HC Deb 14 March 1994 vol 239 cc474-7W
Mr. Llew Smith

To ask the Secretary of State for Foreign and Commonwealth Affairs which Minister or Ministers represent the United Kingdom at the European Council's General Affairs meetings; how it is decided how the United Kingdom will be represented at the General Affairs Council; and what matters were discussed and decisions taken at the General Affairs Council in Brussels on 7 and 8 March.

Mr. Hurd

I normally represent the United Kingdom at the Foreign Affairs Council and I am normally accompanied by a Minister of State for Foreign and Commonwealth Affairs. Where issues concerning other Departments feature on the Council agenda, a Minister from the relevant Department may also attend.

I take the decision on who represents the United Kingdom at these meetings, in consultation with my colleagues.

I attended the Foreign Affairs Council on 7–8 March accompanied by my hon. Friends the Minister of State, Foreign and Commonwealth Affairs, the Member for Wells (Mr. Heathcoat-Amory), the Minister for Trade, the Member for Wiltshire, North (Mr. Needham), and the Minister of State, Ministry of Agriculture, Fisheries and Food, the Member for Fylde (Mr. Jack).

Association councils were held with Poland and Hungary. These were the first to take place under the terms of the European Community's association agreements with those countries.

Ministers agreed a package of proposals to involve the six central and eastern Europe associate countries—Poland, Hungary, the Czech Republic, Slovakia, Bulgaria and Romania—in the work of the CFSP pillar of the European Union. This builds on the initiative which Mr. Andreatta, the Italian Foreign Minister, and I launched in December 1993. The proposals will now be put to the six associate countries.

Ministers discussed the practical arrangements for handling CFSP expenditure and instructed officials to undertake further work on the options.

The President of the Commission, Mr. Delors, presented a progress report on follow-up to the December European Council conclusions on the White Paper on Growth, Competitiveness and Employment. He highlighted four main areas of action: deepening the single market; taking forward the creation of trans-European networks; improving information infrastructures; and making labour markets more flexible.

The Council discussed the own resources decision and reached agreement on most outstanding points. The budget discipline decision was also discussed, but no agreement was reached.

The Commission reported to the Council on market access offers following the completion of the Uruguay round negotiations. The Council decided that the Presidency and the Commission should sign the final act embodying the results of the Uruguay round negotiations, and the agreement establishing the World Trade Organisation, on behalf of the Council on 15 April at Marrakesh. Signature will be subject to verification of the final text and completion of the necessary approval procedures. Representatives of the member states will also sign the final act and the WTO agreement at Marrakesh.

The Council agreed a statement expressing concern at the recent announcement by the United States of its intention to resuscitate the Super 301 procedures of the Trade Act 1974. It requested the Commission to scrutinise the legality and implementation of these provisions to ensure that the European Community's GATT rights are not violated.

The Council heard a report from Sir Leon Brittan on the meeting of the EC-China joint commission in Peking on 28 February.

The President of the European Commission introduced the Commission's communication on immigration and asylum. The communication will now be discussed in working groups within the justice and home affairs pillar. The Government will shortly provide the House with an explanatory memorandum in accordance with the usual scrutiny procedures.

Ministers discussed latest developments in the former Yugoslavia. The Council agreed to extend for six months the Union's joint action to facilitate the delivery of humanitarian aid to Bosnia.

Ministers issued a declaration calling for the resumption of middle east peace negotiations and noting the Union's willingness to contribute to an international presence in the occupied territories, should this be agreed in the United Nations Security Council.

The Council agreed in principle on the extension to the EFTA states, under the European Economic Area agreement, of some 300 single market measures passed between August 1991 and December 1993, the interim acquis. Ministers also discussed aspects of the EEA internal regulation.

The Council discussed the negotiating mandates for voluntary restraint agreements on steel imports from Russia, Ukraine and Kazakhstan.

Members of the Council reconstituted themselves as a ministerial meeting in order to continue the accession negotiations in Norway. This followed the good progress made at the ministerial meeting held between 28 February and 1 March to negotiate the accession of Austria, Sweden and Finland.

By the time of the conclusion of a meeting on 8 March, agreement had been reached on the following main elements:

  • A wide-ranging package of measures to enable the orderly integration of the four applicants into the common agriculture policy. Agriculture prices in all four countries will be aligned with EC prices on accession. But in Austria, Finland and Norway, it was agreed that, for a transitional period, digressive national aids to farmers should be authorised where support levels differ significantly.
  • It was agreed that the Austrian region of Burgenland should be designated eligible for objective 1 status under the structural funds. In recognition of the unique problems of northern Scandinavia, it was also agreed to institute a new objective 6 for regions with a very low population density—less than eight inhabitants per sq km. A number of areas in Sweden, Finland and Norway were designated eligible for objective 6. Eligibility for objectives 2 to 5b will be determined before accession.
  • All four applicants were granted a number of derogations in the fields of VAT and excise. Similar derogations are already enjoyed by a number of existing member states.
  • The Union has agreed to fund, after accession, the applicants' commitments to the financial mechanism set up under the European Economic Area agreement. The operation of the mechanism, which benefits Northern Ireland, will remain unchanged.
  • All four applicants will pay their full contribution to the EC budget from the date of accession. But in recognition of the shortfall in CAP receipts in the first year of membership, and the financial costs of bringing their agricultural policies into line with the CAP, the Union has agreed a temporary package of financial 477 assistance to the applicants, worth 2,966 mecu in 1995–98. The four applicants will, collectively, remain net contributors to the Community budget over this period.
  • The European Union has assured Austria that the essential objectives of the 1992 EC/Austria bilateral transit agreement will be respected. The eco-points system for controlling transit traffic through Austria will continue for a transitional period after accession, if necessary until 2004. There will also be a progressive liberalisation of the arrangements for terminating traffic from accession, with complete liberalisation on 1 January 1997.
  • All four applicants have been granted a five-year transitional period during which they can maintain national legislation on the purchase of second homes.

Discussion of the institutional consequences of enlargement, and of Norwegian fisheries, are expected to resume on 15 March.