Bulletins

Commons EU Scrutiny Committee: UK subject to "new and unquantifiable risks" from EU Constitution; 'red lines' will not work

The Commons European Scrutiny Committee has warned in a new report that the UK would face “new and unquantifiable risks” as a result of the revised EU Constitution, arguing that the UK’s ‘red lines’ would not provide adequate protection.

The report notes that "There will be a steady transfer of jurisdiction to the Commission and the European Court of Justice in the areas of civil and criminal justice. These matters should be debated on the floor of the House before the treaty is signed." Committee Chairman Michael Connarty added that Britain's "opt-ins" on justice and home affairs matters would surrender jurisdiction from the UK courts: "Although the Government has secured the right to opt-in in respect of justice and home affairs matters, it is clear that if the Government opts in on any measure, ultimate jurisdiction will transfer from the UK courts." He said that choosing not to opt-in would present "new and unquantifiable risks".  

The report called into question the Government’s claim that the controversial EU Charter of Fundamental Rights would not affect UK law: "We express doubts on the effectiveness of the protocol on the Charter of Fundamental Rights and do not consider that it guarantees that the Charter can have no effect on the law of the United Kingdom when it is combined with consideration of the implementation of Union law." 

The Committee also criticised the lack of opportunity for proper parliamentary scrutiny and debate before the treaty was signed: "The process could not have been better designed to marginalise the role of national parliaments and to curtail public debate, until it has become too late for such debate to have any effect on the agreements which have been reached."

Read the Committee’s report in full here:

http://www.publications.parliament.uk/pa/cm200708/cmselect/cmeuleg/16-iii/16iii.pdf

€60bn of EU taxpayers’ money vulnerable to fraud

On November 13 the European Court of Auditors released its latest opinion on the EU budget, and for the 13^th year in a row it refused to sign off the EU’s accounts. According to the report, "errors of legality and regularity still persist in the majority of EU expenditure due to weaknesses in internal control systems both at the Commission and in Member States."

Open Europe has calculated that the areas of expenditure on which the Court has given an adverse opinion account for 57% of the overall EU budget – equivalent to €60 billion. 

Read more on the ECA report here:

http://www.openeurope.org.uk/media-centre/pressrelease.aspx?pressreleaseid=59

UK’s EU budget contribution to double to £71bn

MPs last week debated the EU budget deal signed up to by Tony Blair in 2005.  When the EU budget was agreed in December 2005 the UK press focused largely on the fact that the Government had agreed to give up £7 billion of the rebate.   However, of arguably greater significance is the overall increase in the UK’s net contribution – nearly doubling from £2.8 billion a year on average under the last financial perspective to £5.5 billion a year from 2007-13.  This represents an increase of £2.7 billion a year and an increased net payment of £19 billion over the seven years of the financial perspective. Under the 2007-13 budget period, the UK’s gross contribution, after the reduced rebate, will rise to £10.2 billion a year, or £71bn over the whole period. 

Read Open Europe’s briefing note on the EU budget here:

http://www.openeurope.org.uk/research/budget07.pdf

EU Constitution round-up

Lib Dem MEP Andrew Duff - who was one of the European Parliament's three representatives to the intergovernmental conference (IGC) – told an audience in Brussels that the IGC "was a giant exercise to make obscure what has previously been straightforward. Certain issues were suppressed. We need to remind ourselves that the greater part of the 2004 treaty has been satisfactorily salvaged, and will find itself in the amended treaty, and in recalling that the greater part of the treaty has been salvaged, it exposes the features agreed to greater public scrutiny." He also attacked the UK's negotiating position and predicted that the "opt-outs on the charter will prove to be judicially flawed and will crumble."

Nicolas Sarkozy has told MEPs that referendums on the revised EU Constitution were "dangerous" and would be lost in France, Britain and other countries. He said, "France was just ahead of all the other countries in voting no. It would happen in all member states if they have a referendum. There is a cleavage between people and governments.  A referendum now would bring Europe into danger. There will be no Treaty if we had a referendum in France, which would again be followed by a referendum in the UK." (Telegraph, 15 November)

According to a report in the FT, it is almost certain that Nicolas Sarkozy's "pet project" of a wise men's group to make proposals about the future development of the EU, and what it should be doing, is to be set up at the December summit.  The former EU Commission President Jacques Delors is being tipped to serve on the committee. (FT Brussels blog, 29 October)

Constitution author Valery Giscard d'Estaing's had an article in various European newspapers, arguing that "The EU Treaty is the same as the Constitution". He states that "the difference between the original Constitution and the present Lisbon Treaty is one of approach, rather than content."  He concluded that "When men and women with sweeping ambitions for Europe decide to make use of this treaty, they will be able to rekindle from the ashes of today the flame of a United Europe."  (Independent - d'Estaing, 30 October)

On his blog, Valery Giscard d'Estaing said he felt “great satisfaction” that the new treaty was “word for word” the same as the Constitution. (VGE blog, 27 November). On a separate occasion, d'Estaing noted "You wouldn't be honest to tell the British voters the substance of the text has changed - because the substance has not changed."  (BBC Today, 10 November; Sun, 12 November) 

News in brief

UK facing defeat on Temporary Workers Directive. The UK is facing defeat in its opposition to an EU directive which would force British employers to give temporary and agency workers full employment rights after only six weeks.  The proposal, currently being tabled by Portugal, has previously been blocked by the UK and a few other member states. But Poland, which has been part of the blocking minority, is now considering changing its position, meaning the UK would have to find new partners or accept the proposal. Employers have warned that the directive would seriously upset the UK’s flexible labour market, and the CBI estimated in September that it would cost the UK 250,000 temporary assignments. The Portuguese have suggested the UK could be allowed to keep its opt-out from the 48-hour working week in return for accepting the temporary workers directive.  (EUobserver, FT, 22 November; EUobserver  29 November)

British army vehicles to comply with EU carbon emissions rules.  The British army's next generation of armoured fighting vehicles - up to 3000 of which will be ordered - will have to comply with EU rules on limiting greenhouse gas emissions. An MoD spokesman confirmed that "the FRES utility vehicle will comply with EU emission regulations". (Sun, 28 November)

Poland issues European Arrest Warrant for 88-year old whose extradition was already blocked by the Home Office.  An 88 year old widow is to be extradited to Poland after the country issued a European Arrest Warrant on charges that she arranged the show trial and execution of a war hero under the country's Stalinist dictatorship.  The Arrest Warrant has been issued despite the fact that the Home Office refused to extradite her last year saying that the case was too long ago.  Under the provisions of the European Arrest Warrant the Home Secretary is powerless to block the move which only needs to be rubber stamped by the UK courts. (Mail 21 November)

EU farm subsidy changes to benefit lawyers, not taxpayers.  The British Government is against new EU plans to cut EU farm subsidies worth £56 million to Britain's wealthiest and largest landowners, because it fears the cuts will benefit "lawyers and accountants" instead of taxpayers.  The Government fears that farmers or landowners seeking to minimise the cuts to subsidies will find ways to break up ownership of large farms, leading to a decline in agricultural productivity and a bonanza for lawyers.  An official told the Telegraph, "The subsidy cap will not bite and economies of scale for big farms could be lost while lawyers and accountants end up receiving CAP money.  Is it a good use of taxpayer money to force member states to introduce something that people can evade?” (EUobserver Times FT, 21 November)

Commission wants to question women about their 'sexual history’. MEPs in the European Parliament’s social affairs committee this week rejected EU Commission plans to introduce a Euro-census, which would require all national censuses to ask the same questions.  The suggested survey included asking women about their sexual partners, and also requested details of same-sex relationships, a run-down of consumer goods owned and information about employment.   National governments have backed the move. (FT, 22 November BBC Mail, 21 November)

EU plans 'Made in EU' labelling for food products.  Brussels is proposing to outlaw the "Made in Britain" label on food and drink. EU draft proposals would introduce a "Made in the EU" label for all food and drink products.  The plans mark a second attempt to bring in such a label after a more general plan was dropped in 2004 following strong opposition from German carmakers and others. (EUobserver, 20 November)

UK agrees to Galileo, despite warnings from MPs.  The UK has dropped its opposition to raiding unspent farm subsidies to bail out the EU’s troubled satellite navigation project, Galileo.  The UK’s Minister for Transport Rosie Winterton preciously told the Transport Committee in the Commons that such a solution was “unacceptable”.

The decision came after the influential House of Commons Transport Committee urged the Government to block Galileo. The Committee's Chairman, Gwyneth Dunwoody, said, "The Commission is poised to spend billions of taxpayers' money on a satellite system without any realistic assessment of its costs and benefits. To fund this, it is prepared to break all the rules for prudent budgetary discipline. This cannot be allowed to proceed.” The Committee said that the UK would pay 17% of the estimated £10 billion costs of Galileo. Dunwoody said, "This sum would pay for almost two thirds of the entire (cross-London) Crossrail project, and given the history of spiralling costs, we fear Galileo may end up costing much more still."  She said Europe could end up with "an orbiting Railtrack which may be obsolete even before it is operational". (FT Telegraph Committee report, 12 November)

Italian government expels EU migrants.  The Italian government has passed a controversial decree enabling it to deport EU migrants deemed to be a threat to public security, following a national outcry caused by the beating and rape of an Italian woman by a Romanian immigrant.  Shortly afterwards police began a mass round-up of Romanians, which appeared to have the blessing of the EU, despite signs that the decree may contravene EU Free Movement legislation.  The decision came just days after the British courts ruled yet again that it was illegal for the Home Office to deport the murderer of schoolteacher Philip Lawrence, Learco Chindamo, to Italy due to the EU Free Movement directive.  (Telegraph Times, 5 November)

Government divisions on EU defence integration exposed as Brown overrules Miliband.  A speech on Europe by Foreign Secretary David Miliband sparked a row in Whitehall  after reports that Gordon Brown had ordered him to rewrite key parts which had already been briefed to the press.  Miliband was reportedly ordered by Brown to drop explicit references to an “EU military capabilities charter” identifying targets for EU investment, research and training.  The idea would have aligned Britain with plans from President Sarkozy of France to beef up Europe's shared defence forces and set out a blueprint for the future deployment and equipping of troops.  The Observer reported that Downing Street felt it was unwise to flag up the sensitive issue of European defence as the Government prepares for a battle over the EU Constitution, and the Sunday Telegraph reported that Miliband was furious with Number 10. (18 November, Miliband Speech Text)

Events

The Institute for Environmental Security in Brussels is holding an event: “From Bali to Poznan: New Issues, New Challenges” in the European Parliament on 18 December. For more information and to register please go to www.envirosecurity.org or contact conferences@envirosecurity.org .

Open Europe in the news

Open Europe attacks EU budget

WSJ 21 November

Open Europe's Alistair Tebbit had an opinion piece in the Wall Street Journal commenting on the EU's failure to have its accounts approved by the Court of Auditors for the 13^th year in a row. He argued that "until expensive and wasteful policies such as CAP and the structural funds are brought back under national control, or scrapped altogether, we are unlikely to see any real improvement. Such sprawling, complicated top-down spending programs are always going to be vulnerable to fraud."

British attitudes to the Charter

E!Sharp 15 November

David Gow discussed the UK's attitude towards the EU Charter of Fundamental Rights in E!Sharp, mentioning Open Europe's argument that the British safeguards "simply will not work".

EU accounts not signed off for 13^th year in a row - £6bn of UK contributions open to fraud

Express 14 November Telegraph 15 November

The Express and the Telegraph reported on Open Europe research which found that as much as £6 billion of the UK's annual contribution to the EU is open to fraud.  Open Europe's Hugo Robinson was quoted saying, "After 13 years, the EU still hasn't got its own house in order when it comes to sound book-keeping." 

Increased costs and carbon emissions "the price to pay for new treaty"

Focus 14 November WSJ Daily Politics (26 mins in) 9 November Express 5 November Times 2 November

Neil O’Brien appeared on the BBC Daily Politics show criticising the "pathetic vanity" of the Belgian and Portuguese governments, accusing them of being "completely out of touch with reality" over plans to hold two summits in one day, and take flights amounting to 50,000 miles to mark the signing of the Lisbon Treaty. Neil was also quoted in the Express, Times, the Evening Standard and German magazine Focus.

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Further enlargement under threat? 

Economist 9 November

The Charlemagne column in the Economist noted that “For years, Neil O'Brien, director of a Eurosceptic campaign outfit, Open Europe, has asked British focus groups what the words 'European Union' bring to mind. In the past, the reply has usually been red tape and gravy trains. But his most recent focus group offered a new word: 'immigration'."

EU farm reform will do nothing for farmers in developing world

Telegraph 9 November

Neil O'Brien was quoted in the Telegraph. Saying that the Commission’s proposals to change the CAP “will change very little - not a single euro will be cut from the CAP budget."

FSAP eroding City's competitiveness

Business 8 November Business 1 November

The Business noted that “A report from Open Europe, another well-regarded London think tank, estimates that the Financial Services Action Plan (FSAP), Brussels' new regulatory system for the industry, will involve total costs to Britain of £14bn - £23.5bn by 2010."A separate comment piece in the Business also cited the findings.

European Arrest Warrant abused

Europaportalen 1 November

Open Europe's Mats Persson had an article on Swedish news site Europaportalen, criticising the misuse of the European Arrest Warrant.

Lisbon Treaty keeps alive "the flame of a United Europe"

Sun 30 October

The Sun quoted Neil O'Brien as saying "Mr Giscard d'Estaing has lifted the lid on the march towards a United States of Europe."

Independent should have said it was reprinting FCO briefing

Independent 30 October

In the Independent's media section, Stephen Glover (a founding editor of the paper) looked at the paper's almost "verbatim reprinting" - spotted by Open Europe - of a Foreign Office note in an article debunking "10 myths about the EU treaty".