The Minister for Europe (Mr David Lidington)
I beg to move,
That this House takes note of Unnumbered Explanatory Memorandum of 7 July 2011, the European Union Common Position on Judiciary and Fundamental Rights (Negotiation Chapter 23), relating to EU enlargement: Croatia; and supports the Government’s decision to agree the Draft Common Position at COREPER on 29 June and to adopt formally that agreed position at European Council on 12 July.
This debate concerns the European Union’s common position on the judiciary and fundamental rights chapter—chapter 23—of the accession negotiations for Croatia. It also concerns the Government’s policy of agreeing that EU common position in Brussels in June and formally supporting its adoption at the Economic and Finance Council on 12 July. During the debate, I hope to bring the House up to date on some of the more recent developments in the Croatian accession process and on the various reports of the European Commission about the improvements that Croatia has made.
I shall start by addressing the more general question of enlargement before moving on to where Croatia fits within the process. The United Kingdom is, and has been from the start, a strong supporter of EU enlargement as an effective and dynamic agent of change. In a changing world in which economic and political weight is swinging eastwards, the European Union will remain strong only if it is outward-looking and continues to grow. Successive British Governments have believed that membership of the EU should be open to any European country that wants to join and meets the rigorous accession criteria.
There are three key arguments for our consistent, cross-party support in the House for the process of EU enlargement. The first such argument is one of principle. The European treaties make it clear that membership of the European Union is in principle available to any European country that wants to join and that meets the accession criteria. It is very hard to establish any reasonable ground on which we could say to Spain, Portugal or France that they should be a member of the European Union but to Croatia or another country of the Balkans or eastern Europe that they should not—if they meet the accession criteria. I stress that second element. Support in this country for enlargement goes back a long way. Some 23 years ago, in her Bruges speech of 1988, Margaret Thatcher declared, at time when it was not fashionable or even believable to do so, that it was important for everybody in Europe to remember that Prague, Warsaw and Budapest were also great European cities.
Mike Gapes (Ilford South) (Lab/Co-op)
Will the Minister also confirm that Istanbul is a European city and welcome the fact that President Gul of Turkey is here this week on an official visit? Does he look forward to the day when Turkey can also take its place in the European Union?
Mr Lidington
Yes, I certainly support what the hon. Gentleman has said. Labour and Conservative Governments alike have consistently taken the position that we support Turkey’s ambitions to join the European Union. That accession process has helped to drive both political and economic reform within Turkey, and we want to see further progress being made at the earliest possible date.
Keith Vaz (Leicester East) (Lab)
I completely agree with what the Minister says. There has been cross-party support for the enlargement process, but when I held his job more than a decade ago there were 12 candidate countries beating at the door of the EU and asking to be admitted. At that stage, quite a lot wanted to join, so why does he think so few countries now want to join the EU?
Mr Lidington
I bow to the right hon. Gentleman’s experience, because I think he was quite a long-serving Minister for Europe. Part of the answer to his question is that there are now rather fewer European countries outside the European Union than was once the case. However, one thing that is common to the political leaderships of all the countries in the western Balkans is an ambition to become part of the European family of nations. We in the UK sometimes underestimate that strength of feeling. They regard membership of the EU as setting the seal on their democratic development and on the restoration of their place in the European family.
Mr Peter Bone (Wellingborough) (Con)
While we are having a trot around Europe, let me ask about countries such as Moldova that want to join the European Union. Does the Minister agree that what they really want is to join a free trade area rather than some sort of superstate?
Mr Lidington
In my conversations with Moldovan Ministers I find that they have ambitions for more than just a trading relationship. Certainly, when I have met the Moldovan Prime Minister, Foreign Minister and deputy Foreign Minister, they have stressed to me that they see value in market integration with the single market. However, they also see the move towards meeting European standards on democratic governance, rule of law and respect for human rights as in the interests of the people of Moldova, enabling them decisively to relegate to history their experience of Soviet rule over so many decades. Although Moldova is not a candidate for European membership at the moment, I have said publicly in Chisinau—I think I am still the only British Minister who has been to the British embassy in Chisinau—that we supported Moldova’s work within the Eastern Partnership as a matter of principle and that if it wished to take that further and in due course apply for membership and comply with the demanding accession criteria, the United Kingdom would strongly support and encourage that.
The second argument for enlargement develops from what I have just said to my hon. Friend the Member for Wellingborough (Mr Bone). There is a powerful political case for the enlargement of the European Union. Enlargement helps to create stability, security and prosperity across Europe. We see this most dramatically if we look at the recent history of central and eastern Europe. We have seen how the process of EU accession has helped to entrench democracy, the rule of law and human rights in parts of our continent where those values and traditions were crushed for most of the 20th century.
If the House contrasts the experience of central and eastern Europe in the 20 years from 1919 to 1939 with the 20 years from 1989 to 2009, it will see the difference that the institutionalisation of democratic reform through the EU accession process has made, and made for the good. Although I would happily say to my hon. Friends and to some hon. Members on the Opposition Benches that there are plenty of faults in the way the EU currently does business and the way it is constructed, when we weigh up the value of the European Union and the United Kingdom’s membership of the European Union, we need to take account of that rather proud political record in support for the development of a culture of human rights, the rule of law and democratic government in parts of Europe where those traditions have been absent for so long.
Chris Heaton-Harris (Daventry) (Con)
Will my right hon. Friend comment on Macedonia, which is keen to join the accession process? Is it not a fact that Croatia or any other country that wants to enter the European Union is signing a pact—a contract—to join the euro? What would be his advice to such countries on doing that at this time?
Mr Lidington
My advice is that that has to be a sovereign decision for the country concerned. I do not waver in my view that joining the euro would not be in the national interest of the United Kingdom, and I make no apology for having long held that view, but each country must take its own decision. Some countries with small economies, which are, perhaps, very dependent on trade with immediate European neighbours, would find it more difficult to see themselves outside the euro, at least over the longer term, than a country such as the UK. At the end of the day it must be a matter for each accession country to decide for itself in the course of EU negotiations.
The third argument for enlargement is an economic one and it is—
Matthew Hancock (West Suffolk) (Con)
Before my right hon. Friend moves on to that further point, is there not an important and slightly more domestic political benefit to support for enlargement of the European Union? There are more countries in the European Union that want to see a less deeply aligned European Union and more of a trading union, which we on the Conservative Benches also want to see. The more countries with that view of Europe, the better. Therefore accession countries with that view and that approach to markets should be encouraged.
Mr Lidington
My hon. Friend makes a very strong point indeed, although it would be a mistake to class all new accession countries as if they were of one mind and part of a bloc. The Government of the Czech Republic, for example, take an approach towards the European Union that on many issues is not dissimilar from that expressed by the United Kingdom Government. With the Slovak Parliament’s controversial debate over the future of the euro, we have seen the strong view that even a small member state is entitled to have a say and not be overruled by a directoire of the larger member states.
However, I caution my hon. Friend. If one looks at, say, Estonia, the ambition that it had to join the euro, and the celebrations on the streets when it joined the euro—[Interruption.] The hon. Member for Wolverhampton North East (Emma Reynolds) prompts me from a sedentary position about Poland, which is keen to be in the euro one day, but certainly not to be told what to do by other, older member states. There is a variety of different positions among member states.
The political value of enlargement is partly that it recognises the truth about the diversity of European political culture. It is important that as the EU evolves and reflects upon its own systems of governance and its institutional set-up, it does so in a way that takes full account of the diversity of European political and cultural experience. The model that may have served six member states in western Europe in the 1950s will not be the right one for a community of 27—soon to be 28—member states encompassing all parts of our continent.
The third argument for enlargement relates to economic interest. The economic benefits of expanding the single market are significant. British exports of goods and services to the 12 new member states of central and eastern Europe increased over the 10 years straddling their accession by more than two and a half times to over £11.6 billion in 2009. So there are advantages for our businesses and our people, as well as for the businesses and people of the accession countries. In Croatia’s case, meeting the single market rules means that British businesses will be better able to benefit from trade and investment opportunities in that country—for example, in Croatia’s expanding ports sector, its tourism industry and agriculture.
Mr Philip Hollobone (Kettering) (Con)
I want to challenge my right hon. Friend on the idea that an expanded Europe is good for security and stability. I declare my interest as a special constable with British Transport police. If one speaks to the British Transport police or the Metropolitan police, they say that every day police officers in London are arresting more and more EU nationals from eastern European countries, particularly Bulgaria, Romania and other accession states, as part of criminalised gangs working in London because London is the biggest, most cosmopolitan city in the European Union. With the EU expanding, the problem of crime on the streets of our capital city is getting worse because of the ease of access across international borders.
Mr Lidington
I pay tribute to my hon. Friend’s voluntary work for the British Transport police. I certainly believe that it is important that we ensure that the freedom of movement that comes with membership of the European Union is not applied in a way that can be abused. It is right that somebody who is coming here to take a job—in some cases it will be a job that British people have been unwilling to take on; one talks to a lot of employers who will say that—should be entitled to do so. If they are prepared to come here, live by the law, work hard, pay their taxes and make a contribution to society, few of us have problems with that. But I completely agree with my hon. Friend. If people seek to abuse the system and have come here to exploit our welfare system or to commit crime, the full rigour of the law should be applied against them.
Mr Lidington
I will give way once more to my hon. Friend, then I shall make some progress.
Mr Bone
The Minister, as usual, is being extremely generous. Is not the trick to put on a proviso that people coming from new accession countries will need a work permit to come and work in this country? In that way we can ensure that we get people into the EU, without necessarily worrying about flooding the market here for workers.
Mr Lidington
It certainly was a mistake made by the previous Government that the transitional controls that could have been applied to some of the new member countries were not applied. We are taking very seriously the transitional arrangements that still apply to Romania and Bulgaria. I would also say to my hon. Friend that the process of enlargement and the market integration that goes with that should over time—I accept that this is not an instant process—enable those countries to generate economic growth and employment opportunities themselves that make the sort of migratory pressures from unskilled workers less acute than he identifies them at the moment.
Further enlargement depends upon countries meeting accession criteria that are both fair and rigorous, and it is important when considering Croatia’s case to recognise that this conditionality has been further developed since the accession of Romania and Bulgaria, learning from the lessons of the accession experience of those countries, and that conditionality is of critical importance to protect the credibility of the enlargement process and to encourage future EU expansion.
The EU’s approach to negotiations with Croatia was guided by the European Council’s 2006 renewed consensus on enlargement. That was agreed in response to the lessons learned from previous negotiations with Bulgaria and Romania. In particular, it led to the creation of an entirely new chapter, chapter 23, to cover judiciary and fundamental rights. That arrangement, I stress, did not exist in previous accession negotiations. Croatia has therefore been through a much more rigorous accession process, especially over the matters that we are debating this evening, than did either Romania or Bulgaria.
Chapter 23 focused on ensuring that Croatia has a strong and independent court system, is tackling corruption and organised crime, is protecting fundamental rights and is dealing with the legacy of the Balkans’ wars in areas such as war crimes trials and refugee return. Chapter 23 was opened in June 2010, after the United Kingdom, working closely with partners, secured comprehensive and robust closing benchmarks. These included a requirement that Croatia co-operate fully with the international criminal tribunal for the former Yugoslavia.
The Commission published in March 2011 an interim report that concluded that Croatia had made considerable progress against closing benchmarks for chapter 23 but still had further work to do, and as a consequence of that Commission report, Croatia accelerated its efforts. We agreed with the Commission’s subsequent assessment, set out in the draft common position of June 2011, that over the six years of its accession process Croatia had undertaken significant reform efforts in the area of the judiciary and fundamental rights, that it had worked to improve the independence, impartiality, efficiency and professionalism of the judiciary, and it had improved its handling of domestic war crimes trials, strengthened the fight against corruption and increased Croatia’s protection of fundamental rights.
But I emphasise that that support for the common position does not mean that we accepted at that point that Croatia had done all that needed to be done, nor indeed had the European Commission made that conclusion. The key judgment is whether Croatia will be able to assume in full the obligations of EU membership from the date of its accession, which is proposed for 1 July 2013. The Commission recommended closing chapter 23 on the basis of its assessment that Croatia’s track record in these areas indicated that the reforms were sustainable and would not slip backwards after the conclusion of negotiations.
Crucially, the Commission also underlined the importance of Croatia continuing to develop a track record of implementation across the board. This last stipulation is very important, and one for which we worked hard during the negotiations. We secured a number of improvements in the EU common position, building on strong language included in the 24 June European Council conclusions. The key passage in those conclusions reads:
“Croatia should continue its reform efforts with the same vigour, in particular as regards the judiciary and fundamental rights, so as to be able to assume fully the obligations of membership from the date of accession. Monitoring up to accession of these reform efforts will give the necessary assurance to Croatia and to current Member States.”
We are determined that Croatia should fully meet EU requirements across the board, and particularly over chapter 23, by the time of accession, and we are determined to see that there is no backsliding. In fairness, Croatian Ministers repeatedly say, in bilateral meetings or at EU gatherings, that they are committed to ensuring that progress continues. During the final weeks of negotiation, we secured agreement to additional monitoring arrangements for Croatia, which will continue right up until its accession. We expect each of the Commission’s six-monthly reports on chapter 23, the first of which was issued on 28 October 2011, to show clear progress. I should say that the report issued on 28 October is still being analysed in detail by officials in my Department, but I undertake this evening to deposit copies of that report in the Library of the House and to write to the European Scrutiny Committee in order to draw its attention to the conclusions of that document.
A comprehensive monitoring report will be presented to the European Parliament and to the Council in the autumn of 2012, and these six-monthly reports, together with the comprehensive report next autumn, will allow both Governments and Parliaments right across the European Union to assess Croatian progress towards full alignment with the acquis and with European standards by the time of accession.
Croatia is fully aware that the monitoring measures now put in place enable the Council to take what are termed “all appropriate measures”, as agreed at the 24 June European Council, if issues of concern are identified during the monitoring process. A system of sticks and carrots is built into the pre-accession monitoring process to enable the Commission, on behalf of member states, to keep a very close eye on the detailed progress that Croatia is making and to flag up any concerns that might be discovered about backsliding.
Croatia is also aware that in order to accede to the EU on the target date of 1 July 2013, her accession treaty must have been ratified by each of the 27 member states, including by this Parliament. As the House knows, the Croatian accession treaty will require ratification under the terms of the European Union Act 2011, and that will require primary legislation going through both Houses of Parliament here. It seems to me that Croatia knows that it must address thoroughly all the concerns of the member states if it is to secure that full ratification.
On the basis of the clear progress already achieved by Croatia, together with this pre-accession mechanism for robust monitoring right up to accession, we agreed to close negotiations on chapter 23. Since the closure of those negotiations earlier this year, Croatia has continued to make progress in implementing the necessary reforms. This was noted in the Commission’s progress report, published on 12 October 2011. I want to highlight the progress that has been made in several areas, which the European Scrutiny Committee identified as important in its 38th report to the House.
The Commission’s report notes that Croatia has made substantial progress on judiciary and fundamental rights, and that reform of the judiciary has continued. Croatia has continued to demonstrate progress on updating its judicial reform strategy and action plan, and it has also continued to work on strengthening the protection of minorities, with good progress on refugee returns. In support of an autonomously functioning stable judiciary Croatia has, for example, made changes to its Conflict of Interest Act to depoliticise appointments to the supervisory boards of state-owned companies, as well as to membership of the conflict of interest commission itself, and that commission has already received 3,000 Croatian officials’ declarations of assets.
Mr Hollobone
My hon. Friend mentions that progress on refugee returns has been good, but as I understand it, Croatian co-operation has fallen some way short of being full, because whilst the overall case backlog on outstanding refugee return issues has fallen by 10,000, there were still 785,561 to go. Why is that good progress? It seems very small progress to me.
Mr Lidington
I will move on to that in a moment, because we certainly agree that Croatia has a lot more to do. I do not pretend that everything is fine and dandy, because more needs to be done, but I am saying to my hon. Friend and to the House that Croatia’s continued progress since the closure of negotiations early this year encourages us to be confident in the political resolution of Croatia’s Government and opposition parties to take forward compliance with European standards with the necessary determination and speed.
Keith Vaz
I am grateful to the Minister, who is being extremely generous in giving way to so many Members. One concern that we must address is the tendency for the focus from Brussels suddenly to disappear when a country joins the EU. A lot of time is spent negotiating the acquis, but once countries join no one seems to bother about them. Does he agree that it is important that the monitoring process continues even though those countries are full members of the EU and that there should be some kind of buddy principle that allows some countries to assist others in the process of fully integrating into the EU?
Mr Lidington
I recognise the right hon. Gentleman’s point, and describing it as a buddy system makes it sound quite cuddly and attractive, but I would not want to make routine the experience of the mechanism for co-operation and verification that was invented for the accession of Romania and Bulgaria. Whether one talks with political leaders in those countries or in some of the older member states, one finds a common recognition that that was a very unhappy way for those negotiations to turn out and that it left those two countries feeling that they are being treated as second-class members, even though their accession treaties have been negotiated, signed and ratified by everyone. It has left some of the older member states feeling that the decision to allow Romania and Bulgaria to accede was agreed without all the standards being adequately met.
The introduction of chapter 23, which was used for the first time with Croatia, has been a significant step forward in trying to address up front, before we get to the end of accession negotiations, let alone ratification of an accession treaty, the problems that have persisted with Romania and Bulgaria that we seek to address through the mechanism for co-operation and verification.
The right hon. Member for Leicester East (Keith Vaz) might already know that we are discussing some interesting proposals from Commissioner Füle, the Enlargement Commissioner, to develop a new approach towards enlargement that would seek deliberately to front-load some of the most difficult elements of an accession negotiation precisely so that an accession state not only can implement challenging reforms, but has time to develop a track record so that we can see the results of those reforms, rather than those being addressed at the last stage of negotiations when questions are inevitably asked about whether the reform will be sustained over a long period of time. It is important that we learn from experience. I do not want us to repeat in future cases the experience of Romania and Bulgaria.
The Commission’s report also noted substantial progress in the fight against corruption, including continued political commitment and a number of further investigations launched and indictments and court rulings issued, including at high levels. The most high-profile case, the trial of former Prime Minister Ivo Sanader for diversion of funds, opened in November this year. However, I want to emphasise that the Government completely accept that Croatia still has more to do. A number of judicial reforms are still at a very early stage. The long-standing issue of case backlogs in old civil cases and enforcement decisions remains a problem, although numbers have decreased. We will be looking for rapid progress once the new enforcement law and public enforcement agency become operational in January 2012.
Although the handling of domestic war crimes cases has improved, the issue of impunity needs to be thoroughly addressed. We welcome the adoption of a new strategy on impunity that recognises the existence of uninvestigated and unprosecuted crimes and the creation of new dedicated specialist chambers for war crimes trials. In June, criminal charges were raised in 84 such cases. Continued full co-operation with the International Criminal Tribunal for the Former Yugoslavia is also particularly important. We constantly stress that to Croatia and fellow EU member states and remain in contact with Chief Prosecutor Brammertz, whom I met a couple of weeks ago in the Hague, in order to ensure that we are fully up to date with his thinking about the co-operation of the Croatian authorities with ICTY.
We welcome the Croatian Parliament’s adoption on 21 October of a declaration on the promotion of European values in south-east Europe, which states a firm commitment from Croatia that bilateral issues such as border disputes must not obstruct the accession of candidate countries to the EU from the beginning of their accession process.
Britain has been helping Croatia to tackle many of the concerns relating to outstanding reform. If the House wishes, and I catch your eye, Madam Deputy Speaker, I will be happy during the concluding remarks to address that in more detail or to write to interested Members. Bilateral assistance currently runs at nearly £500,000 a year, carefully targeted in particular on some of the judicial and rule-of-law reforms where outstanding work is still needed.
In conclusion, Croatia has made great progress over the course of its accession negotiations in meeting the rigorous closing benchmarks set for each negotiating chapter. The United Kingdom was also successful in securing robust pre-accession monitoring that will enable this House to maintain a close watch on the further progress that we still need to see. It was on this basis that the Government were able to agree to close negotiations with Croatia and agree a target date of 1 July 2013 for EU accession. Croatia still has more to do over and above that required by closing benchmarks, but the Commission has reported continued progress since the closure of negotiations and we expect Croatia to continue to make swift progress towards finalising its full alignment with EU requirements before 1 July 2013. We have heard from the Commission within the past few days that it will propose that the draft decision on Croatian accession will be agreed at the General Affairs Council on 5 December to enable the treaty of accession to be signed by Heads of State and Government at the European Council on 9 December. I shall be writing imminently to the European Scrutiny Committees of this House and the House of Lords to set out the Government’s approach to that draft decision.
Croatia is a friend of the United Kingdom, but we shall be a candid, honest friend, who will monitor closely Croatia’s evolving track record and speak openly to our Croatian friends about the work that still needs doing.
We expect the Croatian Government to act rapidly to implement the remaining necessary reforms, and her continued commitment to reform provides an excellent example to the other countries of the western Balkans in pursuing their European future.
Croatian accession will represent the achievement of an historic goal not only for Croatia, but for the European Union. The enlargement process has encouraged and supported reform and transformation in Croatia, a country now only a few small steps from being a fully prepared member of the EU.
We now look to Croatia to take those last remaining steps, by which it will have fully met the strict requirements for entry to the European Union, and I commend the motion to the House.
The Minister for Europe (Mr David Lidington)
I shall not have time to respond to all the points that have been raised, but I undertake to write to Members who have asked detailed questions, and to place copies of the letters in the Library of the House.
Many of the concerns that have been expressed about Croatian accession derive, understandably, from the experience of Romania and Bulgaria, but I think that there are important differences between the two instances. The earlier problems arose because difficult issues involving justice were not tackled in a systematic manner, upfront, at an early enough stage in the accession negotiations. The process that we are debating this evening was deliberately designed to enable us to learn from the failures of that experience. The decision that must be made by the European council in December—this deals with the point made by the hon. Member for Linlithgow and East Falkirk (Michael Connarty)—is not whether to admit Croatia to the European Union immediately, but whether by July 2013, on the basis of the evidence that we have so far and the intent declared by the Croatian leadership so far, Croatia will be in a position to move smoothly towards accepting all the responsibilities of EU membership.
Mr Lidington
Between the signing of the accession treaty and Croatia’s joining the European Union, we shall have the process of pre-accession monitoring that I have described, as well as the three safeguard clauses that are written into the treaty and are powerful mechanisms for ensuring that Croatia continues to make the progress that it has promised. Finally, all 27 members of the EU—including this Parliament—must vote to ratify Croatian accession, which in this instance means primary legislation. To inform its judgment on whether Croatia has met the standards required, the House should have access to the sequence of monitoring reports from the European commission and the reports from the chief prosecutor of the International Criminal Tribunal for the Former Yugoslavia. Therefore, when this House takes the decision on whether to ratify Croatian accession, it will have available to it the evidence about the progress that Croatia has still to make.
I believe that Croatian accession will provide enhanced economic opportunities for British business, as well as for the people and businesses of Croatia, and the political gain of seeing an important country in the western Balkans brought firmly within a European political system based on the rule of law and democratic rights. We have seen too much bloodshed and warfare in the Balkans to be content to shut them outside the door and see the problems of organised crime, people trafficking and illegal immigration persist indefinitely. The accession process is our best chance of getting those problems sorted to the benefit of us all. I believe that the way forward is that accepted by the Government in June this year, and I hope to have the support of the House.
Question put and agreed to.
Resolved,
That this House takes note of Unnumbered Explanatory Memorandum of 7 July 2011, the European Union Common Position on Judiciary and Fundamental Rights (Negotiation Chapter 23), relating to EU enlargement: Croatia; and supports the Government’s decision to agree the Draft Common Position at COREPER on 29 June and to adopt formally that agreed position at European Council on 12 July.