Professional Documents
Culture Documents
Europeanunitystartedasthedreamofafew,itbecamethehope
ofthemany.ThenEuropebecameoneagain.Today,weare
unitedandstronger:hundredsofmillionsofpeopleacross
EuropebenefitfromlivinginanenlargedUnionthathas
overcometheolddivides.
TheEuropeanUnionisfacingunprecedentedchallenges,both
globalanddomestic:regionalconflicts,terrorism,growing
migratorypressures,protectionismandsocialandeconomic
inequalities.Together,wearedeterminedtoaddressthe
challengesofarapidlychangingworldandtooffertoour
citizensbothsecurityandnewopportunities.
WewillmaketheEuropeanUnionstrongerandmoreresilient,
throughevengreaterunityandsolidarityamongstusandthe
respectofcommonrules.Unityisbothanecessityandourfree
choice.Takenindividually,wewouldbesidelinedbyglobal
dynamics.Standingtogetherisourbestchancetoinfluence
them,andtodefendourcommoninterestsandvalues.Wewill
acttogether,atdifferentpacesandintensitywherenecessary,
whilemovinginthesamedirection,aswehavedoneinthepast,
inlinewiththeTreatiesandkeepingthedooropentothosewho
wanttojoinlater.OurUnionisundividedandindivisible.
InthetenyearstocomewewantaUnionthatissafeandsecure,
prosperous,competitive,sustainableandsociallyresponsible,
andwiththewillandcapacityofplayingakeyroleintheworld
andofshapingglobalisation.WewantaUnionwherecitizens
havenewopportunitiesforculturalandsocialdevelopmentand
economicgrowth.WewantaUnionwhichremainsopento
thoseEuropeancountriesthatrespectourvaluesandare
committedtopromotingthem.
Inthesetimesofchange,andawareoftheconcernsofour
citizens,wecommittotheRomeAgenda,andpledgetowork
towards:
http://europa.eu/rapid/pressrelease_IP17701_en.htm
Wewillpursuetheseobjectives,firminthebeliefthatEurope's
futureliesinourownhandsandthattheEuropeanUnionisthe
bestinstrumenttoachieveourobjectives.Wepledgetolisten
andrespondtotheconcernsexpressedbyourcitizensandwill
engagewithournationalparliaments.Wewillworktogetherat
thelevelthatmakesarealdifference,beittheEuropeanUnion,
national,regional,orlocal,andinaspiritoftrustandloyal
cooperation,bothamongMembersStatesandbetweenthemand
theEUinstitutions,inlinewiththeprincipleofsubsidiarity.We
willallowforthenecessaryroomformanoeuvreatthevarious
levelstostrengthenEurope'sinnovationandgrowthpotential.
WewanttheUniontobebigonbigissuesandsmallonsmall
ones.Wewillpromoteademocratic,effectiveandtransparent
decisionmakingprocessandbetterdelivery.
WeasLeaders,workingtogetherwithintheEuropeanCouncil
andamongourinstitutions,willensurethattoday'sagendais
implemented,soastobecometomorrow'sreality.Wehave
unitedforthebetter.Europeisourcommonfuture.
TheEuropeanCommissionRepresentationinMaltatogetherwithMEUSACandtheStrickland
FoundationareorganisingapublicdialogueontheFutureofEurope.Duringthemeeting,the
distinguishedspeakerswillfieldquestionsfromthegeneralpublicontheoccasionofthe60th
AnniversaryoftheTreatyofRomeandtherecentpublicationbytheEuropeanCommissionofthe
WhitePaperdiscussing'TheFutureofEurope.'
ThisdialoguecomesataveryrelevanttimeforMalta,whenEuropefeaturesverypositivelyand
frequentlyduetotheMaltesePresidency.Wewouldliketoencourageadebateonthenextstepsfor
theEuropeanprojectonit's60thAnniversaryandonthedaywhenarticle50istobetriggeredbythe
UK.
Visitourwebsiteonwww.ec.europa.eu/maltafordetailsonhowyoucanfollowusliveandleaveyour
questions.
Forsecurityreasons,registeredpersonsareremindedtobringtheirpassportorIDcard.
http://www.consilium.europa.eu/press
releasespdf/2017/3/47244656633_en.pdf
European Parliament and of the Council of 17 June 2008 on
the law applicable to contractual obligations (Rome
http://eurlex.europa.eu/legal
content/EN/TXT/PDF/?
uri=CELEX:32008R0593&from=EN
ROME DECLARATION ON HARMONISATION Ministers, Heads of Aid
Agencies and other Senior Officials representing 28 aid
recipient countries and more than 40 multilateral and bilateral
development institutions endorsed the Rome Declaration on
Harmonisation in February 2003. Rome, February 25, 2003
http://www.oecd.org/dac/evaluation/dcdndep/31736458.pdf
UN WTO
Tourism Highlights
2016 Edition
http://www.e-
unwto.org/doi/pdf/10.18111/97
89284418145
3 TREATY OF LISBON AMENDING THE TREATY ON EUROPEAN
UNION
http://www.eutruth.org.uk/lisbontreaty.pdf
http://www.eudemocrats.org/eu
d/uploads/downloads/Consolid
ated_LISBON_TREATY_3.pdf
Article 3
1. The Union's aim is to promote peace, its values and the well-
being of its peoples.
2. The Union shall offer its citizens an area of freedom, security and
justice without internal frontiers, in which the free movement of
persons is ensured in conjunction with appropriate measures with
respect to external border controls, asylum, immigration and the
prevention and combating of crime.
3. The Union shall establish an internal market. It shall work for the
sustainable development of Europe based on balanced economic
growth and price stability, a highly competitive social market
economy, aiming at full employment and social progress, and a high
level of protection and improvement of the quality of the
environment. It shall promote scientific and technological advance.
It shall respect its rich cultural and linguistic diversity, and shall
ensure that Europe's cultural heritage is safeguarded and enhanced.
5. In its relations with the wider world, the Union shall uphold and
promote its values and interests and contribute to the protection of
its citizens. It shall contribute to peace, security, the sustainable
development of the Earth, solidarity and mutual respect among
peoples, free and fair trade, eradication of poverty and the
protection of human rights, in particular the rights of the child, as
well as to the strict observance and the development of
international law, including respect for the principles of the United
Nations Charter.
The EU should uphold and promote the values which are set
out in Article 2 in its relations with non-EU countries.
Comments
http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?
uri=CELEX:12008M003&from=EN
ConsolidatedversionoftheTreatyonEuropeanUnionTITLEI:COMMONPROVISIONS
Article3(exArticle2TEU)
OfficialJournal115,09/05/2008P.00170017
Article3
(exArticle2TEU)
1.TheUnion'saimistopromotepeace,itsvaluesandthewellbeingofitspeoples.
2.TheUnionshallofferitscitizensanareaoffreedom,securityandjusticewithoutinternalfrontiers,
inwhichthefreemovementofpersonsisensuredinconjunctionwithappropriatemeasureswith
respecttoexternalbordercontrols,asylum,immigrationandthepreventionandcombatingofcrime.
3.TheUnionshallestablishaninternalmarket.ItshallworkforthesustainabledevelopmentofEurope
basedonbalancedeconomicgrowthandpricestability,ahighlycompetitivesocialmarketeconomy,
aimingatfullemploymentandsocialprogress,andahighlevelofprotectionandimprovementofthe
qualityoftheenvironment.Itshallpromotescientificandtechnologicaladvance.
Itshallcombatsocialexclusionanddiscrimination,andshallpromotesocialjusticeandprotection,
equalitybetweenwomenandmen,solidaritybetweengenerationsandprotectionoftherightsofthe
child.
Itshallpromoteeconomic,socialandterritorialcohesion,andsolidarityamongMemberStates.
Itshallrespectitsrichculturalandlinguisticdiversity,andshallensurethatEurope'sculturalheritage
issafeguardedandenhanced.
4.TheUnionshallestablishaneconomicandmonetaryunionwhosecurrencyistheeuro.
5.Initsrelationswiththewiderworld,theUnionshallupholdandpromoteitsvaluesandinterestsand
contributetotheprotectionofitscitizens.Itshallcontributetopeace,security,thesustainable
developmentoftheEarth,solidarityandmutualrespectamongpeoples,freeandfairtrade,eradication
ofpovertyandtheprotectionofhumanrights,inparticulartherightsofthechild,aswellastothestrict
observanceandthedevelopmentofinternationallaw,includingrespectfortheprinciplesoftheUnited
NationsCharter.
6.TheUnionshallpursueitsobjectivesbyappropriatemeanscommensuratewiththecompetences
whichareconferreduponitintheTreaties.
https://www.ecb.europa.eu/ecb
/legal/pdf/en_lisbon_treaty.pdf
Thisanniversaryisamomenttolookbackonourcollectiveachievementsandtodiscussthefutureof
theEUat27.FollowingthepresentationoftheCommission'sWhitePaperontheFutureofEurope,
EU leaders are expected to adopt the Rome Declaration, which will feature the Union's past
achievements,presentchallengesandpledgetoworkforunityat27andstrengthencommonactionin
keypolicyareas,tothebenefitofcitizens.
EuropeanCommissionPresidentJeanClaudeJunckersaid:"Ourparentsandgrandparentsfounded
thisUnionwithonecommonvision:neveragainwar.Itwastheirstrongconvictionthatbreaking
downbarriers,workingtogetherandnotagainsteachothermakesusallstronger.Historyhas
proventhemright.For60years,thevaluesonwhichthisUnionisbuilthavenotchanged:peace,
freedom,tolerance,solidarityandtheruleoflawbindanduniteus.Theymustnotbetakenforgranted
andwemustfightforthemeveryday.Ourdemocracy,ourdiversityandourindependentandfree
pressarethepillarsofEurope'sstrengthnoindividualorinstitutionisabovethelaw.TheEuropean
Unionhaschangedourlivesforthebetter.Wemustensureitcontinuestodosoforthosethatwill
followus.Fornow,allroadsleadtoRome.AfterRomeandhoweveritispaved,thereisonlyoneway
forward:Europeanunity."
http://www.eu2016.sk/data/pdf/cultur_programme_EN.pdf
The Commission will also be organising in the months ahead public debates with the European
ParliamentandMemberStates,aswellasonlineconsultations,sothatEurope'scitizenshavetheirsay
andareabletosharetheirviewsonthefutureofEuropeviatheCommissionRepresentationsanda
dedicated website, which will be launched on 25 March. As part of this process, today High
Representative/VicePresidentMogherini,togetherwiththeMaltesePrimeMinisterJosephMuscat,
willtakepartinaCitizen'sDialogueinRome.Followitlivehere.
FormoreinformationontheWhitePaperprocessseethis timeline.Variousaudiovisual products
including60videotestimonialsfrompeopleacrossEuropeareavailablehere.Onsocialmedia,people
canupdatetheirprofilepictureswiththeEU60Twibbon,orevenfoldtheirownEU60Origamidove.
https://ec.europa.eu/epsc/sites/epsc/files/the-european-
story_epsc.pdf
https://ec.europa.eu/commission/sites/beta-
political/files/white_paper_on_the_future_of_europe_en.pdf
http://www.consilium.europa.eu/press-releases-
pdf/2016/9/47244647422_en.pdf
Onbehalfofthecommittee,IwelcomeMr.KevinCardiffwhoistheIrishmemberoftheEuropean
CourtofAuditors.ItistheindependentexternalauditinstitutionoftheEU.Initsannualreportonthe
EUbudget,thecourtgivesitsopiniononthereliabilityoftheaccountsandthelegalityandregularity
ofthetransactionsthatunderlinethem.Thisyear,thecourthasmadeinterestingcommentson
strategicallyaligningandmanagingtheEUbudgetandwelookforwardtodiscussingthemwithMr.
Cardiff.MemberstravelledtoLuxembourgtovisitthecourttwoyearsagowhenwemetbothMr.
CardiffandMr.FennessyandIamdelightedtheyarepresent.Itwasaninterestingvisittothecourt
andwelearnedagreatdealaboutitsworkings.Wearelookingforwardtohearingabouttheannual
report.
Beforeweproceed,Iremindmembersofthelongstandingparliamentarypracticetotheeffectthat
theyshouldnotcommenton,criticiseormakechargesagainstapersonorpersonsoutsidetheHouses
oranofficialeitherbynameorinsuchawayastomakehimorheridentifiable.Byvirtueofsection
17(2)(l)oftheDefamationAct2009,witnessesareprotectedbyabsoluteprivilegeinrespectoftheir
evidencetothecommittee.IfwitnessesaredirectedbytheChairmantoceasegivingevidenceona
particularmatterandtheycontinuetodoso,theyareentitledthereafteronlytoqualifiedprivilegein
respectoftheirevidence.Witnessesaredirectedthatonlyevidenceconnectedwiththesubjectmatter
oftheseproceedingsistobegiven,andtheyareaskedtorespecttheparliamentarypracticetothe
effectthat,wherepossible,theyshouldnotcriticiseormakechargesagainstanyperson,persons,or
entitybynameorinsuchawayastomakehim,heroritidentifiable.
IinviteMr.Cardifftomakehisopeningremarks.
Mr.KevinCardiff:
ThisisthethirdmeetingIhavehadwiththecommittee,butmypredecessorshavealsohadmeetings.
Wehavethegreatpleasureasmembersofthecourtoftryingtoengagewitheverynationalparliament.
Someparliamentsdotheengagementmoreorlesslikethis,asameetingwiththeEUcommitteeofthe
relevantparliament,whileothersdonotdoitall.Theydonotthinkthisisimportantforthem.
WecallourselvestheguardiansoftheEUfinances,butofcoursewearejustonepartofanelaborate
structurebothformakingpaymentsfromtheEUbudgetandforprotectingthebudgetfrom
inappropriateuse.Thepurposeofthissessiontraditionallyistotalkmostlyaboutourannualreport.
Thereportisthecourt'sassessmentofthelegalityandregularityofpaymentsduringtheyear,butwe
alsodoasetofotherreports.Wedoaspecificannualreportoneachofthe40orsoEUagencies.We
dospecialreportssimilartotheComptrollerandAuditorGeneral'svalueformoney,VFM,reports
lookingalittlemoreattheeffectivenessofthespendandnotjustthelegalityofit,andwegive
opinionsonforthcomingEUlegislation,usuallywhenweareasked.Thismeansinatypicalyearwe
mightproducebetween70and80separateproducts,butofallofthem,theannualreportisthemost
significantandittakesapproximatelyhalfourresourcestoproduce.
MostEUspendinginIrelandcomesunderthenaturalresourcesheadingssuchasagriculture.The
competitivenessingrowthandjobslineinthebudgetalsoprovidesfundingtoIreland.Thatincludesa
greatdealofresearchspending.Ontherevenueside,Ireland'scontributionisrelatedtothesizeofthe
economyandVATreceipts.In2014,forthefirsttime,itbecameanetpayer.Therearedifferentways
ofcalculatingthis.OnsomeCommissioncalculations,thatmightbeayearortwoawayyet,but
basicallyweareanetpayercountrynow,andfromwhatonehears,thatwillbegintoeffectthepolicy
mixinIrelandoverthenextfewyears.Traditionally,netpayercountriesaremoredemandinginterms
ofcontrolstructures,valueformoneyandcontrollimitationoftheEUbudgetwhereas,naturally,the
recipientcountrieshaveanincentivetopreferanexpansionofthebudget.
ThepeakyearfornetreceiptsforIrelandfromthebudgetwas1997,andittailedoffsinceaseconomic
growthimprovedrelativetootherEuropeancountries,while1991wasthepeakinthereceiptsin
percentageofGNPtermsat6%.Innettermsthisyear,theEUspendinIrelandismoreorlessneutral
butitwasatonepoint6%ofGNP.Whenweneededitbackthen,wegotquitealot.Ireland'sshareof
contributionstotheEUbudgetisapproximately1%ofthetotal.Thesixlargestcontributorsaccount
forthreequartersoftherevenue.Germany,France,ItalyandtheUKcontribute60%ofthebudget,and
thereforetheyarethebigpayers.Whenwedoourannualreport,wetakefromthishugespendof145
billionapproximately1,200transactions.Theyaresampledonarepresentativebasismoreorless
randomlywithinparticularconstraints.Thismeansthatbecausewesamplebytheeuro,ifatransaction
istentimesasbigasthenextone,ithastentimesasmuchchanceofgettingpickedupinoursample.
Wetrytomakeitrepresentative.Thismeans,though,thatforsmallindividualmemberstates,the
numberoftransactionsselectedwouldberelativelysmall.
Thatmeanswecannotmakebig,sweepingconclusionsaboutthelegalityandregularityoftransactions
inIrelandbecauseinthecourseofayearwemightonlysamplesixoreight,whichistheappropriate
proportionrelativetotheoverallbudgetforIreland.Wegivesomedatabutitisnottobeusedtodraw
largeconclusions.Whilewemakegreatefforttoensureoursampleoftransactionsisgenuinely
representative,forthesmallercompaniesespecially,thenumberofsampletransactionsistoosmallto
makeacountrybycountryconclusion.
Thisyear,asinallpreviousyearsinrecentdecades,wefindtheaccountsoftheEuropeanUnionare
trueandfairandaproperrepresentationoftheUnion'sbalancesheet,incomeandexpenditureoverthe
year.Peoplesaywedonotsignoffontheaccountsbutinfact,inprivatesectoraccounting,oncethe
auditorhassignedoffonthe"trueandfair"criterion,thejobisprettymuchdone.Onthatbasis,the
Unionisgettingapositiveoutcomefromouraudit.Thetreatyrequiresustogomuchfurtherthanthat
andalsotoconsiderthelegalityandregularityofindividualtransactions,whichiswhywegointoso
muchdetailinthesampleofindividualtransactionsacrosstheUnion.Weauditboththerevenueand
theexpenditureoftheEUbuttherevenuesideisrelativelysimpleitisallbetweengovernmentssoit
tendsnottohavebigerrors.Thisyearagainwefoundthattherevenuesidewasfreeofmaterialerror.
However,wefoundanerrorrateof4.4%forexpenditure,whichisalmostexactlythesameaslastyear.
Lastyearitwas4.5%,soallowingforsamplingandsoforth,thatisprettymuchexactlythesame.
TheEUhasvariousownresources,thatis,streamsofincome,butthetotalpermemberstateis
determinedbyreferencetoeachmemberstate'snationalincome,GNI.Thisisbyfarthemost
importantelementofalltherevenuecalculations.Whileinthetransactionsthemselves,revenueisfree
ofmaterialerror,wedrawattentioninthisannualreportandpreviousspecialreportstothefactthat
therecanbebigchangesintheGNIdata.ThetransactionisbasedontheGNIfigures,whichare
subjecttorevision.Thoserevisionscanbequitelargeandtheyrelyalotonthequalityoftheproduct
ofthecentralstatisticsofficeofeachrelevantmemberstate.Attheendof2014,therewasarowabout
asudden,supposedlyunexpecteddemandforadditionalfundsfromtheUK.Whatactuallyhappened
wasthataknownstatisticalproblemwhichhadbeenfesteringforsomeyearswassuddenlysolvedand
thesolutionmeanttheUKhadabiggernationalincomethanithadpreviouslyreportedwhichmeant
thattheamountithadtopaywasgreater.Therewasabigrushtocomeupwithacompromisesolution
thatspreadthepayments.Thebiggestriskontherevenuesideisnotthattheactualtransactionswillbe
wrongbutratherthattheunderlyingdatawillshiftandchange.IfonelooksattheIrishCSOdata,the
firsttwoorthreeroundsofGDP,GNPorGNIdataarealwaysmarkedasprovisionalandoftenchange
asnewinformationbecomesavailable.TheEUfigurestakeaccountofthechangesforpreviousyears
inthisyear'spaymentbutobviouslyifthereisaproblemthathasfesteredformanyyears,theamount
canbuildup.Wehavelookedatthisinaspecialreportandmadesomerecommendationsbutthemost
importantthingisthatthesereservationsorfesteringproblemsaredealtwithasearlyaspossible.
Theerrorrateonthespendingfigureofapproximately4.5%variesbytypeofspending.Itisimportant
tonotetheerrorrateisnotanestimationoffraudorwaste.Isayiteveryyear.
DominicHannigan(MeathEast,Labour)
Weunderstandthat.
Mr.KevinCardiff:
Iwillnotgothroughit.Itisnonethelessimportantbecauseitismoneythat,withintherules,shouldnot
havebeenspent.Thebiggestareaofspendisnaturalresources,mostlyagriculture.Inagriculture,the
mostfrequenterrorwastheoverdeclarationofparcelsofland.Oneofthisyear'sexamplesisthe
declarationinSpainofamotocrosstrackasbeingallagriculturalland.Mosterrorsarenotlikethat.
Mostofthemare3%,4%or5%overdeclarations.Itisnotthatmillionsoffarmersaremakinghuge
fraudulentclaims;itisthattherearemanysmalloverclaims.
DominicHannigan(MeathEast,Labour)
IsMr.Cardiffreferringtoafarmeroverestimatingthesizeofhisholding?
Mr.KevinCardiff:
Iamreferringtoafarmeroverestimatingthesizeofhiseligibleholding.Forexample,agrazeable
fieldingoodagriculturalconditionwillbeeligiblebutiftherearepatchesofwoodlandorrockthatare
notgrazeableorifthereisapermanenttrack,theyshouldbededucted.Whenwegooutandaudit,we
lookatallthosefeaturesandwesaytheyhavetobetakenout,butweallowa4%marginoferror.We
donotstarttocountsomethingasanerroruntilitisoverdeclaredby3%,sothereissomesubjectivity.
Someonesaidtometodaythatsomethingthatisgorseatonepointintheyearmightchangeovertime.
Nonetheless,ithasbeenpossiblefortheIrishpayingagenciesandtheirownauditorstomake
reasonablygoodassessmentsofthesethings.Thatishowweestablishanerrorrate.
Infisheriesandruraldevelopmentasawhole,thelargestsourceoferrorwasnoncompliancewith
environmentalconditions.Whenonesignsupforaruraldevelopmentgrant,therearerequirementsto
dothingsinaccordancewithenvironmentalrules.Themostfrequenterrorinthatareaisthatthose
environmentalrulesarenotcompliedwith.Therearecrosscompliancerequirementsfordirect
paymentswhichalsogiverisetoerrors.Atypicalexampleisthatmorephosphateornitrogenthanis
allowablehasbeenspreadonafieldorthatbufferstripshavenotbeenrespected.Thebufferstripisthe
stripbetweenawatercourseandafieldthatshouldnotbesprayedatall.Thosekindofcross
complianceeventsareregular.Theruleswillchangeandcrosscomplianceerrorswillnolongercount
towardsourerrorratebecausethefinancialregulationshavechanged.However,wewilldoaspecial
auditofthosetoestablishtheeffectofcrosscompliancerulesontheenvironmentalelementofthe
agriculturalpolicy.
Europeistryingtodotwothingsatonceanditisdifficulttoachieveboth.Itistryingtosupportthe
farmerandtheruralcommunitywhilealsoensuringthattheenvironmentisprotected.Whenwelooked
atwatercoursesandsoforthwefoundthatitisdifficulttodosowithoneinstrumentthesinglefarm
paymentbymakingitconditionaloncompliancewiththevariousrules.Werecommendedthat
Europeneedsmorethanjustthisoneinstrument.Atpresent,asfarastheenvironmentisconcerned,
oneofthebiggestleversistheagriculturalpayments.Itmightbetoomuchtoaskofasinglepolicy
instrumenttocoversomanydifferentelements.
However,wewillbelookingatthatissueinanauditshortly.
Intheareaofeconomic,socialandterritorialcohesion,thistypeofspendingofteninvolvespurchases
oflargeservicesinfrastructure,suchasroadsandthatkindofthing.Inthisarea,unliketheagriculture
area,thelargestsourceoferrorisnoncompliancewithprocurementrules.Ifwearespending
Europeanmoney,wehavetoapplybothEuropeanrulesand,legally,thenationalprocurementrules.
Manyoftheerrorsthatarefoundaresimpleerrorsinprocurement.BothEUrulesandnationalrules
arecomplex,anditisallveryinconvenientforthebeneficiary.However,ifwethinkaboutit,countries
likeIrelandmaybehugeexportingcountriesthatexportgoodsbutalsoservicesandrelyonaccessto
marketsinotherpartsofEurope.Forexample,ifIrishconstructionfirmswanttodobusinessin
Poland,theyareentitledtogetthesameaccesstothatmarketasthePolish,sotheprocurementrules
havetowork.Inthiscase,itisnotaboutwhetherthemoneywasspentasintended,inthatitwillstill
bespenttobuildtheroad,butwhetheritisbeingspentinaccordancewiththeprocurementrulesto
supporttheSingleMarketandwhetheritisatruecommonmarket.Thatiswhytheserulesare
particularlyimportant.
Intheareaofcompetitivenessforgrowthandjobs,wherethereisalotofsocialspend,wefoundthat
incorrectlycalculatedpersonnelcostsandunsubstantiatedclaimsfortravel,wherepeoplearepaidto
travelbackandforth,contributedtotheerrors,andthiswasespeciallythecasewithsmallandmedium
enterprises.Inthecourt,wesaythereisaneedtosimplifythesysteminorderthattheSMEscancope
withit,andtheCommissionsaysthesame.Everyoneisstrivingtofindthebalancebetweensimple
systemsandcontrolsthatworkwhileensuringthepeoplewhogetthemoneyarespendingitinways
thatareconsistentwiththepurposeofthefunds.Forexample,wefoundcaseswheretrainerswere
beingpaidmorethantheapprovedrateandpaidformorehoursthantheywerefulfilling.Therewere
reasonableexplanationsforthatwhichhadtodowiththewaytheparticularSMEranitsnormalday
todaybusinessandsoforth,butitdoesnotalwayshappenthatSMEsfindthemselvesabletostickto
therules.Iftheydonotsticktotherules,thenEuropeisoverpayingforparticularservices,andthat
meanssomeotherbeneficiarydoesnotgetthemoney.
AdministrationoftheEUitselftendstoberelativelysimpleanditistheonlyareaofspendingwhichis
consistentlybelowthematerialitythresholdof2%.Thereisstillroomforimprovement,mainlyinthe
processforpayingallowancesandsalaries.Whentalkingaboutadministrativespend,allowancesand
salariesareahugepartofthetotal.Ofcourse,inthisannualreportweareauditingtheamountspaidon
administrationandhowthetransactionsaredone.Wearenotevaluatingtheproduct.
DominicHannigan(MeathEast,Labour)
Thecourtisnotsayingitisefficientbutisjustlookingatwhether
Mr.KevinCardiff:
Yes,forthepurposesofthisaudit,wearelookingatwhetheritislegalandregular.
DominicHannigan(MeathEast,Labour)
Itcouldseemquitehighcomparedwithwhatwearespendingoncompetitiveness,givenitis9billion
versus13billion.
Mr.KevinCardiff:
Administrationis9billion,whichIacceptishigh.
DominicHannigan(MeathEast,Labour)
Linktothis:Individually|Incontext|Oireachtassource
Iaccepttheaudithasaverylowerrorrate.
Mr.KevinCardiff:
OntheareaofglobalEurope,whichisEurope'sengagementwiththeexternalworld,mosterrors
involvedexpenditurethatwasnoteligibleandshouldnothavebeenpaidinthefirstplace.For
example,itmighthavebeenoutsidetheperiodthemoneywasspentbutnotwithintheperiodwhenit
shouldhavebeenspent.Forthisarea,theerrorrateisabout2.7%,anditisusuallyverylow.One
wouldexpectittobehighindevelopingcountriesbecauseonewouldexpectmoreerrorandless
efficiency.Infact,thesetransactionsaremostlyEUtogovernment,whichmeansmostofthemoneyis
passeddirectlyfromtheEUtotherelevantgovernment.Thatisaverysimpletransaction,sotherewill
notbemucherror.Again,forthepurposesofthisaudit,wedonotseehowmuchvaluethatdeveloping
countrygovernmentthengetsoutofthemoney,butwedospecialreportsinthecourseoftheyearto
lookatthosekindsofissues.
AsIsaid,theoverallestimatedleveloferrorwas4.4%,whichisstablerelativetorecentyearsbutisa
gooddeallessthaninthemid2000s.Whilewekeepsayingthatthingscouldbebetterstill,the
Commissionresiststhisideaandsometimesthememberstatesresistitaswell,andwehavetoexplain
whywethinkthat.Wethinkit,first,because80%ofexpenditureisdonethroughmemberstatesand
ourauditorssaythatmostoftheerrorstheyspotcouldhavebeenspottedatthememberstateleveland
correctedbeforeouraudit.Thatseemstoustobereasonableevidencethat,evenwithoutverygreat
changeinthecontrolsystemsthemselves,thingscouldbebetter.Second,althoughtheerrorrateis4%
to4.5%,reflectingthesmallsizeoftheaverageerrorfound,insomeareasthenumberoferrorsfound
ishuge.Inmanyareas,thereareahugenumberofsmallerrorscontributingtotheerrorrateinsome
partsofthebudget.Irecallfromlastyearthatin60%oftransactionswewouldfindsmallerrors.For
example,infourIrishtransactionsthisyearintheagriculturalarea,threehaderrors.Eachoftheerrors
wasverysmall,sotheydidnotcontributegreatlytotheerrorrate,butwehavetoaskwhywekeep
seeingthisleveloferror.Thosetwothingstogethersuggestthat,evenwithoutahugeadditionalspend
oncontrolsystems,thereismorethatcouldbedonetopushthatdown.
TheCommissiondoesfindandcorrecterrorsandthememberstatesdofindandcorrecterrorsbefore
wegettotheaudit.Ifitwasnotforthat,theerrorratewouldprobablybe1%or1.5%higheragain.
DominicHannigan(MeathEast,Labour)
Toclarify,thoseerrorratesdonotrelatetothenumberoferrorsinthetransactionsbuttothemonetary
value.
Mr.KevinCardiff:
Thatiscorrect.Totakeanexample,iftheChairmanwasabeneficiaryandwassupposedlegallyto
receive100butactuallyreceived105,thatisa5%error.However,ifwetake100peoplelikethe
Chairman,wemightfindthat60ofthemreceivedmorethantheyshould,butnonereceivedalarge
overpayment,sotherecouldbea60%rateoffindinganerror,butthecostoftheerror,whichiswhat
wemeasure,isonlyperhaps5%.
Iwillnotgothroughtheareasthatareupordownabitthisyear.Onethingwehavefoundthisyearis
thatwecannotsayclearlywhatmakesthebigdifferencebetweenareaswithhigherrorratesandareas
withlowerrorrates.Entitlementprogrammes,whereanindividualorabeneficiaryismoreorless
entitledtoapaymentonthebasisofrelativelysimplecriteria,haveverylowerrorrates.However,
reimbursementprogrammes,whereabeneficiarygoesoffandspendsaccordingtoparticularcriteria
andthencomesbackandclaimsthatmoney,haveanerrorratethatisusuallyover5%,which,roughly
speaking,makesthemtwiceaserrorprone.TheCommissionisactivelylookingatwaystosimplifyall
theschemes,whichwe,ofcourse,support.Wewouldsayitisimportantnottosimplifyituntilthe
pointwheremoneygetspassedover,regardlessofwhetherthebeneficiaryisdoingthethingsEurope
wantsdone.Withinthatconstraint,weverymuchsupporttheeffortsthatarebeingmadetosimplify
thesystems.
TheCommissionwillsoonissueamidtermreviewofthe20142020multiannualspending
framework,probablyattheendof2016.
Inadditiontomaintainingcontrolsonthespend,itwillalsoincreasefocusontheperformanceandon
gettingasmuchvalueaspossiblefortheamountspent.Thisisareasonablehopeasthenew
Commissionhasmadeperformanceafocusandisworkingonanewperformancebudgetingsystem.
Somewhatoptimistically,ithopestohaveresultsfromthisin2016.However,performancebudgeting
andtyingexpendituremorecloselytoactualoutcomesareverydifficultsoIwouldnotblamethe
Commissionifittookafewmonthslongerthanthis.Wehavebeensayingthisyearthatweneedan
entirelynewapproachtoEuropeanspending,withamuchgreaterfocusthevaluewederivedfromthe
moneys.ThisispushinganopendoortoanextentbecausetheCommission,whichspendsallofthese
moneysdirectlyorindirectly,isthinkinginthesamedirection.Thequestionishowfastitwillbeable
tomoveandhowmuchsupportandcooperationitwillgetfrommemberstates.
The2014EUaccountspresentatrueandfairview.Theestimatedleveloferrorremainspersistently
abovethe2%materialitythreshold,soitisbigenoughtomeasureandbeconcernedaboutbutithas
notincreasedinrecentyears.Reimbursementspendingismoreaffectedbyerrorthansimple
entitlementspending.TheeffortsoftheCommissionandmemberstatestomakecorrectionsmakesa
realdifferencebutthereisscopeforfurtherimprovement.Weknowthisbecausewekeepfindingcases
whichcouldhavebeenspotted.Whileperformancereportingwillnowbethesubjectofmuchmore
focus,itisstillrelativelyweak.
DominicHannigan(MeathEast,Labour)
IthankMr.Cardiff.Iwillbeginwithacoupleofquestions.Thefirstiswithregardtothecommentthat
IrelandisnowanetcontributortotheEuropeanUnionbyafactorofapproximately100milliona
year,or20foreveryman,womanandchildinthecountry.Bearinginmindwearestillasituation
wheretheeconomyisrunningadeficitandwespendmoremoneythanwetakein,howdoesournet
contributioncomparewithothercountries?IsIrelandtheonlycountryindeficitthatisborrowingmore
moneytopayintoEuropeorareothercountriesinasimilarposition?
Mynextquestionisontheerrormarginsonslides16and17.Slide16showsthreeyearsoferror
marginsfortheEUbudgetandslide17justshows2013and2014.DoesMr.Cardiffhaveaviewon
whetherthesearestochasticchangesorwhetherthereisatrend?Icannottellfromjustthreedata
points.Iamnotsurethisisnotjustarandomwalkthrougherrormarginsorwhethertheytellus
somethingonwhichwecandrawconclusionswithregardtowhetherthingsareimprovingincertain
areasordisimprovinginothers.IamnotsureMr.Cardiffhasthefigureswithhimbutnodoubthehas
examinedthembackatbase.Whenwelookatthetrendoversevenoreightdatapoints,whatdoesit
telluswithregardtotheoverallEuropeanUnionbudgetandthespendingareas?Doweseeany
improvementorisitjustalevelofrandomnesswithregardtotheseerrormargins?
Addyourcomment
JoeO'Reilly(CavanMonaghan,FineGael)
Linktothis:Individually|Incontext|Oireachtassource
IwelcomeMr.Cardiffandhisteam.IechotheChairman'sfirstquestionbecausemanypeoplewillbe
anxioustoknowtheprocessbywhichwehavearrivedatbeingnetcontributorsandwillbeconcerned
tothinkweareborrowingtocontribute.Theywillalsobeconcernedbecausetheyarestillsufferingthe
effectsofourextraordinaryandprofoundrecession.PeoplewanttoknowthepositionandMr.
Cardiff'sthoughtsonthematterwillbeimportant.
Thenaturalresourcesheadingispredominantlywithregardtoagriculture.Mr.Cardiffstatedtherewas
a3.6%estimatedleveloferror.Healsostatedthereisverylittleevidenceoffraudandthatgenerallyit
isnotnecessarilyfraudulentbut,rather,theoverdeclarationoflittleparcelsoflandtodowith
traditionalturbaryrights,bogland,traditionalrightsofwayandtraditionalfarmstructureswhichgo
backintitleandontheLandRegistryforages.Myexperiencefromconstituencyworkisthatseveral
thingshappen.Farmersaredeniedtheirpayments,whichrelatetomaintainingasustainablesupplyof
goodqualityandaffordablefood.Weallknowthisbutitmeritsrepeating.WeneedtheCommon
AgriculturalPolicyanddirectpaymentstofarmerstoachievetheseobjectives.Inseekingthesedirect
payments,farmersareheldupindefinitelyoverthesesmalloftenreallyminuteparcelsofland.It
delaystheirpaymentsformonthsandputsfarmersthroughenormousmentaltrauma.Theprocessis
alsoexpensive.Mycolleague,DeputyKyne,mightbeinabetterpositiontoevaluatethisbecauseof
someofhisprofessionalworkinthepast.Iknowitputspeoplethroughenormouspersonaltraumaand
agreatdealofexpensebecausetheyareobligedtobringinprofessionalassistance.Iamawareofthis
practicallyfrommyworkanditisnotacolourfulexaggeration.Isthepursuitofpeopleinrespectof
littleparcelsoflandcomprising,forexample,ahedgerow,alittlebitofwhatwastraditionally
common,aboglandareaorarightofwaynotafruitlessactivityinmanyrespects?Isitnotalmost
overbureaucratisation?Weknowwhatisinvolvedisnotcorruptpracticeandnoneofuswantsto
sustainitbecauseweareallanxiousthat,forourtaxpayers,thereisprudentandjudiciousspendingof
moneys.However,isthisnotaninordinatewitchhuntwhichcausesenormoustraumaandexpenseand
isalmostafruitlessendeavourbecauseitrelatestolittleparcelsofland?Isitnotquestionablewhenwe
considertheentireprocess?WillMr.Cardiffcommentonthisanddoesheagreeitiswasteful?
Therearedomesticissueswithregardtothetimingofthedigitisationofthemapsandthattheprivate
companydoingitshouldbeactingmuchmorequickly.Iacceptthisisadomesticquestionbutperhaps
Mr.Cardiffwillcommentonit.
Myfundamentalquestiononagricultureistoaskwhetherwearenitpickingandchasingsomethingfor
thesakeofchasingit.Isthisnotanindustryinitselfandaludicrousimpositionontheprimaryfood
producerswhoarekeepinghighqualityfoodonpeople'stablesatacompetitiveprice?
Thefigureof8.8billionwasmentionedwithregardtoadministration.Oneofthereasonsforalevel
ofalienation,disenchantmentandvoternonparticipationinEuropeanelectionsistheperceptionthe
EUhasbecomeamonstrousbureaucracyandadministrativestructureandsomethingofanalbatross
aroundthenecksofthememberstates'taxpayers.WillMr.Cardiffcommentonthisandonthe
justificationof8.8billioninadministrativecharges?
IwishtoaskaboutthedomesticsituationinIreland.IsthepopularbelieftruethatIrelandisvery
compliantalmostovercompliantandthatwehavetoomuchofacapdoffingattitudetoEurope?
Arewetoorespectfulwithregardtoidioticbureaucraticrulesanddowefollowthemtoourown
detriment?DoesMr.CardiffseeevidenceofahigherlevelofcomplianceinIrelandintheaudited
figures?DoesheseesomethingtojustifytheviewthatwearetoogoodEuropeansinthisrespect?
Myfundamentalquestiononagriculturereallybothersme.IhaveaconstituencyofficeinCavanof
whichIamparticularlypersonallyproud.
Ithasaneffectiveandwonderfulstaff.Theyspendaninordinateamountoftimedealingwithsmall
farmersplaguedbythisissuebecauseofmapsoflittleparcelsoflandthat,thoughoverestimated,are
notevenafractionaslargeasthisroom.Theproblemdelaystheirentirepayment,traumatisesthem
andcoststhemafortune.
SenKyne(GalwayWest,FineGael)
IwelcomeMr.Cardiffandtheofficialsfromthecourt.Regardinggrossnationalincome,GNI,isthe
contributionfromeachcountrytotheoverallbudgetcalculatedonaproratabasis?Ipresumethat
economiespaymoreastheygrowandlessastheyshrink,butthatthereisanoverallprorataequation.
DeputyO'Reillytouchedontheissuesofnaturalresourcesandagriculture.Iwelcomethereductionin
theoverallerrorratefrom4.4%to3.6%between2013and2014.Thefigurefordirectsupport
paymentsis2.9%,lessthantheheadlinefigurefornaturalresources,whichisitselfimportant.Iwill
notgooverthosemattersagain,butthereseemtobeissueswithoverdeclarationsyearonyear.Each
year,Ibelievewewillcometotheendofthemappinganddigitisationprocess.Doallcountries
participateinsatellitemapping?ThereweresuspicionsthatonlyIrelandwasinvolved,butIamsure
thatisnotthecase.Aretherepersistentoffendersorsituationsarisingindifferentcountries?
Regardingpublicprocurement,IrishcompanieshavetheoptionoftenderingforEUworkdepending
onthepriceofthejob.StorieshavecometolightincertaincountriesofIrishcompanies,among
others,winningcontractsthatweresubsequentlysubjectedtolocalcharges,localarrangementsorlocal
interference,withextramoneybeingsought.Thisresultedinoverspending,furtherclaimsor
contractorspullingoutofjobs,leadingtoretenderingandhighercosts.Havetheseissuesbeen
investigated?Dotheyformapartofthereport?Isitacommonplacepracticeormoreofanisolated
situationormyth?
Arethecourt'srecommendationsbinding,orisitthecasethatitsubmitsareportanditisforeach
memberstatetofollowuponthat?Cancourtproceedingsbeenacted?
Mr.KevinCardiff:
Irelandisanetcontributor,withitslargestreceiptbeingundertheCommonAgriculturalPolicy.Our
paymentinisbasedonournationalincomeandourreceiptsarebasedonothercharacteristics.
Naturally,beinganagriculturalcountry,wegetmorefromCAPthanothercountriesthathaveless
agriculture.Thisprobablymeansthat,iftheonlybasisforjudgmentisthenetposition,wehavedonea
gooddealbetterovertheyearsthanothercountriesthataresignificantlypoorer,butthatisbecause
theydonothaveagriculturewhilewedo.CAPforms40%oftheEUbudget,sowegotalargechunk
ofthatbudgetbecauseofouragriculture,whileothercountriesgotstructuralfundsthatdidnotamount
toasmuch.Ifpeopleweretoseethefigures,theywouldbelievethatIrelandhaddonewelloutofthe
EU.Evenwithourcurrentannualincome,weseemtobedoingwell.Therearecountriesinthesame
incomecategorythataregettinglessorpayingmoreinnettermsbecausetheydonothavethe
agriculturalsideofthematter.IhavethefiguresinmypackandIwillsendthemtothecommittee.
Historically,wehavedonewellifthatjudgmentisonlybasedonnetcontributions,butthatisnotthe
fullbasis.CAPisthereforareasonnamely,Europewantedfoodsecurityandruralcommunitiestobe
retained.Wehavecontributedmorethantheaveragetothat.
Thequestionofwhywearehittingthenetcontributorpositionnowwhenpeoplearestillreelingfrom
severalbadyearscomesdowntoasimpleformula,aswasmentioned.Themoneysexpectedare
portionedoutatthebeginningofaperiodandeverycountrypaysacertainproportionofitsGNI.For
Ireland,GNIhasincreasedmorequicklythanexpected.IdonotknowthefiguresbecauseInolonger
haveresponsibilityforthem,butIbetthatmyformercolleaguesintheDepartmentofFinancewerenot
expectingtohitnetcontributorstatusforanotheryearortwo.In2006itlookedasthoughwewere
abouttohitit,butournationalincomethenfelloffthecliffandweremainednetrecipientsforafew
yearsmore.Wearenowanetcontributorbecauseourgrowthrateshavebeenhigherthanexpected.It
isanegative,butonlybecauseofapositivedevelopment.
Apartfromagriculture,manypaymentsarejudgedaccordingtotheneedsofthecountriesconcerned.
Asatradingcountry,weoughttobenefitovertimefromthefactthatcountrieslikePoland,theCzech
RepublicandBulgariawillbebroughtuptotheEuropeanaverageincomelevelsbecausetheywillthen
purchasemoreofthegoodsandservicesthatmoredevelopedcountrieslikeIreland,Germanyandthe
UKproduce.JustastherestofEuropefeltinthe1980sand1990sthattherewassomebenefitin
providingfundsforIrishdevelopment,weareprovidingfundsforPolish,BulgarianandRomanian
development.
DominicHannigan(MeathEast,Labour)
DidEuropehavetoborrowtofundus?
Mr.KevinCardiff:
Itdid.UndertheEuropeanFinancialStabilisationMechanism,EFSM,whichcontributed
approximatelyonethirdofourbailoutpackage,everycountryintheEUcontributed.Underthe
EuropeanFinancialStabilityFacility,EFSF,everycountryintheeuroareacontributed.UndertheIMF
support,allEuropeancountriescontributedbecausetheyweremembersoftheIMF.Forexample,
Germanyprobablyaccountedfor22%oftheEFSFcontribution,19%oftheEFSMcontributionand
approximately6%ofthefundsthatwegotfromtheIMF.Somecountriescontributedthricewhile
otherscontributedonceortwice,buteveryonecontributedsomethingtoourloan.Thankfully,itlooks
likeeveryonewillgetthatmoneybackintheamountsandatthetimeexpected.Justasthereisa
reasonofsolidarityforustomakecontributionstocohesionanddevelopmentspendinginother
memberstates,therewasareasonofsolidarity,aswellasagoodeconomicreason,forthemtosupport
usthroughourperiod.
Reachingnetcontributorstatusnowisasimplearithmeticevent,inthatourincomehasincreasedand,
assuch,sodoesourcontribution.Overtime,though,itappearsthatIrelandhasdonereasonablywell.
Onthequestionofwhetheritisfruitlesstopursuepeopleoversmallamounts
JoeO'Reilly(CavanMonaghan,FineGael)
Oververysmallparcelsoflandthatareeffectivelyundertheownershipof
Mr.KevinCardiff:
Onemustconsidertheperspectives.Ihavebeensenttorepresentagroupofauditors.
Onecanimaginethatweareconcernedwithidentifyingtheerrors,andwhenwedo,wereportthem.A
coupleofyearsagowefoundquitealotoferrorinthelandparcelidentificationsystemsinIreland.
MaybetherewasanelementofbadtimingfromIreland'spointofview.Thesystemswereinthe
courseofimprovementbutwecaughtthembeforetheyhadimproved.TheCommissionfoundthe
samething.Itisnot,incidentally,theCourtofAuditorsthatlooksformoneyback.ItstheCommission
andthememberstatesthatdoso.TheCommissionputaveryhighnumberonitandIthinkitwas118
millionorthereabouts.
Mr.EdwardFennessy:
Itwas180million.
Mr.KevinCardiff:
TheIrishauthoritiesnegotiatedthen.Inparttheynegotiatedonthebasisthattheywereimprovingthe
systems.Theywereincreasingthelikelihoodthatthiswouldnothappeninthefuture,thattherewould
notbeasmanyoverclaimsinthefuture,andtheymanaged.IwasnotpartytoitbutIunderstandthere
wasadebatelastweekintheOireachtasandthatthesumwasreducedfroma180milliondemand
downtoabout45millionor46million.Isuspecttheywouldnothavebeenabletodothatunless
theywereabletoshowthattheywereimprovingthesystemsforthefuture.
Whetheritisappropriatetopursueverysmallamountsisavalueformoneyjudgmentinitself.Itisa
judgmentwhetherthegainfromchasingthatisworththecandlerelativetothepaincausedtothe
individualandalsothesheeradministrativeburdeninthat.Wewouldnothaveanythingtodowiththat
decision.If,throughoutEurope,wefoundthereweremanyoverclaimerswhonevergotpenalised,we
wouldsaythatisaproblembecausethenthereisnoincentive.IntheFrenchcase,whereonasimilar
basistheyhavebeenaskedtopayabout1billionin2014
Mr.EdwardFennessy:
Itis1.1billion.
Mr.KevinCardiff:
Asumof1.1billionisahugeamountofmoney.TheFrenchhaveachoice.Dotheytrytopaythat
outfromtheExchequerorrecoupsomeofitfromthefarmerswhooverclaimed?Iftheyrecoupit,two
thingsaresuretohappen.First,therewillbepainamongthefarmingcommunity,includingsmall
farmers.Second,thereisalowerlikelihood,althoughIdonotknowifitisamuchlowerlikelihood,
thatthesamepeoplewilloverclaimagain.IntheCourtofAuditors,whenwecommentonthesethings,
weusuallysaythatifthereisazeropenaltyforoverclaimsorzeroimpactforoverclaimsonthe
individual,theincentiveproblemprobablyhasnotbeendealtwithsufficiently.
Onthe8.8billionforadministration,IsupposeIampartofthatsumandsoaremycolleagues.Itis
probablynothugerelativetothescaleoftheeffortthatisinvolvedintheEuropeanUnion.Europe
spends145billionanditisameasureofitspowerwithintheEuropeansystem.Themoneythe
EuropeanUnionhasisleveraged.Italsohasahugeamountofleveragethroughitslegislationand
regulationfunctions,sothatmeansstateaidrules,financialsupervisionrules,workingtimerulesand
allthosethingsthatarecoordinatedatEuropeanlevel.
Itisprobablymoreofapoliticaljudgmentwhetheritisworthwhile,andsomepeoplehavedifferent
views.Letusputitthisway:8.8billionisabout7%ofthetotalspendandtheremaining93%isbeing
passedtobeneficiaries.Whetheritissufficientlywellmanaged,wefindmanyproblemsinthe
management.IfweweretosaytotheCommissionthatithastoimprovethemanagementofthat
spending,itwouldprobablysayitneedsmorestafformoreadministration,notless.Sometimesit
wouldsaymorebureaucracy,notless.Atthemomentitistryingtofindwaystosimplify.Itisa
balancedjudgment.Itisexactlythesamejudgmentasmembersmustmakehereasregardsthescaleof
theIrishadministration.TheEuropeanUnion'ssystemisnotaUKkindofstructure.Itisnotcomprised
of100,000or200,000civilservants.Ithinkitisabout40,000people.
Mr.EdwardFennessy:
Itis14,000.
Mr.KevinCardiff:
TheIrishsystemhasabout30,000civilservants.Forourbudget,whichisaboutthesizeofIrishGDP
andthereforeagooddeallargerthanthesizeoftheIrishnationalbudget,theEuropeanCommission
hasastaffinglevelthatisproportionatelyalotlowerthananIrishorUKadministrationwouldhave.
TheCommissionmanagesthatbypassingasmuchadministrationaspossibledownthelinetomember
statesandthatis,intruth,wheremuchoftherealcostlies.Itisabitintangiblebuttherearetwocosts
involved.Firstisthecostofadministrationwithinthememberstatesandsecondisthelossofcontrol
fromthecentre.WhatIamsayingtothecommitteeisthatthesumof8.8billionwouldnotworryme
intermsofthenumberitself.Weallhaveadutytocontinuetoensureitisusedasefficientlyas
possibleandthatispartofwhattheCourtofAuditorsdoesinitsperformanceaudits.
Onthepopularbeliefthatweareovercompliantandcapnothing,IwillaskMr.Fennessytoanswer
becausehehascarriedoutauditsontheEuropeanUnionfor30yearssohewillknowwhetherthatis
true.
Mr.EdwardFennessy:
IwillgetbacktoDeputyO'Reilly'squestionaboutthefarmersbeingdeniedpaymentsforsmalland
minusculedisputesaboutland.Firstandforemost,Iwouldsaythatwearenotpartoftheprocessof
stoppinganypayments.Wehaveonlypowersofpersuasionandwecometwoyearsaftertheevent.
Theerrorswereportareoverpaymentsthathavenotbeendetected.Asignificantnumberoftheerrors
wefindshouldhavebeenfoundbythenationaladministrations,andweputthatatabout50%.
ThepaymentprocessandtheprocessofapplyingforaidundertheEuropeanAgriculturalGuarantee
Fund,EAGF,issuchthatonehasacertainnumberofentitlements.Foreachoftheseentitlementsone
musthaveaminimumareaoflandtoactivatetheentitlements.Weempathisewiththosefarmers
whosepaymentsarebeingdelayedbecauseofthat.Iwouldsurmisethatthesearecaseswherethey
haveacriticalshortageoflandtoactivatealltheentitlementstheyhave,andthiscomesdowntothe
following.ThereareissueswiththelandparcelidentificationsystemwhichtheDeputyhasrightly
pointedto.Wehavepointedtheseoutforanumberofyearsandwewillproduceaspecialreportlater
intheyear.Myunderstanding,fromtalkingtothepayingagency,isthattheIrishpayingagencyclaims
tobethemostefficientintermsofgettingpaymentsout.Itmakesmorethan99%ofpaymentsontime
comparedwiththeUK,forinstance,wherethereareseriousdifficultiesingettingpaymentsout
becauseofthecollapseofitsnewcomputerisedsystem.TheIrishwouldconsiderthemselvestobeway
ahead.
Withregardtosomeoftheotherquestions,therewasanissueabouttoomuchcapdoffing.Idonot
believethereis.IbelievetheIrishhaveahealthyrespectanddisrespectforauthority,inlikeorder.If
thereisanycapdoffing,itisinourownpublicinterest,perhapstogetmorefunds,andwearepretty
goodatthat.
DeputyKyneaskedaquestionaboutpublicprocurementcontractsandhowsomeskulduggerymight
goonafteracontracthasbeenawarded.Thatcanhappen.Thatiswhywepayalotofattentiontothe
publicprocurementrulestoensurethatbeforeacontractisgiven,therulesintermsoftheaccessibility
ofallpotentialcustomersarefairandfairlyapplied.
Wehavepointedoutcasesovermanyyearswherethoserulescanbecircumvented,wherecontracts
canbecarvedupandwheresubsequentadditionalamountscancomeintoplay.Theinitialcontractis
rathermeaningless,accordingly.Manythingscanhappeninpublicprocurement,butintermsofthe
statementofassurance,wecanonlylookattheissuesthathavetobeaddressedatthegrantingofa
contract.Wecanlooksubsequentlythroughspecialreportsattherealityofwhathappenedtocontracts
whenconcluded.Wehavepointedoutnumerousdiscrepanciesinwhathashappenedinreality.
Mr.KevinCardiff:
Thetrendinerrorratesisjustaroundasinglepoint.Ithasnotimprovedordisimprovedmuchover
severalyears.Itisquiteabitlowerthanitwasintheearlytomid2000s.Aftermucheffort,therewasa
bigshiftdownwards.TheCommissionisfindingitdifficulttogetitmuchlowerthanitis.Weare
tryingtohelpbyidentifyingtheareaswherewethinktheCommissioncouldlook.Astowhetherour
recommendationsarebinding,wearejustauditors.Wedonotmakethelegislativeoradministrative
decisions.WedogobackandcheckthefollowingyearwhattheCommissionhasdonewiththe
recommendationswemade.Infairness,thereismuchuptakeofourrecommendations.Idonotknow,
however,ifitissomewhatformalisticratherthanwholehearted.Thereisagoodlevelofreactionandat
leastsomeactiononallourrecommendations.
WhenthereisabreachofrulesatthekindoflevelDeputyKynereferredto,anotherbodycalled
OLAF,OfficeEuropendeLutteAntifraude,theantifraudbody,canbecomeinvolved.Werefer20
oddcasestothatagencyeveryyearincaseswherewethinkthereisfraud.Otherpeoplecanalsomake
directcomplaintstoOLAF.
Onwhethertherulesaretoofinickyandsoforth,intheendthosewhomaketherulesarenoteventhe
Commission.Itmakesthelowerlevelrules.Mostoftherulesaremadebetweenmemberstatesandin
theParliament.Theyarriveatthecurrentlevelofcomplicationforareasonanditisnotalwaysa
purelyadministrativereason.Thereisanawfullotofpoliticalhorsetradingwhichhastotakeplaceto
gettheprogrammesagreed.Sometimes,thehighlevelofcontrolisthequidproquoforhavingthe
paymentsinthefirstplace.ThatissomethingintowhichparliamentshavemoreinputthanIhave.
InotethecommitteeisinvolvedinCOSAC,theConferenceofParliamentaryCommitteesforUnion
AffairsofParliamentsoftheEuropeanUnion.Thereareanincreasingnumberofopportunitiesin
nationalEuropeanlawforournationalparliamentstobeengagedintheEuropeanpolicyprocess.
TherehasbeenmuchdebaterecentlyinIrelandabouttheEuropeanCentralBank,ECB.Thenewarm
oftheECB,theSingleSupervisoryMechanism,SSM,hasrulesaboutengagingwithnational
parliamentswhicharemoreextensivethanthecurrentECBrules.
DominicHannigan(MeathEast,Labour)
TheECBhasmoreorlessrefusedtoengagewithnationalparliaments.Willthiscommitteebeableto
callintheSSM?
Mr.KevinCardiff:
ItisnotmandatorybuttheSSMhasanactualprocedurefordiscussionwiththestructure.Intherules
onthefiscalframework,therearerulesfornationalparliamentstobeinvolved.
DominicHannigan(MeathEast,Labour)
LiketheArticle13proposal?
Mr.KevinCardiff:
Yes.
DominicHannigan(MeathEast,Labour)
Linktothis:Individually|Incontext|Oireachtassource
SeveralofusattendArticle13meetingstwiceayear.
Mr.KevinCardiff:
WedidalandscapereviewtwoyearsagoontheaccountabilitystructuresfortheEuropeanUnionasa
whole.Itdealtwithsomeofthatstuff.Wedokeepaneyeonit.Theroleofcommitteessuchasthisis
nascentbutgrowing.Itwillbeinterestingtoseehowthisplaysoutoverthenextseveralyears.
DominicHannigan(MeathEast,Labour)
IthankMr.Cardiff,Mr.FennessyandMr.Macysforattendingthecommittee.Weareappreciativeof
theirtimeandeffortstovisitthecommitteeanddiscusstheannualreportoftheEuropeanCourtof
Auditors.
The Treaty of Lisbon and the Court of Justice of the European Union
The Treaty of Lisbon, which was signed on 13 December 2007 by the 27 Heads of
State or Government of the Member States of the Union, comes into force on 1
December 2009. It amends the two fundamental treaties the Treaty on European
Union (TEU) and the Treaty establishing the European Community, with the latter to
be known in future as the Treaty on the Functioning of the European Union (TFEU). 1
The Treaty of Lisbon makes changes to the organisation and jurisdiction of the Court
of Justice of the European Union.
courts: the Court of Justice, the General Court and the Civil Service Tribunal.
With regard to the creation of specialised courts, the Treaty of Lisbon maintains
some existing provisions but introduces certain changes in relation to procedures for
the creation of such courts, namely that, from now on, they will be created in
accordance with the ordinary legislative procedure (that is to say by co-decision with
a qualified majority) rather than, as hitherto, by unanimity.
It follows from the Treaty of Lisbon that a request for amendment of the Statute of the
Court of Justice of the European Union will be deemed to be a draft legislative act
3 4
and must be subject to the ordinary legislative procedure. By contrast, the rules on
the Judges and Advocates General and the language arrangements of the Court will
remain subject to the unanimity rule.
With regard to the arrangements for the appointment of Members of the Court, the
Treaty of Lisbon preserves the existing provisions in so far as Judges are appointed
by common accord of the Governments of the Member States for six years, but from
now on they will be appointed after consultation of a panel responsible for giving an
opinion on candidates suitability to perform the duties of Judge and Advocate
General of the Court of Justice and the General Court. This panel will comprise
seven persons chosen from among former members of the two Courts, members of
national supreme courts and lawyers of recognised competence, one of whom will be
proposed by the European Parliament. Acting on the initiative of the President of the
Court of Justice, the Council will adopt decisions establishing the panels operating
rules and appointing its members.
1
Only the European Atomic Energy Community or Euratom will remain (Protocol No 1 amending the
Protocols annexed to the Treaty on European Union, to the Treaty establishing the European
Community and/or to the Treaty establishing the European Atomic Energy Community).
2
Article 19 TEU.
3
The Statute of the Court of Justice of the European Union appears in Protocol No 3.
4
Protocol No 2 on the application of the principles of subsidiarity and proportionality.
With regard to Advocates General, there is provision under a declaration for their
number to be increased from 8 to 11 on a request by the Court of Justice. 5
Areas
The pillar structure introduced by the Maastricht Treaty will disappear. That being the
case, the jurisdiction of the Court of Justice of the European Union will extend to the
law of the European Union, unless the Treaties provide otherwise. 6
Thus, the Court of Justice will acquire general jurisdiction to give preliminary rulings
in the area of freedom, security and justice, as a result of the disappearance of
the pillars and the repeal by the Treaty of Lisbon of Articles 35 EU and 68 EC which
imposed restrictions on the jurisdiction of the Court of Justice.
First, as regards police and judicial cooperation in criminal matters, the jurisdiction of
7
the Court of Justice to give preliminary rulings will become binding and will no longer
be subject to a declaration by each Member State recognising that jurisdiction and
specifying the national courts that may request a preliminary ruling. Under the Treaty
of Lisbon, the field of police and criminal justice will become part of the general law,
and any court or tribunal will be able to request a preliminary ruling from the Court of
Justice. Transitional provisions nevertheless provide that that full jurisdiction will not
apply until five years after the entry into force of the Treaty of Lisbon. 8
Second, as regards visas, asylum, immigration and other policies related to free
movement of persons (in particular, judicial cooperation in civil matters, recognition
9
and enforcement of judgments), any national court or tribunal no longer just the
higher courts will now be able to request preliminary rulings, and the Court will
have jurisdiction to rule on measures taken on grounds of public policy in connection
with cross-border controls. Consequently, the Court of Justice will have general
jurisdiction in this area from the date of entry into force of the Treaty of Lisbon.
In addition, the Charter of Fundamental Rights of the European Union will have
10
the same legal value as the Treaties. It will form part of the body of constitutional
11
rules and principles by reference to which the Court of Justice can adjudicate.
However, the Charter cannot be invoked against the United Kingdom or Poland,
which are covered by a derogation, the effect of which is that the Charter will not
12
extend the ability of the Court of Justice or of any court or tribunal of those two
Member States to find that laws, regulations or administrative provisions, practices or
action are inconsistent with the fundamental rights or principles that it reaffirms. The
Heads of State and of Governments have, moreover, agreed to extend that
derogation to the Czech Republic in the future. 13
5
Declaration No 38 on Article 252 TFEU of the Treaty on the Functioning of the European Union
regarding the number of Advocates General in the Court of Justice.
6
Article 19 TEU.
7
Formerly Title VI of the EU Treaty.
8
Article 10 of Protocol No 36 on transitional provisions. It is provided that, as a transitional measure, the
powers of the Court of Justice are to remain the same with respect to acts in the field of police
cooperation and judicial cooperation in criminal matters which have been adopted before the entry into
force of the Treaty of Lisbon. This transitional measure is to cease to have effect five years after the
date of entry into force of the Treaty of Lisbon.
9
Formerly Title IV of the EC Treaty.
10
Furthermore, Article 6(2) TEU provides that [t]he Union shall accede to the European Convention for
the Protection of Human Rights and Fundamental Freedoms. Such accession shall not affect the
Unions competences as defined in the Treaties. Protocol No 8 states that the accession agreement is
to specify, in particular, the specific arrangements for the Unions possible participation in the control
bodies of the European Convention [and] the mechanisms necessary to ensure that proceedings by
non-Member States and individual applications are correctly addressed to Member States and/or the
Union as appropriate. This accession shall not affect the competences of the Union or the powers of its
institutions.
11
Article 6(1) TEU.
12
Protocol No 30 annexed to the TFEU on the application of the Charter of Fundamental Rights of the
European Union to Poland and to the United Kingdom.
Although the pillar concept will disappear with the Treaty of Lisbon, the common
foreign and security policy (CFSP), under Title V of the EU Treaty, remains 14
subject to special rules and specific procedures. Accordingly, the Court of Justice will
not have jurisdiction to monitor provisions relating to that policy or acts adopted on
15
the basis of those provisions, subject to two exceptions, namely (1) the Court will
have jurisdiction to monitor the delimitation of the Unions competences and the
CFSP, the implementation of which must not affect the exercise of the Unions
competences or the powers of the institutions in respect of the exercise of the
exclusive and shared competences of the Union; and (2) it will have jurisdiction over
16
actions for annulment brought against decisions providing for restrictive measures
against natural or legal persons adopted by the Council in connection, for example,
with combating terrorism (freezing of assets). 17
Procedures
which can be interpreted, and the validity of which can be reviewed by the Court of
Justice at the request of national courts or tribunals, enabling those courts or
tribunals, for example, to ascertain whether their national legislation is in conformity
with European Union law.
The Treaty of Lisbon introduces a provision requiring the Court of Justice to act with
the minimum of delay if a question referred for a preliminary ruling is raised in a case
pending before any court or tribunal of a Member State with regard to a person in
custody. Reference is thus made in the body of the Treaty itself to the urgent
19
preliminary ruling procedure (PPU), which came into effect on 1 March 2008, and
which applies to the area of freedom, security and justice. (PR 12/08)
Under the Treaty of Lisbon the Court of Justice may also review acts of the
European Council, which the Treaty recognises as a separate institution. New
provisions state that the Court of Justice may, at the request of the Member State
20
etc). 22
Similarly, the Court of Justice will have jurisdiction under the same conditions in
actions brought by the Court of Auditors, by the European Central Bank and, from
now on, by the Committee of the Regions for the purpose of protecting their
prerogatives.
The Treaty of Lisbon eases the conditions for the admissibility of actions brought by
individuals (natural or legal persons) against decisions of the institutions, bodies,
offices or agencies of the European Union. Individuals may bring proceedings
against a regulatory act if they are directly affected by it and if it does not entail
implementing measures. Consequently, individuals will no longer have to show that
they are individually concerned by the act in question. 23
13
Conclusions of the European Council of 29 and 30 October 2009 state that Protocol No 30 will apply to
the Czech Republic (Doc 15265/09 Concl 3).
14
Article 24 TEU.
15
Article 275 TFEU.
16
Article 40 TEU.
17
Article 275 TFEU.
18
Article 267 TFEU.
19
Ibid.
20
Article 269 TFEU.
21
Article 2 TEU.
Such proceedings must be brought within one month from the date of that determination and the Court
22
of Justice must rule within one month from the date of the request.
23
Article 263 TFEU.
In the review of compliance with the principle of subsidiarity, it will be possible for a
Member State to bring before the Court of Justice an action from a national
Parliament or one of its chambers for annulment of a legislative act on grounds
of infringement of the principle of subsidiarity. The action must be formally
lodged by the Government of a State but may also simply be notified by that
Government, the true author of the action being the national Parliament or a chamber
thereof. Similarly, the Committee of the Regions will be able to invoke an
24
infringement of those principles, provided the acts in question are acts on which it is
required to be consulted.
impose pecuniary sanctions, once the initial judgment establishing a failure to fulfil
obligations has been given, in the event of a failure to notify to the Commission
national measures transposing a directive. 26
Lastly, after five years, the Commission will be able to bring actions for failure to fulfil
obligations in relation to measures concerning police cooperation and judicial
cooperation in criminal matters adopted before the entry into force of the Treaty of
Lisbon. 27
24
The Maastricht Treaty introduced the principle of subsidiarity. Article 5 of the EC Treaty defines it in
these terms: [i]n areas which do not fall within its exclusive competence, the Community shall take
action, in accordance with the principle of subsidiarity, only if and in so far as the objectives of the
proposed action cannot be sufficiently achieved by the Member States and can therefore, by reason of
the scale or effects of the proposed action, be better achieved by the Community. Another principle
closely associated with it is the principle of proportionality, by which [a]ny action by the Community shall
not go beyond what is necessary to achieve the objectives of this Treaty.
25
Article 260 TFEU.
26
Article 260 TFEU.
27
It is apparent from Article 10(1) of Protocol No 36 that such actions will be possible once the period of
five years after the date of entry into force of the Treaty of Lisbon has expired.
Unofficial document for media use, not binding on the Court of Justice.
TreatyontheFunctioning
oftheEuropeanUnion(TFEU)
asamendedbythe
TreatyofLisbon(2007)
http://www.eudemocrats.org/eud/uploads/downloads/Consolidated_L
ISBON_TREATY_3.pdf
ROME DECLARATION Treaty Series Treaties and international
agreements 1998 registered or filed and recorded with the
Secretariat of the United Nations
https://treaties.un.org/doc/Publication/UNTS/Volume
%202166/v2166.pdf
https://rm.coe.int/CoERMPublicCommonSearchServices/DisplayDCTM
Content?documentId=09000016804d5993
Contribution by Mr JensPeter Bonde, member of the
Convention
"The Convention about the Future of
Europe"
http://en.euabc.com/upload/books/Futures.pdf
Constitution
ConventionoftheFutureofEurope,workingontheEUConstitution(Photo:European
Convention)
Constitution
Aconstitutionisthebasicrulebookforastatethatlimitsthepowersofallauthorities,includingthe
legislators,andgivescitizenscommonfundamentalrights.
TheEUCourtinLuxembourghasdevelopedasystemofEUlawwhereEUrulesandlawsoverrule
andprevailovernationallawsandconstitutions.TheCourtseestheEUlegalsystemasasupra
nationalconstitutionalsystem.SeetheCourtcase"LesVerts"from1986.
TheproposalfortheEUConstitutionproposeda"constitutionalTreaty"whichwouldestablisha
"constitutionforEurope"highlightingtheprimacyofEUrulesandlawsovernationalrulesandlaws
andalsoovernationalconstitutions.
Thewordconstitutionwasused180timesintheproposedEUConstitutionembodiedintheTreaty
EstablishingaConstitutionforEurope.TheLisbonTreatyhasdeletedthewordConstitution
everywhereinthetext.Instead,itrefersinDeclarationNo17totheexistingcaselawoftheEUCourt
havingestablishedtheprincipleoftheprimacyofEUlaw.
ThereisalsoastatementfromtheCourtreferringtotheEUtreatiesas'theConstitutionalCharterofa
CommunityofLaw,anewlegalorderforthesakeofwhichtheStateshavelimitedtheirsovereign
rights(Opinion1/91).
TheMellonicasefrom2013alsogivestheCharterforFundamentalRightsprimacyovernational
constitutions.
Before,acountrycouldonlyleavetheEUbyaunanimousdecisionoftheCouncilorbybreachingthe
rules.TheLisbonTreatymakesitpossibletoleavetheEUwithinthetwoyearsthatanagreementis
negotiated.ThememberstatescandecidetoleavetheEUontheirownaftertwoyears.
TheConventionontheFutureofEuropedraftedanEUConstitutiontoreplacetheexistingEUandEC
treaties.Thetextwasagreedby'consensus'intheConventiononJune132003.Novotingtookplace.
ItwaspresentedbyGiscarddEstaingtotheheadsofgovernmentsandstatesattheThessaloniki
Summit(Greece)on20June2003withaminorityreportfromtheeurocriticalintergroup,Democracy
Forum,attached.I
Theofficialnamewas"TheTreatyEstablishingaConstitutionforEurope".
TheConstitutionalTreatywasdividedintofourparts:
PartI:Objectives,values,institutions,competences,finances,etc.oftheUnion.
PartII:CharterofFundamentalRights
PartIII:AssemblesandamendsthepresentEUandECTreaties.
PartIV:Finalprovisions
Atpresent,acountrycanonlyleavetheEUaccordingtointernationallawor/andafteraunanimous
decision,orbybreachingEUlaw.TheproposedEUConstitutionandtheLisbonTreatyhasaclause
allowingmemberstatestoleaveafternegotiatinganagreementwiththeEUorontheirownaccord
aftertwoyears.
Theword"Constitution"wasused23timesinthefirst17ArticlesofthedraftEUConstitutionandit
appearedinmostofthesubsequentArticlesofthe500pluspagesoftheoriginalEUConstitution.
AsthetextwasrejectedbyDutchandFrenchreferendumsinMay/June2005,anewIntergovernmental
conferencewasgivenamandatefordraftinganewtreatyinJune2007.Ontheoccasionofthe
EuropeanCouncilmeetinginLisbonon13December2007,EuropeanleadersagreedupontheLisbon
Treaty,amendingthetwobasicEuropeantreaties,theTreatyonEuropeanUnionandtheTreaty
EstablishingtheEuropeanCommunity.
ThesetwoamendedtreatiesarenowtheConstitutionoftheEU.
EuropeanConventiononHumanRights
EuropeanConventiononHumanRights(initiallysignedin1950)(Photo:European
Commission)
EuropeanConventiononHumanRights
InspiredbytheUNDeclarationonHumanRights,theCouncilofEuropeestablishedtheEuropean
ConventiononHumanRightsandFundamentalFreedoms.ACourtofHumanRightswasestablished
inStrasbourgtoadjudicateonhumanrightsviolations,andmemberstatesoftheCouncilofEurope
haveagreedtobeboundbyitsjudgements.
TheConventionwassignedinRomein1950andtookeffectfrom1953.Citizensofstateswhichhave
signeduptotheConventionmaybringcasesagainsttheirowngovernments,allegingbreachesof
humanrightsundertheConvention.
AspecialConventionhasdrawnuptheEUCharterofFundamentalRights.ThisCharterhasbecome
legallybindingbytheLisbonTreaty,Article6TEU.
TheLisbonTreatyalsoprovidesalegalbasefortheUniontosubscribetotheHumanRights
Convention.TheUnionhasgainedalegalpersonalityallowingittodoso.
ThewordingdoesnotgiveprimacytotheHumanRightsConventionasproposedbyEurocriticsinthe
CharterConvention.IfaconflictarisesbetweentheHumanRightsCourtinStrasbourgandtheEU
CourtofJusticeinLuxembourg,thejudgmentoftheEUCourtwillholdswayaccordingtotheLisbon
Treaty.
ThroughtheLisbonTreaty,theCharteronFundamentalRightshavegainedthesamelegalvalueasthe
treatiesthatistosaythatitislegallybindingasprimaryEUlaw.TheMellonicasein2013decided
thattheCharterhasprimacyovernationalconstitutions.
Ireland
Declarations from the Minister for Foreign Affairs of Iceland,
dated 18 February 1953, registered at the Secretariat
General on 25 February 1953 - Or. Engl.
LisbonTreaty
TheLisbonTreatyisthenameofthenewtreatythathasgovernedEuropeanintegrationand
cooperationsince1December2009whenitenteredintoforce.euABC.comhasestablisheda
consolidatedandreadabletextthatyoucanreadorlookuponthissite.
THeLisbonTreatyincludesvirtuallyalloftheprovisionsoftheTreatyEstablishingaConstitutionfor
EuropewhichwasrejectedbyFrenchandDutchvotersinreferendumsin2005.Insteadofbeing
adopteddirectlyintheproposedEUConstituion,theywereadoptedindirectlyintheformof
amendmentstotheexistingtreatiesinwhatwascalledTheLisbonTreaty.ThetermLisbonTreatyis
nowgenerallyusedtorefertotheConsolidatedEUTreatiesallthetreatiesandamendments
governingEuropeanintegrationfromtheTreatyofRomeuptothepresenttime.TheReaderFriendly
editionoftheTreaties,togeterwiththeIndexwhichisessentialinfindingone'swayaroundthe
treaties,canbegotateuABC.
TheLisbonTreatyhasbeenchangedafewtimessince2009becauseofthefinancialcrisis.Ithas
followedtheNiceTreaty,theTreatyofAmsterdam,theTreatyofMaastricht,TheSingleEuropeanAct
andtheTreatyofRome.AlltreatieshavegiventheEUmorepowersandintroducedmoremajority
votingatthesupranationallevel.
TheLisbonTreatyestablished106newpowersfortheEU,and68newareasfordecisionbyqualified
majorityintheCouncil.
TheLisbonTreatyabolishedthepreviousconstitutionalstructurewithits"threepillars"inthe
Europeantreaties.TheseconsistedofonepillarofsupranationalCommunitylaw,andtwopillarsor
areasofforeignandsecuritypolicyontheonehand,andjusticeandhomeaffairsontheotherhand,
wherememberStatescooperated"intergovernmentally",withoutsuranationallawmaking.
TheLisbonTreatyabolishedtheEuropeanCommunityandtransferredallitspowersandinstitutionsto
thenewEuropean"Union".TheUnionalsoobtainedlegalpersonalityunderArticle47TEU.This
givestheUniontherighttorepresentallareasofintegration/cooperation,initsrelationswithother
countries.
Fromthestandpointofothercountries,theEUisnowwidelyseenasastate,althoughitdoesnotlook
likeastatetoitsowncitizensinternally,becauseindividualmemberstatesarestillrepresented
independentlyattheUNandbecausetheystillretaintheirtraditionalgovernmentalinstitutions
althoughthefunctionsofthesehavemuchchanged.
TheLisbonTreatyalsoestablishedaJointPermanentChairman/PresidentoftheEuropeanCounciland
anEUforeignminister.
ThetermEuropeanCommunitydisappearedfromalltreatiesandwasreplacedbytheword"Union"or
"EuropeanUnion".
TheTreatygrantscitizensofthenow28memberstatesan"additional"citizenshipontopoftheir
nationalcitizenship.Thiscorrespondstotheinternaldualcitizenshipofcitizensofclassicalfederal
statessuchastheUSAandFederalGermany.BeforetheLisbonTreatyEUcitizenshipwasstatedtobe
"complementary"tonationalcitizenshipratherthan"additional"tothat.
TheEuropeanUnionCharterofFundamentalRightswasmadelegallybinding,sothattheEUCourtof
JusticecanfurtherdevelopthelegalprinciplesandfundamentalrightsintheUnionforitscitizens.See
Article6TEU.WiththeMellonijudgmentin2013theCharterprovisionsprevailovermemberstates'
constitutions.
TheLisbonTreatyhasintroducedanewvotingsystembasedonpopulationsizethatshiftspowerfrom
smalltolargermemberstatesandwhichenteredintoforceon1November2014.
TheLisbonTreatyhasalsoEPinvolvementinmanymoreareasandprovidedParliamentwitha
significantroleinthetheappointmentofthenewCommission.Thereisatreatyphrasethattheprime
ministersandpresidentsintheEuropanCoiuncilshouldtakeintoaccounttheresultoftheEuropean
electionswhendecidingontheirproposalsforCommissionPresident.
Thisphrase,theEuropeanParliamentutilizedtonominatecandidatesforthevariouspartygroupsfor
thepresidencyin2014.TheChristianDemocratslosttheelections,butcouldstillachieveamajorityin
theEuropeanParliamentfortheirproposaltoappointJeanClaudeJunckerastheCommission
President.JunckerwastheformerLuxembourgprimeministerfor19years.
ThePrimeMinistersandpresidentswereawareofthisparliamentarycoup,buteventuallyaccepted
Juncker,andhewasformallyproposedby26ofthe28memberstatesbeforetheEuropeanParliament
electedhimbyanabsolutemajorityofitsmembers.
Thisdemocratic"coup"hasresultedinakindofEuropeanparliamentarianism,wherethemajorityof
citizenvotersinfluencetheissueofthePresidentoftheCommissionbymeansoftheirvotesinthe
Europeanelections.
TheLisbonTreatyalsogavetheCommissionPresidentconsiderablepowerregardingthecomposition
ofhisCommission.UnderLisbonMemberstatescanonly"suggest"thenamesoftheirfavorite
commissioner.UndertheNiceTreaty,memberstatescould"propose".Thenewformulameansthat
nationalgovernmentscannolongerinsistthattheirindividualcandidatesforCommissionerwillbe
accepted.
UnderLisbonanewforeignanddefence"ministry"hasbeenestablishedinanewbuildinginBrussels
andemploysthousandsofdiplomatswhohavebeenrecruitedtothetasks.Therearenow139EU
delegationsinthirdcountriesandinternationalorganizationsthathaveachievedthestatusof
embassies,asiftheycomefromanormalstate
TheLisbonTreatyhasgiventheEUlegalpersonality.ThisallowstheEUtonegotiateandconclude
internationalagreementswithotherstatesandinternationalorganizationsinallareasofUnionaction.
507millionEUcitizenshavebeenequippedwithanadditionalEUcitizenshipontopoftheirnational
citizenship.Onecanonlybeacitizenofastate.SeeCitizenship.
TheCharterofFundamentalRightsisnowlegallybindingandprovidecitizenswithcompetingrights
andobligationsasregardstheirnationalconstitutionsandtheEuropeanConventiononHumanRights.
ThecommonbasicrightstakeprecedenceovernationalconstitutionsaccordingtotheMelloni
judgmentof2013.
HISTORY
TheLisbonTreatywasrejectedbyreferenduminIrelandon12June2008with53.4%Noasagainst
46.6%Yesvotes.Thevoterturnoutwas53%.
On2October2009,theTreatywasapprovedinasecondreferendum,afterIrelandhadgainedcertain
"guarantees"fromtheEUprimeministersandpresidentsintheEuropeanCouncil.Nochangewas
madetotheactualtextoftheTreaty.Inthesecondreferendum67%ofvoterssaidYesand33%No,on
aturnoutof58%ofvoters.Irelandsecuredfirst,thecontinuedexistenceofoneCommissionerper
memberstate.
CzechPresidentVaclavKlauswasthenputunderpressuretosignthetreatytoavoidareferendumin
theUKthatcouldhavebeenimplementedifanewConservativegovernmentwaselectedbeforethe
Treatywasfullyratified.
Inthemorning,November3,2009theCzechConstitutionalCourtrejectedalegalchargeagainstthe
Treatyof17Czechsenators.Kl.15:00thesamedayKlaussignedtheTreatyasthelast,soitcould
comeintoforcebynextmonthshift.
AttheEuropeansummiton2930.November,KlauspromisedaCzechoptoutfromtheCharterof
FundamentalRights,andapoliticalguaranteethatthesocalledBenesdecreesoftheSecondWorld
WarwouldnotbeaffectedbypossiblerulingsoftheEuropeanCourtofJusticeusingtheCharter.
ManyCzechsfearedthattheLisbonTreatycouldbeusedbysomeGermanstoclaimthepropertythey
ortheirfamilieshadlostwhentheywereexpelledfromCzechoslovakiaafterWorldWar2.
DespitetheIrishreferenduminJune2008,theratificationprocessamongthememberstatesthathad
notyetratifiedthetreatyatthetime,wereencouragedtoratifybytheIrishGovernment.
ThisongoingratificationprocesswasformallyconfirmedatanEUsummiton20June2008.Ireland
wasaskedtoconsultitsowncitizensinternallyandfindasolutiontotheIrishNo.
Therewastalkofvariouspoliticalrepresentationsandwarrantiesthatcouldbegivenwithoutrequiring
changestotheLisbonTreaty.CouncilLegalAdviser,JeanClaudePirishadtoinventanew"decision"
bytheEuropeanCouncil,.PirishadalsoinventedtheEdinburghDeclarationasa"decision"bythe
EuropeanCouncilafteraDanishrejectionoftheMaastrichtTreatyinareferendumof2June1992.
Anymodificationofthetreatieswouldhaverequirednewratificationsinallatthetime27member
states.TheprimeministerswantedatallcoststoavoidratificationspulledapartbytheBritishelections
andthusprobablyaBritishrejectionoftheLisbonTreaty.
TheCzechgovernmentwroteanotetotheCouncilconclusionsontheirreservations,andthe
possibilitythattheirconstitutionalcourtcouldpreventtheCzechratification.Allothermemberstates
agreedthattheratificationsshouldcontinuedespitetheIrishNo.
InDecember2008,theEuropeanCouncilmetinBrusselsandagreedthattheLisbonTreatywould
enterintoforceon1January2010aftertheEuropeanelectionsinJune2009.
InJune2009theEuropeanCouncilinBrussels,adoptedthesocalledIrishguarantees.TheIrish
governmentheldanewreferendumon2October2009.
On13December2007,theprimeministersandpresidentsfromthe27memberstatessignedthe
LisbonTreatyasanew"constitution"fortheEuropeanproject.ItwasapprovedatasummitinLisbon
on19October2007.
Aftersigningthetextwassettoratificationbyallmemberstates.
TheLisbonTreatyprovidesthesamelegalobligationsastherejectedEUconstitution,whichwas
approvedbyreferenduminSpainandLuxembourg,20Februaryand10July2005andsincerejected
byreferendumsinFranceandtheNetherlandson29Mayand1.June2005.
InSpain76.7%votedYes,Luxembourg56.5%.InFrance,54.8%votedNo,theNetherlands61.7%.
ThefirstofficialnamefortheLisbonTreatywas"ReformTreaty".Thenamewasformallychangedby
thesignaturesinLisbon,afterwhichitwascalledbythenameofthiscity.
TheEUConstitutionwasfirstadoptedbytheHeadsofStateandGovernmenton18June2004.Itwas
thensolemnlysignedinRomeon29October2004asthe"TreatyestablishingaConstitutionfor
Europe".
AftertherejectionsinFranceandHollandprimeministersannounceda"periodofreflection".The
Commissionpresenteda"PlanDforDemocracy,DialogueandDebate".Theratificationscontinued.
ThethennewGermanChancellorAngelaMerkelsucceededthroughsecretdiplomacyreaching
agreementonrestartingtheconstitutionalprocess.ThedecisionwasmadeofficialbytheBerlin
Declarationof25March2007onthe50thanniversaryoftheTreatyofRomewassigned.
The2123.June2007,thesummitundertheGermanEUPresidencyadoptedadetailednegotiating
mandateforanewIntergovernmentalConference.
TheIGCbeganamonthlateron23July2007.ThePortuguesePresidencyconcludedthenegotiations
ataspecialsummitinLisbonon18and19October2007.TherevisedandrenamedConstitutioncould
besignedbefore2008andenterintoforcebeforetheEuropeanelectionsinJune2009.Theunexpected
IrishNoinJune2008delayedthisschedule.
TheLisbonTreatycoveralltheoperationalitemsfromtherejectedEUConstitution,butthe
presentationwaschangedradicallywiththeremovalofswearword"constitution".
InsteadofasingledocumenttoreplaceallexistingEuropeantreaties,theTreatyofLisboncameto
consistofalargenumberofdifficulttounderstandchangestotheexisting17basicEUtreatieswith
manyaccompanyingprotocolsanddeclarations.
TheEUhaditsconstitutionindirectlyratherthandirectly.EUconstitutionallawstillconsistsofa
plethoraoftreatiesamendingtheTreaties.
WiththeLisbonTreaty,theEUhasa"constitution"ofover3000pages,comparedtothe560pagesof
the"ConstitutionforEurope".
TheLisbonTreatyhasdeletedtheConstitutionarticleaboutEuropeansymbolssuchasflags,Europe
Day,themottoandthesingleEUanthem,whichwasintheoriginal"TreatyestablishingaConstitution
forEurope".
However,itwasalsostatedthatthisdeletiondoesnotchangethestatusofanyoftheEuropean
symbolsthathaveexistedforyearswithoutformalbasisintheEuropeantreaties.
TheLisbonTreatymovedtoArticleI6oftheConstitutionofprimacyofEUlawtoDeclarationNo17
attachedtoLisbon.ThisstatementissimilartotheexistingcaselawoftheEuropeanCourtofJustice.
Thetextreads,forexample,thatEUlawcannotbe"overriddenbydomesticlaw"inreferencetoCase
06/64"Costa/ENEL".
Ratification
Ratificationistheofficialconfirmationofanalreadyagreedtext.TheLisbonTreatyhasratificationsin
Art.48.4TEUandadoptionoftreatyamendmentswithoutratificationinArt.48.7TEU.
All28memberstateshavetoratifybeforeanewtreatyisadopted.TheLisbonTreatywassigned3
November2009bytheCzechPresidentasthelastafterafinalCzechConstitutionalCourtdecisionthe
samedayandenteredintoforce1December2009.
12June200853%ofIrishvoterssaidNototheLisbonTreaty.20June2008theEuropeanCouncil
decidedthattheratificationprocessshouldcontinueinothermemberstates.TheCzechgovernment
reserveditsposition.
InDecember2009theEuropeansummitinBrusselsdecidedthatIrelandshouldcomebackwitha
ratificationin2009toallowtheTreatytotakeeffectfrom1January2010.
TheIrishgovernmentarrangedthesecondreferendum2October2009.
AccordingtoArt.30intheGenevaConventiononTreatiesmemberstatesarenotobligedtocontinue
ratificationofatreatywhenitisrejectedinacountry.
Treatieshavetoberatifiedbythememberstatesinaccordancewiththecontentsoftheirrespective
constitutions.
Evenifatreatyhasbeensignedonbehalfofastateoranumberofstates,itisnotlegallybindinguntil
allthestatesthathavesigneddeclareformallythattheyhaveratifiedit.Treatiesareratifiedeitherbya
majorityvoteofthenationalparliamentorbyreferenda.
HISTORY
100membersoftheConventiononthefutureofEuropeproposedthattheadoptionoftheproposalfor
anEUConstitutionshouldbefollowedbyreferendaineachmemberstatebeforeitcanberatified.
If,after2years,afewmemberstatesstillhadnotratifiedit,theEuropeanCouncilhadtodealwiththe
issue(Art.IV443.4intherejectedEUConstitution).ThesamewordingwasattachedtotheEU
ConstitutionaspoliticalDeclarationno30.
29May2005theFrenchvotersvoted"non"totheproposedconstitutionfollowedby62%ofthe
Dutchvotersvoting"nee"1June2005.LuxembourghadplannedtheirreferendumandhadtheEU
constitutionacceptedbyamajorityofvotersinLuxembourg.
Theratificationprocessstoppedinpractisewithadeciciontoestablishapausefordebateanddialogue.
Then,16memberstatesrepresenting37%oftheEuropeanvotershadratified.GermanyandSlovakia
hadacceptedthecontentbydecisionsfromtheirparliamentsbutcouldnotratifybecauseofpending
courtcases.
AfterareflectionperiodthePrimeMinistersdecidedtoestablishthemajorcontentfromthe
constitutionintheLisbonTreatyandavoidreferendumsoutsidetheunavoidableinIreland.
ReferendaontheConstitutionalTreaty
BothEurofederalistsandEuroscepticsdidcallforareferenduminallEUmembercountriesonthe
proposedconstitution.
Acampaigninggroup,theEuropeanReferendumCampaign,ERC,wascallingforareferendumonthe
ConstitutiontobeheldinallEUcountriesonthesamedate.Forcountrieswhosenationalconstitution
doesnotallowforbindingreferendums,theERCcalledforconsultativereferendumstobeheldthere.
TherehavebeenheldreferendumsinSpainandLuxembourg,where76,7%and56,52%votedyes,and
inFranceandTheNetherlandswhere54,8%and61,7%votedno.ThereferendumsinDenmark,
Ireland,UnitedKingdom,Poland,theCzechRepublicandPortugalwereexposedorcancelled.
IrelandthenvotedontheLisbonTreaty12June2008.53,4%votedNoand46,6%votedYes.The
turnoutwas53%higherthaninthesecondreferendumontheNiceTreatyinIrelandwhere49%took
partinthereferendumagainst35%inthefirstIrishNicereferendumgivingamajorityforaNo.
IrelandvotedontheLisbonTreatyagain2October2009whereitwasadoptedby2/3majority.
Federalism
Asystemofgovernmentinwhichstatepowerisdividedbetweenacentralfederalgovernmentand
provincialorregionallevels,asinGermany,Austria,theUSA,Canada,Australia,India,Nigeriaand
manyothercountries.
Federationscontrastwithunitarystates,suchasFrance,DenmarkandNorway,wherepowerisnot
dividedbetweentwolevels.ApartofFederalismistheideathatcrossborderissuesshallbedealtwith
justasdemocraticallyasnationalissuesinparliamentarydemocracies.
AsintheUSA,afederaldemocracyisgenerallyrunbyatwochambergoverningbody.Underthis
model,onechamberrepresentsthecitizenswithintheparticipatingstates;thenumberof
representativesforeachstateisinproportiontothesizeofthepopulation.
Theotherchamberrepresentstheparticipatingstates,withthesamenumberofrepresentativesforeach
despitetheirdifferingsizesasintheUSA,wheretherearetwosenatorsperstate.
FEDERALISMINEUROPE
MostEurofederalistswouldliketoseetheEuropeanParliamentfunctionliketheUSHouseof
Representatives,withthepeopleofeachstaterepresentedbroadlyinaccordancewiththeirnumber.
TheCouncilofMinisterswouldbecometheequivalentoftheUSSenate,witheachstatehavingthe
sameorasimilarnumberofrepresentatives.IntheAmericanSenate,allstatesareequal.IntheHouse
ofRepresentatives,theelectoratesareequal.
IntheEUinstitutions,thesmallermemberstatesareoverrepresentedintheEuropeanParliament
accordingtonumberofcitizens.TheLisbonTreatyintroducesvotingintheCouncilofMinistersby
numberofcitizens.
FederalistidealsarebasedontheideathatcitizensoftheEUcouldbeseenasapeopleendowedwitha
senseofcommunitycomparabletothatfoundinnationalstates.TheythereforebelievethattheEUcan
becomeademocracycomparabletotheUSA,Germanyorothernationaldemocracies,aslongasithas
similargovernmentalinstitutions.
CriticsofEurofederalismholdthatcitizensoftheEUcanneverbeapeoplecomparabletoanational
communityandthattoconstructinstitutionsatEUlevelsimilartothenationallevelwillnotdealwith
theproblemoftheEUsdemocraticdeficit.Theystressthatcitizensareprimarilyloyaltoandidentify
themselveswiththeirowncountryornationnottheEU.
Somecriticswishforanintergovernmentalmodesofinternationalcooperation,inwhichstatesare
allsovereignasintheUN
GeneralAssemblyforexample.
Thenormalprincipleforinternationalcooperationisonestateonevote.
OtherEurorealistshaveproposedreformswherethecitizensinthememberstateselecttheir
commissionersina"Europeofdemocracies".
SirWilliamCashwasquotedbythePoliticoandbyTheIndependentassaying:
Hasanybodypointedouttothem,orwouldyoumakesurethattheydounderstand,thatwehavebeen
netcontributorsformanydecadestothetuneofwhatisnowrunningataround9billionor10billion
ayear,thatouraccumulatedliabilitiesareoffsetbytheextenttowhichwehavemadethesemassive
contributions.
Andperhapsalsotobearinmind,headded,thatbackin1953therewasathingcalledtheLondon
DebtAgreement,whereGermany,forallitsmalfeasanceduringtheSecondWorldWar,andits
unprovokedaggression,foundthatin1953,incircumstanceswhichwerequiteremarkable,foundthat
weremittedonehalfofallGermandebt.BillCashurgedthegovernmenttotactfullyremindEU
officialsthattheU.K.helpedGermanywaivehalfofitswardebtinthe1950s.
AsregardstheEUsplanstotakeBritaintotheInternationalCourtofJusticetoenforcethesocalled
divorcebillof50bnBrexit,BillCashsaidIdontthinktheInternationalCourthasanyjurisdiction
inthismatter.Hethenadded,Ihavenodoubtthattherewillbeallkindsoftheusualacademic
suspectsrunningaroundsayingweshoulddothis,thatortheother.Thereisnoreasonforustomake
anypayment.
Tory MPs tell Theresa May to stand firm against EU threat to take
Britain to the International Court over 50bn Brexit divorce bill
ConservativesinsistitisanemptythreatwhichthePrimeMinistercaneasilyignoreandwalkaway
withoutpayingapenny,ifnecessary
Tuesday 21 March 2017
FuriousConservativeMPshaveurgedTheresaMaytostandfirmagainstanEUthreattotakeBritain
totheInternationalCourtofJusticetoenforcea50bnBrexitdivorcebill.
AdraftplanobtainedbyaDutchnewspaperrevealedtheEUisreadyingforalonglegalbattleat
TheHagueifBritaintriestowalkawaywithoutmeetingitshugeliabilities.
Inthatcaseitis:seeyouinTheHague!itquotedanEUofficialinresponsetothePrimeMinisters
vowtoleavewithnodealifnecessary,perhapsseekingtoavoidanyexitbill.
AmbassadorwarnsofBrexitbillbattleasMaysets
Article50date
NeitherDowningStreetnortheEuropeanCommissiondeniedtheprospectofacourtfightifthe
negotiationsbreakdown,bothdecliningtocommentonaleakeddocument.
AGovernmentsourcetoldTheIndependentthatitrecognisedthedivorcebillasamongawiderange
ofissuesfortheUKandtheEUthatwillneedtobeaddressedasweleavetheEUandagreeanew
partnership.
ButthetoughEUstancesparkedanangryresponsefromBrexitbackingToryMPswhoinsisteditwas
anemptythreatwhichMsMaycouldeasilyignore.
ItcameasSpainsdeputyministerforEuropeanaffairsinsistedtheUKmustagreeinprincipletopay
theexitbillbeforeanytalksonatradeagreementcanbegin.
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TheresaMaypledgesprosperityforwholeoftheUK
JohnRedwood,theformerCabinetminister,said:Thereisnocasetoansweronthesocalleddivorce
bill.Itisnotadivorce.
TheUKisleavingatreatyorganisationundertherulesofthatorganisation.Thetreatymakesno
provisionforcharginganexitfee.
AsecondexCabinetminister,IainDuncanSmith,said:ItsnonsensetheUKowestheEUany
money.TheEUCommissionhastocalculatethevalueofitsassetsbecause,whenitdoes,itwillbe
clearthat,contrarytowhatsomearetryingtoclaim,theEUowestheUKmoneynottheotherway
round.
JacobReesMoggdismissedtheideaofanycasereachingTheHague,whichsimplyexistedfor
arbitrationandwasnotacourtasweknowit.
Thisisoneofthosethingssaidbypeoplewhohavenotbotheredtoreadthelegalsituation,hesaid.
AndSirBillCashwhohaspointedtotheUKhelpingGermanywaivinghalfofitswardebtinthe
1950ssaid:IdontthinktheInternationalCourthasanyjurisdictioninthismatter.
Ihavenodoubtthattherewillbeallkindsoftheusualacademicsuspectsrunningaroundsayingwe
shoulddothis,thatortheother.Thereisnoreasonforustomakeanypayment.
ButTimFarron,theLiberalDemocratleader,saidtheprospectofthefightendingupatthe
InternationalCourtexposedMsMayspositionasutterlyrisible.
TheGovernmentisgoingtohavetogotoTheHaguetotrytofightaBrexitbillthattheyareforcing
onus,MrFarronsaid.TheyhavemadeachoicetopursueahardBrexitandwewillalltheprice.
AlengthybattleattheInternationalCourtwouldholdupattemptstoreachanewtradeagreementwith
theEU,ifitinsistsonsettlingthecontroversyovermoneyowedfirst.
Theleak,publishedbytherespecteddeVolkskrantnewspaper,saidtheEUstrategywouldalso:
*InsistaccesstotheEUsinglemarketdependsupontheUKacceptingthe"fourfreedoms"
including,crucially,freedomofmovement.
*ProposeadealguaranteeingboththefuturerightsofEUnationalsintheUKandBritonsinEU
countries.
*DemandthattheUKlosessomeofitsexistingtradeadvantages,asthepriceofleaving.
ThenewspaperbilleditsstoryasthesecretEUStrategyforseparationfromtheBritish,basedon
informationprovidedbykeyEUinsiders.
TheEUsapparentstrategywaspublishedshortlyafterMrTuskannouncedthatEUleaderswillmeet
toagreetheirstrategyataspecialsummiton29April.
Significantly,hevowedtomake"theprocessofdivorcetheleastpainfulfortheEU"without
mentioningwhatpainmaylieaheadforBritain.
Brexit: EU will take UK to International Court if it refuses to pay
50bn divorce bill, 'leaked document' says
AdraftplanapparentlyobtainedbyaDutchnewspaperthreatensalonglegalbattletograbback
whattheEUregardsastheUKsliabilities,ifTheresaMayrefusestopayup
TheEUwilltakeBritaintotheInternationalCourtofJusticeifittriestowalkawaywithoutpayingan
estimated50bndivorcebill,aleakofitsnegotiatingstrategysays.
ThedraftplanobtainedbyaDutchnewspaperthreatensalonglegalbattleatTheHaguetograb
backwhattheEUregardsastheUKsliabilitiesforits43yearmembership.
Inthatcaseitis:seeyouinTheHague!itquotesanEUofficialinresponsetoTheresaMays
threattoleavewithnodealiftheBrexittalkscutuprough.
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Article50:Whatwillhappenafterit'striggered?
Readmore
EUleaderstodecideBrexitnegotiationsstrategyat
Aprilsummit
ThethreatfollowsgrowingpressureonthePrimeMinisterfromsomeConservativeMPstosimply
walkawayiftheEUinsistsonimposingthehugeexitfee.
GovernmentlawyershavebackedareportfromaHouseofLordscommitteewhicharguedBritain
couldlegallyleavewithoutpayingup,ifitacceptsnowithdrawalagreement.
But,yesterday,BritainsambassadortotheEU,SirTimBarrow,warnedBrusselshadconfidencein
otherlegalopinionswhichreachedaverydifferentconclusion.
AlengthybattleattheInternationalCourtcouldalsoholdupattemptstoreachanewtradeagreement
withtheEU,ifitinsistsonsettlingthecontroversyovermoneyowedfirst.
Theleak,publishedbytherespectedDeVolkskrantnewspaper,saystheEUstrategywillalso:
*InsistaccesstotheEUsinglemarketdependsupontheUKacceptingthefourfreedoms
including,crucially,freedomofmovementofcitizens,a'redline'forMsMay.
*ProposeadealguaranteeingboththefuturerightsofEUnationalsintheUKandBritonsinEU
countries.
*DemandthattheUKlosessomeofitsexistingtradeadvantages,asthepriceofleaving.
*Considerwhethertoinsistthattalksonfuturetradedealwillonlytakeplaceafteragreementonthe
exitdealorsequentially,astheUKwants.
ThenewspaperbilleditsstoryasthesecretEUStrategyforseparationfromtheBritish,basedon
informationprovidedbykeyEUinsiders.
Onlysixpeople,includingDonaldTusk,theEuropeanCouncilPresident,andJeanClaudeJuncker,the
EuropeanCommissionPresident,haveseenthetenpagedraft,itclaimed.
TheEUsapparentstrategywaspublishedshortlyafterMrTuskannouncedthatEUleaderswillmeet
toagreetheirstrategyataspecialsummitonApril29.
Significantly,hevowedtomake"theprocessofdivorcetheleastpainfulfortheEU"without
mentioningwhatpainmaylieaheadforBritain.
TheDeVolkskrantreportsuggestedDavidCameronispartlyresponsiblefortheexpected50bnEU
demandbeingsohigh.
TheformerprimeministerdemandedcutstotheEUbudgetfor201420,butinreturnforspending
goingdownintheearlyyearsplannedspendinginthefuturerosesharply.
TheEUisexpectedtoarguethattheUKisobligedtocontributetothosefuturespending
commitments,despiteitsplanstocompleteBrexitby2019.
DavidJones,aministerintheBrexitdepartment,hassuggestedthelegalargumentthatBritaincan
walkawaywithoutpayingafeehasnotgoneunnoticedinBrusselsandinotherEuropeancapitals.
But,givingevidencetoMPsyesterday,SirTimBarrowsoughttodampenBrexiteerenthusiasmtoquit
withoutpayingabrassfarthingasoneConservativeMPputit.
Youcanimaginethatcounterpartshaveaninterestinotherlegalopinionswhichhavebeen
forthcoming,whichofferadifferentinterpretation,SirTimwarned.
A draft plan obtained by a Dutch revealed the EU is readying for a
long legal battle at The Hague if Britain tries to walk away without
meeting its huge liabilities
By Iryna Terlecky.
AsthesituationinEasternUkrainedeteriorates,eyesturntoWashington.
Noendtoconflict
TheperiodoverChristmashasseennoletupintherelentlesswarofattritioninEasternUkraine,with
attackslaunchedonUkrainianforcesevenonChristmasDay.
AnyonewhofollowsthedailyreportsfromtheOrganisationforSecurityandCooperationinEurope
(OSCE)SpecialMonitoringMissionwillseethatthereportsappeartobegettinglonger,evenasthe
casualtiesaresignificantlylessthanatmanyothertimesduringthelastyear.
However,manyinstancesarerecordedofexplosionsandexchangesoffirewhichresultinacontinuing
streamofwoundedUkrainiansoldiersthreeinthelast24hoursalone.
LandminesarenotbeingclearedasquicklyastheOSCEwouldexpect,andthereissomesuspicion
thattheRussianbackedseparatistsareusingthisasapretextfornotallowingtheOSCEaccessto
certainareas.
InearlyJanuary,theMinisterofForeignAffairsofUkrainePavloKlimkin,andthenewOSCE
Chairman,FederalMinisterforEurope,IntegrationandForeignAffairsofAustriaSebastianKurz
carriedoutaworkingvisittoDonetsk.
WhilethevisitwasprimarilyoneoffamiliarisationforKurz,oneofthetopicsofdiscussionwasthe
potentialdeploymentofarmedOSCEpolicemissionincertainareasofDonetskandLuhanskregions,
tostrengthenthecapacityoftheSpecialOSCEmonitoringmissioninUkrainetoimplementeffective
monitoringandverificationoftheimplementationoftheMinskagreements.
ContinuedUKsupport
Inthemeantime,abrightspothasbeentheUKsrenewedcommitmenttothesovereigntyofUkraine.
InDecember,theDefenceSecretary,SirMichaelFallonannouncedthattheUKtrainingprogramme
fortheUkrainianArmedForces(UAF)willbeextendedforanotheryear.
HeconfirmedthatBritishpersonnelwillnowbedeployedinthecountryuntilearly2018,continuingto
providedefensivetrainingtotheUAF.
ThisincludestheidentificationofminesandotherImprovisedExplosiveDevices(IEDs),lifesaving
firstaid,logisticsandoperationalplanning.
TheDefenceSecretaryalsoconfirmedthattheBritishforcescurrentlybasedinthecountryaredueto
exceedtheirtrainingtargetandbyMarch2017areexpectedtohavetrainedover5,000membersofthe
UAF,over1,000morethaninitiallyplanned.
Inastatement,hesaid,ExtendingBritishtrainingofUkrainianArmedForcessendsaclearmessage
thatwesupportUkraineandremainfirmlycommittedtoitssovereignty,independenceandterritorial
integrity,inthefaceofamorebelligerentRussia.
ThiscommitmentwasunderlinedfurtherinavisittoUkraineon20January,whenSirMichaelmet
DefenceMinisterofUkraine,GeneraloftheArmyStepanPoltorak,andsaidthattheUKisbeginning
todelivertrainingtoUkrainesAirForceaswellasitsArmyandNavy.
HemetwithUkrainianveteranstohearfirsthandhowtheUKstrainingprovidesvitalsupportforthe
UAF.
Laterinhisvisit,whichalsomarkedthe25thanniversaryofUKUkrainiandiplomaticrelations,the
DefenceSecretaryalsovisitedtheATOMemorialinsidetheNationalDefenceUniversitytopay
tributetothe127soldierskilledintheEastofthecountryin20142015.
ThisreiterationofsupportispartoftheUKsconsistentrecentmessagingaboutremainingaglobal
playerinspiteofBrexit,butwhileitisbackedupbyconcreteactions,mustbewelcome.
Andoverthepond
TheworldiswatchingtoseehownewUSPresidentDonaldTrumpwillstarttodeliveronhis
campaignpromises.
AkeyareawillbetherelationshipwithRussia,whichhassignificantimplicationsforUkraine,and
maybeasourceofcontentionbetweenthePresidentandRepublicanleaders,manyofwhomhavebeen
staunchsupportersofUkraineandopenlyacknowledgedRussiasroleinfinancingandfuelling
conflictinUkraine,whileTrumphassaidthathewantstoimproverelationswithMoscowandthathe
wouldconsiderliftingUSsanctionsonMoscowimposedinresponsetotheCrimeaannexation.
ThedaysbeforetheinaugurationweredominatedbynewsofreportsthatMoscowhadgathered
compromisingpersonalandfinancialinformationaboutDonaldTrumpthatcouldbeusedforextortion,
whichheangrilyrejectedastotallyunsubstantiated.
However,hedidconcedeforthefirsttimethatRussiahadcarriedoutcyberattacksagainstthetwo
majorpoliticalpartiesduringthepresidentialelection.
PresidentPutinsaidthatbothallegationswerepurefantasy,thoughitisclearfromtheRussianmedia
thattheRussianestablishmentisdelightedwithTrumpsvictory,givinghimalevelofadulationthat
hasnotbeenseenforanyotherwesterndemocraticleader.
Trumpstopteamwillbekey.HisnominationofFormerExxonMobilchiefexecutiveRexTillersonto
beSecretaryofStateraisedconcernsbecauseofhisclosebusinesstieswithRussiaandpersonal
relationshipwithPresidentPutin.
However,hewonthebackingoftheSenateForeignRelationsCommitteeonMondaytobeSecretary
ofStatewhenitvoted1110tosendhisnominationtothefullSenate,afterSenatorMarcoRubio
removedhisobjection,sayingthathelookedfavourablyonTillersonssupportforNATOandhis
recognitionthatRussiasclaimsonCrimeaareillegitimate.
TillersonwentfurtherthanexpectedintheSenatehearing,criticisingPresidentObamaforaweak
responsetotheCrimealandgrab,sayingitemboldenedRussiatobackseparatistsineasternUkraine
withweaponsandsoldiers.
HesaidthatWashingtonshouldhaveadvisedUkrainetomoveallavailablemilitaryassetstoits
easternborderandprovidedthoseassetswithdefensiveweapons,USorNATOairsurveillance,and
intelligence.
TheorderunderpinningUSsanctionsissettoexpireinMarch,soTrumphasaroundsixweeksafter
inaugurationtomakeadecisiononwhethertorenewit,cancelit,orletitexpire.
AskedwhetherhebelievesnowistherighttimetoliftUkrainerelatedsanctions,Tillersonsaid,I
wouldleavethingsinthestatusquosoweareabletoconveythiscangoeitherway.
FurthercomfortwasprovidedbytheappointmentofJamesMadDogMattisasSecretaryofDefence,
whohasbeenavociferouscriticofRussianactioninbothSyriaandUkraine.
SpeakingataconferenceinMay2015,hesaidthatamongworldthreatsinthenearterm,Ithinkthe
mostdangerousmightbeRussia,andhehasreferredtoPresidentPutinaspossiblydelusional.
However,thereisnocertaintythatTrumpwillnecessarilyheedhisownadvisersgivenhismaverick
approachtothepresidency.
PavloKlimkin,UkrainesForeignSecretary,hasjustannouncedthathewillbevisitingtheUSin
February,tocoincidewithUkrainespresidencyoftheUNSecurityCouncil,andthathewillbe
meetingmembersofthePresidentialadministration.
Watchthisspace
https://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm
110202/debtext/110202-0004.htm#11020259000001
The European Court of Auditors for the 16th year in a row has not
signed the EU accounts
The European Journal November 10, 2010 Leave a reply
WhiletheUKandotherMemberStatesarestruggling,intheirbattlewiththeEuropeanParliament,to
restricttheincreaseinthe2011EUBudgetto2.91percent,whichrepresentsa3.5billioneuroincrease
fromthe2010budgetamounting123billioneuros,theEuropeanCourtofAuditorsforthe16thyear
inarowhasnotsignedtheEUaccounts.
On9NovembertheEuropeanCourtofAuditorspublisheditsreportontheimplementationofthe2009
EUBudget.TheCourthasissuedanunqualifiedopiniononthereliabilityofthe2009EUaccounts.
AccordingtotheCourtTheaccountsoftheEuropeanUniongiveafairpresentationofthefinancial
positionandtheresultsofoperationsandcashflows.Nevertheless,paymentsfromthebudget
continuetobemateriallyaffectedbyerror,exceptintwoareasofexpenditureEconomicand
financialaffairsandAdministrativeexpenditure.
http://eca.europa.eu/portal/pls/portal/docs/1/5926723.PDF
TheCourtgaveunqualifiedopinionsonrevenueandoncommitmentsandconcludedthattherewasan
improvementinthemanagementofthebudget.However,onceagain,thecourthasrefusedtosignoff
onhowthemoneyfromtheEU's2009budgethadbeenspent.Asregardsthelegalityandregularityof
thetransactionsunderlyingtheaccounts,theCourtconcludedthatthelevelofirregularityisstilltoo
high.
AccordingtotheCourtseveralspendingareasinthebudgetcontinuetobemateriallyaffectedbyerrors
suchasAgricultureandnaturalresources(56.3billioneuro),Cohesionpolicy(35,5BILLION
EURO),Research,EnergyandTransport(8,0BILLIONEURO),ExternalAid,Developmentand
Enlargement(6,6BILLIONEURO)andEducationandCitizenship(2,2BILLIONEURO).TheCourt
estimatedthatpayments,inthesepolicygroups,aremateriallyaffectedbyerror,beingtheerrorrate,
estimatedbytheCourt,between2and5%ofpaymentsmade.However,forthecohesionpolicythe
errorrateestimatedbytheCourtisabove5%(veryserious).Moreover,theCourtconcludedthatfor
thesepolicygroupsThesupervisoryandcontrolsystemsarepartiallyeffectiveinpreventingor
detectingandcorrectingthereimbursementofoverstatedorineligiblecosts.
Themajorityofirregularitiesarenotfraud,neverthelesstheCourtwillrefertwocasestoOLAF.
TheCourtconcludedthatthepaymentsforAgricultureandNaturalResourceswereaffectedby
materialerrors,whichwerehigherthanin2008.TheCourthaspointedoutWhilesomeofthe
quantifiableerrorsconcernedtheeligibilityoftheexpenditure,mostwereaccuracyerrors,resulting
fromoverdeclarationofeligibleland.AccordingtotheECAthesupervisoryandcontrolsystems
relatedtoAgricultureandnaturalresourcesareonlypartiallyeffective.
TheEUsCohesionPolicy,whichrepresentsalmostathirdofthebudget,continuestobetheareamost
affectedbyerrors,36%ofpaymentstoprojectswereaffectedbyerror.TheCourthasstressedthat
themaincausesofeligibilityerrorswerethereimbursementofineligiblecosts,andseriousfailuresin
applyingtherulesonpublicprocurement.VitorCaldeirasaidthat"TheCourtestimatesthatalmosta
thirdoftheerrorsfoundontheinterimandfinalpaymentstestedcouldhavebeendetectedand
correctedbymemberstatesbeforecertifyingexpendituretothecommission,astheauditshowsthey
hadtheinformationtodoso..."
AsregardsEducationandcitizenship,theCourtconcludedthattheclosuresofprogrammesand
projectsfor2009wereaffectedbymaterialerrorandThemostcommontypeofquantifiableerror
foundwaseligibilityerrorsatnationallevel.TheCourtgaveacleanopinionforspendinginthis
policyareain2008.
Moreover,theCourtalsogaveadverseopinionsonthelegalityandregularityaspectsforthepolicy
groupResearch,energyandtransport.AccordingtotheCourtMosterrorsinthispolicygroup
stemfromthereimbursementofoverstatedpersonnelandindirectcoststoresearchprojects.
TheCourtcontinuestofindthatpaymentsrelatedtoExternalaid,developmentandenlargementdonot
complywiththerulesandcontinuetobemateriallyaffectedbyerrors.AccordingtotheCourtthe
mostsignificanterrorswereeligibilityerrorsandnonquantifiablecomplianceerrors.
TheCourtgaveaqualifiedopinionforthepolicygroupEconomicandfinancialaffairs.According
totheECApaymentsforthispolicyarea,wereinallmaterialrespects,legalandregular.The
supervisoryandcontrolsystemsforthispolicygroupwereconsideredtobepartiallyeffectivein
preventingandcorrectingerrors.
TheCourtalsogavecleanopinionforspendingonAdministrativeandotherexpenditure.TheCourt
concludedthattransactionsinthisareawerefreefrommaterialerrorandthatthesupervisoryand
controlsystemsinplacecompliedwiththerequirementsoftheFinancialRegulation.
ThereportnotesthattheCommissionhasimprovedtheinformationitprovidesonthecorrectionof
irregularlypaidamounts,neverthelessitstressedthattheinformationisnotyetcompletelyreliable
becausetheCommissiondoesnotalwaysreceivereliableinformationfromtheMemberStates.The
Courthaspointedoutthatwhilethevastmajorityofthecorrectionsarefinancialcorrectionson
MemberStatesorthirdcountries,theerrorsfoundbytheCourtaremostlyamountsincorrectly
claimedby,orpaidto,beneficiaries,consequentlyisnotpossibletomakeameaningfulcomparison
betweenitsownestimateoferrorratesandthedataforfinancialcorrectionsandrecoveriessupplied
bytheCommission.
TheCourtalsonotedthatseveralDirectoratesGeneraloftheCommissionstillhavetoresolve
weaknessesintheiraccountingsystems.
VtorCaldeirahascalled,again,forsimplificationofthecontrolsystems.HesaidImprovingthe
qualityofspendingshouldbeahighpriority.Simplifyinglegislativeframeworksandintroducingmore
costeffectivesystemstoreducetheriskoferrorshouldcontributetothisgoal
EU-Japan: Joint commitment to reach a speedy conclusion to trade
negotiations
http://europa.eu/rapid/pressrelease_SPEECH17706_en.htm
EUandJapanmakejointcommitmenttoreachaspeedyconclusiontotradenegotiations
http://europa.eu/rapid/pressrelease_MEX17707_en.htm#1
TheEUandJapanconfirmedtheirjointcommitmenttoreachaswiftconclusiononabilateral
tradedealandaStrategicPartnershipAgreement.
PresidentJunckerandPresidentTuskmettodaywiththePrimeMinisterofJapan,ShinzoAbe,with
negotiationsforabilateraltradedealfeaturingprominentlyontheagenda.
Inastatementgivenbeforethemeeting,PresidentJunckersaid:Webelievethisagreementis
necessarybecausewebelieveinfree,fairandrulesbasedtrade.Andsowewillcontinuetolookout
towardstheworld,ratherthanreturntoisolationism.TheEUisopenforfairbusiness.Our
negotiationswithJapanarenowinadecisiveandhopefullyfinalstage.PrimeMinisterAbe'svisit
willallowustoreiterateourpoliticalcommitmenttoahighlycomprehensive,ambitiousandbalanced
deal,sothatourcapablenegotiatorsmakethenecessaryprogressintheoutstandingareas.Following
ourdiscussionstoday,Iamveryconfidentthiswillpavethewayforaswiftagreementthisyear.As
weapproachthefinalstagesofthenegotiatingprocess,ontheEUsidewewillcontinuetoensurea
highleveloftransparencyandengagedirectlywithstakeholdersandcivilsocietyonissuesrelatedto
thenegotiations.IlookforwardtocontinuingthisclosepartnershipwithPrimeMinisterAbeatthe
upcomingG7meetinginTaormina,andhopefullyatthenextEUJapansummitwherewecan
successfullyconcludeournegotiations.
EUandJapanesenegotiatorswillmeetforanewroundoftalksinTokyoinApril,andtheprocesswill
intensifyfurtherthereafter.
Alongsidethetradeagreement,theEUandJapanarealsonegotiatingaStrategicPartnership
AgreementthatwouldreflectJapan'spositionasakeystrategicpartneroftheEUinAsiaand
demonstratesthepartners'jointcommitmenttoopenandrulesbasedtradeaswellastotheprinciples
ofhumanrights,democracyandtheruleoflaw.
22022017
ThereisalsotheEU,andinparticulartheEuropeanResearchCouncil(ERC),behindtherevolutionary
discoveryannouncedtodaybyNASAaboutpotentiallyinhabitableexoplanets.
ERCPresidentJeanPierreBourguignonsaid:
TheinternationalteamofastronomerswhoannouncedthismajorbreakthroughincludesseveralERC
granteesamongwhomMichalGillon.TheERCisproudtohavecontributedtothisincredible
discoverythroughitssupporttopartsoftheirambitiousresearch.Thisshowsboththatglobal
cooperationispayingoffandthatEuropeknowshowtoanticipatewinners.
ThisdiscoveryoftheTrappist1systemwasmadeinthecontextofSPECULOOS(Searchfor
habitablePlanetsEClipsingUltracOOlStars),anambitiousprojectledbyMichalGillon(University
ofLige,Belgium),supportedbyaStartinggrantfromtheERC.Afterthisfirstdiscovery,
SPECULOOSaimstodetectmoresystemsofthistype,thankstofourtelescopescurrentlybeing
installedontheEuropeanSouthernObservatoryofParanal(ESO)inChilethatwillbeabletoobserve
moretargetsthanthisprototype.AccordingtoDrGillon,SPECULOOS,whichwillobservetentimes
asmuchtargetsandwithgreaterprecision,shoulddetectmanymore,placingitselfatthefrontlineof
researchintothesearchforlifeelsewhereintheUniverse
TheseresultsarepublishedbyNature.DrGillonacknowledgesthesupportfromtheEuropean
ResearchCouncilforhisSPECULOOSproject,aswellasERCgranteeJeremyLeconte,Centre
NationaldelaRechercheScientifique(CNRS),France,andEmelineBolmont,UniversityofNamur,
Belgium,andCommissariatlEnergieAtomiqueetauxEnergiesAlternatives(CEA),France.
TheSPECULOOSproject:searchingforhabitableplanetsamenableforbiosignaturesdetection
aroundthenearestultracoolstars.
Researcher:MichalGillon,UniversitedeLige,Belgium
ERCStartinggrantrunningfrom2014to2018
Funding:EUR1.96million
Projectwebsite
Moreinformationontheobservation,inMay2016,ofthreehabitableEarthlikeplanets
Background
TheEuropeanResearchCouncil(ERC),celebratingitstenthanniversaryin2017,isthefirstfunding
organisationforexcellentfrontierresearchsetupbytheEU.Everyyear,itselectsandfundsambitious
andcreativeresearchersofanynationalityandage,torunprojectsbasedinEurope.TheERCalso
strivestoattracttopresearchersfromanywhereintheworldtocometoEurope.Todate,theERChas
fundedsome7,000topresearchersatvariousstagesoftheircareers.
TheERCoffersthreecoregrantschemes:StartingGrants(upto1.5millioneach),Consolidator
Grants(upto2millioneach)andAdvancedGrants(upto2.5millioneach).
TheERCisledbyanindependentgoverningbody,theScientificCouncil.TheERCPresidentis
ProfessorJeanPierreBourguignon.TheERChasabudgetofover13billionfortheyears2014to
2020andispartoftheEUresearchandinnovationprogramme,Horizon2020,forwhichEuropean
CommissionerforResearch,InnovationandScienceCarlosMoedasisresponsible.
Its important for the EU to preserve its unity towards the new assertive
and
aggressive strategy by Russia. The paper requested by SEDE
investigates
violations or international law and military activity by Russia
http://www.europarl.europa.eu/RegData/etudes/IDAN/2017/578016/E
XPO_IDA(2017)578016_EN.pdf
Brexit Implications
for Employment and Social
Affairs: Facts and Figure
http://www.europarl.europa.eu/RegData/etudes/STUD/2017/595333/I
POL_STU(2017)595333_EN.pdf
CITIZENS' RIGHTS AND
CONSTITUTIONAL AFFAIRS
CIVIL LIBERTIES, JUSTICE AND HOME AFFAIRS