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12 July 2012

Review of the Balance of Competences between the United Kingdom and the European Union


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The Foreign Secretary announced a Government Review into the Balance of Competences between the UK and the EU. This Review aims to provide a constructive, British-led contribution to the wider European debate about modernising, reforming and improving the EU.


He also issued a Command Paper which includes a statement summarising the UK’s EU achievements to date and future Government EU policy, as well as an outline of how the Balance of Competences will work. 

Excerpted from the Foreword by Foreign Secretary William Hague

"We understand the need for eurozone countries to take steps towards closer fiscal and economic integration as a logical consequence of monetary union. Given the UK’s place outside the euro, it is right that we have said we will not be part of that closer integration. We support the fact that multiple forms of EU membership already exist and this flexibility is in the interest of both the EU and UK. The EU is not and should not become a matter of everything or nothing. But as the EU continues to develop we need to be absolutely clear when it is most appropriate to take decisions at the national or local level, closer to the people affected, and in other cases when it is best to take action at the EU or global level.

The crisis in the eurozone has intensified the debate in every country on the future of Europe and there is no exception here. Now is the right time to take a critical and constructive look at exactly which competences lie with the EU, which lie with the UK, and whether it works in our national interest.

This extensive piece of work has never been attempted before – and it will take time to do well. It will provide a profound analysis of what our membership of the EU means now and for our future. It will ensure that our national debate is grounded in knowledge of the facts and will be a vital aid for policy-making in Government."

TOP KEY MESSAGES

  • This review is about Euro-realism. It is sensible, democratic, reasonable and a mature way calmly to examine the UK’s relationship with the EU. It aims to raise public and Parliamentary understanding of the nature of the UK's membership of the EU, and to provide a constructive British-led contribution to the wider European debate about modernising, reforming and improving the EU.
  • The Coalition Government’s policy on Europe has not changed: EU membership is fundamentally in the national interest. This long-term, analytical piece of work will not produce policy recommendations. It is for political parties to decide what their future policies are on Europe, and this review can help to inform that. 
  • The Coalition has already delivered a great deal in terms of improving the EU including devolving powers over Fisheries policy and a dramatic shift to reduce the regulatory burden on small businesses. This EU-wide reform, working with our European partners to create a better EU, is precisely the agenda this Government is and should continue to push.
  • Some Eurosceptics want the Coalition to try to exploit the eurozone crisis to repatriate powers. That is their view. It is not in the Coalition Agreement or in the statement of Coalition EU policy published today. It is fundamentally in the national interest to support not block solutions to the eurozone crisis.

Executive Summary

Europe faces three urgent challenges: globalisation, the crisis in the eurozone and democratic legitimacy. The Coalition Government has pursued a range of measures to address each of these issues over the last two years and it has plans for further actions over the remainder of this Parliament.

Membership of the EU is in the UK's national interests. But the EU needs to reform to meet the challenges of competitiveness, a stable Eurozone and greater democratic legitimacy. The Government is committed to playing a leading role in the EU and protecting the UK’s sovereignty.

The review will be an audit of what the EU does and how it affects the UK. It will look at where competence lies, how the EU’s competences are used, and what that means for UK national interest. It will be Government-led and will involve experts, organisations, individuals and EU partners who wish to feed in evidence.

Departments will begin work in the autumn of 2012 and reports on areas of competence will be published as the review progresses. The review will conclude by the end of 2014. A final decision will be taken closer to the time on how best to draw together the analysis produced during the review in the light of the EU’s rapidly changing situation. The evidence gathered will inform the public debate on the EU in the UK and Europe. Information about the conduct and progress of the review will be available on and through the website of the Foreign and Commonwealth Office at www.fco.gov.uk.

Britain in the EU
 
Whilst the countries that have chosen to adopt the euro will need to take the steps necessary to put their currency on a sustainable basis, more broadly the EU will not prosper if it reacts in this same way to challenges by accruing greater power at the centre. To ensure that the European continent is one of peace, security and prosperity based on freedom and the rule of law, the EU will also need to act effectively as a Europe of 27 Member States, which remains open to future enlargement. And the EU and all its Member States will have to do everything they can to promote economic growth and prosperity.

Examining the EU's powers

Europe has been through successive waves of institutional and treaty change over the last 20 years. The Government believes that today Europe faces a fundamental challenge: what value has it added and can it add in the future, above action at the national or more local level, in promoting Europe’s prosperity and security and increasing the influence of Europe’s voice in the world?. The EU’s legitimacy depends on its ability to answer that question and deliver those objectives.

Scope of the review: what is competence?

Put simply, competence is about everything deriving from EU law that affects what happens in the UK. That means examining all the areas where the Treaties give the EU competence to act, including the provisions in the Treaties giving the EU institutions the power to legislate, to adopt non-legislative acts, or to take any other sort of action. But it also means examining areas where the Treaties apply directly to the Member States, without needing any further action by the EU institutions – for instance, the provisions on state aids and free movement.

In each area of competence, the review will consider the nature of EU competence in each area, how this has changed, how it has been used in terms of EU legislation and policy; how it benefits the UK or otherwise; and future challenges in the policy area which might affect this assessment.


Commenting on the Review, David Lidington, Minister for Europe, said:

As the eurozone takes steps towards closer fiscal and economic integration, and as the EU continues to develop, we need to be absolutely clear when it is most appropriate to take decisions at the national or local level, closer to the people affected, and in other cases when it is best to take action at the EU or global level.
 
And we need to be comfortable about the EU moving towards greater "variable geometry" with Member States in a number of different configurations cooperating in different policy areas. This will make the EU more effective, with the flexibility of a network, not the rigidity of a single bloc.
 
This is why the review will look at the case for rebalancing responsibilities. It will be a thorough and detailed analysis possible on what the exercise of the EU's powers does and what it means for the United Kingdom. We will ensure that our national debate is grounded in knowledge of the facts and will be a vital aid for policy making in Government.

Related posts:

Parliamentary statement on balance of competences between the UK and EU © Parliamentary Copyright

Blog from David Lidington, Minister for Europe © David Lidington

Article: Nick Clegg challenges David Cameron over EU treaty talks © 2012 Guardian News and Media Limited



© Crown Copyright

Documents associated with this article

eu-balance-of-competences-review.pdf
Lib Dem Briefing on Balance of Competences.pdf
Foreign Secretary Oral Statement.pdf


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