EUC Report: Court of Justice of the European Union

Baroness Warsi Excerpts

Wednesday 9th October 2013 Lords Chamber

[The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi) (Con)]

My Lords, I am grateful to the noble Baroness, Lady Corston, for opening this debate, and also to all members of the sub-committee on justice, institutions and consumer protection—both for their report and for their continued interest in this matter. I am also grateful to members of the European Union Committee. I am grateful to the noble Baroness for her detailed opening remarks, some of which I may repeat for the record.

A well functioning European Court is in the interests of all EU member states. I accept the view of the noble Lord, Lord Liddle, that it is in our national interest too. The Government have consistently supported efforts to reform the court to uphold the integrity of EU law and to increase the capacity and efficiency of the court. We all benefit from effective EU law—including British businesses operating within the single market. I accept the views of the noble Lord, Lord Liddle, on that. In evaluating any proposed reforms, the UK has been keen to ensure a number of things. First, reform should promote the effective passage of justice. Secondly, it should be based on clear evidence of need. Thirdly, it should not place additional burdens on the EU’s budget. Fourthly, it should avoid full-scale treaty change; and fifthly, it should be acceptable to Parliament.

Since the European sub-committee’s initial report in 2011, several useful reforms have been implemented. These include increasing the number of judges in the Grand Chamber from 13 to 15; streamlining procedures by, for example, abolishing the requirement to read the report for the hearing in full; allowing for the appointment of temporary judges to the Civil Service Tribunal and establishing a new office of vice-president in the Court of Justice and the General Court. In the debate of 23 July 2012, when this House agreed to support these changes, my noble friend Lord Howell noted that they were fairly modest. The Government agree that their impact on the processing speed of the court is also likely to be modest. However, we believe that even a modest impact is to be welcomed. Given that these measures came into effect only towards the end of last year, it is too early to assess their substantive impact. We will monitor their effect over the coming months.

Moving to more substantive reforms, your Lordships will remember that earlier this year, the Government received the approval of both Houses to agree to increase the number of advocates-general at the Court of Justice to nine from 1 July 2013, and to 11 from 7 October 2015. The Government share the belief of the sub-committee that this reform will help the court to handle cases more quickly and improve the quality of decision-making. At the Council of Ministers meeting in June, the Government agreed to this reform. We expect the first of these additional appointments—a permanent Polish advocate-general—to be made soon. This appointment will bring Poland into line with the other “Big Six” member states, including the UK, all of which have permanent advocates-general. The two other additional advocates-general will increase the existing rotation system from three to five. Under the current arrangements, we expect that the first two, due to be appointed in October 2015, will be Czech and Danish.

In its request, the court sought to have the first additional advocate-general in post from 1 July 2013. Since this request was made only on 16 January 2013, and as the Council agreed to it only in June, this was always an ambitious timetable. The Poles estimate that their nomination process will take four months. We therefore expect that we will shortly be presented with the Polish nomination. The court and other member states are keen for the Polish advocate-general to be in post as soon as possible. The UK therefore stands ready to approve any suitable candidate.

Most of these reforms have concentrated on the Court of Justice, so there is now a need to focus on reform to the General Court. The Government share the European Union Committee’s eagerness for a resolution to the question of additional judges for the General Court. These negotiations have continued since March 2011, and still seem some way from a successful conclusion. While there is a case to be made for additional judicial appointments, the questions of how many more judges there should be, and how they should be appointed, remain open; as does the question of cost-effectiveness. In particular, the debate on selection method has reached an impasse. The political reality is that there is currently no agreement on any particular system.

The Government have a set of key priorities. Among other things, we want to ensure that the legal expertise and judicial memory of the court remain strong, that there is an appropriate balance in terms of the representation of common and civil law and that reforms are cost effective. Within this framework, the Government are maintaining a flexible stance in negotiations to help to facilitate an agreement. We are working hard to find a solution, and I assure my noble friend Lord Dykes that we are committed to finding a solution on which necessary agreement can be reached.

In response to the noble Baroness, Lady Corston, the Government believe that increasing the number of judges in the General Court could form part of the solution to the problem of the court’s backlog of cases but, alongside this, we think that the court must also review its working practices and processes to ensure that they are as efficient as possible. In this context, we are expecting the court to publish a recast of its rules of procedure later this year and to submit it to the Council for approval.

A merit-based system would better meet our priorities than the rotation-based systems previously discussed, and I should like to think that UK judges would have a good chance of nomination under those circumstances. The problem, however, is that there simply is not the consensus in the Council that would be needed to move towards a merit-based system. Many details still need to be worked out, and many states have strong objections in principle. That said, we are encouraged by President Skouris’ comments on the benefits and feasibility of a merit-based system, and we look forward to negotiations continuing.

I hear what my noble friend Lord Bowness said on budgets. In the current economic climate, there is an imperative on all the EU’s institutions to reduce their administrative costs. The Government have been clear throughout that any additional advocates-general or additional General Court judges should not result in an increase to the EU’s budgetary demands. We believe that the relatively small additional financial pressures of appointing the advocates-general can be met from within the court’s existing budget, which was more than €354 million for 2013, and which the court has underspent in previous years. When we agreed to these appointments at the Council of Ministers meeting of 25 June, we submitted a statement noting this expectation. Likewise, we will continue to emphasise that any additional reform costs must not create pressure for an increase in the EU’s administrative budget. During discussions on the annual budgetary framework next year, we, alongside like-minded member states, will press very firmly for costs to be met from within the court’s existing budget.

I note what my noble friend Lord Dykes said, but in the current economic climate there is an imperative to find ways to reduce administrative costs. In the same way that we have asked our domestic institutions to do more, we look to the EU to do likewise. I also assure him that we are heavily engaged on a wide range of European issues. My honourable friend the Minister for Europe regularly updates Members of your Lordships’ House on the broader issues raised by my noble friend Lord Bowness.

The Government are committed to promoting the effective passage of justice by the Court of Justice of the European Union. We believe that the appointment of additional advocates-general, alongside the reforms that the court has already made, will contribute to this goal. The Government will continue to work closely with the court, the Commission and other EU member states to identify and take forward both long and short-term solutions to the General Court’s backlog, and we will continue to explore the full range of options for structural reform in order to find a solution that meets the objectives I have outlined today.

[Lord Bowness]

When does my noble friend anticipate that this matter will next be before the Council?

[Baroness Warsi]

I do not have that information to hand, but I will write to my noble friend with full details.