Meeting Summary
The Committee considered the following documents:
Undeclared work (Reasoned Opinion for debate on
the Floor of the House)
The Commission defines undeclared work as "any
paid activities that are lawful as regards their nature but not
declared to public authorities, taking account of differences
in the regulatory systems of Member States". All forms of
undeclared work reduce the tax base and diminish public revenue
derived from income taxes and social security contributions.
In addition, undeclared work is often equated with precarious
forms of employment, poor or unsafe working conditions, and unfair
competition. The Commission has proposed a draft Decision which
would establish an EU "Platform" — a formal mechanism
at EU level comprising national enforcement authorities designated
by each Member State, the Commission, and various observers (including
EU social partners) — to strengthen cooperation in preventing
and deterring undeclared work. The Platform would promote the
exchange of information and best practice, develop expertise and
analysis, and coordinate cross-border operational action. The
Commission considers that existing cooperation between Member
States to tackle undeclared work is patchy and piecemeal. It
has therefore proposed that participation in the EU Platform should
be mandatory for all Member States. The Government questions
whether the EU has competence to require mandatory participation
and whether the action proposed is consistent with the principles
of subsidiarity and proportionality. We ask the Government to
provide a more detailed analysis of the scope of the legal base
proposed by the Commission, as well as a more up-to-date assessment
of the size of the shadow or informal economy within the UK and
the significance of any cross-border dimension in tackling undeclared
work. We share the Government's subsidiarity concerns as we consider
that the Commission's own Impact Assessment raises serious questions
as to the benefits of action at EU level and appears to undermine
the case for mandatory participation. Accordingly, we recommend
that the House should send a Reasoned Opinion to the Presidents
of the EU institutions before the expiry of the deadline on 9
June 2014.
Rule of Law in EU Member States (for debate on
the floor of the House)
We are recommending for debate a new Commission Communication
on a new EU Framework to strengthen the Rule of Law. Article
7 TEU sets out the mechanisms by which the EU's founding values
are protected from breaches by Member States, including respect
for the rule of law. Because the use of Article 7 can lead to
the loss of Member States' rights under the Treaties, the voting
threshold within the Council to instigate proceedings is set very
high. As such it has never been activated. However, Article
258 infraction proceedings have been used where breaches of EU
law have undermined the rule of law. In this Communication, the
Commission reminds Members States of its role as "guardian
of the Treaties", refers to concerns from the European Parliament
and from Member States that the current Article 7 system is not
effective and sets out a new framework in which it would take
on responsibility for collecting information; issuing a recommendation
to the Member State in breach; and monitoring that State's response.
The Government is opposed to this proposal saying it would duplicate
existing mechanisms and undermine the role of Member States.
We agree that any deficiencies in the current system should be
driven by the political will of the Member States through the
Council, and not by the Commission. We ask the Minister to comment
on a number of additional questions and concerns, set out in full
in our Report. We further draw this Communication to the attention
of the Foreign Affairs and Justice Committees and the Joint Committee
on Human Rights, and recommend it for debate on the floor of the
House.
Diplomatic and consular protection of EU citizens
in third countries
We are this week asking for further information on
a Council Directive held under scrutiny since January 2012. Under
Council Decision 95/553/EC, EU citizens are entitled to protection
when abroad from another Member State's diplomatic mission if
the country of which they are a citizen does not have a mission
there. Which Member State has responsibility for unrepresented
nationals is determined by centrally agreed allocations to ensure
no one is left without protection. The system has worked well
on both a small scale and in dealing with serious crises. The
Commission, however, has persisted in pursuing proposals which
would entail the EU providing a full range of consular services.
The UK Government and this Committee have consistently held the
view that consular services should remain the preserve of Member
States who provide a competent, cooperative and accountable service,
and that efforts by the Commission to expand into this area should
be resisted. The Minister now tells us that the Greek Presidency
is pushing to make progress on the dossier and that the Council
is likely to accept a revised version of the text. We ask the
Minister to ensure that a public version of the text is deposited
prior to any Council vote with an explanation of: how the Government's
initial concerns have been addressed; in which ways the revised
proposal "does not cross UK red lines"; whether the
language used is now consistent with previous Decisions; and if
his concerns around the financial procedures have been addressed.
We also draw this matter to the attention of the Foreign Affairs
Committee.
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