'[45].
The amendment also permits the Council to 'call on persons to
submit within a reasonable time limit a report on the situation
in the Member State in question'. The existing provisions of Article
7(1) and (2) EU (which are concerned with the situation where
the Council determines that a serious and persistent breach of
the principles already exists) remain unchanged (apart from re-numbering).
The Government's views
15.11 In his Explanatory Memorandum of 24 November
2000 the Minister of State at the Foreign and Commonwealth Office
(Mr. Keith Vaz) sets the context for the Progress Report in these
terms:
"The 7-9 December Nice
European Council is due to conclude the negotiations on the Inter-Governmental
Conference. The agenda remains focussed on the key institutional
changes needed to prepare the Union for enlargement — that
is the size and structure of the Commission; the reweighting of
votes in the Council; the extension of qualified majority voting;
reform of the European Court of Justice and the Court of First
Instance; and a review of the Treaty provisions governing enhanced
co-operation. In addition, the European Council is likely to consider
amendment of Article 7 TEU (action against Member States found
to be breaching fundamental rights) and may agree changes to the
composition of the European Parliament, Economic and Social Committee,
Committee of the Regions and Court of Auditors.
"The Government has regularly set out its position
on all these issues including in the White Paper on the IGC (published
as Command Paper 4595 in February) as well as its responses to
reports on the IGC by the Commons Scrutiny Committee, the Lords
European Union Committee and the Foreign Affairs Committee".
15.12 With regard to the detail of the Progress
Report, the Minister comments as follows:
"The Progress Report
on the IGC was issued by the Presidency on 3 November. It is a
draft composite text setting out possible drafting changes for
most of the IGC issues, though not yet for the reweighting of
votes, the size of the Commission or the allocation of seats in
the European Parliament.
"On qualified majority voting, the draft runs
through all the Treaty articles under discussion. This list will
shorten as negotiations reach their conclusion. The UK will continue
to look at each area on its merits. Where QMV is in Britain's
interests, we will advocate it. But we shall continue to insist
on unanimity for key areas of national interest, such as taxation,
social security, border controls, defence, Treaty change and Own
Resources.
"On enhanced co-operation, the draft makes a
number of suggestions for changes to the current Treaty provisions.
We are considering these. As the Prime Minister made clear in
his speech in Warsaw on 6 October, the Government considers that,
especially in an enlarged EU, there may be occasions where it
is sensible for a group of Member States to co-operate more closely
than others. But we shall insist that whatever provisions are
agreed in Nice continue to protect the integrity of the Single
Market and the coherence of EU foreign policy. Nor will we accept
the creation of an institutionalised inner core of Member States.
It is important that examples of enhanced co-operation are genuinely
open to all who want to participate.
"The Government remains pleased with progress
on reform of the EU's Courts (the European Court of Justice and
the Court of First Instance), which will need greater flexibility
if they are to cope with the inevitable increase in work which
will flow from enlargement. We welcome the changes in the draft
text, such as qualified majority voting for the Courts' Rules
of Procedure, which should help achieve this objective.
"The Government regards the text as a useful
contribution to the negotiations. Clearly there is much in the
text that will not be in the final Nice Treaty. It represents
an amalgamation of the various views that have been put to the
Conference. But the draft should help focus discussion as much
as possible before the European Council itself."
Conclusion
15.13 We thank the Minister for his Explanatory
Memorandum, which has assisted us in making a brief report on
progress in the IGC negotiations which will be taken forward at
the Nice European Council. Having regard to the imminence of that
European Council and the fact that the IGC proposals have been
recently debated in the House on 23 November, we are content to
clear this document, and shall look forward to considering the
outcome of the current negotiations.
38 See Introduction to CONFER 4790/00. Back
39
The Articles in question are 13, 18, 42(1), 47(2), 62(2)(a), 62(2)(b)(ii),
62(2)(b)(iv), 62(3), 63(2)(a), 63(3)(b), 65(a-c), 66, 71(2), 80,
93(2), 93(4), 100(1)and (2), 133(1) and (4), 137(1)(f), 137(2),
151(5), 157(3), 159, 161, 175(2), 187, 190(5), 191, 207(2), 223,
224, 247(3), 248(4), 259(1), 263 and 279(1)(a) and (b). This
part of the Progress Report also contains new Articles - Clause
G and Clause N (on enhanced co-operation) and Article 181a (economic
and financial co-operation with third countries) as well as provision
for a simple majority in Article 130 (establishing a committee
on employment and social protection) and for the deletion of Articles
94 and 144. Back
40
See paragraph 2 of CONFER 4790/00. Back
41
HC 23-xvii, paragraph 98. Back
42
Also referred to as 'flexibility' i.e. the proposition that certain
of the Member States may adopt measures within the framework,
and using the institutions procedures and mechanisms, of the EU
and EC Treaties. Back
43
See Article 11(2) EC. Back
44
Since this provision has the effect of enabling a Member State
to prevent enhanced co-operation by others, it is often referred
to as the 'emergency brake'. Back
45
'Liberty, democracy, respect for human rights and fundamental
freedoms, and the rule of law'. Back
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