$Unique_ID{COW00556} $Pretitle{405} $Title{United Kingdom Britain in the European Community} $Subtitle{} $Author{Embassy of the United Kingdom, Washington DC} $Affiliation{Embassy of the United Kingdom, Washington DC} $Subject{community european council member britain states parliament commission economic court} $Date{1990} $Log{} Country: United Kingdom Book: Britain in the European Community Author: Embassy of the United Kingdom, Washington DC Affiliation: Embassy of the United Kingdom, Washington DC Date: 1990 Britain in the European Community Introduction Britain is an active and committed member of the European Community, an association of 12 nations which also comprises Belgium, Denmark, the Federal Republic of Germany, France, Greece, the Irish Republic, Italy, Luxembourg, the Netherlands, Portugal and Spain. It plays an influential role in the Community's development and contributes fully to discussions in all its areas of activity. Britain wants the Community to develop, to be economically strong and more competitive in world markets, to influence the process of change in Eastern Europe, to strengthen its links with its trading partners in the wider world, and to promote European and Western values effectively. This pamphlet gives a brief description of Britain's entry into the Community, sets out Britain's general approach to Community affairs and examines British involvement in various Community policies. Britain and European Unity After the second world war, the countries of Western Europe sought ways of working together to reconstruct their economies and to organise themselves in a way which would ensure that wars between them would not recur. Britain and the Scandinavian countries favoured intergovernmental co-operation, and this view prevailed when the Organisation for European Economic Co-operation (OEEC) was set up in 1948 to administer the European Recovery Programme (Marshall Aid). In 1949 the Council of Europe, also an intergovernmental organisation, was created to discuss common political and economic problems. It has 23 members, including Britain. Much of its work is in the fields of culture and human rights. Some countries advocated an early constitutional plan for a federal Europe and the replacement of nation states while others favoured functional co-operation with new European institutions operating alongside nation states. The European Coal and Steel Community (ECSC), a supranational authority, was established in 1952 to embrace the coal and steel resources of Belgium, France, the Federal Republic of Germany, Italy, Luxembourg and the Netherlands. Britain decided not to participate, but established a form of association with the new body. The Rome Treaties The foreign ministers of the six ECSC member states met at Messina in 1955 to consider economic integration, and set up an intergovernmental committee to study the possibilities of co-operation over atomic energy, the establishment of a common market, the creation of a European investment fund and the harmonisation of pay and working conditions. Although a British representative attended some of the committee's meetings, the British Government had reservations regarding possible overlap with the work of the OEEC, about the safeguarding of the interests of other countries which would be affected by the moves, and about the supranational approach of the Six. Britain did not take part in the final negotiations leading to the signature of the Treaties of Rome in March 1957, which set up the European Economic Community (EEC) and the European Atomic Energy Community (Euratom). Britain and six other countries belonging to the OEEC but not to the European Economic Community formed the European Free Trade Association (EFTA) in 1960. The signatories progressively dismantled the barriers to trade between them in industrial goods, but maintained their own tariffs and independent commercial policies towards the rest of the world. British Applications to Join the Community The British Government hoped that progressively stronger links could be established between EFTA and the Community. When it became clear that this would not be possible, it began negotiations in 1961 to join the Community. In these the Government made it clear that it accepted without qualification the aims of the Rome Treaty, including the elimination of internal tariffs as well as the adoption of common customs, commercial and agricultural policies. Negotiations were broken off in 1963 because of opposition from the French President, General de Gaulle, since all applications required the unanimous approval of existing members. A further application was submitted in 1967 but it was not possible to reopen negotiations, because of the French Government's opposition. Negotiations began again in 1970. Britain (and three other applicants - Denmark, the Irish Republic and Norway) agreed to accept the Rome Treaties and the decisions taken by the Community since their implementation, and to solve problems of adaptation through transitional measures and not by changes in the existing rules. Throughout the negotiations Britain remained in close touch with its EFTA and Commonwealth partners. In October 1971 both Houses of Parliament approved the terms of Britain's entry by substantial majorities. The Treaty of Accession was signed in Brussels in January 1972 and on 1 January 1973 Britain, Denmark and the Irish Republic became members of the Community, Norway having rejected membership following a referendum. The Treaty of Accession made arrangements for the progressive abolition of tariffs and the elimination of quotas between the Six and the new member states; the adoption of the common customs tariff and the Common Agricultural Policy; provisions of fishing; the gradual liberalisation of capital movements; an offer of special trading arrangements to developing Commonwealth countries in Africa, the Caribbean and the Pacific; and the continued importation of Commonwealth sugar and New Zealand dairy produce. The tariff and agricultural pricing arrangements were to be introduced over a five-year transitional period, while those for Britain's contributions to the Community budget involved a longer period. Renegotiation of Membership Terms A new Government took office in Britain in 1974 pledged to renegotiate the terms of British membership and to put the issue to the British people in the form of a referendum. Among its concerns were the system of financing the Community budget, the costs of the Common Agricultural Policy, and the need to improve access to the Community for imports from Commonwealth and developing countries. At their meeting in Paris in 1974 the Community's heads of Government agreed to set up a regional fund to correct economic imbalances within the Community. At the heads of Government meeting in Dublin in 1975 agreement was reached on a `correcting mechanism' to ensure that budgetary contributions did not bear too heavily on any one country. The first Lome Convention, signed in 1975, established new trade, aid and co-operation links between the Community and developing countries in Africa, the Caribbean and the Pacific. Changes were also made to the Community's scheme of trade preferences for developing countries and to its overall development aid policy. Following the Dublin negotiations, the British Government recommended to the British people that Britain should stay in the Community. This recommendation was endorsed by large majorities in both Houses of Parliament. In the referendum held in June 1975, 67.2 per cent of voters supported continued membership; about two-thirds of the electorate voted. European Union The signatories of the Treaty of Rome declared themselves `determined to establish the foundations of an ever closer union between the peoples of Europe', an aim which Britain accepted on joining the Community in 1973 and to which it remains committed. The nature of European union has never been formally defined. In practice, however, it has come to signify a step-by-step process of greater practical co-operation, building on existing policies and elaborating new ones within the framework of the Treaty of Rome, and seeking to open up the resources and opportunities of the Community to its inhabitants. In 1983 the Stuttgart European Council called for `broad action to ensure the relaunch of the European Community'. Britain played a major part in securing the agreement reached at Fontainebleau in June 1984 on the main issues then dividing the Community: reform of its budgetary arrangements, and measures to control expenditure and ensure a fair sharing of the Community's financial burden (see p 10). Following this meeting the Dooge Committee was appointed to make suggestions for the improvement of European co-operation. In its report of 1985 the Committee recommended the creation of a genuine internal market and some institutional reforms, including increased powers for the European Parliament and more effective decision-taking in the Council of Ministers. Single European Act Before these matters were considered by the European Council at Milan in June 1985 Britain tabled a proposal for a treaty on political co-operation (see p 46). Along with other issues it was submitted to an intergovernmental conference. At the European Council meeting in Luxembourg in December 1985, agreement was reached on a Single European Act which came into effect in July 1987 after ratification by all member states. It provides for the following: 1 Completion of the Internal Market. The Community has set itself a target date of 1992 for the establishment of a common market in goods and services. It has agreed to make greater use of majority voting on measures designed to complete it. Hitherto many of these decisions required unanimity, and this is still the case where member states have important interests to protect (see p 6). 2 European Parliament. An amended co-operation procedure has been introduced to enable the Parliament to play a more constructive role in decisions on the internal market and in other important areas (see p 7). 3 Technology and the Environment. The Treaty of Rome has been brought up to date to include the collaboration already established in areas of research, technological development and the environment and to provide a basis for future action. In technology, emphasis is placed on market-oriented schemes to improve the competitiveness of European industry. 4 Structural Funds. Co-ordination of the Community's structural funds (see p 22) has been improved and the Regional Fund's operations have been brought within the Treaty framework. 5 Political Co-operation. Treaty provisions incorporated in the Single European Act formalise and strengthen the commitment to consult and concert action in the sphere of foreign policy, including the economic and political - but not the defence - aspects of security. These provisions maintain the legal separation between European political co-operation and the European Community. The British Government welcomed the Single European Act. Commending it to the House of Commons in April 1986 the then Foreign and Commonwealth Secretary, Sir Geoffrey Howe, stated: `In a world where no European power can any longer stand on its own, our national goals can be achieved only in co-operation with our Community partners. The most fundamental of these goals has always been the preservation of peace and the enhancement of democracy. The Single European Act serves that fundamental objective. It enhances co-operation in foreign policy, and it enhances our ability to take the steps we need to take as a Community to make ourselves competitive internationally and to create prosperity and jobs.' Intergovernmental Conferences Member states have agreed to hold intergovernmental conferences in December 1990 on political union and on economic and monetary union in order to strengthen the Community. Britain is committed to a more effective and more accountable Community able to cope with the challenges of change. At the same time it believes that national institutions and identities should be fully respected and that the Community should only become involved where particular objectives cannot be achieved by national action. The Community and its Institutions The aims of the Community and the functions of its major institutions are set out in the respective treaties. Under a treaty signed in 1965 the separate but similar institutions of the Community were merged in 1967. Aims The Treaty of Rome creating the European Economic Community defines its aims as the harmonious development of economic activities, a continuous and balanced economic expansion and an accelerated rise in the standard of living. It stated that these objectives should be met by the creation of a common internal market and the progressive harmonisation of member states' economic policies. Article 3 sets out the main objectives of the Community. These are the elimination of customs duties between member states and of quantitative restrictions on the movement of goods; common customs, commercial, agricultural and transport policies; and the free movement of people, services and capital between member states. Others are the elimination of distortions in competition within the common market; the co-ordination of member states' economic policies; the establishment of a European Investment Bank to facilitate economic expansion; and the association of developing countries with the Community in order to increase trade and assist their economic and social development. Articles 85 to 94 formulate competition policy designed to ban restrictive practices that distort competition in trade between member states. Other articles relate to monopolies and mergers, dumping by one member state in another, and the effect of state aid to individual industries on competition. Another objective is the harmonisation of taxation in order to ensure that one state does not tax another's goods at higher rates. Community commercial policy is based on Articles 110 to 116, which provide for uniform practice regarding tariffs, the liberalisation of trade, and protective measures against dumping or subsidies. Articles 117 to 128 concern social affairs, notably a common policy for vocational training, the creation of a European Social Fund, the eventual harmonisation of social security schemes, a European system of safeguards for industrial health and safety, and equal pay for women workers. Community Institutions The five Community institutions, staffed by people from all the member states, are the Council of Ministers, the European Commission, the European Parliament, the Court of Justice and the Court of Auditors. The Council of Ministers The Council of Ministers is the final decision-taking body on all major legislation and policy and is the only Community institution whose members - usually the foreign ministers or the ministers appropriate to the subject under discussion - represent each country directly in negotiations between member states. The Committee of Permanent Representatives, consisting of member states' ambassadors to the Community, is responsible for preparing the work of the Council and for carrying out tasks that the Council assigns to it. The office of President of the Council changes in rotation every six months: Britain will next hold the Presidency in the second half of 1992. Major questions of policy or principle normally require unanimous agreement in the Council. On other issues the Treaties specify a majority, some articles requiring qualified majority voting, which is a system of weighted voting under which Britain, France, the Federal Republic of Germany and Italy have ten votes each; Spain has eight votes; Belgium, Greece, the Netherlands and Portugal have five each; Denmark and the Irish Republic have three each; and Luxembourg has two. If the Council votes on a Commission proposal, the decision is effective only if there are at least 54 votes in its favour. In some cases voting can take place without the Commission making a proposal, but a decision can then only be taken if 54 votes or more are cast by at least eight member states. In practice, majority voting has been rare, most decisions having been taken by consensus. However, the Single European Act prescribes greater use of majority voting on such issues as the establishment of the internal market, though unanimity is retained for measures where individual states have important interests to protect, such as taxation and free movement of individuals. Where a member state feels that its vital national interests are involved, it may ask for discussion to continue until an agreement is reached unanimously. Britain believes that this arrangement, introduced in 1966, should remain the basis on which major Community decisions are taken. The Council has power to make regulations (or Community laws) which are binding on member states. Directives, which are also binding, leave national authorities to decide on the methods of carrying them out. In addition, it can issue decisions binding those to whom they are addressed, whether member states, firms or private individuals. The Council's recommendations and opinions are not binding. The Council can also indicate a general policy direction through its resolutions. Meetings of the European Council are held twice a year by the heads of State or Government (11 prime ministers and the President of France), accompanied by their foreign ministers. The Commission is represented by its President and by a Vice-President, usually the one most directly involved in the main subject likely to be discussed. European Council meetings provide an opportunity for the 12 leaders to take important policy decisions and to discuss the development of the Community and world affairs generally. The European Commission The European Commission ensures that Community rules and the provisions of the Treaties are implemented and observed correctly. It puts forward policy proposals and executes the decisions taken by the Council of Ministers. It attends all Council meetings, where it can explain its proposals. The Commission has 17 members: two each from Britain, France, the Federal Republic of Germany, Italy and Spain; and one from each of the other seven member states. The Commissioners are nominated by governments and appointed with the agreement of all member states for four-year terms which can be renewable. The President of the Commission holds office for a two-year renewable term as the Commission's representative and is responsible for its general administration. Each Commissioner is given responsibility for one or more of the main Community activities. The Commission has collective responsibility for all its actions and can take decisions by a simple majority vote. The European Parliament The European Parliament, which has 518 members, is elected every five years by the voters in each member state. The third election was held in June 1989. Britain, France, the Federal Republic of Germany and Italy each have 81 seats. Spain has 60 seats; the Netherlands 25; Belgium, Greece and Portugal 24 each; Denmark 16; the Irish Republic 15; and Luxembourg six. Of Britain's representatives, 66 are elected in England, eight in Scotland, four in Wales and three in Northern Ireland. There is no common electoral system for elections to the Parliament. British members are elected by a simple majority system in single-member constituencies, with the exception of the members from Northern Ireland, who are elected in one constituency on the single transferable vote system of proportional representation. Members sit according to party group and not nationality. The vast majority belong to ten political groups. The 45 British Labour Party members belong to the Socialist group and the 32 Conservative Party members to the European Democrat group. One of the four remaining British members is a member of the Scottish National Party and sits with the Rainbow group. Of the other three, elected in Northern Ireland, the Democratic Unionist Party member is not affiliated to a group, the Social Democratic and Labour Party member sits with the Socialist group and the Official Unionist member sits with the European People's Party. Each state is responsible for paying the salaries of its representatives. British members have the same salaries and pension rights as members of the House of Commons. The Parliament meets in Strasbourg on average once a month for sittings lasting four or five days. Its work is supervised by a Bureau consisting of the President and a number of Vice-Presidents elected by the members. These are joined by representatives of the political groups in an enlarged Bureau that organises the agenda for plenary sessions. Officials elected by the Parliament and known as quaestors are responsible mainly for administrative and financial matters and have the right to attend and speak at meetings of the Bureau. Community legislation is enacted by the Council of Ministers, but the Parliament must be consulted about major Community decisions and it has substantial shared power with the Council of Ministers over the Community budget. Commission proposals are usually submitted to the Parliament by the Council of Ministers before decisions are taken and it is obligatory for it to submit them in cases stipulated in the Treaty of Rome. A proposal is first considered by a specialised committee whose final report is presented for debate during the monthly plenary sessions. Membership of the committees is shared among the political groups in the same proportion as in the Parliament. Officials of the Commission, and sometimes Commissioners, attend the Committees to explain proposals. Parliament's opinion, usually in the form of a resolution, is sent to the Council, which takes the final decision. It is also usual for the Presidency of the Council to outline the main aims of the Presidency to the whole Parliament and for a minister to inform each committee about Council activities in its area of interest at least once during each Presidency. The Parliament's legislative powers have been increased by the Single European Act. On certain categories of legislation (notably that related to the single market) it may amend a Commission proposal but also - in a second reading - give an opinion on the position taken by the Council of Ministers on the proposal. The aim is to enable the Parliament to propose amendments at a second stage before the Council adopts the proposals as Community law. The Commission reconsiders its proposal in the light of the Parliament'amendments. If the Parliament rejects the council's position, then unanimity by the Council is required for the legislation to come into force. If the Parliament proposes amendments, the Council votes by qualified majority where the Commission has endorsed them and unanimously where the Commission has been unable to do so. The Parliament adopts the Community budget in agreement with the Council. New applications for membership of the Community must receive the assent of an absolute majority of the Parliament, as must the conclusion of agreements with third countries establishing an association involving reciprocal agreements. The Parliament may also remove the Commission as a whole from office by a two-thirds majority of votes cast in a vote of censure (this has never happened), though it does not have the power to remove individual commissioners. The Court of Justice The Court of Justice adjudicates on the meaning of the Treaties and of any measures taken by the Council and the Commission. It can, for instance, declare void an act of the Council or the Commission which infringes the Treaties, or whose legality has been challenged by the Council, a member state or an individual directly concerned. In addition, at the request of national courts, the Court gives a preliminary ruling on the interpretation or the validity of Community law. Its rulings must be applied in member states. The Court has 13 judges, including at least one from each member state, assisted by six advocates-general. The latter make reasoned submissions in each case brought before the Court in order to assist it in its interpretation and application of Community law. This is done after the parties have completed their written and oral submissions. The Court is free to accept or reject the advocate-general's conclusions or to reach the same conclusions by a different line of reasoning. The Court of First Instance The Single European Act included provision for a Court of First Instance to be attached to the Court of Justice. It held its first sittings at the end of 1989. Twelve members sit in the Court, which has jurisdiction over staff cases, certain actions against a Community institution in relation to the Community's competition rules, and certain cases under the ECSC Treaty. The Court of First Instance has taken over some of the work previously done by the Court of Justice, thus enabling the latter to consider cases in its own jurisdiction within an acceptable period of time. The Court of Auditors The Court of Auditors, set up in 1977, comprises one member from each state and exercises financial control over the Community budget. It scrutinises all Community revenue and expenditure, decides whether financial management has been sound, reports back to the Community's institutions and publishes an annual report on its activities. It can also carry out checks in member states in conjunction with their audit authorities. The members of the Court are appointed by the Council of Ministers for a six-year period. Consultative Bodies More than 70 bodies are involved in the Community's work. Among the most important is the Economic and Social Committee set up under the Treaty of Rome and representing employers, trade unions, consumers and other interests from all the member states. The Commission and the Council of Ministers must consult the Committee on major proposals before decisions are taken, and it is also free to submit opinions on its own initiative. On matters regarding the coal and steel industries, the Commission and Council of Ministers are assisted by the Consultative Committee representing producers, workers, consumers and dealers; the Committee operates in the same way as the Economic and Social Committee. Other advisory bodies are concerned with monetary and financial policy, economic policy, social policy, employment, consumer affairs, transport, science and technology, and nuclear research.