Select Committee on European Scrutiny Twenty-Fifth Report


11 Common Foreign and Security Policy

(28599)

Annual report from the Council to the European Parliament on the main aspects and basic choices of the CFSP

Legal base
DepartmentForeign and Commonwealth Office
Basis of considerationMinister's letter of 5 June 2007
Previous Committee ReportHC 41-xxii (2006-07), para 17 (16 May 2007)
To be discussed in Council21 May 2007 Competitiveness Council
Committee's assessmentPolitically important
Committee's decisionCleared

Background

11.1 Under Article 21 EU, the European Parliament is to be consulted on the main aspects and basic choices of the EU's Common Foreign and Security Policy and kept regularly informed by the Presidency and the Commission of the development of this policy.

The 2006 Annual Report

11.2 This report covers the year 2006 and also looks at perspectives for future action. The chapters into which the 119 page report is divided are:

—  CFSP and ESDP: instruments and institutional aspects

—  Financing of CFSP/ESDP

—  Counter Terrorism

—  Non-proliferation/disarmament/arms trade

—  Early warning and conflict prevention

—  Western Balkans

—  Eastern Europe and Central Asia

—  Mediterranean region and Turkey

—  Middle East/Gulf

—  Africa

—  Transatlantic relations

—  Asia-Oceania

—  Latin America and Caribbean

A six-page annex lists all the CFSP legislative acts carried out in 2006.

11.3 The report was fully summarised and analysed by the Minister for Europe at the Foreign and Commonwealth Office (Mr Geoffrey Hoon) in his Explanatory Memorandum of 3 May 2007, and considered by us on 16 May. While appreciative of his helpful Explanatory Memorandum, and particularly his renewed commitment to keep us informed of developments as issues are discussed in working groups, ahead of the depositing of the draft legislation, we asked why this annual report had not been deposited for scrutiny since 2002.

11.4 He also referred in the title of his Explanatory Memorandum to "(point G, paragraph 43 of the Interinstitutional Agreement of 17 May 2006)". Point G, paragraphs 42 and 43 of the IIA deal with the financing of Common Foreign and Security Policy.[24] However, as paragraph 43 covers several aspects of the process whereby the European Parliament shall be consulted on CFSP, we were not clear precisely to what the Minister was referring, and asked him for clarification.

11.5 More generally, we asked him to explain what changes had been introduced in paragraphs 42 and 43 by comparison with the IIA of 1999, and their significance in terms of the involvement of the European Parliament in the scrutiny of CFSP, particularly as to its focus and its financing.

11.6 Finally, we recalled that, a year and a half ago, the then Minister for Europe, in commenting on the ESDP Report at the end of the UK Presidency, said that the key challenge was no longer institution building, but ensuring an effective EU response and making ESDP more active, more capable and more coherent, including through better co-operation and coordination with other international organisations and non-EU states; and noted that the proposals listed in the Annex illustrated a CFSP that was very much in line with this approach.

11.7 We also recalled, however, that at the informal Hampton Court meeting of EU Heads of State and Government in October 2005 the Secretary General/High Representative had noted that most of the increase in the CFSP budget was already earmarked, and that additional funding was likely to be required — without including a possible operation in Kosovo — and that there was general agreement at the meeting on the need for a substantial increase in funds to cover the common costs of EU crisis management operations and other CFSP measures, with the figure of €300 million per annum suggested by one head of government having received widespread support — a figure which he said was, given the Union's ambitions and capacities, not unreasonable.[25]

11.8 Looking ahead, we asked that future Explanatory Memoranda on Presidency ESDP Reports should include an explanation and assessment of the financial context of both current and prospective activity, and asked that the same should apply with future CFSP annual reports. For now, it seemed to us that, with a large part allocated to the planned EU mission in Kosovo, a 2007 budget of €159.2 million was a long way short of the estimates under discussion 18 months ago, which suggested that the Union's ambitions continued to run ahead of its willingness adequately to finance them. We asked for the Minister's comments when he responded to the points raised above.

11.9 We cleared the document ahead of its adoption at the 21 May Competitiveness Council.[26]

The Minister's letter

11.10 The Minister for Europe responded in his letter of 5 June as follows:

"I would like to apologise for the fact that Annual Reports have not been deposited since 2003 due to oversight. It appears that officials at the time mistakenly judged that the report was not subject to scrutiny. I am glad that my officials were able to resolve this confusion with your clerks and that you found the Explanatory Memorandum helpful.

"You asked for an explanation of the reference in the title of the Explanatory Memorandum to point G, paragraph 43 of the Interinstitutional Agreement of 17 May 2006. Point G, paragraph 43 is cited because it is in the complete title of the Annual Report.

"Paragraph 43 of the 2006 Agreement differs from the corresponding paragraph in the 1999 Interinstitutional Agreement in three areas:

  • it places a new obligation on the Council to transmit the Annual Report to the European Parliament by 15 June each year;
  • it specifies that the CFSP Annual Report should include an evaluation of measures launched in the year covered by the report;
  • the Council Presidency is now required to keep the European Parliament informed by holding joint consultation meetings at least five times a year.

"You also asked for Explanatory Memorandums covering future CFSP Annual Reports to include an explanation and assessment of the financial context of both current and prospective activity. I agree that would provide a useful opportunity for me to update Parliament on the financing of activity in this area and we will do so in forthcoming years.

"With regard to the 2007 CFSP budget, the Commission currently calculates that €159.2 million should be sufficient but the start date for the Kosovo mission is the key variable. If necessary the Council can revert to the European Parliament. For 2008, the Commission's initial budget proposal is €200 million".

Conclusion

11.11 Given the disparity between what seemed, at the Hampton Court meeting, to be a generally agreed figure of what was required and what is apparently earmarked for CFSP/ESDP activity, analysis of the financial component in future years will be of particular interest.

11.12 In the meantime, we are grateful for this further information, which we are reporting to the House because of the level of interest in the subject matter.


24   See http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/c_139/c_13920060614en00010017.pdf for the full Interinstitutional Agreement Back

25   http://ue.eu.int/ueDocs/cms_Data/docs/pressdata/EN/reports/87644.pdf Back

26   See headnote. Back


 
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