9 EU-Egypt restrictive measures
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(32580)
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(b)
(32582)
7552/11
COM(11) 132
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Council Decision concerning restrictive measures directed against certain persons and entities in view of the situation in Egypt
Council Regulation concerning restrictive measures directed against certain persons and entities in view of the situation in Egypt
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| Legal base | (a) Article 29 TEU; unanimity
(b) Article 215 TFEU; QMV
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| Documents originated | (a) —
(b) 10 March 2011
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| Deposited in Parliament | (a) —
(b) 16 March 2011
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | EMs of 11 March 2011
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| Previous Committee Report | None
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| To be discussed in Council | 21 March 2011 Foreign Affairs Council
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
9.1 On 11 February 2011, following 18 days of country-wide protests,
the then Egyptian Vice-President Omar Suleiman announced that
Hosni Mubarak had resigned as President of Egypt and handed over
control to the Military Council. This followed three public speeches
by Mubarak promising reforms but making clear that he was determined
to stay in the Presidency until elections in September.
The draft Council Decision and Council Regulation
9.2 Noting that on 21 February 2011, the European Union declared
its readiness to support the peaceful and orderly transition to
a civilian and democratic government in Egypt based on the rule
of law, with full respect for human rights and fundamental freedoms
and to support efforts to create an economy which enhances social
cohesion and promotes growth, the Council Decision and Council
Regulation[46] provide
for restrictive measures against "persons responsible for
misappropriation of Egyptian State funds, and who are thus depriving
the Egyptian people of the benefits of the sustainable development
of their economy and society and undermining the development of
democracy in the country."
The Government's view
9.3 In his Explanatory Memoranda of 11 March 2011, the Minister
for Europe (Mr David Lidington) says that, since assuming power,
the Egyptian military has issued a number of statements reiterating
its commitment to safeguarding the legitimate demands of the people
and overseeing a transition to a democratic society; plus other
commitments including the non-prosecution of those who called
for reform, carrying out legislative amendments and ending the
state of emergency as soon as the current circumstances come to
an end.
9.4 He continues as follows:
"On 14 February 2011 we received a request from
the Egyptians to freeze the assets of a small number of members
of the former regime. The information provided was insufficient
to take any significant law enforcement action domestically or
to freeze assets on behalf of Egypt (in line with the Proceeds
of Crime Act 2002 and associated Orders). UK officials have spoken
to the Egyptian MFA and given oral and written guidance to the
Egyptians on what information the UK would need to take forward
asset freezing on their behalf under UK criminal law. There is,
however, no way of knowing when, or if, such a request will be
issued. Nonetheless, there is nothing further that can proactively
be done to pursue this option at the moment.
"On 22 February 2011 we received a request to
freeze the assets of former President Mubarak and members of his
family. Again, the Egyptians have provide insufficient information
for us to begin criminal proceedings, although they have indicated
they will prepare a request for mutual legal assistance to return
the assets to Egypt (returning the assets will only be possible
if they have first been frozen and confiscated — returning
ass[e]ts cannot be done under EU law). Other EU Member States
have received a similar request.
"Following these requests, the Foreign Secretary
agreed that we would raise the requests to freeze Egyptian assets
at the EU working group (MaMa) in Brussels on 28 February 2011
and work to secure a Council Decision setting out the basis for
the asset freeze, and a Council Regulation to give the asset freeze
legal effect in EU Member States.
"The EU has now proposed the adoption of a Council
Decision to put in place a mechanism by which to freeze these
assets, and a Council Regulation to give these measures effect.
This will send a positive message of support to the Egyptian authorities,
whilst ensuring that EU Member States can respond to the requests
with a uniform and consistent application of the asset freeze
across the EU."
9.5 The Minister also notes that:
— individuals
and entities may only be listed where evidence exists that they
are engaged in the activities listed under Article 1 of the Council
Decision;
— the Council Regulation will also be adopted
in order to give effect to the asset freeze; though directly applicable
in UK law, domestic legislation is required for enforcement measures,
and to create penalties, in each EU Member State;
— the procedures for designating individuals
subject to the asset freeze are compliant with fundamental rights
and principles; in particular, the EU Charter of Fundamental Rights,
and notably the right to an effective remedy and to a fair trial
and the right to the protection of personal data;
— designated persons and entities may present
observations on the reasons for their listing, in the light of
which the Council will review its decision and inform the person
or entity concerned accordingly, and will be able to challenge
their listing before the General Court of the European Union;
— provision is made for competent authorities
of Member States to authorise the release of frozen funds where
necessary in certain circumstances, for example, to satisfy the
basic needs of listed persons or their dependents and where necessary
for humanitarian purposes, or where necessary for supply of foodstuffs,
medical equipment or provision of health care.
9.6 The Minister concludes by noting that both the
draft Council Decision and Council Regulation are to be adopted
at the 21 March Foreign Affairs Council.
Conclusion
9.7 All of this is to be expected in the circumstances
that the Minister describes. The procedures are standard. To what
extent they will succeed in achieving the desired outcome must
remain to be seen. But the EU and its Member States must clearly
do what they can to respond to a legitimate request.
9.8 We now clear the document.
46 The policy measures set out in the Council Decision
are implemented via the Council Regulation. Back
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