Select Committee on European Union Fortieth Report


Letter from Rt Hon Margaret Hodge MP, Minister of State for Industry and the Regions, Department of Trade and Industry to the Chairman

  The above document is a revised proposal issued by the Commission for a regulation to create a new legal entity, the European Grouping of Territorial Co-operation (EGTC), to manage cross-border co-operation activities between two or more Member States within the European Union. The revised proposal was issued after amendments were proposed by the European Parliament.

  However, the original proposal has continued to proceed through negotiations in the Council and was agreed there on 5 May 2006. Therefore this document will not now form the basis of negotiations or a regulation. We expect the Commission to withdraw it accordingly, and we will inform you when this happens.

  The scrutiny history of the proposal which formed the basis for negotiations and of the new regulation to create the EGTC is as follows:

  EM 11689/04 on a European Grouping of Cross-Border Co-operation. The Commons European Scrutiny Committee cleared it (Report 32, Session 03/04). The Lords Select Committee on the EU sifted it to Sub-Committee A and cleared it from scrutiny (Progress of Scrutiny, 7 February 2005, Session 04/05).

25 May 2006

Letter from Rt Hon Ian McCartney MP, Minister for Trade, Investment and Foreign Affairs, Department of Trade and Industry/Foreign and Commonwealth Office to the Chairman

  I am writing to update you on the above Commission proposal.

  In May, Margaret Hodge wrote to you explaining that this revised proposal for the EGTC will not be the subject of discussion or agreement, and that we expected the Commission to withdraw it. The proposal was superseded by the initial proposal, which continued to form the basis of negotiations and was agreed by the Council.

  The Commission has informed my officials that there is no requirement for it formally to withdraw redundant proposals like this one. It has periodically withdrawn some redundant proposals for administrative clarity, but this is not mandatory and at present there are no current plans to withdraw this one. However, Commission officials emphasise that this does not affect the redundancy of the proposal. It has been superseded by agreement on the initial proposal. It does not stand, there will be no further action to take it forward, and we can consider it closed.

  I hope that this clarifies the status of this proposal for your records.

11 August 2006

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