Select Committee on Foreign Affairs Minutes of Evidence


Examination of Witnesses (Questions 300 - 319)

TUESDAY 21 NOVEMBER 2000

RT HON ROBIN COOK MP, MR EMYR JONES PARRY CMG AND MR KIM DARROCH

  300. What the Caricom countries are saying is obviously this has been discussed with them and they understand that it is the long term thrust of EU policy to open up markets but they were promised that there would be full impact studies of the effect on commodities like bananas and sugar. It seems for political reasons all this has been short circuited and there is an attempt to ram it through by December. This is a DTI thing really but I am flagging up the foreign policy implications and the concern of the Caribbean countries.
  (Mr Cook) The Commission is perfectly entitled to set whatever ambitious agenda and timetable it wishes. That does not necessarily require the Council to give a positive or a negative answer in that timetable. Personally, from what I have heard, intuitively I would be surprised if they got agreement from any Council by December, but I can write and clarify that.
  (Mr Darroch) We are aware of the Caribbean countries' concern. They have talked to our missions and we will take their views into account.

Chairman

  301. The last major chunk is enlargement and the dates of enlargement. You argued in the past that to set dates might reduce the pressure on certain countries to do well in terms of incorporation of the acquis. Now it is said that the Swedish presidency might seek over the first six months of next year to set dates presumably because of progress in terms of the chapters. What is the current HMG view on setting dates?
  (Mr Cook) I set this out for the first time in July when I spoke in Budapest and made a major speech on our approach to enlargement. In that speech, I did call for target dates and said we believed the time was right when we should consider target dates for the candidates. It is not a view shared by the current presidency, the French government, and therefore we have never thought it a realistic prospect for Nice, but I think it is quite possible that it will be set at the Gothenberg Summit which will come at the end of the Swedish presidency. Because of its traditional and geographic connection with the Baltic states, Sweden is very forward on the enlargement issue. I would hope that we can get consensus by then for target dates for the applicant countries. One of the reasons why we can be hopeful on that front is that the recent report by the Commission on the enlargement is very positive and does show that, in the majority of cases, good progress is being made by the applicant countries. Therefore, by the middle of next year, it should be possible for a number of them to set a target date by when we could complete negotiations. Of course, the completion of the negotiations is only then the start of the ratification process, but the Committee may be aware that the Prime Minister, in his Warsaw speech, did say that we wanted the new first members to join us in time for the next European Parliament elections which would be in 2004. For completion of the negotiations and completion of ratification, that is the basis for deliverable targets.

Mr Mackinlay

  302. You have clarified something I was going to ask you. Where the Prime Minister said that he hoped the principal applicant countries would be in by the European elections 2004, I had interpreted that as almost like them having the parliamentary elections and being able to sit in the Parliament in advance of membership. That was his target date, was it, for membership?
  (Mr Cook) They could become members in advance of polling day for the European Parliament but if, say, we get half a dozen members joining ad hoc addition to the European Parliament will be tricky because there will have to be a redistribution of seats between the nations.

  303. I am sorry to labour this. It is probably not the most important thing in the world but the way I interpreted it was that he was saying that accession might be 2005 but they will be able to participate in the elections and take seats.
  (Mr Cook) I am not sure that that would be legally possible. For them to legally take part in the elections, they would have to be members of the Union by then. Indeed, they would wish to be and it would be our objective too. We would not, certainly at this early stage, countenance setting a later date.

Chairman

  304. If the ratification process were far advanced, you would not be against not holding up countries having shadow elections prior to formal accession?
  (Mr Cook) Speaking for the United Kingdom, we would be certainly open to such a creative solution but whether that is legally possible I would not like to say offhand.
  (Mr Jones Parry) In the case of Spain and Portugal, both had members of the European Parliament under special arrangements for the general election which then followed their accession.
  (Mr Cook) Am I not right in saying that that did not require a redistribution of seats? A bolt-on is one thing, but—

Mr Mackinlay

  305. What is clear this afternoon is that it is not clear exactly what the Prime Minister had in mind on this narrow point.
  (Mr Cook) I think it is quite clear what the Prime Minister had in mind which is that they should be full members of the European Union in time to take full part in the European Parliament elections in 2004. I would not want to get into speculating about that timetable not being met, because it lessens the pressure on our partners, but we can investigate the legal position.

Chairman

  306. Could you give us a note on that, please?
  (Mr Cook) Of course.

Sir John Stanley

  307. Foreign Secretary, you said this afternoon that you think both entry and ratification for the six applicants in the first wave are a realistic target for 2004. Would you agree that almost all the attention in relation to the next wave of enlargement, with particular reference to the six countries that are coming in, not least Poland and Hungary, has been very much focused on the institutional changes which are necessary to accommodate them, but there has been grossly insufficient attention paid to the financial, particularly CAP, reform changes which are required? Would you agree that it is now going to be imperative that France and Germany in particular seriously address the need to deal with the financial implications and the CAP reform implications of entry, particularly of Poland and Hungary, if there is going to be any sort of prospect of achieving the 2004 date which you said this afternoon you think is realistic?
  (Mr Cook) First of all, can I make an entry in the margin? It is true I used the phrase "half a dozen" which is slightly elastic, but I would not want to be pinned down to that being precisely those who started the process of accession in the first wave because we have always been clear that this is not a block process. In other words, those six do not necessarily come in as a block. Equally, those who are behind them have the opportunity of catching up. This is quite relevant since Malta, which started last, has made the best progress in view of its previous work and has pretty well caught up on the first six. It is not necessarily those who are in the first wave for accession who may be in the first wave for membership. The answer to your substantive question is no. That was the whole point of Berlin. Berlin set a financial perspective for seven years and set a financial perspective in the expectation that new members would be coming into the European Union in the course of those seven years. It created sufficient room within the financial perspective to accommodate new members towards the end. That financial perspective comes in in 2007 and there will be renegotiation of that financial perspective starting effectively in 2004. That enlargement will coincide with the debate about the next financial perspective in the course of which we would certainly hope to see further reform of the Common Agricultural Policy and would ourselves expect the WTO to be applying pressure for that objective.

  308. This afternoon you are saying something which has come as quite a surprise to me because we have taken this very precise issue previously in the Committee in believing that the first wave of applicants was being treated as a block and would come in all together. You are now saying to us that possibly the more difficult countries in financial terms—I suppose Poland would particularly stick out—might find that their applications are going to be deferred because of the difficulties that France and Germany in particular have with accommodating their agricultural economy against the existing subsidy system for the CAP.
  (Mr Cook) I do not honestly see how you can draw the last inference from what I said, because what I said was at Berlin all the countries of the European Union, including France and including Germany which was in the chair of the Berlin Summit, agreed to a financial perspective spanning for the next six years which was carved out specifically in order to provide room for enlargement and on the assumption that enlargement would take place in the course of that financial perspective. That is not a fair inference from what I said. I am surprised if it comes as news to the Committee that we are not approaching this as a block process. We have said that right from the start in 1998 when accession was launched under the British presidency. The principle of differentiation is very important to the applicant countries because they want to know that they will get in on the merits of their case, on the work that they have done to prepare for membership and are not necessarily kept waiting whilst others catch up.

Sir David Madel

  309. A recent Commission report referred to the slow progress of Polish agricultural reform. Am I right in thinking that we are not prepared to overlook that in our desire to get Poland in and, if agricultural reform in Poland proceeds at a slow pace, there will be inevitable delay?
  (Mr Cook) There is no guarantee that any one country will get in in the first place, and all of them will have to meet the criteria for membership—the Copenhagen criteria, and the adoption of the acquis in which agriculture is part. That said, we should bear in mind that one of the difficult issues yet to be resolved in negotiation with the applicant countries is the question of direct payment to farmers. The Berlin financial perspective assumes that there will be no direct payment to farmers in the applicant countries as they became members. In some ways that would be a helpful outcome because what we would not wish to create is a new constituency of support for direct payment within the European Union which would be inconsistent with our own wish for reform. This is not something which for obvious reasons is attractive to the applicant countries that will be the centre of much negotiation over the next year.

Chairman

  310. Nor would it be consistent with broad Community principles of fairness and treating all Members equally?
  (Mr Cook) It is indeed a point that is vigorously put out by the applicant countries but, at the same time, it does chime with the need to achieve reform and reduce spending.

Sir David Madel

  311. Of existing members of the EU probably the country keenest for Poland to join is Germany, for understandable reasons. Do you get the impression that Germany is not prepared to overlook the slow pace of the Polish agricultural reform?
  (Mr Cook) No. Indeed, as I said earlier, Britain is one of the less protectionist members, and in some ways we are more supportive than those countries which are nearer.

Mr Mackinlay

  312. If I can say to you, Foreign Secretary, my recollection of the British Government's position is somewhere between yours and John Stanley's—it is a nuance.
  (Mr Cook) A very interesting correlation.

  313. If it is just left like this, this afternoon, I think it could negate all the very positive vibes which came from the Prime Minister's Warsaw speech, if I might say so. Apart from clarity here, I think I should invite you—surely the position of the British Government is saying, of course, ultimately there is no guarantee that countries coming to Visegrad, Estonia and Slovenia, come in en bloc; but as a matter of policy and as a matter of objective and target that is the intention that we should reach that—because to bring other countries in (particularly Hungary and the Czech Republic) and for Poland not to be admitted would have profound other consequences either within the 40 million people of Poland, which is bigger than all the other countries put together, and be an enormous loss not just to them but to the rest of the European Union. It seems to me that what you personally have uttered in this Committee is the objective that they should come in together. It is fair but it is not an absolute guarantee, but if you are departing from that this afternoon then that is a departure which should be noted?
  (Mr Cook) No, it is no departure. I think it is very important we are quite clear about this. It is not only one country that may be listening to what we are saying here but also the others, and they all want to be treated on their merits and not as members of a bloc. Malta wishes the opportunity to catch up.

  314. Malta is about the size of Wandsworth. Let us put things into perspective.
  (Mr Cook) I am not sure I would find it helpful to endorse that observation. Malta is a sovereign independent state which is entitled—

Chairman

  315. Under clear democracy.
  (Mr Cook)—to have its application judged on its merits. I do not think we should diminish Malta's case. If I can go back to where I was—Malta would wish the right to catch up. We have always promised that there was a fast lane, as we said, in which those who were further behind could catch up. We would want to make sure, for instance, that the other Baltic States if they made the progress could catch up with Estonia, but that is down to them. Let me stress, Chairman, I have said nothing in the course of this hearing to suggest that we do not want Poland to be a member and we do not want Poland to be a member in the first wave. All I have said, and this has been our policy right from the start, is that each country will be judged on its merits and on the progress it has made.

  Mr Mackinlay: It is a different nuance.

  Chairman: We have several blocs I would at least like to touch on—enhanced co--operation first with Mr Rowlands and Mr Maples.

Mr Rowlands

  316. Foreign Secretary, when you last came before us on these issues you and the Department's position was why do we have to build a new provision for enhanced co--operation. The provision had been made and had not been used at all previously. Has there been an example of enhanced co-operation under the existing arrangements?
  (Mr Cook) No.

  317. We nevertheless are faced with the quite considerable pressure to have new provisions for enhanced co-operation which include, among other things, no veto or emergency brake on enhanced co-operation for the first pillar. Do we support that? How are we going to handle that issue?
  (Mr Cook) The present situation is satisfactory at this point. It does provide that if a Member State objects to enhanced co-operation then it should be referred to the European Council before a decision is taken for enhanced co-operation to proceed, and we are not uncomfortable with that as an outcome.

  318. On the first pillar we would accept possibly qualified majority voting to proceed?
  (Mr Cook) No, that is separate. What it does provide for is that if a member country objects it has to go to the full summit meeting before it would proceed. Also that has to be read in conjunction with the conditions for enhanced co-operation. For instance, we are very keen and are making good progress in securing strong language that makes clear that enhanced co-operation cannot disrupt the Single Market. To be perfectly honest with the Committee, I do not think that leaves much scope for enhanced co-operation within the first pillar.

  319. Secondly, the concept of a veto has been retained for the second and third pillars, although our Government White Paper envisaged that there could be some kind of enhanced co-operation without a veto on the issue of security and defence. Is that right?
  (Mr Cook) No, our position is that any decision to adopt a policy on the Common Foreign and Security Policy has to be unanimous. However, we have always recognised that, having adopted policy, the issue of implementation is one where a group of countries may wish to proceed and others may not want to take part. After all, if we are realistic the capacity of the Member States to project foreign influence in different parts of the world varies depending on their history, depending on their scale and depending on their current trading pattern. It does make sense to have the possibility of a number of countries going ahead without everybody having to take part; but we would retain unanimity for that initial decision in adopting policy.


 
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