Select Committee on European Scrutiny Seventeenth Report


PART II

DE-LIMITATION OF THE AGENDA

As set out by the Helsinki European Council

18. The conclusions of the Cologne European Council were, broadly, endorsed by the Helsinki European Council. The only variation was an invitation to the incoming (Portuguese) Presidency to report on progress and to propose additional issues to be taken on the agenda. That invitation has since been seized on by advocates of a wider agenda such as the Commission and EP.

19. On negotiating methodology, the Helsinki Council agreed on a standard procedure, the preparatory work to be carried out by a group of representatives of each government (in practice in most cases the permanent representatives in Brussels) and meetings at ministerial level of foreign office Ministers. The only innovation is that the European Parliament observers will attend each meeting of the preparatory group.

Commission and EP advocacy of a wider agenda

20. Although the Commission's trumpet has occasionally sounded an uncertain note, it has usually advocated a wider agenda for the IGC than that envisaged by the conclusions of the Cologne and Helsinki European Councils. Its starting point has been the prospect of enlargement to a union of 28 States in the medium term[28] which, in the Commission's view, requires an immediate and comprehensive reform of the decision-making institutions during the present IGC. The two stage approach envisaged in the Protocol on enlargement will no longer do.

21. The Commission's views are put forward in its Opinion[29], entitled Adapting the Institutions to Make a Success of Enlargement. This largely endorses a report submitted to it, The Institutional Implications of Enlargement[30], which was prepared by a group of independent experts[31] mandated on 1 September 1999 by the President of the Commission, Romano Prodi, to identify institutional problems which needed to be tackled and to present arguments indicating why they had to be dealt with by the IGC.

22. The EP has consistently shared the Commission's desire for a wider agenda. Its resolutions have, indeed, tended to focus more on making the case for additional topics than on expressing a view on the matters in the Amsterdam Triangle which necessarily are already on the IGC agenda. Its Resolution of 3 February 2000 — its formal response to the consultation required by Article 48 TEU — makes the case for a "constitutional process". It joins with the Commission in urging the Portuguese presidency to pave the way for an "ambitious reform" of the Treaty; and, after recalling that enlargement depends on its assent to the accession Treaties, the EP calls for the Treaty resulting from the IGC to be submitted to the same procedure.

23. The topics which the EP wishes to have included on the agenda are identified in its Resolution of 13 April 2000 which sets out its proposals for the IGC, very largely based on a report of its Committee on Constitutional Affairs[32].

24. Both the Commission and the EP see considerable merit in the division of the Treaties into basic texts (of a constitutional character) and implementing text of less fundamental importance[33]. The Commission may present proposals on that matter to the conference in the light of a feasibility study commissioned from the European University Institute in Florence[34].

25. The EP and Commission also advocate changes to the procedure on flexible co-operation. This concept, which is already embedded in the Treaties, allows groups of Member States to establish closer co-operation between themselves to go further or faster than others, subject to certain restrictions[35]. The flexible co-operation provisions of the Treaties have never yet been used. The Commission suggests that the conditions laid down in the Treaties are too restrictive and ought to be relaxed. The EP follows that line save in respect of its own rôle which it proposes to strengthen. It also proposes a single régime applicable to all three Pillars.

26. On co-decision, the EP and Commission propose that wherever the Council adopts legislation by qualified majority voting, it should do so by co-decision with the EP. To counter the argument that this would unduly hamper decision-making in the fields of the Common Agricultural and Common Fisheries Policies, the Commission proposes the recharacterisation of much of the legislation in this field as management measures (and thus presumably to be adopted by it, rather than the Council, subject to a comitology procedure); only fundamental measures should continue to be characterised as legislation and be subject to the co-decision procedure. The EP favours extending the co-decision procedure to legislation under Title VI EU (police and judicial co-operation in criminal matters)[36].

27. On the membership of the European Parliament, the Commission, whilst in favour of maintaining the current upper limit of 700, points out that further enlargement will entail some redistribution of those seats amongst all Member States. It rejects an allocation of seats on a strictly proportional basis according to population and favours either a continuation of the existing formula (based on the principle of degressive proportionality) or a revised version of that formula which is less favourable to the smaller Member States [37]. It also makes the radical proposal that a number of members of the European Parliament be elected on European lists, presented to all European voters throughout the Union (thus the entire territory of the Union would be, for this purpose, a single constituency). It makes this proposal in order to encourage the development of Europe-wide political parties.

28. The EP also favours maintaining the upper limit of 700 members, allocated between Member States on the basis of population under a proportional system, and the creation of a single European constituency. It advocates recognition and funding of European political parties which respect democratic principles and fundamental rights. It proposes that it adopt the regulations on its members' performance of their duties and decide on the location of its seat autonomously[38] — in other words, it alone would be responsible for deciding whether or not to continue the existing system of dividing its sessions between Brussels and Strasbourg.

29. Both the Commission and the EP recognise that EU enlargement will have an effect on the size, and working methods, not only of the three most prominent institutions — the Council, Commission and EP — but also of others: the Community Courts, the Court of Auditors, the Committee of the Regions and the Economic and Social Committee[39].

30. In a departure from the general principle that the subject matter of the IGC is institutional reform, and not an extension of the Community's powers to act, the Commission proposes the insertion in the Treaty of a legal basis permitting the adoption of rules establishing offences and penalties in the case of cross-border fraud and governing the tasks and the rôle of a European public prosecutor responsible for the investigation, and prosecution before national courts, of fraud throughout the European Union. (This proposal derives from the corpus juris project on which we have reported recently[40].) The EP makes proposals on similar lines.

31. The EP proposes the conferment on the Union of legal personality.

32. The EP also advocates progressive reinforcement of Community (as opposed to inter-governmental) competence for CFSP (by, for example, merging the positions of the High Representative for the CFSP and Commissioner responsible for External Relations in a single post held by a Vice-President of the Commission); and transfer of the obligation of mutual assistance under Article V of the WEU Treaty to a protocol on the WEU annexed to the EU Treaty, to which each Member State would be free to adhere.

Related matters not on the agenda

33. This IGC has to be viewed in the context of other, parallel developments within the EU. First is the proposed Charter of Fundamental Rights, currently being drafted by a special Convention and which may in due course result in proposals for amendments to the Treaty which the IGC would have to consider[41]. Second is the developing Common European Security and Defence Policy, the major decisions on which were taken last year but some of the institutional implications of which may feed through into the IGC in the form of Treaty amendments[42]. Completely outside the IGC but of major importance in adapting the institutions to meet the challenge of enlargement, are the significant initiatives on internal Commission reform[43] and reform of the Council[44].

The approach of the Portuguese Presidency

34. Our informal meetings with various Ministers and officials responsible for Portugal's approach to the IGC negotiations have confirmed that, faced with a multitude of suggestions as to how the IGC's agenda should be widened, the Presidency has put them all on the table to see which receive sufficient support to be worth pursuing. The Portuguese do not expect to make any great breakthroughs before the end of their Presidency, but they do intend to confirm the scope of the agenda and to have dealt with the initial negotiating positions so that the French will have a clear field for detailed negotiations in the second half of the year. The Portuguese do not appear to be using their Presidency to press unduly their own interests. We were impressed by the realistic approach of the Portuguese, and believe that they are likely to achieve their objectives.

Conclusions on the likely scope and timetable of the IGC

35. It is worth noting at this early stage of the IGC the extent to which there is, at least broad, agreement not only between Member States but also between them and the Community institutions, as well as those matters on which there remain considerable divergences of view.

36. There is universal agreement that the purpose of the 2000 IGC is to make the European Union ready for an enlargement process during which its membership will more or less double (comprising 28 Member States if all current applicants successfully surmount the hurdles on their way to accession). Although that enlargement process will necessarily take place in stages it is generally agreed that the necessary Treaty amendments must be in place before it begins.

37. It therefore follows that there is broad consensus that, in principle, the scope of the IGC is limited to institutional matters and excludes new powers to act (in other words it is about how the Union does its business not about what business it should do)[45]. The Commission's inability to resist the temptation to make at least one proposal for substantive amendment (on prosecution of cross-border fraud) does not affect the validity of this general conclusion.

38. It is also noteworthy that there is universal, if implicit, agreement that the main elements of the 1957 structure must be maintained. Even the proponents of an ambitious agenda do not call into question the main elements of the Union's institutional structure, in particular the exclusive right of an (unelected) Commission to propose Community legislation and the subordination of the European Parliament to the Council (which, taking the Union's activities as a whole, would remain even if co-decision were extended to all legislation adopted by QMV). On the other hand, those Member States which have in the past expressed reservations about the Union's ultimate objectives are not seeking to use this IGC to tilt the institutional balance in favour of Member States. The 1957 structure is a delicate compromise between supranationalism and inter-governmentalism and advocates of more of the one and less of the other have implicitly acknowledged defeat.

39. There is universal agreement that the elements comprised in the Amsterdam Triangle at least must be tackled and negotiations on them brought to a successful conclusion. There is also broad agreement that there are other institutional questions closely linked to the Amsterdam Triangle which ought also to be tackled, for example, the composition and functioning of the Community courts.

40. Although there have been isolated voices questioning the logic of the link generally made between conclusion of the IGC and the start of enlargement, there is broad agreement that the IGC must end by December 2000 at the Nice European Council.

41. On other matters there is as yet no consensus; on the scope of the agenda there remains a considerable divergence between minimalist and maximist positions, in particular on flexibility and the splitting of the Treaty into its constitutional and policy parts. On the main agenda comprised in the Amsterdam Triangle there remains considerable controversy on the extension of qualified majority voting.

42. We shall now proceed to consider in detail the main issues, dealing first with topics on the IGC agenda, then with issues likely to be considered by the IGC at a later stage, and finally with related issues which will not lead to Treaty changes but which form part of the current programme of reform of the European institutions.


28   Following the decision taken at the Helsinki European Council to open negotiations with applicant States in the second wave. Back

29   Pursuant to Article 48 TEU: see paragraph 6 above. Back

30   Also called the Dehaene Report following the name of its Chairman. Back

31   The group comprised Mr Jean-Luc Dehaene, former Prime Minister of Belgium, Mr Richard von Weizsacker, former President of the Federal Republic of Germany, and Lord Simon of Highbury, former Chairman of British Petroleum and Minister for Trade and Competitiveness in Europe. Back

32   European Parliament Resolution containing the European Parliament's proposals for the Inter-governmental Conference (A5-0086/00), 13 April 2000. This is referred to in this Report in the form "EP Resolution of 13 April 2000, paragraph x". Back

33   This is discussed in more detail at paragraph 152 below. Back

34   The Institute's 159-page report was published on 15 May - too late for us to consider it. Back

35   For further discussion of this, see paragraphs 68-77 below. Back

36   Which are Third Pillar - i.e. inter-governmental - issues. Back

37   The current formula stipulates a minimum number of MEPs (six) for the smallest Member States, and then divides up the rest of the seats broadly in proportion to population size. Back

38   See Article 190(5) EC and Article 289 EC respectively. Back

39   The issues raised are discussed in paragraphs 104-105 and 154 below. Back

40   See (20781): HC 23-vi (1999-2000), paragraph 13 (26 January 2000). Back

41   See paragraphs 113 - 145 below for a discussion of the Charter. Back

42   See paragraphs 146 - 150 below. Back

43   See paragraph 157 - 175 below. Back

44   See paragraphs 176 - 185 below. Back

45   And this IGC is therefore very different from those leading up to the Maastricht and Amsterdam Treaties. Back


 
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