Volume 9 Number 6 Focus on The March 2002 £2.50 GibraltarEuropean Journal The Journal of the European Foundation Daniel Hannan, mep What Makes Us Want To Betray Gibraltar? & Allister Heath • Michael Gove • Maurice Xiberras Peter F. Carter-Ruck • Mark Francois, mp • Marques de Lendinez Hon. Peter R. Caruana, qc • Lindsay Hoyle, mp • Daniel Feetham Marie Lou Guerrero • Hon. Joe Bossano • Andrew Rosindell, mp John Tate • Peter A. Isola • William Serfaty • Tony Lodge Dr Véronique de Rugy • Dr Elaine Sternberg Dr Daniel J. Mitchell • Matthew Elliott Professor Gerard Radnitzky • John Rennie Stewardson Alex Wieland • Dr Lee Rotherham The European Foundation 61 Pall Mall, London SW1Y 5HZ www.europeanfoundation.org Chairman: William Cash, MP March 2002 Vo lu m e 9 Number 6 THE EUROPEAN JOURNAL The Journal of the European Foundation For reference, numbers on pages are as in the printed copy Original PDF Articles below are hyperlinked – use the hand icon, point and click Page Page Devil in the Detail in Barcelona 23 Solon Focus on Gibraltar 34 Allister Heath Another Foreign Office Sell-Out 45 Michael Gove What Makes Us Want To Betray Gibraltar? 5 6 Daniel Hannan, MEP Defending the Gibraltar Constitution 67 Maurice Xiberras Gibraltar: a Lawyer’s Analysis 78 Peter F. Carter-Ruck Gibraltar and the 2004 Intergovernmental Conference 89 Mark Francois, MP The Inalienable Right to Genuine Self-Determination 910 Marques de Lendinez The View of the Gibraltar Government 11 12 Hon. Peter R. Caruana, QC Westminster, Self-Determination and the Rock 12 13 Lindsay Hoyle, MP Gibraltar: is Legal Action the Answer? 14 15 Daniel Feetham An Appeal to Britain 16 17 Marie Lou Guerrero Gibraltar Cannot Trust the EU 17 18 Hon. Joe Bossano Defending the Rock: the Case for Integration 18 19 Andrew Rosindell, MP, & John Tate Gibraltar – The Business View 19 20 Peter A. Isola The Case for a New Gibraltar Constitution 20 21 William Serfaty Gibraltar’s Rights must be Recognised 21 22 Tony Lodge Research Roundup: Europe in Figures 22 23 Allister Heath The European Union Tax Cartel is Bad for the US Economy 24 25 Dr Véronique de Rugy The Defects of German Corporate Governance 25 26 Dr Elaine Sternberg The Flawed WTO Tax Decision 28 29 Dr Daniel J. Mitchell Brusselsbourger 29 30 Matthew Elliott The EU: the European Miracle in Reverse 30 31 Professor Gerard Radnitzky Ships Passing in the Night 35 36 John Rennie Stewardson The Marshall Plan: Fifty Years After 38 39 Edited by Martin Schain Reviewed by Alex Wieland Chunnel Vision: Blueprint Europe 40 41 Dr Lee Rotherham Editor: Allister Heath Publisher: The European Foundation, 61 Pall Mall, London SW1Y 5HZ Telephone: +44 (0) 20 7930 7319 Facsimile: +44 (0) 20 7930 9706 E-mail: [email protected] ISSN 1351–6620 Typeset by Nelson & Pollard, Oxford Solon Devil in the Detail in Barcelona here was more to the Barcelona European Council on 15 persistent denials from the British government that no Tand 16 March 2002 than first meets the eye. Although Tony harmonisation of direct taxation is on the cards, the Blair’s frustration at France’s continuing failure properly to Conclusions stipulate that “where member states pursue tax deregulate its electricity markets was widely reported, the cuts, priority should be given to reducing the tax burden on low- Summit’s rather more important discussions, in areas including wage earners”. macroeconomic policy harmonisation, hardly received any Evidently, the Irish ‘No’ to Nice has fallen on death ears. The coverage. The Presidency Conclusions called specifically for the Irish Prime Minister was forced to outline how he would reinforcement of existing fiscal policy co-ordination in time for ensure victory in a new referendum to be held later in 2002. the 2003 Spring European Council. The ministers also The Council apparently liked what it heard and emphasised endorsed the launch of new Broad Economic Policy Guidelines, that it was willing to support the Irish government and focal points of which would include “the quality and sustain- “contribute in every possible way” to a ‘Yes’. The courageous ability of public finances, pursuing further necessary reforms in and underfunded ‘No’ campaign in Ireland certainly has its product, capital and labour markets and ensuring coherence with work cut out. The ministers decided to hold further talks on the policies established in each domain”. the matter in the forthcoming Council in Seville. Barcelona was the second annual spring meeting on the The EU’s move into health and education, two areas “economic, social and environmental situation” in the EU. Those supposedly to be left to national governments, continues who believe that the EU has now embraced a dynamic market apace. The Council agreed to launch a European Health economy should read the Presidency Conclusion’s section on Insurance Card by the end of 2003, allegedly to promote intra- Reinforcing social cohesion. Despite the EU’s awful record EU labour mobility. Far worse is the decision to authorise a on economic growth and job creation, the Council saw fit to ‘feasibility study’ into web-based twinnings between schools claim that the European ‘social model’ “is based on good across the EU. And once again, the Council called openly for economic performance, a high level of social protection and yet more EU propaganda in schools: further action “to education and social dialogue.” Notwithstanding its oft-repeated promote the European dimension in education and its claim that it wishes to encourage entrepreneurship and the integration into pupils’ basic skills by 2004”. ust as interesting was the discourse emanating from terms of common rules for tax policy, again when the economy is JEurope’s governing elites in the days immediately prior to the booming and when tax revenues are higher than expected,” Prodi Council. Romano Prodi, the President of the European added. In recent months he has repeatedly demanded the Commission said the European Union needed new common introduction of a code of conduct for economic and fiscal rules on how to handle budgets and tax policies in boom times. policy. The French Prime Minister and Presidential Candidate Addressing a news conference on 13 March 2002, two days Lionel Jospin has called for a “political Europe” centred upon a before the Barcelona summit, Prodi said the EU’s Stability and European constitution and including the Charter of Growth Pact has a short-term horizon to prevent member Fundamental Rights drafted in the run-up to the Nice Treaty. states running excessive deficits. But, he claimed, this is not Jospin’s openely stated goal is the creation of what he calls a enough to manage their growing economic interdependence “European federation of nation states”. Echoing the mission and avoid repeating what he called the ‘mistakes’ of the 1980s. statement of the 2004 IGC, Jospin wants to ‘clarify’ the “Experience has shown that mistaken policies are usually respective competences of the EU and of the member states. He conducted in good times, when the economy is expanding. We find also supports the creation of a permanent Council of Ministers that at that time, member states fritter away the leeway that they of Europe (which would include a British Minister for Europe). need to cater for leaner times when there is either reduced growth The new permanent council would report back to national or actually recession,” he said. “Secondly, we could also think in governments and co-ordinate European policy with Brussels. Allister Heath, Editor of the European Journal and Head of Research at the European Foundation will be stepping down in early April 2002 to go and work for a national newspaper. His first article for the European Journal was published in January 1999, and he served as Executive Editor and then Editor. The staff of the European Journal would like to take the opportunity to thank him for the effort that he has put in to the Journal and to wish him well in his new job. Jump to Contents 2 Focus on Gibraltar March 2002 Focus on Gibraltar by Allister Heath ritain is preparing to betray the mented by the ‘New Left’s’ anti-historical just in the Council of Ministers but potent- Bpeople of Gibraltar in a desperate bid by project to abolish Britain. Daniel Hannan, ially at future European summits, including Tony Blair to boost his flagging influence in MEP’s contribution complements that of the next Intergovernmental Conference itself,” the European Union. Although the Rock’s Gove. The government’s attitude to he writes. The Marques de Lendinez, a population is staunchly opposed to incor- Gibraltar “tells us a great deal about Labour’s prominent UK-based pro-Gibraltar activist, poration into Spain, the British government whole attitude to Britishness.” Ministers and provides a wide-ranging and lucid intro- is determined to strip the territory of its much of our ‘left-wing’ establishment duction to the Gibraltar question. Hon. colonial status. Talks are currently under obviously despise everything Britain stands Peter Caruana, QC, the territory’s combat- way between Britain and Spain which will for, from the common law to lower taxes. ive and highly articulate First Minister, almost certainly lead to a ‘new constitut- They hate the fact that Gibraltar is so self- outlines the Gibraltar government’s official ional settlement’ – including some form of consciously British and patriotic; that view on the matter. He sees little point in joint Anglo–Spanish sovereignty – being Gibraltarians refer to the UK as the ‘mother taking part in the Anglo-Spanish talks presented to the people of Gibraltar as a country’. The Blairite project consists in because they are obviously rigged. A major ‘done deal’. Fortunately, the agreement is ‘modernising’ everything we do differently problem is that even following a rejection in bound to be rejected in a referendum in from the rest of the European Union.