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European Defence: implementation road map; The UK’s 2014 block opt-out decision; EU budget

European Scrutiny Committee Meeting Summary: 5 November

6 November 2014

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The European Scrutiny Committee met on Wednesday 29 October 2014

The Committee considered the following documents:

European Defence: implementation road map

This Commission Report sets out a high-level roadmap for implementing activities set out in the July 2013 Commission Communication Towards a more competitive and efficient security sector. The overall aim is to improve efficiency in the defence and security sector and to strengthen the EU’s Common Security and Defence Policy. On 3 September 2014, we indicated that it would warrant debate in European Committee in due course, but first wished to receive the Opinion of the Defence Committee on the Report. We have now received this Opinion, which strongly supports our view. We therefore recommend this debate, commenting that this will provide the Minister with the opportunity to update the House on developments in all areas covered by this Report, as well as to set out how he envisages this Roadmap will be taken forward and how UK interests will be protected.

EU Budget 2014

Revisions to Member States contributions to the EU Budget as a result of adjustments to the VAT and GNI bases over the period 2002-13 (1995-13 for one member state) were set out in an Information Note issued by the Commission to Member States on 17 October. These adjustments increase the UK’s contribution by £2.873 billion. This week, the day after our evidence session with the Financial Secretary to the Treasury, Mr David Gauke MP, on the revised UK contribution to the EU Budget, we consider  Draft Amending Budget (DAB) No. 6. This DAB aims to return to Member States their share of additional contributions to the EU Budget. The UK would face a net cost of around £1. 630 if the Draft Amending Budget is adopted before 1 December. The Minister tells us that the Government does support the principle of returning additional contributions to Member States, but it considers the Draft Amending Budget as a mechanistic procedure. As it is seeking changes to the underlying adjustments, it cannot set out its position on the proposal, which will depend on the outcome of wider negotiations. The Minister tells us that if the negotiations reach an acceptable conclusion, then the Government will support the Draft Amending Budget. In order to make the proposed return of contributions effective by 1 December, the DAB needs to be adopted by 15 November. The Government supports this timetable and asks us to waive scrutiny. Given the great political importance of the significant increase to the UK’s contribution to the EU Budget, we decline to do so, and instead recommend this document for debate on the floor of the House. We note that a debate on 10 or 11 November would still allow for the adoption of the proposal by 15 November.

The UK’s 2014 block opt-out decision

This week we consider two draft Council decisions relevant to the UK’s 2014 block opt-out decision, now that we have received the explanatory memoranda in relation to these documents, which were two weeks overdue. Both of these documents are based on Article 10 of Protocol 36, which establishes the procedures for the UK to rejoin pre-Lisbon EU police and criminal justice measures following the decision to opt-out en masse, and confers powers on the Council to determine any direct financial consequences and the “necessary consequential and transitional arrangements” resulting from the opt-out. We ask for further information on a number of points in relation to these two draft Decisions, and in relation to the draft Criminal Justice and Data Protection (Protocol No. 36) Regulations 2014, which we understand are intended to complete transposition in relation to 11 of the 35 justice and home affairs measures that the Government is seeking to rejoin, and were laid before Parliament earlier this week.

Other documents

We are also reporting on documents relating to:

  • CSDP: Financing European Union operations having military or defence implications;
  • Energy and Climate Change: Resilience of the European gas system to supply disruption in 2014-15;
  • Environment, Food and Rural Affairs: International Organisations for Vine and Wine;
  • Foreign and Commonwealth Office: EU restrictive measures against the Syrian regime; EU Action to support Afghan civilian policing and Rule of Law post-2014; EU Strategy in Afghanistan 2014-16; The working of the comitology committees; The EU and the Horn of Africa: Regional Maritime Capacity Building
  • Justice: Hague Convention (Choice of Court Agreements);
  • Treasury: Financial services: securities financing transactions; EU Solidarity Fund; EU General Budgets 2014 and 2015

The Committee’s 16th Report of Session 2014-15 will be published shortly, covering: The UK’s 2014 block opt-out decision; EU enlargement; Regulations of medical devices; Financial services: payment services; Network Information Security; EU civilian CSDP mission in Ukraine: launch and status of mission; EU relations with Belarus; Greenhouse gas intensity of petrol and diesel fuels; Non-road mobile machinery; and Financial services: insurance mediation.

Further information