Select Committee on European Scrutiny Twenty-Sixth Report


16 The status of Euratom at the International Atomic Energy Agency

(27379)

7609/06

+ ADD1

COM(06) 121

Commission Communication on enhancing the status of the European Atomic Energy Community at the International Atomic Energy Agency

Legal base
Document originated16 March 2006
Deposited in Parliament23 March 2006
DepartmentTrade and Industry
Basis of considerationEM of 11 April 2006
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionCleared

Background

16.1 Membership of the International Atomic Energy Agency (IAEA) is at present restricted to states, and hence the European Atomic Energy Community (Euratom) is simply an observer. According to the Commission, this limits Euratom's influence and visibility within the IAEA in a way which is not commensurate with the Community's competence in the Agency's field of activities,[40] and its legitimate right to exercise them on the international scene, which it says has been recognised repeatedly by the European Court of Justice. Consequently, without determining at this stage exactly what this might entail, it has concluded that the status of Euratom at the IAEA should be enhanced, and it has sought in this Communication to examine the various possibilities, including Euratom membership of the Agency.

The current document

16.2 In its Communication, the Commission points out that Euratom was established in 1957, with Member States transferring to it sovereign rights principally in the areas of research, health and safety, the supply of raw materials, nuclear safeguards, and external relations, resulting in the development and implementation of an important body of laws. It adds that the Community has clear external competences in these areas, requiring it to establish relations with third countries and international organisations, and that IAEA activities largely concern areas in which the Community has competence. However, it notes that there is an obvious disparity between those competences and the status which the Community is accorded in the IAEA, which impedes their exercise, and it suggests that enhancing that status would benefit Euratom Member States since their voice, harmonised at Community level, would have even greater influence within the Agency. Also, third countries would be able to negotiate with a single body.

16.3 The Commission recognises that changing the status of Euratom at the IAEA could be complex process, which would not only affect Member States, but also require an amendment of the IAEA statute, entailing lengthy procedural and substantive discussions, which would be complicated by having to be viewed in the wider context of the European Communities status in various other such bodies. However, it suggests that upgrading Community status in various organisations has been a long-standing Commission objective, which has been successful in certain other areas, such as the Food and Agricultural Organisation, and that its aim regarding the IAEA is only to seek enhanced status in those areas where the Community has competence.

16.4 Against this background, it is proposing a two-step approach, involving in the first instance discussions with EU Member States within the Council as well as with the IAEA and its members, which would be followed by the submission to the Council of a proposal for negotiating directives aimed at negotiating an enhanced status for Euratom at the IAEA, and requesting an appropriate amendment of the IAEA statute.

The Government's view

16.5 In his Explanatory Memorandum of 11 April 2006, the Minister of State for Energy at the Department of Trade and Industry (Malcolm Wicks) says that at first sight it is difficult to understand what might be gained by an enhancement of Euratom's status, but that the benefits would depend very much on the directions of any future negotiations between the Commission and the IAEA.

16.6 He adds that the proposal nevertheless raises a number of difficulties which have been raised informally with the Commission following discussion at the Atomic Questions Group on 3 April. These include:

  • how the role of Euratom would reflect the fact that the IAEA has competences which go beyond those of Euratom;
  • how Euratom can expect to have a greater say in the running of the IAEA as a member when they are also responsible for safeguards within the Community;
  • how Euratom would represent the interests of all Member States, particularly in view of the added complication of two Nuclear Weapons States being members of the Community;
  • the likelihood that, if Euratom had the same status as its Member States at the IAEA, other members of the Agency could well argue that it should have a seat on the Board, rather than individual Member States;
  • the likelihood that, as a member of the IAEA, Euratom would need to make a financial contribution, which could result in the Member States paying twice;
  • the likelihood that Euratom membership would prompt similar requests from other regional organisations; and
  • the extent to which a precedent would be set for other UN-affiliated bodies.

16.7 The Minister adds that the Commission recognises these difficulties; that there may be significant opposition from the Member States; and that, even if it proved possible to overcome this, the IAEA may have other ideas. A further consideration is that individual members of IAEA, such as the USA and Japan, may not view the proposal positively, and might be concerned that a greater role for the Community would reduce the voice of individual Member States, and so potentially reduce the chances in future of seeing through political resolutions, for example on Iran.

Conclusion

16.8 Although we think it right to draw this document to the attention of the House, any substantive action to enhance the status of Euratom within the IAEA would require a legislative proposal, and, for that reason, we see no need to withhold clearance. However, we would be grateful if the Government could keep us informed of the reactions of other Member States to the ideas put forward by the Commission.



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