The future of the European Union: UK Government policy - Foreign Affairs Committee Contents



Annexes

Annex 1: Selected developments in Government EU policy, 2010-2013

2010  May    The Coalition's Programme for Government commits it to

Ensuring that it is a "positive participant" in the EU, that there is no

transfer of sovereignty or powers from the UK to the EU during the

2010-2015 Parliament, and to examining the balance of EU competences

Dec    In a letter to European Commission President Barroso, the Prime

Minister and his Dutch, Finnish, French and German counterparts

call for a real-terms freeze in the EU's seven-year budget for 2014-2020 (the Multiannual Financial Framework)

2011  March    The European Council agrees EU Treaty change to allow the

      creation of a permanent Eurozone bailout facility, the European

      Stability Mechanism (ESM)

  The Prime Minister and eight other Heads of State or Government write to European Council President Van Rompuy and European Commission President Barroso pushing for liberalising EU reforms to stimulate growth

June    Sir Jon Cunliffe announced as the UK's new Permanent

Representative to the EU (took up post January 2012)

July  The Chancellor tells the Financial Times that the Government sees greater Eurozone integration as desirable and unavoidable

      Parliament passes the European Union Act 2011. The Act requires

primary legislation for any EU Treaty change, and approval in a referendum for any EU Treaty change that passes powers or competences from the UK to the EU

  Oct    The House of Commons votes 483-111 against a backbench motion

calling on the Government to legislate for a referendum on whether

the UK should stay in the EU on current terms, leave, or negotiate a

new relationship

  Dec    At the European Council, the Prime Minister puts forward

proposals as his condition for agreeing to EU Treaty change aimed

at addressing the Eurozone crisis. Other Member States decline to

agree them, so EU Treaty change becomes impossible. Other

Member States agree to establish a separate Treaty, outside the EU

framework

2012   Feb    The Prime Minister and eleven other Heads of State or Government

write to European Council President Van Rompuy and European Commission President Barroso pushing for liberalising EU reforms to stimulate growth

 

 

  June    Over 90 Conservative MPs write to the Prime Minister calling on

      him to place on the Statute Book before the 2015 General Election

    a commitment to hold an 'in/out' referendum on the UK's EU

    membership after the 2015 General Election

  July    The Government launches the Balance of Competences Review

  In media and parliamentary statements, the Prime Minister says that he would like a new settlement for the UK in the EU involving less integration, and that "the words 'Europe' and 'referendum' can go together"

  Oct    The Home Secretary announces that the Government's "current

thinking" is to exercise its right to opt out of all pre-Lisbon Treaty police and criminal justice measures when the deadline to do so expires in May 2014

    The House of Commons votes 307-294 in favour of a motion

calling on the Government to see the 2014-2020 EU budget

reduced in real terms

Nov  The European Council fails to agree the 2014-2020 EU budget

2013  Jan    The Prime Minister announces that a Conservative Government

elected in the 2015 General Election would hold an 'in/out' referendum on the UK's continued EU membership by the end of 2017

Feb  The European Council agrees the 2014-2020 EU budget, including a real-terms cut

April  Over 100 Conservative MPs write to the Prime Minister calling on him to place on the Statute Book before the 2015 General Election a commitment to hold an 'in/out' referendum on the UK's EU membership after the 2015 General Election

May  The Conservative Party publishes a draft bill providing for an 'in/out' referendum on the UK's continued EU membership by the end of 2017

  The House of Commons votes 277-130 against a backbench amendment "regretting" that the Government did not include an 'in/out' referendum bill in its 2013-2014 legislative programme

  

 

 

Annex 2: Selected scheduled events in the EU, 2013-2018

Events in the UK in italics

2013  June 27-28  European Council: President Van Rompuy due to present

      proposals on further EU involvement in national economic reforms

  July 1    Lithuania EU Council Presidency

Croatia joins EU

  Sep 22    Germany federal parliamentary elections

Oct 24-25  European Council  

  Dec 19-20  European Council: focus on EU defence and security policy

2014  Jan 1    Greece EU Council Presidency

Start of new 7-year EU budget period (Multiannual Financial Framework)

  May 22-25  European Parliament elections (dates awaiting confirmation)

  July 1    Italy EU Council Presidency

  Sep 14    Scotland independence referendum

  Oct    Current European Commission's term ends

Nov  Current European Council President Van Rompuy's final term ends

  End-year  UK Balance of Competences Review concludes

2015  Jan 1    Latvia EU Council Presidency

May 7    UK General Election

  July 1    Luxembourg EU Council Presidency

  End-year  Deadline by which a Conservative Government would pass
enabling legislation for an 'in-out' EU referendum

2016  Jan 1    Netherlands EU Council Presidency

  July 1    Slovakia EU Council Presidency

2017  Jan 1    Malta EU Council Presidency

  April-June  France presidential and parliamentary elections

  July 1    UK EU Council Presidency

  Sep    Germany federal parliamentary elections      

Dec  Deadline by which a Conservative Government would hold an 'in/out' referendum on the UK's continued EU membership

2018  Jan 1    Estonia EU Council Presidency

Deadline by which, under the TSCG (the 'fiscal compact' treaty), "the necessary steps shall be taken [...] with the aim of incorporating the substance of [the TSCG] into the legal framework of the European Union"

Annex 3: Flexible integration in and around the EU, 2013

Shading indicates states participating in selected EU policies, policy areas and agreements where the group of participating states does not always coincide with the group of EU Member States. Croatia (due to accede 1 July 2013) is treated as an EU Member State.
Single Market

 

Representation and decision-making rights in EU institutions

Customs Union

Free mvt. goods

Free mvt. people

Free mvt. capital

Free mvt. services

Euro

EU

EEA

Austria

             
   

Belgium

             
   

Bulgaria

           

***

   

Croatia

           

***

   

Cyprus

             
   

Czech Rep.

           

***

   

Denmark

             
   

Estonia

             
   

Finland

             
   

France

             
   

Germany

             
   

Greece

             
   

Hungary

           

***

   

Italy

             
   

Ireland

             
   

Latvia

           

***

   

Lithuania

           

***

   

Luxembourg

             
   

Malta

             
   

Netherlands

             
   

Poland

           

***

   

Portugal

             
   

Romania

           

***

   

Slovakia

             
   

Slovenia

             
   

Spain

             
   

Sweden

           

***

   

UK

             
 

EFTA

 

Iceland**

             
     

Liechtenstein

             
     

Norway

             
     

Switzerland

   

Partial

*****

 

Partial

 
 

Turkey**

   

Partial

       

TSCG=Treaty on Stability, Coordination & Governance in the Economic & Monetary Union; JHA=Justice & Home Affairs; CSDP=Common Security & Defence Policy; EEA=European Economic Area; EFTA=European Free Trade Association


 

   

 

 

 

 

 

Enhanced cooperation procedure

 

Euro Plus Pact

TSCG

('fiscal compact' treaty)

JHA

Schengen zone

CSDP*

Regulation on cross-border divorce

Unitary patent

Proposed Financial Transaction Tax

       
               

Austria

EEA

EU

 

****

           

Belgium

   
 

****

 

***

       

Bulgaria

   
     

***

       

Croatia

   
     

***

       

Cyprus

   
               

Czech Rep.

   
   

Partial

 

Partial

     

Denmark

   
               

Estonia

   
               

Finland

   
               

France

   
               

Germany

   
               

Greece

   
 

****

           

Hungary

   
               

Italy

   
   

Opt-in

Opt-in

       

Ireland

   
               

Latvia

   
               

Lithuania

   
               

Luxembourg

   
 

****

           

Malta

   
 

****

           

Netherlands

   
 

****

           

Poland

   
               

Portugal

   
     

***

       

Romania

   
               

Slovakia

   
               

Slovenia

   
               

Spain

   
               

Sweden

   
   

Opt-in

Opt-in

       

UK

   
               

Iceland**

 

EFTA

 
               

Liechtenstein

     
               

Norway

     
               

Switzerland

     
               

Turkey**

 

* Participation in any individual CSDP mission is voluntary and open to non-EU states. Norway and (to a lesser extent) Switzerland participate in some of the work of the European Defence Agency
** EU applicant state *** Accession Treaty obligation to adopt Euro/join Schengen at some point, when criteria met
**** Ratification pending (as of 15 May 2013) ***** Switzerland is in dispute with the EU over its right to limit the free movement of people from post-2004 EU Member States

Annex 4: Possible future steps in the EU: do they require EU Treaty amendment?

We prepared the following table as a 'working document' in early 2013 to assist our inquiry, and publish it as such. The assessments of whether a particular measure would require EU Treaty change rest partly on information on this point in the document concerned and partly on our understanding of the relevant legal provisions and the nature of the possible proposal, as far as is possible at this stage.

Proposal

Source

EU Treaty change required? (assuming measure was to be taken within the EU, rather than in a separate legal framework outside)

For Eurozone, with voluntary participation by non-Eurozone states in some cases

   

1. Banking union

   

ESM ability to recapitalise banks directly

Interim Report, Commission Blueprint, Van Rompuy Report, Dec. Conclusions

No

Single Resolution Mechanism (with a backstop, possibly the ESM)*

Interim Report, Commission Blueprint, Van Rompuy Report, Dec. Conclusions

No

2. Fiscal union

   

Eurozone budget separate from EU budget (possibly with tax-raising powers, and possibly subject to co-decision by EP or MEPs of participating states)

Interim Report,
Commission Blueprint, Future of Europe Report

Yes

Eurozone economic stabilisation capacity (counter-cyclical/shock absorbing net transfers)

Commission Blueprint,

Van Rompuy Report

Yes

Eurozone debt issuance and Treasury function

Interim Report,
Commission Blueprint, Barroso SoU

Yes

Eurozone debt redemption fund

Commission Blueprint, Barroso SoU

Yes

3. Economic policy union

   

Making the Euro Plus Pact binding

Future of Europe Report

Yes

Making receipt of funds from existing EU funding instruments conditional on national reforms

Commission Blueprint

No

New funding instrument in EU budget to support economic adjustment, conditional on national reforms**

Interim Report,
Commission Blueprint, Merkel speech

No

ECJ jurisdiction over excessive deficit procedure

Commission Blueprint

Yes

EU right to require amendments to national budgets, and/or EU competence to harmonise national budget laws (possibly with co-decision for EP and/or veto rights for national parliaments of participating states)

Commission Blueprint, Merkel speech, Future of Europe Report

Yes

Merging, and making subject to EP co-decision, the Broad Economic Policy Guidelines and the Employment Guidelines

Commission Blueprint

Yes

Deeper tax and labour market policy coordination

Commission Blueprint, Merkel speech

Yes

4. Institutional change

   

Eurozone Committee in EP

Commission Blueprint

No
(EP Rules of Procedure only)

On Eurozone matters, voting in EP by Eurozone MEPs only

Merkel speech

No
(EP Rules of Procedure only)


For Eurozone matters, permanent joint committee between EP and Eurozone national parliaments

Future of Europe Report

No (already possible under Protocol 1 to Treaties plus EP Rules of Procedure)

Allowing further decision-making in EU Council by some (rather than all) Member States

Commission Blueprint

Yes

Unified international representation of Eurozone in relevant bodies

 

Commission Blueprint, Van Rompuy Report

No

Further privileged powers for Commissioner for Economic and Monetary Affairs

Commission Blueprint

Would depend on powers envisaged, but possibly Yes

Decision-making rights in ECB banking supervisory decisions for non-Eurozone states participating in banking union

Commission Blueprint

Yes

EP budgetary authority over ECB in respect of latter's banking supervisory role

Commission Blueprint

Yes

Eurozone Parliament

Van Rompuy issues paper

Yes

UK ideas

   

Repatriation to UK of powers under the Charter of Fundamental Rights

Conservative manifesto 2010

If this meant a complete UK opt-out from the Charter, Yes

Repatriation to UK of powers in criminal justice

Conservative manifesto 2010

If this meant a UK ability to opt-out of post-Lisbon criminal justice legislation to which it has previously opted-in, Yes

Repatriation to UK of powers in social and employment legislation

Conservative manifesto 2010

Yes

Amend and/or limit the application of the Working Time Directive

Coalition Programme, Coalition Mid-Term Review

No

Limit free movement of people to UK/ability of EU immigrants to claim benefits in UK

PM Marr Show

If the UK sought to amend relevant secondary legislation, No. If the UK sought to amend the free movement principles in the Treaties, Yes

Establish a single EP seat

Coalition Programme

Yes
(Protocol 6 to EU Treaties)

Remove reference to 'ever-closer union' from EU Treaties

PM Bloomberg speech

Yes

(Preamble and Article 1 TEU, Preamble TFEU)

* In spring 2013, as we prepared this Report, whether a single resolution authority would require EU Treaty change was the subject of debate.
** In a communication in March 2013 (COM(2013) 165 final), the European Commission outlined options for a possible Convergence and Competitiveness Instrument, involving contractual arrangements between the EU and a Member State on the undertaking of structural economic reforms in return for dedicated financial support. The communication did not mention EU Treaty change.

Key:
Barroso SoU = European Commission President José Manuel Barroso, State of the Union Address, 12 September 2012
Coalition Programme = "The Coalition: our programme for government", Cabinet Office, May 2010
Coalition Mid-Term Review = "The Coalition: together in the national interest", Cabinet Office, January 2013

Commission Blueprint = European Commission, "A blueprint for a deep and genuine economic and monetary union: Launching a European debate", 28 November 2012

Conservative manifesto 2010 = "Invitation to join the Government of Britain: The Conservative Manifesto 2010", Conservative Party, April 2010

Dec. Conclusions = Conclusions of the European Council, 14 December 2012

Future of Europe Report = Final Report of the Future of Europe Group of the Foreign Ministers of Austria, Belgium, Denmark, France, Italy, Germany, Luxembourg, the Netherlands, Poland, Portugal and Spain,
17 September 2012

Interim Report = European Council President Van Rompuy, "Towards a Genuine Economic and Monetary Union: Interim Report", 12 October 2012

Merkel speech = German Chancellor Angela Merkel, speech to the European Parliament, 7 November 2012

PM Bloomberg speech = Prime Minister David Cameron, speech at Bloomberg London HQ, 23 January 2013

PM Marr Show = Prime Minister David Cameron, interview on Andrew Marr Show, BBC 1, 6 January 2013

Van Rompuy Issues Paper = European Council President Van Rompuy, "Issues paper on completing the Economic and Monetary Union", 12 September 2012

Van Rompuy Report = European Council President Van Rompuy, "Towards a Genuine Economic and Monetary Union", 5 December 2012

Annex 5: Abbreviations and glossary


CFSP    (EU) Common Foreign and Security Policy

Council of the EU

    EU decision-making body comprising Member State Ministers (also

referred to as 'EU Council')

CSDP    (EU) Common Security and Defence Policy

EBA    European Banking Authority

EC    European Community (originally European Economic Community)

ECB    European Central Bank

ECJ    European Court of Justice

EEA    European Economic Area (EU + EFTA states except Switzerland)

EEC    European Economic Community (1992: renamed European Community)

EFSF  European Financial Stability Facility (Eurozone bailout facility; winding down from 2013)

EFSM  European Financial Stabilisation Mechanism (EU bailout facility; winding
down from 2013)

EFTA  European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland)

EMU    Economic and Monetary Union (EU policy area)

EP    European Parliament

ESM    European Stability Mechanism (Eurozone's permanent bailout facility)

European Council

    EU body comprising Member State Heads of State or Government

FTT    (Proposed EU) Financial Transaction Tax

IGC    (EU) Inter-Governmental Conference

JHA    Justice and Home Affairs (EU policy area)

MFF    Multiannual Financial Framework (EU seven-year budget)

QMV    Qualified Majority Voting (in the Council of the EU)

SSM    (EU) Single Supervisory Mechanism (for banks)

TEU    Treaty on European Union

TFEU    Treaty on the Functioning of the European Union

TSCG  Treaty on Stability, Coordination and Governance in the Economic and Monetary Union ('fiscal compact' treaty)

Annex 6: Foreign Affairs Committee visit to Berlin, Oslo and Berne, October 2012

Participating Members: Richard Ottaway (Chairman), John Baron, Mark Hendrick and Andrew Rosindell (Berlin and Berne); Mike Gapes, Frank Roy and Sir John Stanley (Berlin and Oslo)

Berlin

Monday 22 October  

Embassy briefing with HMA Simon McDonald

Dinner with parliamentarians and officials hosted by HMA Simon McDonald

Tuesday 23 October  

Meetings with:

European Affairs Committee, Bundestag  

Michael Link, State Minister for European Affairs  

Patrick Dö ring MdB, FDP General Secretary and Deputy Chairman, FDP parliamentary group  

Stefan Mair, Association of German Industries (BDI)  

Lunch with think-tank representatives

Meetings with:

Wolfgang Lutterbach, Association of German Trades Unions (DGB)  

Journalists of Axel Springer Publishers

Oslo  

Wednesday 24 October

Embassy briefing led by HMA Jane Owen  

Meetings with:

Secretary of State Torgeir Larsen, Europe Minister

Professor Fredrik Sejersted and Professor Ulf Sverdrup, Norwegian Institute for International Affairs (NUPI)

Members of the Foreign Affairs Committee, Norwegian Parliament

Heming Olaussen, 'No to the EU' Campaign  

Dinner with government representatives, academics and commentators hosted by HMA Jane Owen

 

 

Thursday 25 October

Meetings with:

Petter Haas Brubakk, Confederation of Norwegian Enterprise (NHO)  

Janos Herman, Head, EU Delegation to Norway  

Erna Solberg, Conservative Party leader (Ho yre)

Berne

Wednesday 24 October  

Embassy briefing led by HMA Sarah Gillett

Meetings with:

Dr Jan Atteslander, Economie Suisse, and Dr Daniel Mü ller-Jentsch, Avenir Suisse

Foreign Affairs Committee, Federal Assembly

Professor Jean-Pierre Danthine, Vice-Chairman, Swiss National Bank (SNB)  

Dinner with parliamentarians, officials, think-tank representatives and academics, hosted by HMA Sarah Gillett

Thursday 25 October  

Meetings with:

Professor René Schwok, University of Geneva

Yves Rossier, State Secretary for Foreign Affairs

Luzi Stamm MP, Vice-President, Swiss People's Party (SVP)  

Lunch with Richard Jones, Head, EU Delegation to Switzerland, and colleagues, hosted by HMA Sarah Gillett

Annex 7: Foreign Affairs Committee visit to Brussels and Paris, November 2012

Participating Members: Richard Ottaway (Chairman), Bob Ainsworth, John Baron, Mike Gapes, Mark Hendrick, Andrew Rosindell, Frank Roy, Sir John Stanley, Rory Stewart

Brussels  

Tuesday 27 November

Briefing with Sir Jon Cunliffe, UK Permanent Representative to the EU  

Lunch with Member State representatives, a European Commissioner, MEPs and EU officials, hosted by Sir Jon Cunliffe, UK Permanent Representative to the EU

Meeting with Uwe Corsepius, Secretary General, Council of the EU

Paris  

Tuesday 27 November

Meeting with Xavier Sticker, Head of Cabinet for the Minister for Europe

Embassy briefing with HMA Sir Peter Ricketts

Dinner with academics and think-tank representatives hosted by HMA Sir Peter Ricketts

Wednesday 28 November

Meetings with:

Foreign Affairs Committee, National Assembly

French Young Europeans

Lunch with the EU Committee, National Assembly, hosted by HMA Sir Peter Ricketts

  

 


 
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© Parliamentary copyright 2013
Prepared 11 June 2013