Baroness Warsi
That this House takes note of recent developments in the European Union.
The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi)
My Lords, I am looking forward to a very long afternoon and evening. We are here to discuss recent developments in the EU, a topic which is never far from the headlines and is of significant interest to Members of this House.
My right honourable friend the Prime Minister and my noble friend Lord Strathclyde have just provided a full and informative report, to this House and the other place, of some of the most recent developments in last week’s European Council. I am also pleased to bring two Bills before the House this afternoon. The provisions in both Bills are technical in nature but will, in their own way, play an important role in the future shape of the EU.
The first is the European Union (Croatian Accession and Irish Protocol) Bill which provides for the necessary parliamentary approval to allow the UK to ratify Croatia’s accession to the EU and the transitional immigration controls to be applied post accession. The Bill also provides for approval of a protocol on the concerns of the Irish people which is to be added to the EU treaties. I introduce the second on behalf of my noble friend Lord McNally: the European Union (Approvals) Bill simply provides for parliamentary approval of three draft EU decisions. I will return to the two Bills in some detail later. Members of this House will no doubt wish to discuss areas of their own particular interest during the debate. If noble Lords will permit me, I will use the two EU Bills, which represent just a few of the recent developments in the EU, as a starting point for the debate.
Membership of the EU has brought, and continues to bring, real benefits to the UK. Enlargement and the establishment of the single market are two of the EU’s greatest achievements. The single market is the largest market in the world with more than 500 million consumers and 21 million companies. It has opened up prosperity and opportunity to hundreds of millions of people. The challenge we face now is to maintain those benefits in the face of global financial challenges.
The European Union, alongside NATO, is an instrument of peace and reconciliation that has helped to spread and entrench democracy and the rule of law across Europe, and has helped to make armed conflict between its members unthinkable. This has recently been recognised with the award of the Nobel Peace Prize. That is why we support further conditions-based enlargement. Croatia’s accession will further demonstrate the transformative power of enlargement, marking a historical moment, with the joining of the first of the western Balkan countries involved in the wars of the 1990s.
We recognise that the EU needs to do better in much of what it does and that people across Europe want more of a say in how the EU does its business. The House of Lords EU Select Committee has done a great deal in examining the work of the EU. I am grateful to the committee for its ongoing scrutiny of EU decision-making. Most notably in the context of the accession Bill, I welcome its current inquiry on EU enlargement.
When they came into office, this Government committed to give Parliament a greater say in the EU decision-making process. In order to do that, we introduced the European Union Act 2011, which puts Parliament at the heart of the process. That is why we have these two Bills before the House today, both of which have been introduced under the provisions of the European Union Act 2011.
The European Union (Croatian Accession and Irish Protocol) Bill provides for parliamentary approval of the Croatian accession treaty and of the Irish protocol, which is to be added to the EU treaties. The Bill also provides an enabling power to allow transitional immigration controls to be applied on Croatian workers exercising their right to free movement.
Croatia is expected to join the EU on 1 July 2013. Meanwhile, we expect Croatia to sustain the momentum of six years of significant reform, particularly on judiciary and fundamental rights issues, so that it meets fully all EU requirements by the time of accession. Croatia’s accession will represent the achievement of a historic goal, not only for Croatia but for the EU. Croatia’s accession will set the bar for other countries of the region in pursuing their own European future and demonstrate clearly what can be achieved in the region.
The enlargement process continues to evolve with each accession and Croatia has faced the toughest negotiations yet. It was the first to negotiate under the new Chapter 23 that deals with the judiciary and fundamental rights, rightly putting the emphasis of the accession negotiations on the rule of law. It is the first to make full use of opening and closing benchmarks within the negotiations of each chapter to ensure results before chapters were closed. It is the first to experience pre-accession monitoring, a process designed to ensure that it is ready in full before it accedes. Croatia will join the EU better prepared than any previous candidate has been.
Croatia has already largely met the strict pre-accession criteria. It has made significant progress in tackling corruption and organised crime and in protecting fundamental rights, as recognised in the two most recent Commission monitoring reports. It has also made considerable progress in dealing with the legacy of the Balkans wars in areas such as war-crimes trials and refugee returns, and it continues to tackle these challenges.
Croatia’s full co-operation with the International Criminal Tribunal for the former Yugoslavia was a requirement for closure of Chapter 23. This will continue to be assessed as part of the Commission’s monitoring up until the date of accession. However, let me be clear: while the Commission’s monitoring helpfully identifies these outstanding issues, it also states clearly that it expects Croatia to be ready on time. This is an assessment that we share.
With its modest population of some 4.4 million people, the potential impact of Croatian migration is relatively small, but the UK remains vigilant to that impact. Furthermore, we have not identified any victims of trafficking from Croatia in the UK. In the US State Department Trafficking in Persons Report 2011, which ranks countries in terms of their capacity to tackle trafficking and protect victims, Croatia was designated as a tier 1 country alongside the UK. As a safeguard, the Government will be putting measures in place to minimise any possible impact of opening the British labour market to workers from Croatia. I can assure noble Lords that the Government are committed to applying appropriate controls on the free movement of Croatian workers in order to safeguard the UK labour market.
The accession treaty sets out the framework within which member states may apply transitional immigration controls to Croatian nationals who wish to work in their country. This Bill transposes the legal framework for transitional immigration controls in the accession treaty into UK law. The Home Office will bring secondary legislation before this House in order to apply those controls under UK law. The intention is to retain the current immigration controls applied to Croatian nationals for a transitional period following accession. The Home Office has published details of the proposed transitional controls in a statement of intent. All the necessary legislation will be in place when Croatia joins the EU.
Lord Davies of Stamford
My Lords, can the noble Baroness tell the House what the transitional period is proposed to be?
Baroness Warsi
My Lords, it is anticipated that the transitional period could be up to seven years, but I am sure that the details of that will come out during further debate this afternoon.
The Bill also deals with the Irish protocol. This is, in effect, a clarification of Ireland’s understanding of certain aspects of the EU treaties in relation to its constitution. It does not change the content or application of the treaties. The Irish protocol is important to the Irish as it will enshrine in EU law the legal guarantees given to Ireland by EU member state Heads of State or Government. It was agreed as a condition of Ireland’s ratification of the Lisbon treaty.
The protocol confirms that neither the European Charter of Fundamental Rights nor the freedom, security and justice provisions of the Lisbon treaty affects the application of the Irish constitution on the right to life, the protection of the family and the protection of rights in respect of education. The protocol also confirms that the Lisbon treaty does not make any change, for any member state, to the extent or operation of the competence of the EU in relation to taxation. Furthermore, it confirms that none of the provisions of the Lisbon treaty affects or prejudices Ireland’s traditional policy of military neutrality. It also sets out clarifications in relation to a number of specific defence-related matters.
The protocol must now be ratified by all 27 member states before it can enter into force. Here in the UK, approval of the protocol requires primary legislation; thus, provisions to do just that have been included in this Bill.
The second Bill is the European Union (Approvals) Bill, which provides for parliamentary approval of three draft EU decisions: first, the proposal to give legal effect to the electronic version of the Official Journal of the European Union; secondly, the five-year work programme—the multiannual framework—of the EU fundamental rights agency; and, thirdly, the draft European Council decision to maintain the number of EU Commissioners at the equivalent of one per member state. Parliament must grant its approval before the UK may agree to the decisions in Brussels.
Looking at these matters in turn, I will give a brief outline of the proposal on the electronic version of the Official Journal of the European Union. This is the gazette of record for the EU, which is published every working day. It records the decisions made by and the legislative acts of the EU institutions. The electronic official journal has existed in parallel with the print version for some years. However, a European Court of Justice judgment found that only the printed version of the official journal is authentic. EU legislation is therefore necessary to give the electronic version legal effect.
I turn now to the work programme of the fundamental rights agency. The agency was established in 2007, and its role is to support the European institutions and member states, when they are acting within the scope of EU law, to take measures and actions which respect fundamental rights. It also has a role in communicating about, and raising awareness of, fundamental rights. The agency’s work is regulated by a five-year work programme which sets out the thematic areas of the agency’s activity. These must include the fight against racism, xenophobia and related intolerance and be in line with the European Union’s current priorities. The agency’s first, and current, work programme covers the period from 2007 to 2012 and will expire at the end of this year. In December 2011, the Commission brought forward a proposal for a new work programme to cover the period from 2013 to 2017. The themes set out in the work programme very much continue the themes of the current one. Although there are some adjustments in the terminology between the two work plans, the changes will not alter the work that the agency has been doing. Nor will they change the role or functions of the agency.
Finally, I turn to the draft European Council decision to maintain the number of EU commissioners at the equivalent of one per member state. The EU Commission currently comprises 27 commissioners, one from each member state. The Lisbon treaty provides for a reduction by one-third in the size of the Commission from 1 November 2014. However, the treaty also allows the European Council to alter the number of commissioners, subject to unanimous agreement. The proposed reduction in the size of the Commission, and the subsequent loss of a guaranteed commissioner, emerged as a concern of the Irish during the ratification of the Lisbon treaty. In order to secure Ireland’s ratification of the treaty, it was agreed that a decision would be taken to maintain the number of EU commissioners at the equivalent of one per member state. From our perspective, this decision will ensure the retention of a UK commissioner, and will mean that a UK voice continues to be heard within the Commission.
In conclusion, the Government remain committed to being a key player in the EU. Our relationship with the EU is not, however, an unquestioning one. We need to protect UK interests while supporting our neighbours and allies across the continent to achieve their own aims. The Government have set out the steps that they are taking to assess the UK’s relationship with the EU. We have also put in place legislation to ensure that Parliament has its say in decisions that will shape the EU. That is why I have brought the two Bills before this House today. The content of the Bills will have a limited impact on the UK in comparison to the greater benefits they will bring to other member states, both existing and future, and to the EU as a whole. They are, however, in the interests of the UK, which is why the Government give them their whole-hearted support. I beg to move.
Lord Davies of Stamford
I am afraid I must insist. I am very sorry. I would love to give way to the noble Lord. I believe in debate in that sense, but we cannot do it consistent with having a time limit imposed on us.
Lord Wallace of Saltaire
My Lords, if I may read from the Companion:
“A member of the House who is speaking may be interrupted with a brief question for clarification … Lengthy or frequent interventions should not be made, even with the consent of the member speaking”.
That suggests that we should allow the noble Lord to finish his speech.
Lord Davies of Stamford
I am grateful. The noble Lord, Lord Pearson, made another classic error in his speech; it was about our bargaining power. He said that a certain amount of our trade—50%, or whatever it is—is with the rest of the EU but that nevertheless we buy more from them than they buy from us, and that therefore we have greater bargaining power. I am afraid that that is a logical fallacy. Bargaining power depends not upon the size of the stake but upon the importance to each party respectively of doing the deal. I hope that the noble Lord recognises this because he would be in terrible trouble in any negotiation he is involved in if he does not.
In other words, what is important is how important the particular deal under negotiation is in relation to the total of a party’s interest. As the noble Lord recognises, we have 50% of our trade with the rest of the EU. That is pretty much a life-or-death stake to have but from the point of view of the rest of the EU, which has 17% of its trade with the United Kingdom, it is much less of a life-or-death stake—so we have much less bargaining power, as they have much less need to do a deal than we have. On that basis, one can be a great deal less sanguine about any such negotiation that might take place than Eurosceptics are inclined to reassure the British public that we might be.
Lord Pearson of Rannoch
Would the noble Lord please not go on asking questions to which he does not want answers because they are too uncomfortable for him? We are happy to be in the United Nations because we could withdraw—
Lord Wallace of Saltaire
This is a Second Reading debate. Given the lateness of the hour, we should really have one speech after the other rather than general exchanges. Perhaps the noble Lord who is speaking could bear that in mind.
Lord Anderson of Swansea
With respect, that is not what the Answer says. Certain countries reached a certain deal with the European Union. By contrast, Norway has a very different arrangement and if the noble Lord were to look at the recent report by the professor who gave an audit of the Norwegian relationship with the European Union, he would see that the conclusion is very firmly that it is integration into the European Union without any form of representation.
Lord Wallace of Saltaire
My Lords, this speech is just approaching 15 minutes, which is considerably longer even than the opening speech. It is rather late and I would ask the noble Lord to be brief.
Lord Stoddart of Swindon
I will just answer the question that was put. Of course I accept what the noble Lord says about Norway. However, that was something for Norway. I am saying that, if you do not want to and do not make an agreement, you do not have to accept every regulation and dictate of the European Union to trade with it. I will finish on that point because I got my 15 minutes.
Baroness Warsi
My Lords, I am grateful to all those who have spoken in this debate and have applied their learning and expertise to the issues that have been discussed. I thank the noble Lord, Lord Liddle, for his indication that the Front Bench opposite do not intend to table amendments in Committee or on Report.
We have heard today a wide range of views on the European Union and the UK’s place in it. Perhaps I may briefly remind the House of the matters that we are here to debate. Two Bills have been put before the House for its consideration. First, the European Union (Croatian Accession and Irish Protocol) Bill will pave the way for the UK to approve Croatia’s accession and to apply transitional migration controls to protect the UK labour market once Croatia joins the EU. The Bill also provides for parliamentary approval of a protocol on the concerns of the Irish people in relation to the Lisbon treaty. The second Bill, the European Union (Approvals) Bill, gives parliamentary approval for the Government to agree to three draft decisions which I outlined in my opening statements.
Noble Lords have also had the opportunity to debate the wider EU context in which these Bills are presented to the House. In my opening speech, I briefly set out the Government’s views on Europe. We are keen to make the best of those benefits that membership of the EU brings, but we also take a pragmatic approach to our relationship with the EU, focusing on what works best for the UK. It is clear from the contributions made to the debate today that there are many different views of what would work best for the UK.
The UK’s isolation and/or its inability to renegotiate were raised by the noble Lords, Lord Maclennan, Lord Judd, Lord Kerr, Lord Anderson, Lord Hannay and Lord Owen. We remain an active participant in many EU negotiations. We are central to the debate on competitiveness, the single market and trade. We lead on taking tough action on foreign policy issues such as Syria and have formed lasting alliances on the EU budget. Of course we are not central to the debate on the eurozone, but we will play a role to ensure that the interests of the UK rather than just those of euro countries are represented.
My noble friend Lord Renton made a very positive Conservative contribution, for which I thank him, as did my noble friend Lord Jopling. Fifty-five years ago may have been the first time that the Conservatives talked about Europe at party conference, but I think that he will agree that we have certainly made up for it since.
The noble Lord, Lord Monks, asked what we were opting out of. It is a question that requires detailed consideration and it is why we are having the balance of competences review. That review is high-level and will look at the impact of nearly 40 years of EU membership on people in the UK. It will finish in 2014 and is currently on schedule. The calls for evidence for Semester 1 reports have been published and will be open for 12 weeks. The review will look at the scope of the EU’s competences as they affect the UK, how they are used and what that means for Britain and our national interest. I hear the concerns expressed by the noble Earl, Lord Sandwich, but the aim is to deepen public understanding of the nature of our EU membership and provide a constructive contribution to the wider European debate about modernising, reforming and improving the EU, a point made by my noble friend Lord Maclennan. It is not a consultation about in or out. There is no question of the UK disengaging or withdrawing from the EU as a result of this exercise, nor will it cover alternative models, like the Swiss model.
I welcome the strong support for Croatian accession from the noble Lord, Lord Grenfell, my noble friend Lord Risby and many other noble Lords. I agree about the importance of some of the issues that they raised. On war crimes, for example, the Commission’s report notes that during the monitoring period 87 war crimes cases were transferred to the specialist tribunals, and the strategy for addressing impunity has started. A new list of national and regional priorities in prosecuting war crimes was adopted by the Croatian Government in September. However I agree with the noble Lord, Lord Grenfell, and the Commission that an intensified effort is needed.
I thank the noble Lord, Lord Williamson of Horton, for reminding us of the long list of practical, everyday good that the EU brings to the UK and that it is about more than businesses, bankers and summit meetings. The noble Lord, Lord Empey, raised the important issue of transitional arrangements and immigration. This Government are clear and confident in addressing, planning, preparing and responding to the challenges that uncontrolled immigration can present. I am grateful to the noble Lord, Lord Grenfell, for injecting a reality check into the potential immigration impact of Croatia’s accession. The noble Lord, Lord Davies, asked how long the transitional immigration controls would be applied for. The maximum is seven years. After the first two years, member states can extend transitional arrangements for a further five. After that, member states can extend for a further two years if there is a threat to the labour market. After seven years, there are no longer any legal powers to maintain transitional arrangements. We intend to apply for the first five years, then review for a further two if appropriate.
My noble friend Lord Roper raised important points about the future format of the EU, as did my noble friend Lord Tugendhat, whose helpful contribution I appreciate. We support a multifaceted EU where member states with a range of different interests and needs can work together in informal groupings, such as the Like Minded Group or a more formal group—for example, the Schengen countries. My noble friend Lady Falkner outlined this approach and, quite rightly, warned of unworkable options. Multiple forms of EU membership already exist and different parts of Europe co-operate in different ways. It is in both EU and UK interests that the EU has the flexibility of a network, not the rigidity of a bloc. The EU is not, and should not, become a matter of everything or nothing. My noble friend Lord Howell of Guildford made that point eloquently when he spoke about Europe’s single core increasingly not working and how a detailed differentiation can work and will ultimately give it more legitimacy. I thank him for his contribution.
The noble Lord, Lord Liddle, spoke passionately about a number of issues. He asked about the Government’s plan on the JHA opt-out, as did my noble friend Lord Taverne. The Government have committed to a vote in both Houses before we make a decision on the opt-out. We are currently consulting the relevant committees about arranging these votes. Today’s debate will inform that debate. The principle of an opt-out was negotiated by the previous Government. We must decide by 31 May 2014 whether to accept the European Court of Justice jurisdiction over those EU measures in this area adopted before 1 December 2009. As I said earlier, there will be a vote in both Houses before a formal decision is made. I sense from his passionate contribution that the noble Lord, Lord Liddle, was making a case for joining the euro, more European bureaucracy and not acting in the best interests of the UK. I disagree with all three of those points.
The noble Lord, Lord Giddens, made a strong case in relation to the UK economy and that of the eurozone countries. Unfortunately, I cannot trade statistics with the noble Lord, but the Government do not underestimate the economic challenges that we currently face. We inherited an economic situation that no one would envy, but we are on the right path with low and falling unemployment levels and low interest rates. However, it is in our interests that the eurozone resolves its difficulties, and this will be a factor in our future growth. That is probably the kind of answer that the noble Lord did not want, but if I find the necessary statistics to trade with him then I will write to him.
The noble Lord, Lord Jopling, warned about the fast-tracking of the accession of Serbia, Kosovo and Bosnia. I agree with the emphasis on the rigorous implementation of conditionality and on the importance of the process of EU accession negotiations as a key factor in promoting stability and putting the bloodshed of the 1990s behind us. The UK will remain a strong supporter of enlargement but also of a strict conditions-based approach. The Foreign Secretary’s visit to Bosnia, Serbia and Kosovo in October gave a strong push to the political progress that is needed in all of those countries both on domestic reform and, crucially, on the key outstanding disputes between them. EU enlargement to those countries will not be quick but, as has been the case for Croatia, the rigour of the process should lead to fundamental changes.
I thank the noble Earl, Lord Sandwich, who was complimentary about the UK’s position in Croatian accession negotiations. The UK will remain one of enlargement’s strongest and most vocal supporters in both Brussels and the individual countries. The Government therefore disagree with the position taken by the noble Lord, Lord Stoddart, on Croatia.
The noble Lord, Lord McConnell, raised the need for a streamlined European Commission. The Government agree that we must continue to push for a more streamlined European Commission; we believe that efficiency savings can be made. However, in this case, it is important to meet commitments made to Ireland at the time of the Lisbon treaty and maintain one Commissioner per member state. This will also ensure that we maintain our seat at the table during negotiations about the next Commission.
The noble Lord, Lord Pearson, has always presented an alternative view—one that neither I nor most of the speakers in the debate could agree with. He wrote to me about a meeting but suggested that other people should attend it. I understand that my office has written back and offered an officials’ meeting with the people whom he suggested, but I am open to a one-to-one meeting with him. The noble Lord also spoke about the eurozone and whether putting an end to the euro would solve our current economic woes. We have been clear that uncertainty in the eurozone is damaging the global economy. The UK is not in the euro and this Government have no intention of joining. As such, we have been clear that it is up to the eurozone leaders to take the necessary steps. We will, however, fight to defend the single market and support eurozone members in their efforts.
The noble Lord, Lord Anderson, spoke about UK nationals being underrepresented in EU institutions. I understand the longstanding issue of the need for more UK nationals in key positions in these institutions. We are working to address this, looking both at preparing UK nationals for the application process and at raising awareness of the career opportunities of working for those institutions.
My noble friend Lord Dobbs made an important point about the growing democratic deficit. I agree with him to this extent: the EU must reform to be relevant to the lives of ordinary people in the European Union. I welcome the contribution of the noble Baroness, Lady Quin, especially in relation to accurate communication of the issues and debate. I know that she comes to this matter with great expertise.
The Government’s position is clear, and we will continue to adopt an active approach to working with other EU countries in the national interest. The time is right for us to look closely at the relationship that we have with the EU. Work is under way to do just that. In the mean time, the two Bills before this House will help to shape the future of the EU, each in its small way. Neither will have a significant impact on the UK but it is right that we debate them in this House, and they will deliver UK objectives and benefits to some of our allies in the EU. That is why the House should support the Bills. I beg to move.