Select Committee on European Union Minutes of Evidence


Memorandum by Mr Timothy Kirkhope MEP (Submitted in a personal capacity)

  1. Although much of this paper highlights a number of shortcomings of the APS and the areas in which it could be improved, I should stress that I am supportive of Jose Manuel Barroso as President of the Commission. His priorities as President, with the important exception of stress placed on reviving the Constitution, are in general terms, the right ones. A strong emphasis on less and better regulation, focus on more effective delivery of results and a high priority given to economic reform and strong but practical environmental protection are hallmarks of his term as Commission President and this is welcome. It is certainly the case that this Commission is a vast improvement on its predecessor.

  2. Overall, the 2008 APS document stresses several of the right priorities but also contains a significant number of significant failings. On the positive side, it restates the Commission's commitment to a reform agenda, which is welcome, both for 2008 and, hopefully, as an indication of a longer term direction of travel for the Commission. On the other hand, it is disappointing that the Commission's commitment to the better regulation agenda and to progressing the Doha round of trade talks are not given greater emphasis, and there are serious concerns over the Globalisation Adjustment Fund and the Institute of Technology. Both are expensive projects of highly questionable and unproven value, and both raise significant questions with regards to subsidiarity and proportionality. I wholly endorse the conclusions of the interim report of Sub-Committee G on the EIT. The Globalisation Adjustment Fund is a fundamentally wrong-headed initiative and clearly raises serious questions over subsidiarity.

  3. The Commission is justified in asserting that there is a large measure of consensus on the need for joint action on energy, research and demographic change (p.3). It is perhaps surprising that climate change is not included in this list, but perhaps this is simply a reflection of the fact that the APS Communication was drafted before the March summit. Tackling climate change does feature prominently in the priority actions (p.5), as indeed it should. After the headlines and promises EU leaders made on this issue at the March Summit, there will rightly be close scrutiny of the action the EU takes to follow up and deliver on these pledges. Yet while the Commission's proposed activities on climate change seem to be the right responses to the challenges identified, it cannot be similarly claimed that the Globalisation Adjustment Fund and the European Institute of Technology are appropriate policy responses to the challenges identified.

  4. The priority given to working towards an institutional settlement (p.3 & 4), is perhaps the biggest failing of the Annual Policy Strategy for 2008. This is not to contend that the Nice Treaty provides the perfect and final institutional settlement for the EU—there will of course need to be some institutional reform at some point in future. Nonetheless, the current attempts to revive the EU Constitution, or achieve something along similar lines, are quite mistaken. The EU should be concentrating on delivery of substance not wasting energy squabbling over divisive issues of process. I welcome the fact that the Tri-partite Committee of MPs, MEPs and Peers will be examining this issue at its next meeting on 14 June.

  5. It is regrettable that the Better Regulation Agenda and a commitment to progress the Doha Round of world trade talks do not feature more prominently as key priorities for 2008. Better Regulation is mentioned in passing in the introduction (p.4) and although the main document (p.15) contends it is "at the heart of the Commission's daily work" this is unfortunately not yet true, or the issue would not be buried away as "priority action 2.6" on page 15! Moreover, I would personally prefer to see the Commission committed specifically to "deregulation", rather than the more euphemistic term "better regulation". Proper and thorough regulatory impact assessments are one of the central components of this agenda, and there are a number of items included within the APS itself where impact assessment has so far been inadequate, as I have indicated in other parts of this paper. Nonetheless, this comment should not be seen as an attempt to denigrate the Commission's work in this area. Commissioner Verheugen deserves great praise for forcing this issue onto the agenda and for working hard to keep it there, which is clearly an uphill struggle. It is vitally important that the European Parliament and national parliaments keep up the pressure on the Commission to maintain focus on this area if the potentially great benefits of cutting back excess EU red tape are to be achieved by 2009.

  6. As far as the Doha Round is concerned, this of course related to an area of exclusive Commission competence and one where the benefits of more liberalised global trade both to Europeans and to people in the developing world could be enormous. As a response to globalisation, progress on Doha should be the Commission's top strategic priority, rather than the short-term, futile and populist Globalisation Adjustment Fund.

  7. Among other initiatives worth highlighting, the Commission's own reform agenda is welcome (p.4), not least as it is to be hoped that a similarly reformist ethos is reflected in the reviews of the budget and single market (also p.4). Both must be ambitious and far-reaching. Reform must also continue in the context of the Lisbon Agenda (p.5). The economic picture in Europe has improved since the Lisbon process was renewed in 2005, but the urgency of on-going economic reform must be maintained. The 2007 review report will be important in this context. There is a risk of course that progress on economic reform may be undermined by Commission action in other areas, not least in the area of social policy where labour market flexibility must be promoted, not restricted. In this context, I have already highlighted the shortcomings of the Globalisation Adjustment Fund and any initiative by the EU to extend it competence into social security, for example by taking it upon itself to promote "flexicurity" (p.9) similarly raises important subsidiarity issues. The debate over what "modernising European labour law" (p.10) must also be watched very carefully as what is understood by "modernisation" varies considerably, as do views on how such modernisation should be brought about. Clearly, the EU must move away from its outdated "social model"—those of us who have been arguing for many years that this model is holding back Europe's economic progress do now seem to be in the ascendancy. But this welcome progress will be squandered if there are attempts to impose, top-down, some alternative "social model" from EU level: this is an area where individual Member States should be free to determine their own approach.

  8. On the CAP, the "health check" (p. 9) is welcome as the 2003 reforms were important and must indeed be monitored. Regrettably, the fiasco over Single Farm Payments in the UK may not show a very healthy situation in the UK! Hopefully, the health check will not gloss over these problems and lessons may be learnt. Of course, more fundamental reform of the CAP is necessary and so the health check must be conducted in synergy with the preparation of the budget review. Similarly, the "major recast" of the CFP framework is overdue, but again may not go far enough.

  9. The Commission's stated determination to focus on the implementation of REACH (p.8) is welcome and significant. REACH was a major legislative initiative, so implementation will be complicated so must be carried out carefully and sensitively, but also thoroughly. More generally, willingness on the part of the Commission to concentrate on implementation and enforcement is welcome—this has not always been done well. Renewed focus on follow-up and delivery is very important and could be extremely beneficial in terms of improving legislative quality and outcomes. The other major legislative item of 2006—the Services Directive—is another dossier that must be carefully monitored through its implementation phase so as to be sure that the expected benefits are indeed delivered.

  10. On the Justice and Home Affairs front, the push for a common European asylum system (p.11), FRONTEX (p.12) and work on managing migratory flows (p.6) must be monitored very carefully. These are of course very sensitive areas that are best dealt with by co-operation rather than harmonisation. Harmonisation is almost always a flawed approach in this sphere and one which Conservatives will continue to oppose. The pressure to move to Qualified Majority Voting in this area and the willingness of governments, including the British Government, to take a rather cavalier approach to the use of legal bases and institutional propriety when making decisions is a source of considerable concern.

  11. On the EU in the World section, the commitment to pursue accession negotiations with the Western Balkans (p.13) is of course extremely important although it does seem curious that the need for on-going progress on Turkey is not referred to—although again this may simply be due to the fact that the document was drafted at a time of impasse which now, happily, seems to have passed. The European Neighbourhood Policy is also extremely important and the Commission's work in this area deserves support. It is disappointing that there is not greater reference made to the need to foster and enhance EU-US relations, particularly through working on proposals for a genuine transatlantic marketplace. However, there will need to be careful scrutiny of the commitment to improve the visibility of the Commission's external action and to develop the political and diplomatic culture of its external services (p.14). This risks seeking to implement the Constitution (ie creating and EU diplomatic service) and so acting without a proper legal basis.

  12. Finally, there are a number of initiatives that are of questionable value that should certainly be subject to careful scrutiny on the basis of subsidiarity, for example: the proposed action plans on Urban Transport & Drugs (p.6); the development of a policy to tackle radicalisation (p.12); and social reality stocktaking (p.17). These initiatives must also be subject to thorough cost/benefit analyses. It is similarly doubtful that the cost implications of the Commission's commitment to improving communication (p.16) can be justified. The way for the EU to become more popular is by delivering on issues where it can add value, not by spin and what amounts to "focus group politics". There is bound to be suspicion that the prominence given in the APS to the Globalisation Adjustment Fund is a response to a recent a survey showing that EU citizens are concerned about the so-called "social dimension" of the EU.

27 April 2007


 
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