PARLIAMENTARY DEBATE
Subsidiarity and Proportionality - 7 December 2015 (Commons/General Committees)
Debate Detail
Chair(s) Mrs Anne Main
MembersBlackwood, Nicola (Oxford West and Abingdon) (Con)
Blomfield, Paul (Sheffield Central) (Lab)
† Bruce, Fiona (Congleton) (Con)
† Cummins, Judith (Bradford South) (Lab)
† Hollingbery, George (Lord Commissioner of Her Majesty's Treasury)
† Kawczynski, Daniel (Shrewsbury and Atcham) (Con)
† Kinnock, Stephen (Aberavon) (Lab)
† Lidington, Mr David (Minister for Europe)
† McFadden, Mr Pat (Wolverhampton South East) (Lab)
† Morris, James (Halesowen and Rowley Regis) (Con)
Paisley, Ian (North Antrim) (DUP)
† Qureshi, Yasmin (Bolton South East) (Lab)
† Rees-Mogg, Mr Jacob (North East Somerset) (Con)
ClerksKaty Stout, Committee Clerk
† attended the Committee
European Committee BMonday 7 December 2015
[Mrs Anne Main in the Chair]
Subsidiarity and Proportionality
“It is national parliaments, which are, and will remain, the true source of real democratic legitimacy and accountability in the EU.”
It is notable that in the Prime Minister’s letter of 10 November to the President of the European Council, he also stated that he is seeking a new arrangement—a red card—
“where groups of national parliaments, acting together, can stop unwanted legislative proposals”
from the EU, and that he wants
“to see the EU’s commitments to subsidiarity fully implemented, with clear proposals to achieve that.”
The first report from the Commission sets out its assessment of how the EU institutions addressed compliance with the principles of subsidiarity and proportionality, including the operation of the formal reasoned opinion procedure whereby national Parliaments can raise objections to an EU proposal for legislation on the ground that it does not comply with the principle of subsidiarity and, if enough do so, they can force a reconsideration. The Commission concludes that the smaller number of reasoned opinions raised by national Parliaments
“must however be seen in the light of the decrease in the number of legislative proposals issued by the Commission towards the end of its term of office and not as an indication of diminishing interest of national Parliaments in subsidiarity matters. This conclusion is confirmed by the ongoing debate among national Parliaments concerning the subsidiarity control mechanism.”
It is noticeable that during 2014, 15 national Parliaments or Chambers issued 21 reasoned opinions covering 15 proposals. The highest number for any one proposal was three—well short of the lowest threshold for forcing a reconsideration of the proposal. This House issued three, proposing new measures concerning the presumption of innocence, animal cloning and undeclared work.
The second report sets out the Commission’s assessment of its relations with national Parliaments, focusing on informal political dialogue, rather than the formal reasoned opinion procedure. This vehicle can be used when it is not possible, because of the tight deadline, to issue a formal reasoned opinion. The Commission’s report records a drop in those informal opinions. In the analysis of key topics of dialogue, it identifies the discontent expressed by 10 Parliaments or Chambers, including this House, on the Commission’s reaction to the formal reasoned opinions against the proposal for a European public prosecutor’s office, in respect of which a yellow card was issued in 2013.
The report concludes by marking the commitment of the new Commission under President Juncker to forge a new partnership with national Parliaments, as evidenced by its early action in increasing visits and specifically inviting comments on its 2015 work programme. The European Scrutiny Committee originally called for the debate not just because of its analysis in these reports of relations between national Parliaments and the EU; as already indicated, they cover a subject that goes to the heart of the role of national Parliaments in the EU.
The European Scrutiny Committee’s report drew the House’s attention to the call, so far unanswered, of many national Parliaments and Chambers for the President of the EU Commission to set up a working group to look at the role of national Parliaments. It also welcomed the Commission’s efforts to improve its dialogue with national Parliaments, including its responses to reasoned opinions and the opportunity to improve parliamentary scrutiny arising from the early consultation promised by the Commission’s Better Regulation package.
Finally, the Committee’s report drew attention to the development of the informal green card procedure, whereby national Parliaments can suggest matters for which either new EU legislation should be brought forward, or existing legislation should be amended or even repealed.
Those questions of subsidiarity and proportionality go to the heart of the debate that we, and national Governments and Parliaments across Europe, are now having on reform of the European Union. Those principles are about determining whether it is appropriate for legislation to be introduced at the EU level and, if so, how and in what detail. The concept of subsidiarity, in particular, is at the core of the idea that the EU must respect the layers of government that are closest and most accountable to European citizens.
There is a balance to be achieved between taking action at EU level when it is clearly in the collective interests of member states so to do and recognising when it is better for decisions to be made at national, regional or local government level. The Government’s view is that too often the right balance has not been struck. The gap between the EU and its citizens is growing. While that is felt acutely in the United Kingdom, the concerns are not limited to us, as can be seen in polling from such organisations as the Pew Research Center and Eurobarometer.
More than a decade ago, at Laeken, European leaders pledged to reform the European Union so as to avoid
“a creeping expansion of the competence of the Union”,
but that ambition remains unfulfilled. That is why resolving the long-standing questions of sovereignty is an important pillar of the Government’s wider programme of EU reform, which my right hon. Friend the Prime Minister set out in his letter to President Tusk earlier this month.
Recent messages from the Commission suggest that it is taking subsidiarity and proportionality seriously and that it is alive and receptive to the UK’s reform agenda. That is encouraging. In particular, the Commission work programme for 2016 refers to a “renewed commitment” to dialogue with national Parliaments on draft proposals, and it commits the Commission to ensuring that national Parliaments have a strong voice in European policy making.
For his part, President Juncker has been clear about his personal commitment to strengthening the role of national Parliaments, which he believes will help to address the democratic deficit felt by so many EU citizens. In his 2015 state of the Union address to the European Parliament, he made a specific reference to the UK’s ambition in that area, an ambition that he said he shares and that wants to work with the Prime Minister to achieve.
Members of the Committee will appreciate that the Better Regulation agenda is closely linked to the debate on subsidiarity. It is positive to note that the Commission has taken a leading role in minimising unnecessary burdens in EU legislation. Last month 19 member states, including the United Kingdom, collectively called on the Commission to go even further by setting burden-reduction targets, and we reiterated our belief in the principle that the EU should not take action at all where better outcomes could be achieved at the national or sub-national level.
We understand, too, from working-level discussions that the Commission is looking at creating new ways for national Parliaments to feed their views into the legislative programming process. That is important, because the EU needs to focus on areas where it can genuinely add value. I believe that we and other national Parliaments need to capitalise on that positive momentum and ensure that we secure and implement real reforms.
Of course, it is incumbent on all participants in EU regulation and legislation to ensure respect for subsidiarity and proportionality, and to make full use of existing checks and balances. Impact assessments, for example, are already meant to assess subsidiarity and proportionality impacts. In addition to the Commission, the Council and the European Parliament are under an obligation to assess the impact of their changes to proposals. Member states, too, have a role to play in ensuring that they hold the Commission to account when proposals and amendments breach those fundamental principles.
The focus of the reports we are debating today is the mechanisms available to national Parliaments to uphold subsidiarity through the yellow and orange cards, and to influence Commission proposals through political dialogue. In 2014 national Parliaments submitted 21 reasoned opinions on subsidiarity to the Commission, covering 15 different proposals. That was 76% less than the 88 issued the previous year, and a significant reduction from what was already a fairly low baseline. It is true that the reduction should be seen in the context of the appointment of a new Commission and the European parliamentary elections in 2014, which meant that fewer legislative proposals were produced. However, it might also reflect a growing disengagement on the part of national Parliaments.
The tight time limit of only eight weeks from the transmission of a proposal to the deadline for a reasoned opinion is challenging for national Parliaments, particularly when a proposal is complex, or at certain times of the year—most obviously during parliamentary recesses. It does not allow much time for national Parliaments to share information with one another, which was crucial in the triggering of the first yellow card in 2012. The scope and threshold of reasoned opinions required to trigger a yellow card are also factors. Normally, a yellow card is triggered when reasoned opinions represent at least a third of national Parliaments—19 votes—and that threshold has only been reached on two occasions, with the second, as my hon. Friend said, being in 2013, on the European public prosecutor’s office.
The way in which the Commission responded to that second yellow card, which was to proceed with the original proposal without replying to the concerns expressed by national Parliaments or adding any evidence, highlights the shortcomings of the current system. It is no wonder that national Parliaments might feel disengaged from the current system. That demonstrates the urgent need for us to go faster and further in implementing reforms to the roles of national Parliaments in the European Union, and why the Government are asking for a new arrangement whereby groups of national Parliaments working together can stop unwanted legislation. Furthermore, we want the promise on subsidiarity made by all Heads of Government at Laeken to be fully implemented, and clear proposals to be in place to do that.
It has also been encouraging to see progress made on the so-called green cards, which would enable groups of national Parliaments to establish a more positive dialogue with the Commission, through which new legislation could be proposed or existing laws amended or repealed. I note that national Parliaments gave green cards a ringing endorsement at the COSAC plenary meeting in Luxembourg last week. I am supportive of that work and will continue to follow discussions on the subject with great interest.
I hope that the Committee is reassured that the Government are serious about reforms in this area and are determined to secure them. The Prime Minister’s letter to President Tusk made that clear, and the subject of today’s debate is very much at the heart of our EU reform agenda.
“I want to enhance the role of national parliaments, by proposing a new arrangement where groups of national parliaments, acting together, can stop unwanted legislative proposals. The precise threshold of national parliaments required will be a matter for the negotiation.”
Will the Minister say a little more about what the Government are pressing for on that question of national Parliaments? The Government talk about the development of a red card—I apologise, Mrs Main, for the multi-coloured cards we always refer to in these discussions. What exactly would the powers of that card be and how many Parliaments would have to come together to wield it? I ask the same question with regard to the green card, which is designed to be a proactive rather than a reactive measure: how many Parliaments would have to come together to wield it? Furthermore, is the development of the green card as much a priority for our renegotiation as that of the red one?
Finally, to complete the colours, I will ask about the use of the yellow card, which the hon. Member for North East Somerset said had been wielded very little. When it was wielded over the European public prosecutor’s office, the proposal was not substantially amended or withdrawn. What proposals do the Government have to strengthen the use of yellow cards, given that this is an unwieldy process and that when Parliaments come together in this way they ought not to be ignored?
As the Prime Minister said in his letter, the level of a threshold to trigger a red card that would amount to a block on legislation would be a matter for the negotiation itself. I cannot pre-empt those detailed discussions, but we envisage that at a certain point what is currently a power for national Parliaments to require the Commission to review a particular initiative should become an outright bar to further progress.
As for the yellow card, to my mind a change that would be particularly welcome would be an extension of the timeframe allowed beyond the eight weeks permitted under current law. That would enable national Parliaments to consider proposals more closely and to co-ordinate with one another. I would also like to see such a change to the yellow card take into account the very creative proposal from the Dutch Parliament for what it termed a “late card”, so that in the event of a legislative measure changing significantly during its progress through the various institutions it would be possible for national Parliaments to come back and have another look at it, because at the moment that opportunity is forbidden to them regardless of how far-reaching any amendments might be.
Finally, the Government support the green card, but it is also an initiative that is actively being taken forward by national Parliaments at the moment. Yes, we support it, but if it can be achieved through Parliaments working together in COSAC, persuading the institutions to take that change on board, then we are happy simply to support the work that the Parliaments themselves have initiated.
The answer to that question would therefore depend very much on what the comparator was in terms of the blocking minority among member states. I certainly envisage that a red card would have to involve a higher threshold than a yellow card would, since it would be a more far-reaching measure.
Moving on to yellow cards, does my right hon. Friend think that part of the reason for the number of cards going down, apart from the lower number of proposals coming forward, is that once the decision was given about the EPP, Parliaments thought there was little point? The Commission did absolutely nothing regarding that important proposal. What is the purpose of this House or any other Chamber passing resolutions if they are just ignored?
It is also fair, however, to take account of the changeover of the Commission. The Juncker Commission’s track record of launching many fewer new initiatives than the Barroso Commission, even in its first term, inevitably reduces the number of targets for national Parliaments. That too is part of the explanation. Frankly, if the Commission is going to stick to that approach and take account, in advance, of what national Parliaments and national Governments would regard as the right priorities, that is a change we should all welcome.
Whether treaty change is needed is something that we are addressing in the course of the detailed negotiations. The technical talks that took place over the summer between UK officials and the secretariats and legal services of the institutions have, on that issue and on the others on which we seek reforms, fleshed out a menu of legal and procedural options for leaders to select from, depending on what deal leaders eventually succeed in negotiating. It would be wrong of me to go further than that, when those negotiations still lie ahead.
Finally—although I may have two questions on this point, depending on the Minister’s answer—I want to ask about the green card issue. Are the Government supportive of a situation in which the Commission loses its exclusive right to propose legislation?
As for my hon. Friend’s earlier point—alas, I have lost my thread, so perhaps he could just remind me.
That is perhaps analogous—not exactly the same as, but analogous—to the European Parliament’s powers to propose an own-initiative report, which can put forward ideas either for new legislation or the amendment or repeal of existing legislation but which cannot bind the Commission to act in a particular way. What one has found in practice, however, is that the Commission has taken very seriously those reports and frequently acted upon them. I hope that if we got a green card accepted, we would find that the Commission responded in the same way to well-evidenced, well-argued proposals from national Parliaments.
I now recall the point on which I was going to respond to my hon. Friend earlier. He expressed doubt as to whether, in the absence of treaty change, having a red card would mean anything. Of course the Commission, while it has the sole right of initiative, can always choose whether to initiate or to persist with a particular piece of legislation, so it faces a certain political choice when it is in receipt of objections from national Parliaments.
I believe that our proposals on national parliaments are not a panacea, which I have never claimed for them, but will help to reconnect electors with what the European Union is doing on their behalf. Obtaining some kind of mechanism for turning the Laeken commitment into institutional reality in the EU would be a further way in which to bridge the democratic deficit.
At the end of the day, bridging the democratic deficit will be about cultural change as much as about legislative and institutional change. It will be about the EU and its institutions demonstrating through their choice of actions that they are attuned to the policy priorities that matter to the people—the citizens whom they claim to represent.
Motion made, and Question proposed,
That the Committee takes note of European Union Documents No. 10651/15 and Addendum, a Commission Annual Report 2014: Subsidiarity and proportionality, and No. 10663/15 and Addendum, a Commission Annual Report 2014: relations with national parliaments; recognises the importance of the principle of subsidiarity and the value of stronger interaction between national parliaments and the EU institutions; welcomes the Government’s reform agenda and efforts to ensure that the Commission responds to future objections under the yellow card scheme by substantially amending or withdrawing the proposal that has been put forward; calls on the Commission to respond to the request of 29 national parliament chambers to establish a working group to consider reforms to strengthen their role; is encouraged by the Commission’s announcement of its intentions to forge a new partnership with national parliaments; and calls on the Commission to set out its plans to do this.(—Mr Lidington.)
“We will work to strengthen the influence of national parliaments over European legislation, by arguing for a ‘red-card mechanism’ for member states, providing greater parliamentary scrutiny.”
Today, in response to the Prime Minister’s letter, President Donald Tusk said:
“There is also a largely shared view on the importance of the role of national parliaments within the Union as well as strong emphasis on the principle of subsidiarity.”
There will be different views in the House as to whether that constant re-emphasis of the commitment to subsidiarity shows up in the actions of the Commission and the EU institutions, but the question is whether a new spirit has emerged.
The Commission certainly says that there is a new spirit. Some months ago we debated on the Floor of the House the Commission’s work programme, to which many Members referred. Earlier this year in London I attended a speech made by Frans Timmermans, the Vice-President of the Commission—the Minister mentioned him—and he posed the question, why does the ratchet always have to turn in one direction? Why can the Commission and the institutions not look at the existing corpus of legislation and ask whether it is still fit for purpose and necessary, or whether it has had unintended consequences after being in effect for some time? Those seem to be perfectly legitimate questions for the EU institutions, just as they would be for any national Parliament.
Looking around Europe, I wonder whether we are discussing the right exam question overall. At the moment, the EU is coping with huge crises of refugees and of security, but if we constantly view it as an organisation that is determined to interfere in our very way of life, we might not be asking the right question. Perhaps the question is how Europe works more closely together to deal with common challenges instead of always seeing working together as some kind of threat, as we tend to do in this country. The issue of national Parliaments is a legitimate one, but looking at the problems Europe is coping with today, I am not sure that it is the most urgent one facing the EU.
I will not go through again all the different powers of the different card mechanisms that have been outlined. Suffice to say, we will watch with interest how matters are developed in the negotiation that the Prime Minister has set out. The Minister has given us some useful pointers to the Government’s position on the various green, yellow and red card proposals, but it looks as if matters will not be concluded at the December Council. We will hope for more concrete results from the February Council early next year.
The Commission may take the Parliaments into account, and it may make proposals. How enormously generous. How thoughtful of somebody unelected, who was appointed against the will of the British Government, who has no mandate and who represents one of the smallest countries in the European Union. It is going to be up to Mr Juncker whether he listens to the German Parliament, the British Parliament or the French Parliament, all of which were elected by millions of people across Europe. One grand panjandrum in Brussels will decide whether he will take any notice of those cards at all.
The Government are great in their way—they push back a bit and say, “Oh, well, we’ve got a backbone, so therefore we’ll be tough and stand up to this. We’re going to put Britain first, the United Kingdom first, and make sure that we have our way.”
The Commission’s right of initiation is central to its authority, and how sensitive was the Minister on its behalf when I said that this green card might interfere with that noble right of the Commission to initiate legislation—“No, that could not happen at all. It would upset the Commission too greatly, and the European Parliament might be a bit jealous.” The European Parliament is a body that has modest democratic legitimacy. A few people occasionally vote, but no one feels that it is their Parliament. People occasionally turn out to vote when they have to vote for something else. Even a police commissioner is more exciting to vote for than the European Parliament—well, not by very much, although it is a little more exciting. The democratic deficit is addressed not by the European Parliament, but by national Parliaments that represent individual citizens.
To return to the right hon. Gentleman’s excellent point about how Europe addresses such problems, it addresses such problems if it has validity, and it has validity if it is based on democracy. The European Union is facing problems at the moment because it has become so remote from that democracy. The President of Portugal is saying that a new Government cannot come in because that might upset the European Union, even when, in a coalition, the Portuguese Government have more support than any other nation. [Interruption.] We are saved by the bell.
On resuming—
The right hon. Gentleman asked about the degree of support that we have among other member states for strengthening the role of national Parliaments. My truthful answer is that the greatest support comes from member states that have vigorous national parliamentary systems. Countries such as the Netherlands and Denmark, whose Parliaments have come forward with ideas to strengthen the accountability of EU decisions to national Parliaments, are perhaps more naturally inclined to have regard to this question than other countries that historically have had weaker national parliamentary systems and have seen European institutions as the guarantors of liberties and the rule of law.
Clearly, different member states have different views that sometimes depend on whether they feel that their own scrutiny arrangements, which may reflect a mandate system rather than a system such as ours, would be affected by some of the changes that we would like to be made. As President Tusk’s letter makes clear, the ideas that we have put on the table have had a broadly positive response from our partners.
Let me turn to the points made by my hon. Friend the Member for North East Somerset. I do not think that I have ever pretended in the five and three-quarter years that I have been doing this job that European institutions are perfect or that, were I to be asked to take a blank sheet of paper and draft a new scheme for European co-operation, I would commence with the treaty of Lisbon and the current institutional framework. However, the political reality that we, as parliamentarians, must all confront is that that is the system we have at the moment. It is the product of decisions taken by our predecessors over the years. The key principle that we need to bear in mind in debating the question before us this afternoon is, in the words of the Prime Minister of the Netherlands:
“European where necessary, national where possible.”
That is the principle that should animate our policy and that I would like to be read, learned, marked and inwardly digested by the institutions of the EU.
I am not someone who habitually goes around lauding the work of the European Commission—it is an imperfect body, like all human institutions—but I thought that my hon. Friend was a wee bit unfair to it, because it is the United Kingdom that has often looked to the European Commission to champion work on the single market and on free trade agreements between Europe and other countries, and it is the Commission that has used its powers to challenge protectionist interests in other member states—member states that would have blocked proposals that we and successive British Prime Ministers have judged to be in the best interests of our country. After all, that was why Margaret Thatcher, when Prime Minister, introduced the Single European Act. I think I am still correct to say that was the biggest move towards qualified majority voting in the history of the European Communities or the European Union.
There are flaws in the present arrangements and improvements that we should seek, but we should ponder carefully before throwing aside an institutional framework and a habit of countries working together that over the years have brought some significant benefits, both economic and political, to the people of the United Kingdom. The right way forward is to secure a set of ambitious reforms that change the working culture of the European Union to make it more competitive, more flexible and, yes, more democratic than it is today. The measures before us have enabled us to debate one particular aspect of that reform agenda.
Question put and agreed to.
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