House of Commons European Scrutiny Committee: Banking Union and Economic and Monetary Union

17 October 2012

In the fourteenth report of session 2012–13, documents considered by the Committee on 17 October 2012 included recommendations for debate on banking union and EMU.

Although purportedly there would be no direct impact on the UK by the measures foreshadowed by this document, there is potential for harm to UK interests, particularly in relation to the single market. So we presume the Prime Minister will be cautious in expressing any support during the forthcoming European Council for the elements outlined in the report.

As for the role of national parliaments in ensuring democratic legitimacy and accountability the committee is concerned by:

The committee reminds all concerned in this debate that national parliaments are representative of sovereign states. It notes the rather odd phraseology — “we can use” — the Minister deploys. The committee presumes he does not actually mean that governments use parliaments.

These matters are of high importance for the UK. So, ideally the committee would wish to recommend for debate the final report on them, that is to be presented to the December European Council, before that meeting. But given the likely timing of its publication the committee recognises that this will prove impracticable. So instead, it recommends that this present document, which does show in broad terms the thrust of the thinking of the four authors, be debated, for three hours on the Floor of the House, together with the Banking Union documents discussed in Chapter One of this Report.

In making this debate recommendation the committee notes, notwithstanding the Minister’s comments, that the document will not be cleared from scrutiny until the debate takes place, and takes the view that actions by the Government which amounted to agreement of the report would be a serious breach of the scrutiny reserve.

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