Select Committee on European Scrutiny Seventh Report

 
 

 
12 European Defence Agency

(a)
(28077)



(b)
(28078)
15184/06
—  

Annual Report for 2006 by the Head of the Agency to the Council



Council Guidelines for the Agency's work in 2007  

Legal base — 
Deposited in Parliament 28 November 2006  
Department Defence 
Basis of consideration Minister's letter of 10 January 2007  
Previous Committee Report HC 41-iv (2006-07) para 19 (14 December 2006)  
Discussed in Council 13 November 2006 General Affairs and External Relations Council  
Committee's assessment Politically important  
Committee's decision Cleared (reported on 14 December 2006)  

Background

12.1 When we considered these documents last December,[35] we commended the initiative of the Secretary of State and his predecessors not only for providing these Reports but for the practice they initiated of writing before and after each EDA biannual Ministerial Steering Board, and more recently also to colleagues on the Defence Committee, about the issues under discussion and the outcome, thus making us all fully aware of the context against which these formal documents are prepared, and therefore of the different views over the pace at which the Agency should develop.

12.2 We noted that our own instinct was in line with the Minister's: that modest growth was the most appropriate basis at this stage in an Agency that came into being only 18 months ago and in a field that would still seem to be very crowded.

12.3 Although the Secretary of State suggested that a three-year financial framework should be agreed by the end of 2007, to cover 2008-10, he also noted that a review of the Agency was due to be presented by mid-2008.

12.4 We suggested that it would be more appropriate for such a proposed framework to emerge from that review — which would then be able to draw on next year's experience on top of experience so far — rather than be produced beforehand, and asked for the Secretary of State's views on this thought.

The Minister's letter

12.5 In his letter of 10 January 2007, the Secretary of State for Defence (Mr Des Browne) says that our suggestion indicates "some misunderstanding of the process here". He continues as follows:

"The Joint Action establishing the EDA was adopted in July 2004, and is required to be reviewed every three years. Therefore, this review will take place in 2007, not in 2008. This review will occur prior to the requirement to set the three year Financial Framework by the end of 2007, as agreed at the General Affairs and External Relations Council in November.

"During the course of the review of the Joint Action, we will look at whether the requirement to set a three year Financial Framework is useful. If the review confirms this requirement, we will endeavour to set a three year Financial Framework by the end of 2007. That said, we do not expect the Financial Framework as it currently stands to emerge from the review of the Joint Action".

12.6 In the meantime, the Secretary of State has outlined further details of current EDA funding in a letter of 8 January 2007 to our House of Lords' counterparts. He explains that:

Year  Total EDA Operational budget  UK Contribution

@17.57%  

Euro Conversion  UK Contribution  
 €million  €million   £ million  
2007  0.88  1.4959 0.59  
2008  1.23  1.4959 0.82  
2009  10 1.76  1.4959 1.18  

Conclusion

12.7 It seems that there has been some misunderstanding all round. In any event, the Secretary of State now makes it clear, in a way that was not made clear in the first instance (when he said that the review would be presented "by mid-2008"), that the review will both be carried out in 2007 and precede any decision to set a three-year Financial Framework before the end of that year. It would seem that (despite his last sentence) the review will inform any decision on the size and scope of a three year Financial Framework for 2007-10, which is all that we were seeking to establish.

12.8 We are grateful to him for this clarification.


35   See headnote. Back


 

 
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