4 A Statute for a European Foundation
| Committee's assessment
| Legally important |
| Committee's decision | Cleared from scrutiny
|
| Document details | Draft Regulation on the Statute for a European Foundation
|
| Legal base | Articles 352 TFEU; unanimity; consent
|
| Department | Cabinet Office
|
| Document numbers | (33687), 6580/12 + ADDs 1-2, COM(12) 35
|
Summary and Committee's conclusions
4.1 The Commission proposed the current document in early 2012
because it considered that foundations with a public benefit purpose
play an important role in the social agenda of the internal market
and development of core EU "values and objectives".
It thought that foundations should be able to operate easily across
national borders, in particular, to fund cross-border operations
and reduce cost and administrative burdens arising from diversity
in national legal and fiscal frameworks.
4.2 It therefore proposed the creation of a European
Foundation (FE). This new legal form was intended to add to rather
than supplant existing national legal forms. Under the proposed
Regulation an FE was to be an entity with a public benefit purpose
and an exhaustive list of public benefit purposes was set out
in the Regulation. FEs were to have legal personality and full
legal capacity in all Member States, subject to specified qualifying
conditions.
4.3 Our previous Reports on this document set out
the Government's reservations about the proposal. In brief, the
Government has questioned the necessity of the proposal (there
was unlikely to be significant demand for it from the UK charitable
sector), the financial impact of the proposal (administrative
and supervisory costs), its legal impact (difficult changes to
domestic charity and tax law) and fiscal impact (organisations
not meeting the UK legal definition of "charity" but
having a "public benefit purpose" under the proposal
might qualify for tax exemptions and reliefs). We shared their
concerns about the potential for the proposal to have a significant
effect on domestic charity and tax law and policy.
4.4 We thank the Minister for the Cabinet Office
and Paymaster General (Mr Francis Maude) for his letter of 9 February
2015 which is reported in the chapter of this Report dealing with
Public and International Procurement.[14]
On the basis that, as he has informed us, the Commission announced
on 16 December 2014 the withdrawal of the proposal, we now clear
it from scrutiny.
Full details of
the documents: Proposal for a Council
Regulation on the Statute for a European Foundation: (33687),
6580/12 + ADDs 1-2, COM(12) 35.
Background and previous scrutiny
4.5 The full background to and an account of this
document, together with the Government's view are set out in our
Third Report of 2012-13.[15]
The Minister's letter of 9 February 2015
4.6 The Minister tells us that after little negotiating
progress had been made on this proposal in 2014, the Commission
announced on 16 December 2014 "the withdrawal of this measure
from the EU legislative agenda" as there was no realistic
hope of securing unanimous support in the Council.
Previous Committee Reports
Thirty-third Report HC 83-xxx (2013-14), chapter
3 (29 January 2014); Eighth Report HC 83-viii (2013-14), chapter
4 (3 July 2013); Third Report HC 86-iii (2012-13), chapter 6 (23
May 2012).
14 Chapter 5. Back
15
Third Report HC 86-iii (2012-13), chapter 6 (23 May 2012). Back
| 
