Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 20 - 39)

THURSDAY 3 MAY 2007

COMMISSIONER MARGOT WALLSTRÖM, MR STEN RAMSTEDT AND MR TOMAS NIKLASSON

  Q20  Chairman: Commissioner, we are on the record. May I say what a great pleasure it is to see you here. It is very kind of you to come. I think this is the second time you have been before this Committee in this building and we have also had the pleasure of seeing you in many other meetings and much appreciate the interest you have taken in COSAC too, which is very important to all of us. Before asking you to make an opening statement, which I am sure you probably want to do, let me just explain that we are pursuing the Annual Policy Strategy with some interest. This is a relatively new development for our Committee. We now regularly look at the Annual Legislative and Work Programme and then we move on to the Annual Policy Strategy for the next year. This is very valuable for our Committee because it gives us a good idea of what is the current thinking in the Commission and also assists us in setting our own work programmes down to Sub-Committee level to give us an idea of the kinds of issues we will need to be looking at in some depth in the 12 months to come. We do attach great importance to this. It is of great importance to us because it is a very concrete example of the way in which, thanks to you and your colleagues and President Barroso, the relationship between the national parliaments and the Commission has been greatly fortified and improved. Our looking at the Annual Policy Strategy and the Legislative and Work Programme are demonstrations of our desire to continue that relationship and keep the relationship between the national parliaments and the Commission in good shape and that it has a real meaning and purpose to it, hence the questions that we will ask about how the Annual Policy Strategy is created, how the national parliaments can engage with the Commission on it and to raise one or two more specific issues about the Policy Strategy itself. The floor is yours, Commissioner.

  Commissioner Wallström: Thank you very much. Of course, we appreciate that we have everything on record.

  Q21  Chairman: Yes.

  Commissioner Wallström: We have nothing to hide. I am very pleased to see this strong interest in our Policy Strategy and I appreciate the opportunity to come here and give evidence and answer any questions you might have. With me is Sten Ramstedt, who in my Cabinet is also responsible for contacts with the national parliaments, and Tomas Niklasson from the Secretariat-General who has provided background and all the facts and figures. Thank you very much honourable Lords, ladies and gentlemen. Maybe I could give an introduction to describe the background and then we can go into questions and answers. As you know, the Annual Policy Strategy was adopted by the Commission on 21 February and outlines the policy priorities for the Commission in 2008. It also defines, for the first time I would say, the communication priorities. We have listed a number of communication priorities. It underlines, again, our commitment to Better Regulation, and that is of particular interest to the European Parliament and this is what we often get questions on. I can say to begin with that we appreciate a dialogue with the European Parliament where we can focus on the political priorities, the bigger picture, and that is what the whole process and procedure is designed for, to make sure that we do not end up discussing only details on this or that proposal or why did it come on this date rather than that date, but rather are the priorities the right ones, how can we co-operate and create a good political debate. The APS is the first element in the preparation of the Work Programme for 2008. I have also presented the APS to the European Parliament to launch, as we hope, this constructive and timely dialogue that will feed into our preparation of the Work Programme. We have also had an informal exchange of views with the Council and the Annual PGA Group and we have also presented it to the Permanent Representatives of national parliaments in the European Parliament to make it possible for national parliaments to contribute to the discussion. The strategic objectives defined by the Barroso Commission when we took office remain valid. They are about prosperity, solidarity, security and freedom, and a strong and open Europe in the world, meaning we always have to think about our role in the global context. This summarises the core ambitions of this Commission. Then we have a number of highly important issues that are not confined to just one or other of the strategic objectives but they need to be taken forward in synergy in the cross-policy areas. The first of these is energy and climate change. We need to deliver on the very positive results from the March 16 Council and the key elements of this energy package must be put in place. A well-functioning internal market, a vibrant renewables sector, energy efficiency and solidarity and interconnection will all be taken forward. We will also push for strong commitments by the European Union and global stakeholders to reduce CO2 emissions beyond 2012 when the Kyoto Protocol expires. This was on the agenda for the EU-US Summit, even though I think we have to keep the pressure up on the Americans until the G8 meeting and this might be the occasion when we can hopefully get more out of our partners. The second cross-cutting issue is the Lisbon Strategy for growth and jobs. We can now say that we are making good progress in partnership with the Member States. Next year we will also reflect on how to press ahead with further reforms following on from the Single Market review and the social reality check which will be presented this year. You will find these among the communication priorities. The Commission will also launch a series of initiatives to make sure that the Single Market continues to deliver on its economic promise and allows citizens to reap the benefits. The third horizontal issue is migration. In its various facets it is a key challenge for the EU. Labour migration, if it is properly managed, can make a positive contribution to our economies and our societies. We plan to propose further measures to achieve a common European asylum system by 2010. We will also need further action on preventing illegal migration, combating the ruthless business of human trafficking and protecting our common external borders. The APS also proposes a reallocation of staff. It calls for a limited number of additional staff in line with the Commission's needs for 2003-09 to cover needs mainly due to enlargement. All other priorities will be covered through internal reallocation within the Commission and through efficiency gains. We are putting a lot of strain on our staff with this and I can tell you they complain about the work burden we are putting on them and there are a lot of problems of stress, people cannot sleep and I do not know what, but this is the line we have taken. With respect to human resource needs beyond 2008, the Commission finalised the screening and presented a report on 28 April. This screening report gives three clear messages. It confirms the need for 250 new posts in 2009 as the last reinforcement to cover the needs due to the latest enlargement to Bulgaria and Romania. It states that beyond these posts the Commission will not call for additional posts from 2009-13. It is based on the working assumptions that the Multi-Annual Financial Framework for that period will remain a stable linguistic regime and there will be no additional Commission competences before 2014. Please do not put any extra tasks on us because we will not be able to do those with the staff we have. Finally, the report also states that the Commission should concentrate on operational activities and indicates priority areas for internal redeployment. These include these cross-cutting issues as well as competition policy, ensuring proper transposition and enforcement of Community legislation, and also closer integration of internal and external policies. These are the political priorities.

  Q22  Chairman: The housekeeping.

  Commissioner Wallström: Cross-cutting and the staff and allocations, the resource allocation to this. It is tough because we do not have a very high number of staff, of officials, compared with any national or even regional administration, and we cover 27 Member States now. This is the communication challenge. I often ask how does a political body which deals with everything from counting cod in the Baltic Sea to the peace process in the Middle East communicate in 23 official languages. That is the strength of the European Union but it is not that easy to communicate in a simple fashion.

  Q23  Chairman: Thank you very much indeed. I think we are all aware of the problem of staffing needs, although obviously it is in the nature of governments to try and limit the output of funds. You may have seen that rather interesting and quite amusing list of 50 reasons to love the European Union that came out.

  Commissioner Wallström: I saw that, yes.

  Q24  Chairman: One reason which I think staggered a lot of people was that the Commission employs fewer people than the BBC.

  Commissioner Wallström: Maybe that can be used against the BBC, I do not know.

  Q25  Chairman: Who knows? Maybe the BBC is rapidly recruiting. One of the issues that we would like to ask you about is the way in which the Policy Strategy is drawn up. We are obviously interested in the eventual input that national parliaments might have, but we are particularly interested to know how you interact with the European Parliament between an Annual Policy Strategy coming out and then the Legislative and Work Programme coming later based upon it. What is the European Parliament doing during that period?

  Commissioner Wallström: It is prepared internally within the Commission through a letter circulated by the President to all Commissioners and he invites us and our services to prepare, to look at what we have in the pipeline, what are the plans for the future, and then we present our initiatives, or the main policy priorities, to him and they are analysed and prioritised by the Secretariat-General who then prepares an Annual Policy Strategy for the inter-service consultation. They put all of this together and try to make a structure out of it, a priority list, and then it comes back after the intra-consultation to the College. That was done in February. It is after consulting all the Commissioners and the services. That is a good exercise. Then we present the Annual Policy Strategy to the European Parliament and launch what is called a structured dialogue on our policy priorities. We are invited as individual Commissioners to go to hearings with respective committees. They meet the Commissioners to discuss the list of priorities and the resources, et cetera, in the different policy areas. Then a report is drawn up by the European Parliament and this is taken into account by the Commission when we set up our Work Programme. We have seen that there is a tendency for this structured dialogue to be very much on the detail instead of having the political groups engaged, which is what we have asked for to make sure that the political groups in the European Parliament are better drawn into the preparations because then we will have a better overview and more of a general discussion: are these the priorities, what do the different political groups in the Parliament think about it? On the national parliaments, we hope that more and more of the national parliaments will also arrange a debate where the priorities are being discussed. To most national parliaments it is a matter of the timetable to make sure that you come in with the right timing and how you can actually influence this whole process. I think this is something that we have to learn by doing, we have to follow this process very closely. I do not know if you have counted, Sten, how many national parliaments have decided to discuss this?

  Mr Ramstedt: No, COSAC is going to discuss it.

  Commissioner Wallström: COSAC will give us some more facts and figures on how many of this type of debate are being arranged or planned for the future where you can look at the Work Programme or the Annual Policy Strategy.

  Q26  Chairman: We had a little bit of a problem about this in COSAC because there was a move to try and get synchronised debates taking place in parliaments so that there would be one day on which all the national parliaments would focus on the Annual Policy Strategy or the Annual Legislative and Work Programme and, quite honestly, it just does not work, we cannot do it that way. Certainly we are interested in seeing if we can get the Policy Strategy debated in our chamber. Just going back a bit, if I may, to the European Parliament, can you give any concrete examples of where the European Parliament has initiated some rethinking on the Policy Strategy by the Commission? What sort of influence has it had that you can think of on the Policy Strategy?

  Commissioner Wallström: On social issues. In some cases, of course, committees will look at the list of initiatives and say, "Why is this not put on the list?" and in some cases they want to take out proposals. This has been done. This follows from the regular dialogue meetings we have with every committee, so it is adjusted on the details. We cannot only satisfy one political direction in the European Parliament, we have to ensure the balance is there. This can come from having a better dialogue with the political groups. Tomas has helped to list some examples of the things that the European Parliament added on to the APS. One was on energy policy and that was followed up through the Strategic Energy Review. There were reports on the ports policy, of course, and the Ports Directive was stopped entirely. There were requests for a legal framework on services of general interest I remember also and those were followed up through a communication. There were requests for measures in the area of flexicurity, as it is called, and that was also followed up in 2007 in different communications. The modernisation of regulation for electronic communication led to a new legislative proposal announced for the Work Programme for this year. Also there was follow-up action to the White Paper on our communication policy and how to promote democracy and human rights. Again, that was followed up by an announced communication in the Work Programme. There are a number of examples of policy areas or priorities for the European Parliament.

  Chairman: Good. Thank you very much.

  Q27  Lord Tomlinson: I found that very interesting, Commissioner. I am interested in the word "strategy", so that there is a clear strategic direction. You have told us how the European Parliament almost have their shopping list and add little bits to it, but are there any areas where you say to the European Parliament, "No, this will confuse and muddy what needs to be a clear strategic direction if we are going to have something that we can communicate with clarity and simplicity to our citizens"?

  Commissioner Wallström: I think that the Lisbon Strategy is an example of where we have tried to make sure that it is not turned back into a Christmas tree or a long, long, long shopping list. We cut it down to call it Jobs and Growth Strategy instead of the Lisbon Strategy, to give it a name which speaks about the content. There is always this temptation to add on a number of things.

  Q28  Lord Tomlinson: "Why did we add this? Because we were talking to the Transport Committee", or "Why did we ..."

  Commissioner Wallström: Yes. That is a good example of how we tried to strip it down into four very concrete areas: energy; small and medium-sized enterprises; knowledge building and flexicurity issues that we have to invest in. Those are the four priority areas. This is where we will do our part but we also expect Member States to do their part. This is the temptation, you are absolutely right. This is a huge compromise machine and sometimes we struggle very hard for our right of initiative in the Commission but at the same time we have to be flexible to the European Parliament and the Council and sometimes we have to accept that they come with new proposals. We have learned from the process and we have chosen to try to strip it down more and more. For the communication priorities next year, for example, we have to make sure we make it even shorter. You cannot communicate on eight or 10 to be really, really effective. We are slowly but steadily getting there. You are right, a strategy ought to be very precise.

  Chairman: Lord Bowness, Lord Marlesford, would you like to come in?

  Lord Bowness: I did not want to pre-empt the question really, my Lord Chairman, because you are coming to the Lisbon Strategy later on.

  Chairman: It is all right, you can raise it now if you want to.

  Q29  Lord Bowness: Fine. Commissioner, you talked about the Lisbon Strategy and alluded to the fact that on some of these things you need the co-operation of the Member States, which is obviously true, but how realistic is it to expect the Member States to implement the Lisbon Strategy without there being any additional powers to Brussels? I make no comment as to whether there should or should not be, but how realistic is it that you can include in an annual programme the Lisbon Strategy with all its objectives without there being any powers backing it up?

  Commissioner Wallström: When we reviewed the whole Lisbon Strategy, and that was at the beginning of the mandate of the Barroso Commission, we looked at where we had competences and power to act as the Commission, what initiatives we could take. We identified the list of initiatives that we could undertake and the timetable for that. Then we looked at where the competences of Member States were and where did we trust Member States to take action. It was clear that we needed more of an ownership on the Member States' part. As I told you before, we also cut down on the number of areas that the Lisbon Strategy would cover because if it covered everything it meant what should citizens ask their politicians to do. Can we tell if they follow the plan or not if you have a wide, wide choice? We tried to concentrate on these four priority areas and to ask that Member States appoint a Mr or Mrs Lisbon so there would be a visible figure who could lead the work. I do not think we can ask for more. We are not in a position to ask for more competences, we can only say that we will deliver what comes to us. For example, on energy we will take the initiatives necessary and we can co-ordinate, we can help. The energy decision of the Council where the energy policy was discussed was a big step forward, but then Member States have to implement it. I do not think we can ask for additional enforcement capacities but rather use the ones we already have and create political pressure. Where we have started to see some results is on the investment in research and development but we are still lagging behind the United States, for example, and this is an area where Member States have to do better.

  Q30  Lord Bowness: Can I suggest to the Commissioner, would it not be better for the reliance on the Member States to deliver to be made a lot clearer? It seems to me that your paper puts great emphasis on it, and everybody will be in favour of the Lisbon Strategy and its objectives, but given that you cannot deliver, and I am not criticising the Commission for that, that is just a fact, does it not lead to a certain amount of disillusionment and disappointment amongst people in Europe because they see the European Union as not delivering? They get a paper with a lot of talk about the Lisbon Strategy, they then see that not coming about and they see it is the European Union that does not deliver rather than, in fact, laying the blame on the governments and the Member States. Would it not be better to make the limitations which you have a lot clearer in these documents?

  Commissioner Wallström: I think it is a well calculated risk if we enter into an area with a political goal where we do not have the whole power, the whole competence, we cannot deliver everything. We can do a lot and also at the EU level the Commission can definitely take a number of important initiatives, but we also have to trust Member States to implement them. I think one should be fair. Sometimes we have to explain this is for Member States and governments to deliver, but I do not think one should get too much into the blame game either because that will not give high credibility to the whole European co-operation.

  Q31  Lord Bowness: Not into the blame game but we might try and avoid taking the blame.

  Commissioner Wallström: Yes, that is true. We saw that it was necessary in order to ensure prosperity that we needed to engage in the Strategy. We tried to review it, reform it, strip it down and make it clearer and report better. We have much better proper reporting now. It is a little bit of a name and shame exercise as well. We have tried to create visibility. That is as far as we can go. Sometimes we have to explain that this is on Member States to put the responsibility where it should be.

  Q32  Lord Marlesford: The Strategy includes the suggestion of developing an external migration policy. This is an issue of considerable interest in the United Kingdom and I am sure in other Member States as well. Can you give us any idea of where you have got to on this, because you refer particularly to Africa. The controversies there have been about internal migration are one thing but the controversies about external migration into the EU are a greater matter.

  Commissioner Wallström: You have to work in parallel on several different issues. We have to make sure that we protect our borders, that we have border controls, that we use FRONTEX, as we have already started to do and it has proved very successful, and also that Member States are willing to contribute more and more to that because they have seen the problem of illegal migration, et cetera. We also have to work with the countries from where these migrants come. We do this in regular dialogue and in a regular way where we try to help with the policies, financial help and information. We also have to take action on the criminal acts that are behind this. Very often it is truly criminal gangs that organise these trips, for example, for poor Africans to come to Europe or what have you. In the regular political dialogue with the African Union or any other country where we see a lot of these migration flows we have a political and diplomatic context. Franco Frattini could probably tell you much more. As you see here, we also mention the Schengen Information System, the visa policy, the databases and all the technical things that have come about. A lot has happened in a very short period of time. Again, how to tackle violence and radicalisation we have had a communication on this particular issue. We have seen a much more proactive agenda and activity from the European Union. I cannot give you a lot of the details behind that. As you see in the list there is also legislation for medical devices, a number of reviews, and the centralised database of fingerprints. Frattini could tell you exactly where we are on all of these issues. Those are the types of things in combination, looking at what we can do to prevent flows of illegal migrants as well as making sure that we have a legal migration flow, which are positive for the European Union. We are working with these countries on a regular basis.

  Q33  Lord Marlesford: If I may, Commissioner, that brings me to another matter which has certainly been of concern to our European Union Committee in Britain, which is the German Presidency handling of the Pru­m Treaty for joint action and exchange of information on fighting crime and terrorism.

  Commissioner Wallström: Yes.

  Q34  Lord Marlesford: It seems to us, and we are about to publish a report on this, that the method by which the German Presidency is handling this has to some extent taken over the normal Commission prerogative of proposing policies to the Council after consultation with the Parliament and national governments, but we believe it has also been a shortcut to the normal Commission procedures, which we think are very important, of proper cost estimates and impact assessments. Are you concerned about this in the case of the Pru­m initiative and, if so, what are you going to do about it? That is the essence of what our report is going to say.

  Commissioner Wallström: I do not know enough about the process. You need a specialist to get a proper and totally correct answer. I know that more and more Member States worry about this. I heard this from a group of Swedish visitors today who also asked about the Pru­m process.

  Q35  Lord Marlesford: It is the constitutional angle really, Commissioner.

  Commissioner Wallström: I understand.

  Q36  Lord Marlesford: That really you should be in charge of this rather than allowing a Member State that happens to hold the Presidency to be pushing a particular thing on its own agenda rather than through the Commission.

  Commissioner Wallström: Could I come back to you and I will give you a totally updated view. I understand that Frattini is engaged in this, we could check with Frattini's people. I would be happy to do that so that I do not give you some blah, blah that is not correct.

  Q37  Chairman: That would be excellent. Certainly it would be helpful to the work of our Sub-Committee.

  Commissioner Wallström: We can do that and follow up the Commission's position as it is now and what has happened with this process.

  Chairman: That is very kind of you.

  Q38  Lord Tomlinson: Commissioner, when I read Commission communications I tend to read the figures rather than the written word and, I must say, reading the communication in relation to the Annual Policy Strategy I found some of the figures somewhat confusing in terms of trying to understand what the strategic thrust was in terms of financial allocation to it. If we take Table 2 where you have got those four priorities and policy areas, if we look at energy and transport there is roughly a nine-fold increase over the five year period compared with 2008 and on environment roughly a five-fold increase with two million in the one year and 10 million over the five year period. Why is freedom, security and justice consuming so much in 2008 and has so little left for the remainder of that indicative period in terms of financial planning? That is saying to me, as I read it, that this is not a priority, it is something that is disappearing from the radar. How do you explain that?

  Commissioner Wallström: It can be explained by the fact that these are changes in the financial resources and it means it is not the full picture. These are only how you correct the figures, you do not see the whole picture.

  Q39  Lord Tomlinson: So in terms of communication of a strategy—

  Commissioner Wallström: It is not a very good indication.


 
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