Third Report of Session 2013-14 - European Scrutiny Committee Contents


8   International organisation for Vine and Wine

(34878)

8743/13

COM(13) 243

Draft Council Decision establishing the position to be adopted with regard to certain resolutions to be voted in the framework of the International Organisation for Vine and Wine

Legal baseArticles 43(2) and 218(9) TFEU; QMV
Document originated25 April 2013
Deposited in Parliament30 April 2013
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 7 May 2013
Previous Committee ReportNone
Discussion in CouncilShortly
Committee's assessmentLegally important
Committee's decisionNot cleared; further information requested

Background

8.1  The International Organisation for Vine and Wine (OIV) is an intergovernmental scientific and technical organisation which sets standards for viticulture, oenological practices, definitions, labelling and methods of analysis, with decisions being taken at its Annual General Assembly through the adoption of draft resolutions based on consensus of participating members. The resolutions adopted are not legally binding, but Council Regulation (EC) No. 1234/2007 stipulates that, when authorising new oenological practices in the EU, the Commission should base itself on those recommended and published by the OIV.

The current proposal

8.2  As acts adopted by the OIV can have consequences for the EU legal framework for wine, the Commission has invoked the principle of cooperation laid down in Article 218(9) TFEU by seeking in this draft Council Decision to establish a common position on those draft resolutions being considered at the OIV meeting which fall within its competence. In particular, it would require EU members of the OIV to vote in line with that decision.

The Government's view

8.3  In his Explanatory Memorandum of 7 May 2013, the Minister of State for Agriculture and Food (David Heath), says that the UK has two concerns on the proposal, and consequently considers that there should be no mandate granted in this situation, but that instead a coordinated EU position, as set out in position papers agreed at working level, should be taken forward within the OIV on behalf of the EU by the Member States which are Members of the Organisation. He describes the concerns as follows:

It is not appropriate to rely on Article 218(9) TFEU where the subject matter concerns non-binding resolutions

"Council Regulation (EC) No 1234/2007 provides for dynamic references to certain rules and practices adopted and published by the OIV so that they are binding within the EU with no further action. The effect of this proposal is that non-binding recommendations agreed at the international level are incorporated directly into EU Law each time new practices are recommended by the OIV.

"We do not think this is consistent with the substantive treaty base (Article 43(2)), because this effectively delegates amendments of EU legislation to an international body. It is for the legislature to decide how to give effect to international law within the EU. It may decide to confer powers on the Commission to amend legislation to give effect to changes similar to those at issue here, but it cannot delegate legislative powers to another body."

The rationale for the Decision is flawed

"Article 218 TFEU is concerned with international agreements, and not with legal effects within the EU on the basis of Council Regulation (EC) No 1234/2007. That Article is reserved for 'establishing the positions to be adopted on the Union's behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects'.

"Moreover, in our view, the provisions in the Council Regulation (EC) No 1234/2007 referred to in the proposed Council Decision represent an improper delegation of the legislative function within the EU. We do not consider that legal effects within the EU give rise to an Article 218(9) Decision, and this is certainly the case where the underlying provisions that give rise to those legal effects are themselves flawed."

8.4  The Minister adds that the UK intends to intervene in an ECJ case being bought by Germany to challenge the Council over the adoption of a virtually identical proposal in June 2012, which again cited Article 218(9) as its legal base.

Conclusion

8.5   We share the Minister's concerns about EU competence to legislate in this instance, in particular regarding the unlawful delegation of legislative to the OIV, as an international body, by means of Council Regulation No. 1234/2007, which, appears contrary to the legal base of Article 43(2) TFEU. We also agree with the Government's interpretation that Article 218(9) TFEU:

  • can only be used as a basis for a Council Decision in respect of adopting a common position within an international body whose acts have "legal effects"; and
  • cannot be used where the non-legally binding acts of an international body are purportedly given legal effect by internal EU legislation, especially where that process involves an unlawful delegation of legislative powers.

8.6  These are legally important issues which we note are already being pursued in the context of other proceedings being brought by Germany before the Court of Justice and in which the Government is intervening. We therefore urge the Minister to inform us of the eventual outcome of the imminent discussions in Council. We should also like to be kept informed of developments, to the extent that they can be disclosed, in the proceedings being brought by Germany.

8.7  In the meantime, we shall retain the document under scrutiny.




 
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