§ Mr. KirkwoodTo ask the Prime Minster what provisions exist to ensure that the obligations entered into 169W between European Union member states in matters related to the European Communities (Finance) Bill are honoured.
§ The Prime MinisterThe purpose of the European Communities (Finance) Bill is to enable the United Kingdom to give effect to a new own resources decision. The British Government, and the Governments of all other member states, committed themselves politically to the financial arrangements which are the basis of the own resources decision by a settlement at the Edinburgh Council, during the British presidency in 1992.
The relevant arrangements for giving legal effect to this international agreement are set out in article 201 of the treaty establishing the European Community which states that:
The Council, acting unanimously on a proposal from the Commission and after consulting the European Parliament, shall lay down provisions relating to the system of Own Resources of the Community, which it shall recommend to the Member States for adoption in accordance with their respective constitutional requirements.National procedures for adoption are a matter for each member state. In the United kingdom, the practice is to ask for Parliament's approval by means of a Bill adding the new own resources decision to the list of relevant "Treaties" in section 1(2) of the European Communities Act 1972.
When all member states have notified adoption of the new own resources decision, it will enter force, retrospectively if necessary, with effect from 1 January 1995. Once in force, member states will be under a legally binding obligation to make contributions to the Community budget in accordance with the new own resources decision.