12 Internal Security Fund
| (a)
(33395)
17287/11
COM(11) 753
(b)
(33397)
17290/11
COM(11) 750
| Draft Regulation of the European Parliament and Council establishing, as part of the Internal Security Fund, the instrument for financial support for police cooperation, preventing and combating crime, and crisis management.
Draft Regulation of the European Parliament and Council establishing, as part of the Internal Security Fund, the instrument for financial support for external borders and visas
|
| Legal base | (a) Articles 82(1), 84 and 87(2) TFEU; co-decision; QMV
(b) Article 77(2) TFEU; co-decision; QMV
|
| Document originated | (Both) 15 November 2011
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| Deposited in Parliament | (Both) 25 November 2011
|
| Department | Home Office
|
| Basis of consideration | EM of 29 November 2011
|
| Previous Committee Report | None
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| Discussion in Council | 13 December 2011
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information requested
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Background
12.1 As we reported in paragraph 11.1, in Building an open
and secure Europe: the home budget for 2014-20, the Commission
sets out its proposals for funding EU home affairs policies under
the next Multiannual Financial Framework ("the MFF").[76]
One of its principal objectives is to simplify the existing funding
structure by reducing the number of EU funding instruments and
by establishing a set of overarching provisions applicable to
all EU home affairs funding. It has therefore proposed the creation
of two EU Funds for 2014-20 — the Asylum and Migration Fund
and the Internal Security Fund — which would replace six
existing funding instruments.[77]
The two new Funds would be based on four Regulations comprising:
- a single, horizontal Regulation containing general provisions
on the programming, management and control of both Funds;
- a Regulation establishing the Asylum and Migration
Fund and setting out the resources available and the objectives
of EU funding; and
- two Regulations together establishing the Internal
Security Fund; the first setting out the resources available and
the objectives of EU funding for police cooperation, action to
prevent and combat crime, and crisis management; the second covering
the common visa policy and management of the EU's external borders.
12.2 The Commission has proposed an overall EU home
affairs budget of €10,911 million for the period 2014-20,
broken down as follows:
- Asylum and Migration Fund —
€3,869 million;
- Internal Security Fund — €4,648 million;
- Existing large-scale IT systems managed by the
newly established IT Agency — €822 million; and
- EU Agencies (Europol, Frontex, the European Asylum
Support Office, the European Police College and the European Monitoring
Centre for Drugs and Drug Addiction) — €1,572 million.[78]
The draft Regulations
12.3 The draft Regulations — documents (a)
and (b) — are together intended to establish the new Internal
Security Fund. The Fund would have two separate components. The
first, "the police cooperation instrument" described
in document (a), covers financial support for police cooperation,
action to prevent and combat crime, and crisis management. The
second, "the border instrument" described in document
(b), covers financial support for the management of the EU's external
borders and for the EU's common visa policy. Both Regulations
set out the objectives and the resources available to implement
each component of the Fund, and how the resources are to be distributed
between Member States.
UK PARTICIPATION IN THE INTERNAL SECURITY FUND
12.4 Although the legal bases for both of the draft
Regulations are contained in Title V of Part Three of the Treaty
on the Functioning of the European Union (TFEU), two separate
instruments are needed to take account of the 'variable geometry'
governing participation in the different policy areas covered
by the two component parts of the Fund. The UK is entitled to
participate in any EU measures in the field of policing, criminal
law and crisis management and so document (a) is subject to the
UK's Title V opt-in Protocol. By contrast, document (b) builds
on elements of the Schengen free movement acquis in which
the UK does not participate and, as a consequence, the UK is not
entitled to participate in that component of the Internal Security
Fund dealing with visas and external borders and the UK's opt-in
does not apply.
THE BUDGET
12.5 The Commission has proposed an overall budget
of €4,648 million for the Internal Security Fund for 2014-20,
sub-divided as follows:
- €1,128 million for document
(a) — the police cooperation instrument; and
- €3,520 million for document (b) —
the border instrument.
The police cooperation instrument — document
(a)
12.6 The purpose of document (a) is to ensure a high
level of security within the EU by providing financial support
for measures which seek to:
- prevent and combat cross-border,
serious and organised crime, including terrorism;
- strengthen coordination and cooperation between
Member States' law enforcement authorities and with relevant third
countries;
- enhance Member States' and the EU's capacity
to manage effectively security-related risks and crises; and
- prepare for, and protect people and critical
infrastructure against, terrorist attacks and other security-related
incidents.
12.7 The draft Regulation sets out a number of more
detailed operational objectives and actions which the Fund would
support and states that these actions, and the strategic EU priorities
which they underpin, should form the core of Member States' multiannual
programmes to implement the Fund. The draft Regulation also makes
provision for a range of actions which may involve third countries.
12.8 The draft Regulation establishes a total budget
of €1,128 million for the period 2014-20, of which half (€564
million) would support the implementation of Member States' multiannual
programmes.[79] The remaining
half would be centrally managed by the Commission and support
so-called 'Union actions' (transnational actions or actions of
particular interest to the EU), emergency assistance (in the event
of a security-related incident or threat which would have a significant
adverse impact), and technical assistance. Expenditure on technical
assistance measures by the Commission would be capped at €800,000
per year or, in the case of Member States, at no more than 5%
of their total allocation under the Fund.
12.9 The sum of €564 million available for allocation
to Member States would be distributed as follows:
- 30% in proportion to the total
population of each Member State;
- 10% in proportion to the size of each Member
State's territory;
- 10% in proportion to the number of passengers
and tons of cargo processed through each Member State's international
air and sea ports;
- 10% in proportion to the number of European Critical
Infrastructures designated in each Member State; and
- 40% in inverse proportion to each Member State's
GDP (purchasing power per inhabitant).
12.10 The actual allocation to each Member State
would be determined by reference to the relevant statistical data
on 30 June 2013.
12.11 The Commission believes that there is "a
clear added value in Union interventions" because "the
EU is in a better position than Member States to address cross-border
situations and to provide a platform for common approaches."
It says that the Fund would contribute to "strengthening
national and European capabilities as well as cross-border cooperation
and coordination, facilitated and secure communication, networking,
mutual trust and the exchange of information and best practices."[80]
The border instrument — document (b)
12.12 The purpose of document (b) is to ensure a
high level of security within the EU by providing financial support
for measures which seek to:
- support a common visa policy
in order to facilitate legitimate travel;
- ensure equal treatment of third country nationals;
- tackle irregular migration; and
- support management of the EU's external borders.
12.13 The draft Regulation sets out a number of more
detailed operational objectives and actions which the Fund would
support and which should form the core of Member States' multiannual
programmes to implement the Fund. The draft Regulation also makes
provision for a range of actions which may involve third countries.
12.14 The draft Regulation establishes a total budget
of €3,520 million for the period 2014-20, of which €2,000
million would be used to implement national programmes developed
by Member States though a process of policy dialogue with the
Commission; €1,100 would be set aside for the development
of new IT systems on the management of migration flows at the
EU's external borders;[81]
€150 million would be reserved for a Special Transit Scheme;[82]
and €270 million would fund Union actions (transnational
actions or actions of particular interest to the EU), emergency
assistance and technical assistance.[83]
Expenditure on technical assistance measures by the Commission
would be capped at €1,7 million per year or, in the case
of Member States, at no more than 5% of their total allocation
under the Fund.
12.15 The sum of €2,000 million available for
allocation to Member States would be distributed as follows:
- €1,200 million to be divided
amongst Member States, with each receiving a basic amount set
out in Annex 1 to the draft Regulation;
- €450 million to be allocated to Member States
whose national programmes earmark funding for specific actions
listed in Annex II to the draft Regulation; and
- €350 million to be allocated in 2018 following
a mid-term review, based on a risk analysis of threat levels at
the EU's external borders.
12.16 Annex I provides an indicative multiannual
breakdown of Member State allocations for 2014-20. The figures
represent the basic amount that each participating Member State
would receive at the start of the next Multiannual Financial Framework
in 2014. Spain would be the largest single beneficiary, with an
allocation of €185,7 million, followed by Greece (€158,6
million) and Italy (€148,6 million). The basic amount would
be supplemented by payments to Member States implementing one
or both of the specific actions listed in Annex II. These are
the setting up of consular cooperation mechanisms, including common
visa application centres, and the purchase of means of transport
and operating equipment to support Frontex joint operations.
12.17 The draft Regulation specifies that up to 50%
of the funding made available to Member States may be used to
finance 'operating support' relating to such matters as external
border controls, implementation of the common visa policy, and
the development and running of IT systems.
12.18 The Commission believes that there is "a
clear added value in Union interventions" because "the
EU is in a better position than Member States to provide a framework
for expressing Union solidarity in border control, visa policy
and the management of migration flows, and to provide a platform
for the development of common IT systems underpinning these policies."
It says that the Fund would "support more systematically
the services provided by individual Member States in securing
the border free area ('operating support mechanism'), enhance
the interagency cooperation between border and other law enforcement
authorities and increase the available specialised equipment in
Member States to be put at the disposal of the Frontex Agency
for joint operations in the interest of safeguarding the border
free area."[84]
The Government's view
12.19 The Minister for Immigration (Damian Green)
says that the amalgamation of three existing EU funding programmes
into one Internal Security Fund should help to reduce administrative
burdens and improve efficiency.[85]
He continues:
"The Government welcomes opportunities to
increase cross-border cooperation and improve Europe's capabilities
in protecting its goods, people and critical infra-structure from
security-related risks. Rather than do so through legislation,
Funds such as these provide opportunities to do so through practical
cooperation, through identifying good practice and through piloting
well considered practices."[86]
12.20 The Minister highlights a number of areas of
concern for the UK and issues on which the Government intends
to seek further clarification.
THE PROPOSED LEGAL BASES
12.21 The Minister agrees that Article 77 TFEU is
the correct legal base for document (b), the border instrument,
but questions whether the legal bases proposed for document (a),
the police cooperation instrument, adequately reflect its scope.
He notes that the EU's existing crisis management programme is
based on what is now Article 352 TFEU and Article 203 of the Euratom
Treaty and says that the Government intends to raise the legal
base issue during negotiations.
APPLICATION OF THE REGULATIONS TO ICELAND, NORWAY,
SWITZERLAND AND LIECHTENSTEIN
12.22 The Minister notes that both draft Regulations
make provision for non-EU countries associated with the Schengen
free movement area to participate in the Internal Security Fund.
He accepts that the component of the Fund dealing with visas and
external borders builds on Schengen, but questions whether the
police cooperation component should be considered as a Schengen-building
measure and says the Government will raise the matter with the
Commission.
THE BUDGET
12.23 Whilst welcoming the opportunity to "rejuvenate
the EU budget and prepare for new challenges", the Minister
adds that this should not be "at the cost of higher EU spending
overall" and that any increase in the share of EU funding
in one area must be achieved through reprioritisation within the
EU budget. He continues:
"The proposals represent a 40% increase
on the previous budget overall and are therefore not acceptable.
The Government will therefore be seeking a substantial reduction
in the proposed financial allocations."[87]
THE BORDERS INSTRUMENT
12.24 The Minister notes that the borders instrument
includes funding for some EU Agencies, such as the European Asylum
Support Office and the IT Agency, in which the UK participates.
He says that the Government "will consider the implications
of this with the Commission to ensure that this does not disadvantage
the UK's role within those Agencies."[88]
THE POLICE COOPERATION INSTRUMENT
12.25 Half of the funds available for the police
cooperation component of the Fund will be implemented in accordance
with the principle of 'shared management.' Whilst the Minister
recognises that this would enable the UK to allocate EU funds
to national priorities (albeit ones which are consistent with
the EU's strategic priorities), he says that the increased role
envisaged for Member State Governments will have resource and
administrative implications for the UK, especially as "compliance
processes may be very different from our normal practices."[89]
THE UK'S OPT-IN
12.26 The Minister notes that document (a) establishing
the police cooperation instrument is based on Articles in Title
V of Part Three of the Treaty on the Functioning of the European
Union (TFEU) to which the UK's opt-in Protocol applies. He continues:
"The Government is committed to taking all
opt-in decisions on a case-by-case basis, putting the national
interest at the heart of our decision making In making that decision,
we will have particular regard to the following:
- The ability of the Funds to
support UK objectives and practical cooperation in the areas of
police cooperation, counter terrorism, crime prevention and crisis
management;
- The implications of the shared management model
for the Department in the area of police cooperation, counter
terrorism, organised crime and crisis management, where such a
model does not operate under the existing programmes and is expected
to have resource implications;
- The extent to which we think the proposals can
be improved in negotiations, and the degree to which the prospects
of improving them would be enhanced if we were to opt in, and
thus have a vote;
- The implications of not opting in for our broader
relationship with the EU and its institutions, and with other
Member States — in particular regarding our ability to influence
EU debates on police cooperation, counter terrorism, organised
crime and crisis management; promote our own agenda in the EU,
and secure co-operation and support from other Member States on
these issues."[90]
12.27 Finally, the Minister says that the Commission
will present the draft Regulation and other related proposals
to the Justice and Home Affairs Council on 13 December. He expects
negotiations on the proposed new Funds to continue during 2012
and adds that they will only be concluded once the overall Multiannual
Financial Framework for 2014-20 has been agreed towards the end
of 2012 or early in 2013.
Conclusion
12.28 The Government accepts that its opt-in does
not apply to the external borders component of the proposed new
Internal Security Fund and that it will not, as a result participate
in it or be required to contribute to it. The Government is, however,
entitled to opt into the police cooperation component of the Fund.
Although it appears to be broadly content with the objectives
and strategic priorities set out in document (a), the Government
expresses concern at the potential resource implications of moving
towards a system of shared management and considers the Commission's
budget proposals to be unrealistic and unacceptable. We note that
no progress can be expected on the budget issue before the expiry
of the three month period available to the Government to determine
whether or not to opt into document (a). We therefore intend to
hold both documents under scrutiny and ask the Minister to provide
progress reports on negotiations concerning the size of the overall
budget for the Internal Security Fund. We also ask him to inform
us at the earliest opportunity of the Government's opt-in decision
in relation to document (a) and the reasons for its decision.
76 (33393); see chapter 18 of this Report. Back
77
These are the European Refugee Fund, the European Fund for the
Integration of Third Country Nationals, the European Return Fund,
the External Borders Fund, the Programme for the Prevention of
and Fight against Crime (ISEC) and the Prevention, Preparedness
and Consequence Management of Terrorism and other Security-related
Risks (CIPS). Back
78
The current conversion rate is £1 = 1.1685 Euro. Back
79
The draft Regulation makes provision for non-EU Schengen-associated
countries (Norway, Iceland, Switzerland and Liechtenstein) to
participate in the Fund. If they choose to do so, they would be
required to make a financial contribution. Back
80
See p.5, para 3 of the Commission's Explanatory Memorandum. Back
81
This refers to the Commission's Smart Borders proposals
which envisage the introduction of an EU Entry/Exit System and
a Registered Traveller Programme. See (33295) 16049/11: HC 428-xliii
(2010-12), chapter 10 (7 December 2011). Back
82
This Scheme compensates Lithuania for fees forgone and costs incurred
as a result of implementing special transit arrangements for Russian
citizens transiting through the EU to and from the Kaliningrad
region. Back
83
The draft Regulation makes provision for non-EU Schengen-associated
countries (Norway, Iceland, Switzerland and Liechtenstein) to
participate in the Fund. If they choose to do so, they would be
required to make a financial contribution. Back
84
See p.5, para 3 of the Commission's explanatory memorandum. Back
85
The Fund will replace the External Borders Fund, the Programme
for the Prevention of and Fight against Crime (ISEC) and the Programme
for Prevention, Preparedness and Consequence Management of Terrorism
and other Security-related Risks (CIPS). The UK participates in
the latter two. Back
86
See para 26 of the Minister's Explanatory Memorandum. Back
87
See para 25 of the Minister's Explanatory Memorandum. Back
88
See para 24 of the Minister's Explanatory Memorandum. Back
89
See para 29 of the Minister's Explanatory Memorandum. Back
90
See para 23 of the Minister's Explanatory Memorandum. Back
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