European Union (Amendment) Bill

In these heady times, one has to be careful how one interprets getting all the questions. I say to the noble Lord that, as he understands, the Lisbon treaty does not change current practice in setting out where the administrative and operating expenditure is charged to the Union budget. It does not change where and how operations having defence or military implications are charged to member states. The rapid financing of EU civilian missions and military operations is important, as all noble Lords agree. The provision enables the Council to set up a start-up fund for preparatory activity for tasks with military and defence implications. For EU military missions, the rapid financing of early costs is important to allow missions to get under way. The start-up fund is another tool to enable this. As the noble Lord, Lord Lee, has said, the requirement for rapid financing of military missions has already been met by the Athena mechanism. The establishment of procedures for the start-up fund for activity with military and defence implications, as noble Lords have indicated, will be decided by QMV. We think that this is a sensible means of sharing the cost of an operation—but a decision to launch any operation with military implications, and a decision to use the fund, will remain, as the noble Lord, Lord Lee, has said, subject to unanimity. The costs of national contributions to military ESDP operations will continue to lie where they fall. In other words, they will be borne by the contributing member states. Activity under CFSP, as we have discussed at length, is generally decided by unanimity, but there is limited scope for QMV—as we discussed in the last, longer debate on the question of QMV in CFSP. The exceptions are for secondary or implementing measures. For example, the treaty provision introduces QMV for three specific procedures for the start-up fund—setting up and financing the fund; administering it; and the financial control procedures. The substantive issues, as we have said, lie still with unanimity—a decision will be taken by the Council. Under existing procedures for informing Parliament of Council decisions, the Parliamentary Scrutiny Committee would scrutinise the decision to establish a start-up fund. Linked to this amendment is Amendment No. 100, which concerns provisions relating to funding arrangements for activities under CSFP, and in particular the new arrangements for access to rapid funding. Again, the Lisbon treaty does not change current practice on setting out where the administrative and operating expenditure is charged. It does not affect where and how operations having defence or military implications are charged. It does, however, set up new arrangements to enable the Council to access rapid financing for urgent preparatory CFSP activity. That, of course, includes rapid access to the EU budget to fund, for example, a civilian fact finding mission after a peace agreement has been signed; or rapid initial civilian deployments that could prepare the ground for a full crisis management mission. We want to be sure that, where member states feel that it is important to put a mission on the ground quickly, to support a peace agreement or to prevent conflict, financial procedures allow us to draw immediately on the budget. This change also provides for the Council to set up a start-up fund for preparatory activity for tasks with military and defence implications. That responds to the agenda set by the United Kingdom at the Hampton Court informal meeting of heads of government during our presidency, to ensure that we can respond quickly and effectively. We believe that this is an important aspect of being able to support the work of the EU, and the establishment of procedures will be decided by QMV. We think that it is a sensible means of burden sharing, but the decision to launch any fund remains subject to unanimity. The costs continue to lie where they fall, but it is too early to give figures—the figures are all pure speculation at this stage and I cannot give them, as I guess the noble Lord would expect me to say. However, I hope that the noble Lord is reassured by what I have said about the way in which the fund will be set up and used, and the requirement of unanimity for the decision to do so, and then of QMV to move into the operations stage. I hope that the noble Lord will feel reassured and will feel able to withdraw the amendment.