Select Committee on European Union Minutes of Evidence


Examination of Witnesses (Questions 40 - 59)

THURSDAY 3 MAY 2007

COMMISSIONER MARGOT WALLSTRÖM, MR STEN RAMSTEDT AND MR TOMAS NIKLASSON

  Q40  Lord Tomlinson: — it is not a very good way of dealing with it?

  Commissioner Wallström: No, that is true.

  Q41  Lord Tomlinson: Similarly, if I go to the summary of changes in the "Financial Framework" heading a few pages on, 3.2.5, and I look at the various headings there: competitiveness for growth and employment, projection in terms of APS changes zero, and cohesion for growth and employment, APS changes zero. Then there is a 10.6 million increase on preservation and management of natural resources. Then we come to freedom, security and justice, zero APS increase. Citizenship, zero APS increase. That strikes me as saying very clearly in figure terms that these are not having any increased significance.

  Commissioner Wallström: The political explanation for all of this is that the Financial Perspective will not change, we agreed that it would remain basically as it was agreed for 2007-13. The changes here are marginal.

  Q42  Lord Tomlinson: Or non-existent in some cases.

  Commissioner Wallström: In some cases it is not touched. These are the only things that should be added on or changed. It does not change the overall figures. These are only the changes. Maybe you should have had the whole table to be able to compare. It gives only the changes, not the full picture on all the headings, and that is why it looks confusing. I agree, it is totally incomprehensible.

  Q43  Lord Tomlinson: In terms of trying to read the strategy from the figures I have to say it is impossible.

  Commissioner Wallström: I think you have to read the text as well otherwise you will not understand anything. It is partly explained by the text on what we do and where we do change some of the figures. In most cases they will be same figures that were established in the decision on the Financial Framework for 2007-13. It is important that people point to these things. We can look and understand but if somebody comes in who is not a Commission official it might not be that easy, so you are right. I think you have to read the text to understand what we are doing.

  Q44  Chairman: In that case is it not really a zero-sum game because—

  Commissioner Wallström: The Financial Framework.

  Q45  Chairman: — the Financial Framework sets the ceiling and if you want to spend more on one category you have got to spend less on another?

  Commissioner Wallström: That is absolutely true. There was an agreement to stick to the Financial Framework Agreement and you know how tough it was to get there.

  Q46  Chairman: That was a useful exchange because that has helped us understand what is going on. We need to read the text very carefully. Have any of my colleagues got anything on that particular issue? I am aware of the passage of time and I am very anxious to get on to communication priorities but also, on the way there, just a reference to Better Regulation. The APS does not mention the need to give greater prominence to fundamental rights in impact assessments and ensuring the Commission's proposals comply with fundamental rights. Is this a concern for you at all or not? It is something we are quite interested in. I just do not know whether this is a priority for you, giving greater prominence to fundamental rights in impact assessment. It is a slightly esoteric question.

  Commissioner Wallström: The whole concept of Better Regulation has very often been misconceived, misrepresented or even misinterpreted. We keep having this debate in the European Parliament about what is Better Regulation. Some accuse the Commission of not wanting us to scrap existing legislation and they say, "Why are you doing this?" We have presented a list of, I think it is, 68 proposals so far on legislation that we have found outdated and we can simply get rid of. This is an important part of it, to look at things that are not modern, not up-to-date and we can scrap them. We also look at how we can improve the quality of our legislation, how we can make better laws and have better consultation so when we ask people, our stakeholders of different kinds, whether they are small and medium-sized businesses or consumers, we will have a better proposal, a better policy. We have to improve the quality of the things that we actually present to the European Parliament. We have to make sure that we have impact assessments, that when we have a proposal we look at it and ask, "Is this from an economic, environmental and social point of view a good proposal? Is it good enough? How can we improve the quality of it?" All of these elements have to be there and have to be taken into account. That is why we have promised that every proposal in our Legislative and Work Programme shall undergo an impact assessment, so it has to be accompanied by an impact assessment. This is what we are living up to. Because there were questions about, "How do you do the impact assessments? What about the quality?" we also established an Impact Assessment Board from November last year. That is to make sure we have a quality check, quality support and control for all of these impact assessments. There is a supervising task for this board. We believe in impact assessments but this has also been learning by doing, that you have to make sure impact assessments are done according to the same criteria and follow international standards for how you make an impact assessment.

  Chairman: We certainly welcome the emphasis now being placed on impact assessments. That is a very welcome development and we attach a lot of importance to it.

  Q47  Lord Tomlinson: On the Better Regulation, can I just pursue one small question. I was talking to David Arculus on Monday night, who was the Head of our Better Regulation Task Force in the United Kingdom, and he expressed his great frustration with the lack of progress he has made in the United Kingdom in relation to his idea which was one in, one out; if you want a new regulation you ditch one somewhere down the line. How does your 68 out compare with the number of new regulations that are coming in?

  Commissioner Wallström: I can give you an example. It does not always work in that mechanical way because if you look at REACH, for example, which I know very well—too well some would say—that one piece of legislation replaces, I think it is, 60 existing Directives and Regulations. We will have a one-stop shop for those who want to know how we regulate chemicals and the place of chemicals in the market. It is in one Directive, even if it is a long one and it has technical annexes and all of those complexities, but it replaces many existing Directives. You need to modernise sometimes and with a modern piece of legislation you can get rid of a lot of the old stuff in one go. In general I think there is more of a move towards more Framework Directives. With 27 Member States we cannot regulate in detail on everything, we have to move towards framework legislation and then leave it to Member States to say exactly how it will be done and the EU sets the target date or the overall goal for objectives and leaves it to Member States as to how to do it and by what measures.

  Chairman: Thank you. Let us move for a moment to the European Institute of Technology.

  Q48  Lord Marlesford: Commissioner, you will be well aware that one of the sources traditionally, as it were, of criticism of the EU, and particularly of the Commission, was one that the Commission appears to forge ahead with some idea before it has been agreed by the Council of Ministers. Recognising fully your prerogative for putting forward ideas, nevertheless we have always understood that endorsement by the Council is needed before that can be put into practice. The European Institute of Technology has been very controversial. In Britain it has been studied extensively, both by the Lord Chairman's Committee and also debated in Parliament, particularly in the House of Lords, with a lot of considerable expertise, and in general I would summarise by saying that it is being seen as both unnecessary and undesirable. I am talking purely from the UK perspective. Therefore, it is with surprise that you are intending to undertake preparatory work during 2008 to make sure that it becomes operational in 2009, including the appointment of a governing board and the selection of the first knowledge and innovation communities, before the European Parliament and the Council have considered the proposal.

  Commissioner Wallström: We explain our intentions in the Annual Policy Strategy. What happens then depends upon a series of factors, including how the European Parliament and the Council will look at our proposals. We will also have to start preparations if they are ever to be realised. We have been very open about this proposal. We have presented it and there is a lively debate. If we get endorsement and the go-ahead from the European Parliament and the Council we will have to be well prepared. We are still depending on progress in both the European Parliament and the Council.

  Q49  Chairman: This is really a wish list of what you would like to see happen and then it will be up to the Parliament and the Council.

  Commissioner Wallström: If we see that there is absolutely no endorsement of these ideas then we will have to conclude that it is impossible.

  Q50  Chairman: You will have to drop it.

  Commissioner Wallström: So far we have received a lot of support from other quarters. I know that the debate is a difficult one in the UK.

  Q51  Chairman: Thank you very much indeed. In the 10 minutes that are left to us maybe we can divide it between two issues. We are certainly anxious to hear about your communication priorities and I wonder whether in saying something about that you might be able to give us some hint as to how you are going to communicate the whole future of Europe issue as we move up towards an IGC, et cetera, which is obviously of great interest to us. After that, if we may, I want to close by coming back to the role of the national parliaments in making inputs into the APS. Would you like to talk to us a little bit about your communication priorities?

  Commissioner Wallström: As you can see, in the document we have listed the political items chosen for special communication efforts.

  Q52  Chairman: Yes.

  Commissioner Wallström: Those are the budget review, Single Market review, social reality, migration, the institutional settlement being part of this, energy, climate change and the EU's role in the world. We have also said the general message is that we have to listen better, we have to explain better and we have to go local, that is we have to become much closer to the citizens. We can use our representation offices in each and every Member State, together with the European Parliament's offices, to make sure that we inform local and regional journalists. We meet with civil society organisations, we can make an open space where debates take place and we also provide all the factual information that citizens might need. We use our information network, our Europe Direct network, including a free call service, and any citizen can call in their own language and ask about anything. Nowadays we even have Europe Direct offices in the UK and very often they are in co-operation with authorities, local authorities, libraries, et cetera, where we provide factual information for citizens. You have a right to know what goes on at the European Union, that is our starting point. It will take quite an effort to communicate what happens to the Constitutional Treaty and any new solution that might come up, but I hope all Member States have learned a lesson from what happened. There is a price to pay, as President Barroso often says, if six days a week you blame Brussels for everything and on the seventh day you come and ask people to vote "Yes" to a constitution for the European Union, this will not work. We have to engage with citizens. As I said, I want to turn it around. I want to see it as a right for citizens to be informed, to get good and correct information and to have a say. That means on our part that there is an obligation on the institutions to create access to such information and to listen to citizens. To me, it is a matter of democracy in the long run. That is what we are working against to make sure that we overcome this democratic deficit, as it is called, where citizens feel they are so remote and Brussels bureaucracy is far away somewhere. Every week the UK ministers go to sit around the same table as ministers from all the other Member States to take decisions that affect citizens' lives, so they have a right to know about this and have an influence. How can we do that? This is what I am trying to do with the communication policy. We have a number of tools available to us already, including Europe by satellite where we have the newsroom where we have the highest number of accredited journalists coming to press conferences every day at noon. In all of our offices we have representatives who are faces for Europe and we have to use those to make sure that we get information out about these issues. It is not mission impossible but mission irresistible.

  Q53  Chairman: Can you just satisfy my curiosity on one point. I am struggling to understand what is really meant by "Social Reality Stocktaking".

  Commissioner Wallström: This is really to see where we are on the social agenda and how people see the European Union's role and the role of the different institutions and what can be done. Social reality means that we look at how we can compare Member States on social reality, what it looks like, what about social gaps, to make sure we have an overview of where we are. We can use the facts and figures we have access to as well as maybe Eurobarometer and all of these instruments.

  Q54  Chairman: If I may make a slightly political point. I think one of the reasons why Social Reality Stocktaking sends a little bit of a shiver down the spines of politicians in Britain is because they feel that if in effect what you are doing is making those comparisons and identifying the gaps then you feel it is the job of the European Union to fill the gaps with Commission proposals followed by legislation. That may be a misunderstanding, but there is that slight feeling that you are in the early stages of coming to a point where you will be seeking the harmonisation of social policies.

  Commissioner Wallström: The only way to change the distribution of responsibilities and so on is through a new treaty and the treaty does not provide for very ambitious change in social policy, this is still reserved for Member States. There are a number of things we can do at European Union level to better co-ordinate or make sure we have some kind of overview of what happens in Europe because we are so interdependent on these issues. To avoid social dumping or salary dumping, or what have you, it is important to know what it looks like. I would say the Structural Funds and the way we use EU money has been very much to raise the standard of living in many of the poorest areas and it is important that we know what it looks like today.

  Q55  Chairman: Before I put the final question, is there anything anybody else wants to say at this point?

  Commissioner Wallström: It is hot!

  Q56  Chairman: I did not mean to sound threatening! This is really a recap of what you said right at the very beginning. As I said, we are very interested as national parliamentarians in knowing at what point we can make some kind of an input into the discussions in the build-up stage of the Annual Policy Strategy. As you quite rightly said, it is a question of picking the right moment where, whether it be national parliaments or the European Parliament, what they have to say can make an impact. It seems to me as a first priority for us we need to get an early indication of what the APS is and we are very happy that this is directly communicated to us. During the period in which the Annual Policy Strategy is being, as it were, examined, taken apart and looked at very closely by the European Parliament and eventually by the Council, how is it that we can make our voices known as national parliamentarians? Can we send in comments on specific parts of the policy? What is it we can do? It is one thing to have a debate in our chamber on this but I am not sure that the debate would necessarily be very helpful to the Commission. Our Committee and our Sub-Committees may have specific ideas they want to communicate.

  Commissioner Wallström: I take what you say very seriously because we can conclude after having worked on establishing an agenda for increased co-operation with the national parliaments that it has been a success so far. We are very pleased with it and hope that national parliaments are pleased with it. It gives us a lot back. It gives us a lot of input into our work in the Commission. Also there is the fact we have had so many visits, more than 200 visits, by Commissioners to national parliaments, including when, for the first time, President Barroso went to the French Senate, and that was really tough but we all felt it was worth it. What we are doing now is looking at how this structured dialogue has worked, what are your impressions and what do you think we could improve. You want to know do we take it seriously and do we take you seriously and how does that show. One of the ideas we are looking at is how we can publish your opinions so that everybody is able to know this is what the House of Lords said on this or that proposal and how we can make that accessible. We are looking at ways of how to improve it and deepen our co-operation. One of the things that has been discussed has to do with the `red card'. I saw the Swedish former Speaker proposed that there should be a red card mechanism but there is a risk with it. Of course, the Commission will always defend its right of initiative but there is also the risk that it becomes purely a matter of quantity and how many national parliaments you will need which means we will wait until a certain number of parliaments say it is interesting instead of now when we can change a proposal because we get a very good proposal in one of the opinions from a national parliament. That it has to be a certain majority or percentage of the Parliament is a risky thing because we would not even present a proposal if we risked having so many of the national parliaments against us. It can be a very strange debate or political situation. Our instinct is to say that is not a good proposal, but it is a good thing to have national parliaments involved in a much better way. You can give your views on what you want on the Annual Policy Strategy. If you discuss it as part of your dialogue you can give your opinions as you do on everything else: matrimonial legislation or what have you, you have heard a number of these proposals previously. You can say, "We have discussed it and this is what we think. The tables are bad. It is incomprehensible. The list of priorities ought to be shorter", or whatever. We welcome that and think it is important. I think the only way to anchor better the European Union in the minds of citizens is to go through the national parliaments, the national democratic traditions and the national political parties. How else can people understand what goes on? It has to be anchored at the national level. I believe in this a lot and it has to be part of the daily, weekly, monthly political debates in every Member State. That is when it is meaningful.

  Chairman: Lord Tomlinson, who was a member of the Convention, I know has views on the red card. Two years ago I thought the red card was a good idea but I am now beginning to think that it is not a good idea on the grounds that you may well find—this is purely a personal view, I am not reflecting the views of the Committee—a number of parliaments who have not done their homework will hear what other parliaments are going to do and will say, "Oh, you are going to hold up a red card, we will do it too" and then you will get a majority of the ignorant holding up legislation, which I think is very dangerous.

  Lord Tomlinson: Rent a red card!

  Q57  Chairman: That is right. So I think the red card is a red herring.

  Commissioner Wallström: That is another risk to it. They have to decide, "Do we have any views on this? We can send proposals and one national parliament can say, `we have no interest in this, we will not engage, we will not do the job'" and others will say, "We are really interested because we know there is a debate in our country and we have a committee", it can reflect better.

  Q58  Lord Marlesford: How many national parliaments have actually made representations to you on this programme?

  Commissioner Wallström: Forty-four chambers in total, about 83 proposals that we have been sent in six months. We are working on making sure that we can improve it. We have asked for comments about how they think this process can be improved. We think it is good.

  Mr Ramstedt: Sorry, correction: 21 chambers with a total of 83 opinions on 44 different proposals.

  Q59  Lord Marlesford: So how many countries is really what I am trying to get at.

  Commissioner Wallström: Around 20 countries.


 
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