Fontainebleau Agreement

HC Deb 12 December 1984 vol 69 cc1050-2

82. Mr. Foulkes

asked the Secretary of State for Foreign and Commonwealth Affairs what progress has been made in implementing the Fontainebleau agreement.

Sir Geoffrey Howe

A text implementing the Fontainebleau agreement on budget discipline was formally adopted at the Dublin European Council. The United Kingdom's 1983 refunds have been released and the bulk of the money has been paid. The Council has also reaffirmed its commitment that the United Kingdom's abatement for 1984 should be made on the revenue side of the budget in 1985, as agreed at Fontainebleau.

Mr. Foulkes

Is the Secretary of State aware of the great concern in the House and beyond at the statement by the Economic Secretary to the Treasury in the debate last night, when he appeared to link the 1984 refund with the proposed increase in the Community's own resources and, even more worrying, with advancing that increase into 1985? Particularly because that increase in own resources has not been agreed by Parliament, can the Secretary of State give us a clear assurance that the United Kingdom refund and the abatement to implement that refund do not depend in any way on the agreement to increase the Community's own resources?

Sir Geofrey Howe

All those matters have been considered together over many months, and the 1985 draft budget as sent to the European Parliament was accompanied by a Council declaration stating that funds would be provided to meet the Community's inescapable financial obligations and the United Kingdom's 1984 abatement. Nine member states agreed that additional financing in 1985 should be made available to own resources, and it is our hope that the other country—Germany—will soon agree.

Mr. Dykes

Now that we are gradually getting used to working constructively with foreigners in the Community, would not my right hon. and learned Friend repeat the assertion that the commitment to majority rule that we encapsulated in our submission to the Fontainebleau conference is one of the best ways in which we and the other member states can begin to take the Community forward in some of the vital areas in the creation of a unified Community?

Sir Geoffrey Howe

I agree with my hon. Friend that if the Community is to make the progress that we want towards effective unity of the market as a better opportunity for job creation in this country and throughout Europe it is important that the existing provisions for majority voting already in the treaty, to which we belong, should be put into action.

Mr. Hill

Is my right hon. and learned Friend saddened, as I am, by the fact that when we talk of Europe, we talk only of the EEC? Are there not other institutions in Europe, such as the Council of Europe and the Western European Union? Was not the French initiative at the Fontainebleau conference to reactivate the WEU one of the most important decisions made this year by any Head of State?

Sir Geoffrey Howe

I agree with my hon. Friend that there are many European institutions beyond the European Community, and I know of his association with the WEU Assembly. As a matter of fact, these questions are related to EEC matters. However, I also agree with my hon. Friend about the importance of WEU. I think that he will know of the declaration by my right hon. Friend the Secretary of State for Defence and myself at the Rome ministerial meeting of WEU that we regard the revitalisation and effective operation of WEU as a very important matter.

Dr. Owen

Does the Foreign Secretary agree that when considering the treaties and the possibility of an umbrella treaty it would not be inappropriate to look at the Community in terms of a two-stream Europe, at least on political co-operation, and that the seven countries which are signatories to the WEU treaty would be a natural grouping within the European Community to discuss that all-important element in political unity—security?

Sir Geoffrey Howe

The right hon. Gentleman raises wide-ranging questions. I would not readily subscribe to the idea of a two-stream Community, but I would subscribe to the idea that it is important for European countries to undertake effective discussion and consideration of security matters. I agree that the WEU, which comprises seven of the member states, is an appropriate place for that to take place. However, I would not want to regard that as exclusive or extinctive of political cooperation in the wider Community.