The EU Bill: Restrictions on Treaties and Decisions relating to the EU - European Scrutiny Committee Contents


Written evidence from the Foreign and Commonwealth Office, HM Government

PART ONE: RESTRICTIONS ON TREATIES AND DECISIONS RELATING TO THE EUROPEAN UNION

What is the meaning of, and difference between, the terms "competence" and "power" as used in the Bill? Are "competence" and "power" as used in the Bill terms that are already recognised under national law?

1.  In its chapter on "Europe", the Coalition's Programme for Government set out that legislation would be introduced to ensure that any future treaty which proposed a transfer of power or competence from the United Kingdom to the European Union would require the consent of the British people in a referendum.

2.  "Competence" is a term used in the EU Treaties. The term relates to the Member States' conferral of a right or ability on the EU to act. In some cases, such as trade, the EU has exclusive competence to act on behalf of the Member States. In other areas, such as the environment, the EU shares the competence to act with the Member States. In some other areas, such as health protection, the EU can support, coordinate or supplement the actions of the Member States.

3.  Article 1 of the Treaty on the Functioning of the European Union (TFEU) provides that the TFEU "determines the areas of, delimitation of, and arrangements for exercising [the EU's] competences" in respect of that Treaty and the Treaty on the European Union (TEU). The EU is bound to act within the confines of the Treaties, as only the Treaties provide the EU with the "competence" to act in a given area—where the Treaties do not provide for the competence to act, the EU cannot act in that area.

4.  The nature and extent of the EU's current competence are set out in Articles 2 to 6 of the TFEU. The EU's competence can be expressed in the following five ways, as set out in the Explanatory Notes to the European Union Bill:
(a)Exclusive competence, where only the EU can act. The areas concerned are set out in Article 3 TFEU (examples include the customs union and competition rules).
(b)Supporting competence, where the EU can carry out actions to "support, coordinate or supplement" the actions of Member States in certain specific areas, on the condition that the EU action does not supersede the Member States' competence in those areas. The areas concerned are set out in Article 6 TFEU (examples include the protection and improvement of human health; culture and education).
(c)Shared competence, where the EU can legislate in a specific area set out in the Treaties, but where if the EU has not yet acted in a specific area or has stopped acting in that area, the Member States can legislate accordingly. Under Article 4 TFEU, shared competence applies in those areas set out in the Treaties but which are not specified in Articles 3 or 6 TFEU (exclusive or supporting competence).
(d)The Member States shall also coordinate their economic, employment and social policies within the EU; and the EU can adopt measures and arrangements in order to achieve this end. Specific provisions apply to those Member States who use the European single currency (the Euro).
(e)The EU also has competence to define and implement a common foreign and security policy, including the "progressive framing of a common defence policy", though this remains largely subject to the unanimous approval of Member State governments in the Council.

5.  The term "power", unlike competence, is not defined in the EU Treaties. For the purposes of the EU Bill, a transfer of power could take place in three ways. Firstly, through a move in specified areas set out in Schedule 1 of the Bill to permit qualified majority voting in the European Council or Council in place of unanimity, consensus or common accord. This means that a referendum is needed only before the UK can agree to give up its ability to block or veto legislative proposals made under any of the specified Articles. It should be emphasised that mere use of these Articles as a legal basis for proposals for action will not require a referendum; but a proposal to give up the ability for the UK to block agreement on a measure using one of these Treaty articles would require a referendum.

6.  The Treaty articles in Schedule 1 cover the following subject areas, which have previously been viewed by all parties as sensitive and requiring the maintenance of a UK veto: foreign policy, defence policy, security and national security policy, military issues; third country and international agreements; justice and home affairs; national economic, tax, fiscal, and energy policies; provisions on the EU budget and financial management of the EU; citizenship and elections; social, social security and employment policy; membership issues and enlargement.

7.  The second transfer of power in the Bill is any treaty or treaty change which would confer a power on an EU institution or body (either an existing institution or a new institution) to impose a new requirement or obligation on the British Government or any organisations or individuals in the UK.

8.  The third is the conferral of a new power on an EU institution or body, whether a new organisation or an existing institution, the ability to impose sanctions on the British Government or any organisations or individuals in the UK.

9.  The UK has previously agreed to confer competence on the EU (or, in other words, confer on the EU the ability to act) in a number of areas as a result of the UK's ratification of successive Treaty changes, most recently that of the Treaty of Lisbon. The UK agreed to confer on the EEC the competence to act in ways specified in the Treaties at that time, when the UK joined in 1973. The statutory provision which permitted the UK to confer competence on the EEC at that time is the European Communities Act 1972.

10.  The term "competence" in the EU context is not referenced in UK statute law at present (though of course it would be if, subject to Parliament's approval, the European Union Bill were to be enacted). However, the spirit of the term is captured in Acts of Parliament, not least the European Communities Act 1972:

Section 2(1), European Communities Act 1972

"All such rights, powers, liabilities, obligations and restrictions from time to time created or arising by or under the Treaties, and all such remedies and procedures from time to time provided for by or under the Treaties, as in accordance with the Treaties are without further enactment to be given legal effect or used in the United Kingdom shall be recognised and available in law, and be enforced, allowed and followed accordingly; and the expression e nforceable EU right and similar expressions shall be read as referring to one to which this subsection applies."

11.  The term "power" in the EU context is referenced in legislation, not least in the section set out above. However, these are generic references to powers arising as a result of the EU Treaties—and yet the term power is not defined in the EU Treaties. This is the reason why the Government has listed what it considers to be a transfer of "power" for the purposes of the Bill.

Are the conditions on which the Minister decides that a Treaty change or decision amounts to the transfer/extension of an area of competence or power from the UK to the EU sufficiently clear?

12.  The Government is satisfied that the Bill is drafted as clearly as possible in order for Parliament and the wider public to understand when a referendum would be required, when a referendum would not be required, and when the exercise of Ministerial judgement is required in determining whether a transfer of power or competence would arise from a Treaty change.

13.  There are a number of decisions/Treaty changes which would require the consent of the British people in a referendum, with no exercise of Ministerial judgement required. These are as follows, and are set out in Clauses 4 and 6 of the Bill and in Schedule 1:

(a)  Any decision to give up any one or more of the 50 vetoes listed in Schedule 1 of the Bill, using either the Ordinary Revision Procedure or Simplified Revision Procedure, whether Article 48(6) TFEU or Article 48(7) TFEU (as provided for in clauses 4(1)(k) and 6(4)(b));

(b)  Any decision to give up any of the four emergency brake provisions provided for in the EU Treaties (as set out in clauses 4(1)(l) and 4(1)(m));

(c)  Any decision under Article 42(2) TEU that provides for a common EU defence (clause 6(2));

(d)  Any decision under Article 4 of the Schengen Protocol that removes the UK's control of its own borders (clause 6(4)(k));

(e)  Any decision under Article 86 (1) TFEU that would mean the UK participating in a European Public Prosecutor (in clause 6(4)(c));

(f)  Any decision under Article 86(4) TFEU enabling the European Council to extend the powers of the European Public Prosecutor, if the UK is already a participant in that Office (in clause 6(4)(d));

(g)  Any decision under Article 140(3) TFEU adopting the Euro as the currency of the UK (in clause 6(4)(e));

(h)  Any decision under the following Treaty articles to give up specific vetoes without the need to engage in formal Treaty change:

(i)  Article 31(3) TEU on common foreign and security policy decisions;

(ii)  Article 153(2b) TFEU on certain social policy matters;

(iii)  Article 192(2) TFEU on certain environment matters;

(iv)  Article 312 (2) TFEU on the EU budget multi-annual financial framework;

(i)  Any decision to give up a UK veto if in an area of enhanced co-operation:

(i)  The UK is already a participant;

(ii)  Participants of that initiative wish to move to qualified majority voting, including the UK;

(iii)  The area of enhanced co-operation is based on one of the 50 Treaty articles listed in Schedule 1.

14.  Given the Government's intention that this legislation should provide a sustainable framework under which any future Treaty changes would be considered, there are other possible transfers of competence or power over which it is not possible entirely to remove the element of Ministerial judgement. However, in order to minimise the level of Ministerial judgement required when considering whether a transfer of power or competence would occur, clause 4 of the European Union Bill provides a comprehensive list of criteria against which all future Treaty changes would be judged.

15.  The criteria in clause 4 to be used by a Minister to determine whether a transfer of competence or power from the UK to the EU would occur are in the following list. However, it should be emphasised that if any of the decisions in paragraph 14 above are included in a Treaty change, then a referendum would be required regardless of a Minister's judgement on the remainder of the Treaty change:

(a)  the extension of the objectives of the EU as set out in Article 3 of the TEU (any expansion of the list of objectives in Article 3, whether in Article 3 or elsewhere in the Treaties, would trigger a referendum);

(b)  the conferring on the EU of a new exclusive competence (for example, a proposal to move an area of existing competence shared between the EU and the Member States into exclusive competence of the EU);

(c)  the extension of an exclusive competence of the EU;

(d)  the conferring on the EU of a new competence shared with the member States;

(e)  the extension of any competence of the EU that is shared with the member States;

(f)  the extension of the competence of the EU, beyond what is already provided for in the existing Treaties, in relation to:

(i)  the co-ordination of economic and employment policies, or

(ii)  common foreign and security policy;

(g)  the conferring on the EU of a new competence to carry out actions to support, co-ordinate or supplement the actions of Member States;

(h)  the extension of a supporting, co-ordinating or supplementing competence of the EU (for example, any removal of a limitation preventing the EU from proposing a harmonisation of national rules under any of the areas of policy in which the EU has a supporting role);

(i)  the conferring on an EU institution or body of power to impose a requirement or obligation on the United Kingdom, or the removal of any limitation on any such power of an EU institution or body (for example, a proposal to require Member States to provide annual data on how Member States' national systems had co-operated in an area of supporting competence);

(j)  the conferring on an EU institution or body of new or extended power to impose sanctions on the United Kingdom (for example any extension to the sanctions which could be imposed on UK businesses under the EU's competition policy).

16.  The criteria in the Bill would therefore require that any transfer of competence from the UK to the EU, regardless of its size or sensitivity, would require that a Minister lays a statement before Parliament stating that a transfer of competence would occur under the Treaty change to be ratified, and would therefore require the consent of the British people in a referendum as well as the approval of Parliament by Act. The Minister would also have to make a statement if no transfer or competence from the UK to the EU is involved, again giving reasons.

17.  The Treaties explicitly state that Article 48(6) TFEU, the first part of the Simplified Revision Procedure, cannot be used to increase the competences conferred on the EU; only the Ordinary Revision Procedure could be used to transfer competence. It is, in contrast, possible for an Article 48(6) TEU decision to result in a transfer of power from the UK to the EU and the Bill provides that any such transfers would, on the whole, require the consent of the British people in a referendum. It should be borne in mind throughout that Article 48(6) TEU can only be used for amendments of Part Three of the TFEU, which relates to internal policies and actions of the EU. Article 48(6) cannot be used for any other provisions in the Treaties.

18.  The EU Bill provides that the Government would still be required to analyse any proposal under the Simplified Revision Procedure to confirm whether any of the criteria in clause 4 of the Bill would be triggered as a result of the decision in question. The Bill also provides that an Act of Parliament would be required to signify Parliamentary approval of any future decision under Article 48(6) TEU, whereas under the European Union (Amendment) Act 2008, a proposal under Article 48(6) would only require Parliamentary approval as a result of a positive vote in both Houses of Parliament. As the Minister for Europe said in the debate on the Second Reading of the Bill, "the Government intend to use the provisions of the Bill for any future treaty change" (HC Deb, column 270), including the limited Treaty change in respect of Eurozone economic government, which is to be discussed at the December 2010 European Council and is expected to use Article 48(6) as its base. Under the EU Bill, an Act of Parliament would therefore be required before the UK could ratify that Treaty change—regardless of whether competence or power would be transferred from the UK to the EU.

19.  Where the only reason for a proposed decision under Article 48(6) TEU requiring a referendum is that it would, while not transferring or extending competence, confer upon the EU the ability to impose new obligations or sanctions on this country (therefore only the criteria in (i) and (j) in the list above and in clause 4(1)), we need to be able to distinguish between important and minor changes. This is where the "significance test" comes in.

20.  It should be emphasised that the significance test only applies in the following circumstances:

(a)  Only with uses of Article 48(6) / Simplified Revision Procedure. If the Ordinary Revision Procedure is used, then any transfer of powers regardless of size or sensitivity would automatically require the consent of the British people in a referendum.

(b)  Only where criteria (i) or (j) are involved. If the Article 48(6) decision triggers any of the other criteria (which would most likely be the giving up of a veto in Schedule 1 given that Article 48(6) decisions cannot transfer competence), then a referendum would be required. If any of the decisions set out in paragraph 14 were part of the Article 48(6) decision, then a referendum would automatically be required.

(c)  Only where the Government judges that there is a transfer of power under criteria (i) or (j). For the significance test to be applied, there would need to be a judgement that a transfer of power would take place.

21.  If a proposal therefore satisfied these three conditions, then the Government could examine the proposed transfer of power and decide whether that transfer would be significant or not, and set out the conclusions of this examination in the statement to Parliament required by clause 5 of the Bill. If the transfer is judged to be significant, a referendum of the British people would be required.

22.  If judged not to be significant, then an Act of Parliament would still be required before the UK could approve that decision, and during the consideration of that legislation Parliament is of course able to legislate as it wishes—so if Parliament took a differing view and thought that the transfer of power in question should be agreed by the British people, a referendum could be provided for in that Act. And as with all Ministerial decisions, it would be possible for a member of the public to seek a judicial review of the Minister's decision on whether a proposed transfer of power would be significant.

23.  There are therefore three levels of decision provided for in Part 1 of the Bill:

(a)  Decisions where no Ministerial judgement is required;

(b)  Decisions where some Ministerial judgement is required, but where a comprehensive list of criteria will minimise the degree of discretion available;

(c)  In two specific circumstances, decisions where Ministerial judgement is required to ascertain whether a transfer of power is significant or not.

Are the distinctions in the Bill between national approval by referendum, Act of Parliament or Resolutions of both Houses consistent with the nature of the competence or power being transferred/extended?

24.  If the use of an existing Treaty Article would involve a transfer of power or competence from the United Kingdom to the European Union, the EU Bill provides that both an Act of Parliament and the consent of the British people in a referendum would be required before the UK could agree to its use. Clause 6 of the Bill lists those decisions which, were they to be exercised by the EU, would involve such a transfer and would therefore be subject to the referendum provisions.

25.  Where a ratchet clause would transfer competence or power from the UK to the EU, the Bill provides that a referendum would be required. There are two categories of decision here:

(a)  Where we have decided that giving up a veto is significant, we need to put a referendum lock over any way of giving up that veto. This covers:

(i)  One ratchet clause allowing any of the vetoes in Part Three of the Treaty on the Functioning of the European Union which we have identified as significant to be given up;

(ii)  Four of the vetoes relating to foreign and security policy and some aspects of social policy, environment policy and EU finance which we have identified as significant and which could be given up under their own specific ratchet clauses;

(iii)  Two ratchets which could allow a veto we consider significant to be given up while the UK and a smaller group of Member States are negotiating under enhanced cooperation arrangements.

(b)  One-way irreversible decisions which transfer competence from the UK to the EU. Three ratchets fall into this category. These are the Treaty articles on taking a decision to join the Euro, give up border controls, move to a common EU defence, to allow for the United Kingdom's participation in a European Public Prosecutor, and then for the powers of that Prosecutor to be expanded if the UK is participating in that office.

26.  There are a number of articles in the existing Treaties which would allow the Member States to decide together to add to, or reduce, what can be done within existing areas of EU competence, but without a change to the voting or legislative procedure. These provisions would require Parliamentary approval by an Act of Parliament under the EU Bill, but a referendum would not be required as these provisions would not result in a transfer of power or competence. Examples include proposals to add to the list of areas of serious cross-border crime on which the EU can legislate, or to strengthen or add to the list of rights of EU citizens already provided for in the Treaties.

27.  Clauses 8 and 9 of the Bill provide for specific Parliamentary controls over two types of decision: any future use of the so-called "broad enabling clause" set down in Article 352 of the Treaty on the Functioning of the EU; and three ratchet clauses in the field of justice and home affairs. Article 352 TFEU can be used to adopt measures in order to attain one of the EU's objectives. It can only do this where the existing Treaties have not provided explicitly for the necessary powers to do so already, and so long as the measure concerned remains within the confines of the objectives of the EU. Because of its enabling nature, it can be used for a broad range of proposals. It is an Article in whose use the Parliamentary Scrutiny Committees take great interest. So, as in Germany, the Government proposes that in principle any future use of Article 352 would need Parliamentary approval by Act of Parliament before the Government could agree to that use in the Council.

28.  However, the Government recognises that there are measures agreed under Article 352 which either satisfy an urgent need, or which are substantially the same as previous measures agreed under Article 352 or its predecessor article, Article 308. One example is a decision to extend a programme setting up anti-counterfeiting measures for the Euro in one country to run in another country—the substance of the programme is identical, but a separate decision is required to run the programme in the second country. In order therefore not to waste Parliamentary time by introducing repeated Bills for measures which are genuinely urgent or which have already been approved, the Government has adopted a workable approach and have provided a small number of exemptions in clause 8 of the Bill to avoid this.

29.  The UK benefits from a Protocol in the area of freedom, security and justice, which allows the Government to decide on a case-by-case basis whether to opt into a JHA measure or not. Because of this, and to allow the UK to be able to opt into a negotiation, the Government has made provision for a two-stage Parliamentary approval process in the Bill in respect of the three JHA ratchet clauses. Firstly, a motion would need to be approved in both Houses before the Government could opt into one of these measures. Once the negotiation had then taken place on the proposal and it was acceptable to the Government, an Act of Parliament would then be required before the Government could agree finally to the proposal in the Council.

30.  Some proposals will require a vote in both Houses of Parliament under the EU Bill and these are provided for in clause 10. These are mostly articles which modify the composition or rules of procedure or the statutes of existing EU institutions or bodies. Examples include proposals enabling the General Court of the EU Court to organise its workload by establishing specialised chambers to deal with certain types of cases, or proposals which change the rules of the European Investment Bank.

31.  Four of these decisions in clause 10 are not subject to unanimous agreement in the Council, which means the UK could not veto the exercise of the decision. Therefore, if an Act of Parliament were to be required before the UK could agree to a proposal in Council, we could find that a vote could take place in Council before the Bill could be introduced or while the Bill was being considered by Parliament - and either the UK would be outvoted in Council during the passage of the legislation, or otherwise the UK would not be able to stop the decision being adopted.

32.  It would therefore be a waste of time and money to have an Act of Parliament on these decisions; but given their subject matter, the Government nevertheless believes that these Articles should be subject to an additional level of Parliamentary control and so a vote in both Houses represents a practical solution.

Are there areas of extension of competence and/or conferral of power which are not covered in the Bill?

33.  The competences of the EU are set out explicitly in the EU Treaties. Any extension to the EU's competence can only be achieved through Treaty change, and both methods of Treaty change are captured by this Bill. The Government is also clear that transfers of power not already provided for in the Treaties can happen only as a result of Treaty change, or as a result of the use of certain decisions in the existing Treaties, for which provisions have been included in clause 6 of the Bill.

34.  It has been argued that the new exercise of an existing EU competence is in effect a transfer of power, in a case where the EU has not yet acted in a given policy area and is doing so for the first time. However, the exercise of a competence is not the same as the extension of a competence. This Bill does not provide for a referendum on individual EU proposals where EU action is already permitted by the Treaties, whether or not the competence to act has yet been exercised by the EU; because the competence has already been provided for in the Treaties as agreed by all Member States. In practical terms, if proposals do not require Treaty change or a change under Article 48(6), we consider that the EU has already been conferred the competence to act by the Member States. The only exceptions to this principle are the provisions in clause 6, in respect of any proposal to participate in the European Public Prosecutor, or agreement to the formation of a common EU defence.

35.  It has been argued that the process of opting into a measure in the area of freedom, security and justice, in which the UK benefits from an opt-in Protocol, is tantamount to a transfer of power. All measures in this area are examples of the exercise of the EU's existing shared competence, as provided for in the Treaties that have already been negotiated and ratified by all Member States. The United Kingdom's Protocol, and full ECJ oversight of measures in the area of freedom, security and justice are both provided for under the existing Treaties. This is not altered by the exercise of a UK opt-in, and as such are not transfers of power from the UK to the EU.

36.  The justice and home affairs provisions covered by the EU Bill are distinct because either they are ratchet clauses which would add to what can be done within existing areas of EU competence (for example, by adding to the areas of serious cross-border crime on which the EU can act), or are deemed of fundamental importance because of their potential impact on the UK legal system (for instance, the creation of a European Public Prosecutor).

37.  The suggestion has been made in the past that competence can be expanded by the judgments of the Court of Justice of the European Union. However, when reviewing EU legislation the Treaty is explicit that the CJEU must act within the limits conferred upon it, and have regard to the competences conferred upon the EU under the Treaties. It is wrong to suggest that the Court has always taken an expansive interpretation of existing competences. There have been previous rulings rejecting assertions from the European Commission that the EU had had competence that the Treaties did not, in reality, confer upon the EU.

38.  Similarly, it has been argued that "competence creep" remains an issue. The Government is clear that the limits of EU action are clearly defined in the EU's Treaties and can only be amended through Treaty change or through the use of specified decisions, on which the EU Bill makes provisions to ensure an appropriate level of Parliamentary and public control. Moreover, the Government assesses every proposal for new EU legislation against the competences set out in the Treaties. This Government will resist strongly any proposal that seeks to go beyond the competences conferred on the EU by the Treaties, including by escalating the issue for example at the European Council, and by taking cases to the Court of Justice to the EU.

Is it clear what a Minister must take into account when deciding whether "in his opinion" a proposal under Clause 4(1)(i) and (j) is "significant"?

39.  It would of course be a judgement on the part of the Government of the day as to whether a proposed Article 48(6) decision fulfilled one or both of criteria (i) and (j) in clause 4(1) on which the significance test would apply, and no other criterion in that list, and then whether they felt that the proposed transfer of power would be significant or not. The significance test only applies to two of the cases listed in Clause 4, and only when a decision under Article 48(6) is being taken. It is important to note that this means that any transfer of power under Clause 4(1)(i) and (j) to which the significance test will be applied would be within existing EU competence. Article 48(6) cannot be used to increase the competences conferred on the Union in the Treaties (though the Bill provides safeguards to ensure that Article 48(6) decisions are still tested to ensure that they do not breach that requirement).

40.  It is not possible to set down clear criteria in the Bill on how significance is to be judged, because significance depends not just on the nature of the power, but also on the subject area, the way in which the new power is to be used, the potential impact upon the UK and the context in which the power is to be exercised. The Bill does however require the Minister of the day to give reasons for their opinion on significance.

41.  It would of course be a judgement on the part of the Government of the day to ascertain whether a proposed Article 48(6) decision fell within the two criteria on which the significant test would apply, and then whether they felt that the proposed transfer of power would be significant or not.

42.  However, one possible example of a transfer of power might be considered significant is where the Commission would be given a new ability to compel EU businesses to do something which would increase burdens upon British businesses. One possible example of a transfer of power that might not be considered significant is perhaps where the Commission would be given the ability to compel Member States to provide annual updates on how their national systems were co-operating with those of other Member States in a field of supporting competence.

How far in practice would such a decision [on significance in the case of relevant decisions under Article 48(6) TEU] be amenable to judicial review? How far is a decision whether or not to hold a referendum a legal question, amenable to judicial review, and how far a political question?

43.  To the extent that a judgement on whether or not to hold a referendum according to the provisions of the EU Bill rests with the Government of the day, it would be for a Minister of the Crown to make an assessment as to whether the proposed Treaty change or decision fulfilled one or more of the criteria in the Bill, and to set out their analysis, decision and reasoning in a statement to be laid before Parliament within a period of two months after the relevant decision at EU level. As set out above, a number of decisions would not require the exercise of Ministerial judgement, and those that would are governed by a comprehensive set of criteria as set out in clause 4 of the Bill.

44.  Ministers will have to take a definite decision on whether any use of the Treaties' ordinary or simplified revision procedures would transfer power or competence from the UK to the EU, and therefore whether a referendum would be required as a result of the provisions of the EU Bill. As with all formal Ministerial decisions, the decision taken in accordance with Part 1 of this Bill can be subject to judicial review before the Court.

45.  It is of course up to the Court to determine whether a challenge should be heard, and if so, when to hear the challenge and whether the challenge should be upheld. Requests for judicial review should ordinarily be brought within three months of the statement being laid before Parliament in accordance with the provisions in clause 5. A judicial review would be likely to consider the reasonableness of the Minister's reasoning in the published statement, and whether the obligations set out in the EU Bill have been complied with.

46.  As set out in the Explanatory Notes to the Bill, once the statement is laid before Parliament, the Government would then be required to prepare and introduce a Bill to Parliament at an appropriate stage in the legislative programme, which would provide for the approval of the Treaty change, and where relevant the provisions enabling a referendum of the British people to be held.

What might be the effect of Part 1 of the Bill on the UK's future relationship with the EU?

47.  The Government believes that membership of the EU is in the national interest of the United Kingdom. We remain committed to playing a strong, positive and active role in the European Union, and to pursuing a range of objectives for EU action. We want an open external market, and so support the negotiation of new EU Free Trade Agreements with key trading partners (for example with India, China and South Korea). We want to strengthen and expand the single market, including the energy market, in order to deliver growth. We want to promote a resource efficient, low carbon EU economy. And we want to work through the EU to achieve our international objectives.

48.  But many people feel disconnected with the decisions that have been taken in their name by the Government on the European Union. The European Union Bill is part of the Government's wider objective to transfer power back from Government to the people, and seeks to restore trust and enhance the democratic accountability of the EU among the British people; to help ensure that the British public are engaged and active participants in the UK's future within Europe. Part 1 of the Bill proposes to use referendums and a strengthening of the role of Parliament in order to encourage the restoration of trust and the enhancing of Parliamentary and popular accountability.

49.  There is nothing in the EU Treaties that puts any constraints on Member States in respect of their choice of domestic procedures for determining how their Governments should cast their votes in the Council or European Council, or indeed the "constitutional requirements" by which a Treaty change should be considered domestically before ratification by the Member State. There is nothing in the EU Treaties which implies that the UK has to agree to any passerelle provision or Treaty change, or that places any constraint about the way in which the UK decides how to vote. Indeed, the EU Treaties allow for the Member State to take certain decisions and all Treaty changes back to the Member State's Parliament, and in many cases the people, to seek their consent before the change is approved or ratified.

50.  As Jean-Claude Piris, former Head of the Council Legal Service, set out in his evidence to the Committee last month, "It is undoubtedly for each Member State to determine the constitutional mechanisms through which it gives effect to [the] legal obligations [provided for by the EU Treaties]."

51.  Although there are differences between the constitutional frameworks of the United Kingdom and those of our European partners, a number of other Member States have systems which provide for referendums to be held in order to consent to Treaty changes or specific decisions which transfer powers or competence. A number of Member States, in particular Germany, also have mechanisms in which Parliament are required to approve any agreement to specified decisions. The UK would therefore be implementing a set of provisions which are already embedded in a number of other systems.

December 2010




 
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