Documents considered by the Committee on 7 January 2015 - European Scrutiny Committee Contents


18 Statistics

Committee's assessment Legally and politically important
Committee's decisionCleared from scrutiny (by Resolution of the House of 20 January 2014)
Document detailsDraft Regulation to amend the European Statistical Law
Legal baseArticle 338 TFEU; co-decision; QMV
Department

Document numbers

Office for National Statistics

(33844), 9122/12, COM(12) 167

Summary and Committee's conclusions

18.1 Regulation (EC) 223/2009 is the framework legislation for the European Statistical System. All other legislation under which EU statistics are produced must be made in accordance with that Regulation. In April 2012, the Commission proposed amendments to four key features of the framework Regulation — the coordinating role of the National Statistical Institutes of Member States, the role and professional independence of the heads of those institutes, self-assessment of the EU statistics produced by a Member State and a published statement of confidence in them and enhanced access to administrative data. The draft Regulation was cleared from scrutiny after debate in January 2014 in European Committee B.

18.2 The Government has now told us of a new addition to the text of the draft Regulation which gives cause for concern and which was being put to COREPER for agreement on 19 December 2014. This addition was about the possibility of inspections by the Commission to investigate whether or not a Member State should be subject to sanction for misrepresenting statistical data. The Government holds that if any relevant sectoral legislation made on the basis of Article 338 TFEU (governing statistics) seeks to create a power to impose fines, that power would be unlawful, and any subsidiary power to investigate which was inseparably linked to it would also be impermissible under Article 338. Therefore the Government was going to vote against the draft Regulation at COREPER and, in the event that the proposal received a qualified majority in support, would make a Minute statement to the effect that it considers the provisions of sanctions regimes that are not foreseen by the Treaty as illegal.

18.3 We note the Government's concern about this addition to the draft Regulation and await its promised account of the outcome of the COREPER meeting.

Full details of the documents: Draft Regulation amending Regulation (EC) No. 223/2009 on European statistics: (33844), 9122/12, COM(12) 167.

Background

18.4 Regulation (EC) 223/2009, commonly referred to as the "European Statistical Law", is the framework legislation for the European Statistical System, comprising the Commission's statistical office (Eurostat) and producers of official statistics in Member States. All other legislation under which EU statistics are produced must be made in accordance with the European Statistical Law.

18.5 In April 2012, the Commission proposed with this draft Regulation amendments to four key features of the European Statistical Law:

·  the coordinating role of the National Statistical Institutes (NSI) of Member States;

·  the role and professional independence of the head of an NSI;

·  self-assessment of the EU statistics produced by a Member State and a published statement of confidence in them; and

·  enhanced access to administrative data.

18.6 The draft Regulation was cleared from scrutiny after debate on 20 January 2014 in European Committee B.[61]

The Minister's letter of 16 December 2014

18.7 The Minister for Civil Society, Cabinet Office (Mr Rob Wilson) wrote to tell us of a significant development in the negotiation of the draft Regulation. He said that:

·  the compromise text, which was discussed during the European Committee debate, was rejected by COREPER in February 2014 because of concerns by a small number of Member States about the proposed relationship between the Director General of Eurostat and the European Parliament;

·  no further information on developments had been communicated by either the Greek or Italian Presidencies until very recently;

·  however, the Italian Presidency informed Member States on 5 December 2014 it had been discussing a new compromise with the European Parliament and the Commission and this was presented to Member States for agreement at COREPER on 10 December 2014;

·  following calls from the UK and other Member States, discussion of the new compromise was postponed until the COREPER meeting on 19 December 2014 to allow Member States to adequately scrutinise the amended text;

·  the Government had now finished its analysis of the text, after receiving legal advice from its own and Council legal experts; and

·  he apologised therefore for not being able to inform us, given the recent pace of events, at an earlier point before the new proposal was due for adoption by Council at COREPER.

18.8 The Minister reported that the Government did not consider most of the new amendments to the text as a cause for concern, particularly with respect to any of its previous concerns about subsidiarity, which we had shared, regarding the original Commission proposal. He summarised these recent amendments as follows:

·  relations between the European Statistical System and the European System of Central Banks — Article 5, paragraph 1.2: wording had been tidied-up to ensure clarity with respect to the principles of institutional autonomy of the actors involved and the appropriate cooperation between the two systems, including a clear indication that national arrangements for cooperation between NSIs and national Central Banks shall be respected;

·  the head of the NSI — Article 5a: wording has been added that stipulates that when recruiting him/her Member States will ensure that there are equal opportunities, notably as regards gender; and

·  Director-General of Eurostat — Article 6, new paragraph: the Commission has agreed that the Director General will appear before the European Parliament immediately after his/her appointment.

18.9 The Minister continued that a new addition to the text does give cause for concern. He told us that this follows a proposal from the European Parliament and is about inspection visits in Member States, in a new Article 12(3b). He explained that:

·  this refers to on-site inspections by the Commission to investigate whether or not a Member State should be subject to sanction for misrepresenting statistical data;

·  it provides that such sanctions and related inspection visits could only be envisaged when they are subject to, and conditional upon, sectoral legislation agreed by both the Council and the European Parliament for specific circumstances;

·  advice from Treasury Solicitor's Department indicates, however, that if any relevant sectoral legislation made on the basis of Article 338 TFEU (governing statistics) sought to create a power to impose fines, that power would be unlawful, and any subsidiary power to investigate which was inseparably linked to it would also be impermissible under Article 338;

·  although final arbitration of such matters in the future would be for the European Courts of Justice to decide upon, the Government was not prepared to accept that the illegality of such sanction regimes should be brought into question due to badly drafted law made under an unreasonable timeframe;

·  he was therefore instructing the UK's Permanent Representative to vote against the regulation at COREPER;

·  in the event that the proposal received a qualified majority in support, he was instructing the Permanent Representative to make a Minute statement to the effect that the Government considers the provisions of sanctions regimes that are not foreseen by the Treaty as illegal; and

·  he would update us on the outcome as soon as possible.

Previous Committee Reports

Third Report HC 86-iii (2012-13), chapter 10 (23 May 2012), Nineteenth Report HC 86-xix (2012-13), chapter 9 (7 November 2012), Twenty-seventh Report HC 86-xxvii (2012-13), chapter 5 (16 January 2013), Twenty-ninth Report HC 86-xxix (2012-13), chapter 6 (23 January 2013), Thirty-eighth Report HC 86-xxxvii (2012-13), chapter 5 (26 March 2013) and Thirteenth Report HC 83-xiii (2013-14), chapter 5 (4 September 2013).


61   Gen Co Debs, European Committee B, 20 January 2014, cols 3-10. Back


 
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