Eighteenth Report of Session 2013–14
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House of Commons European Scrutiny Committee Eighteenth Report of Session 2013–14 Documents considered by the Committee on 16 October 2013, including the following recommendation for debate: Future relations between the EU and the Overseas Countries and Territories Report, together with formal minutes Ordered by The House of Commons to be printed 16 October 2013 HC 83-xvii Published on 24 October 2013 by authority of the House of Commons London: The Stationery Office Limited £14.50 Notes Numbering of documents Three separate numbering systems are used in this Report for European Union documents: Numbers in brackets are the Committee’s own reference numbers. Numbers in the form “5467/05” are Council of Ministers reference numbers. This system is also used by UK Government Departments, by the House of Commons Vote Office and for proceedings in the House. Numbers preceded by the letters COM or SEC or JOIN are Commission reference numbers. Where only a Committee number is given, this usually indicates that no official text is available and the Government has submitted an “unnumbered Explanatory Memorandum” discussing what is likely to be included in the document or covering an unofficial text. Abbreviations used in the headnotes and footnotes EC (in “Legal base”) Treaty establishing the European Community EM Explanatory Memorandum (submitted by the Government to the Committee)* EP European Parliament EU (in “Legal base”) Treaty on European Union GAERC General Affairs and External Relations Council JHA Justice and Home Affairs OJ Official Journal of the European Communities QMV Qualified majority voting RIA Regulatory Impact Assessment SEM Supplementary Explanatory Memorandum TEU Treaty on European Union TFEU Treaty on the Functioning of the European Union Euros Where figures in euros have been converted to pounds sterling, this is normally at the market rate for the last working day of the previous month. Further information Documents recommended by the Committee for debate, together with the times of forthcoming debates (where known), are listed in the European Union Documents list, which is published in the House of Commons Vote Bundle each Monday, and is also available on the parliamentary website. Documents awaiting consideration by the Committee are listed in “Remaining Business”: www.parliament.uk/escom. The website also contains the Committee’s Reports. *Explanatory Memoranda (EMs) can be downloaded from the Cabinet Office website: http://europeanmemoranda.cabinetoffice.gov.uk/. Letters sent by Ministers to the Committee relating to European documents are available for the public to inspect; anyone wishing to do so should contact the staff of the Committee (“Contacts” below). Staff The staff of the Committee are Sarah Davies (Clerk), David Griffiths (Clerk Adviser), Terry Byrne (Clerk Adviser), Leigh Gibson (Clerk Adviser), Peter Harborne (Clerk Adviser), Paul Hardy (Legal Adviser) (Counsel for European Legislation), Joanne Dee (Assistant Legal Adviser) (Assistant Counsel for European Legislation), Hannah Finer (Assistant to the Clerk), Julie Evans (Senior Committee Assistant), Jane Lauder (Committee Assistant), Beatrice Woods (Committee Assistant), John Graddon (Committee Assistant), and Paula Saunderson (Office Support Assistant). Contacts All correspondence should be addressed to the Clerk of the European Scrutiny Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is (020) 7219 3292/5465. The Committee’s email address is [email protected] European Scrutiny Committee, 18th Report, Session 2013–14 1 Contents Report Page Meeting Summary 3 Documents for debate 1 FCO (34119) Future relations between the EU and the Overseas Countries and Territories 5 Documents not cleared 2 DCMS (35305) (35304) The Telecommunications Single Market 8 3 DFT (33822) Vehicle registration 25 4 FCO (34868) (34869) EU-Kosovo Co-operation 29 5 HMT (34077) (34657) Financial assistance for non-eurozone Member States 33 6 HMT (35215) European Anti-Fraud Office 37 7 HMT (35232) (35259) EU General Budget for 2013 38 Documents cleared 8 BIS (35291) EU merger control 41 9 DCMS (35312) The broadband investment environment 45 10 DEFRA (35322) EU Forest Strategy 49 11 DEFRA (35349) (35350) EU-US trade dispute over beef imports 53 12 FCO (34311) EU restrictive measures against the Republic of Guinea 56 13 HMT (33761) Financial services: central securities depositaries and securities settlement 58 14 HMT (35359) Banking Union: Single Supervisory Mechanism 61 15 HMT (35374) (35382) Mutual financial assistance for non-eurozone Member States 64 16 HMT (35383) Multiannual Financial Framework, 2014-2020 67 Documents not raising questions of sufficient legal or political importance to warrant a substantive report to the House 17 List of documents 71 2 European Scrutiny Committee, 18th Report, Session 2013–14 Formal minutes 73 Standing Order and membership 74 European Scrutiny Committee, 18th Report, Session 2013–14 3 Meeting Summary This week the Committee considered the following documents: EU General Budget for 2013 The aim of this Draft Amending Budget and Draft Decision is to allow additional European Social Fund commitments in 2013 for France, Italy and Spain “as a contribution to the special effort needed to address the specific situations of unemployment, in particular youth unemployment, and of poverty and social exclusion in those Member States” — a matter agreed as part of the settlement at the June European Council for the next Multiannual Financial Framework. The Committee considered the documents in September and asked the Government for further details on why this particular settlement had been reached, and whether there was scope for transferring existing commitment appropriations from elsewhere in the 2013 Budget, rather than having recourse to this Instrument. The Minister’s reply does not answer all the Committee’s questions and so the Committee asks for a further response. EU merger control This Commission Staff Working Document examines ways in which the current EU legislation on merger control might be amended, notably by extending it to acquisitions of non-controlling minority shareholdings. Three possible approaches are proposed: a notification system; a self-assessment system (similar to the UK’s current merger regime); and a transparency system, which would oblige the parties to file a short information notice to the Commission. The Government believes that the proposals generally respect the current system and that the reforms proposed are sensible, and notes that the document is essentially consultative. We clear it from scrutiny but report it because of its policy significance. The Telecoms Single Market and Broadband in the EU This Commission Communication, Council Regulation and Commission Recommendation cover the EU’s latest policy thinking on the single market in telecommunications and the state of the Digital Agenda for Europe targets. The Recommendation (on Broadband) aims to promote competition (through the application of tougher non-discrimination rules) and investment (by allowing for flexibility in the pricing of new wholesale next generation access services) and would apply to the market for wholesale infrastructure access and the wholesale broadband access market. The Government notes the Recommendation status of the proposals, and the fact that they are generally consistent with the way the UK market operates. We clear the Recommendation from scrutiny. However, the Government expresses concerns about the Communication and Regulation. The Minister states that the proposals could increase the administrative burdens for operators in the UK and represent a worrying shift in competence from national regulators, on such critical issues as spectrum assignment procedures. We keep these documents under scrutiny and ask for an update on negotiations following the October European Council. European Scrutiny Committee, 18th Report, Session 2013–14 5 1 Future relations between the EU and the Overseas Countries and Territories (34119) Draft Council Decision on the association of the Overseas Countries 12732/12 and Territories with the European Union + ADDs 1–2 COM(12) 362 Legal base Article 203 TFEU; unanimity; special legislative procedure Department Foreign and Commonwealth Office Basis of consideration Minister’s letter of 9 October 2013 Previous Committee Reports HC 83–xiv (2013–14), chapter 3 (11 September 2013) and HC 86–xi (2012–13), chapter 8 (5 September 2012); also see (31117) 15647/09: HC 5–iii (2009–10), chapter 1 (9 December 2009) and (29789) 11238/08: HC16–xxviii (2007–08), chapter 3 (22 July 2008) Discussion in Council To be determined Committee’s assessment Politically important Committee’s decision Not cleared; for debate in European Committee B (decision reported on 11 September 2013) Background 1.1 When the UK joined the European Union in 1973 special arrangements were made for the UK’s non-European Territories in line with those already in place for French and Dutch Territories. They are styled the Overseas Countries and Territories, or OCTs. 1.2 The basic provisions on the association of the OCTs with the EU are governed by Part Four, Articles 198–204, of the Treaty on the Functioning of the European Union (TFEU). Detailed rules and procedures have been laid down by the Council, pursuant to ex-Article 187 EC, through successive Overseas Association Decisions (OAD) adopted since 1964. 1.3 The basic aim of the OAD is to promote the OCTs’ economic and social development