European Affairs

On micro-prudential regulation, we believe it is important that no decisions taken by the new bodies should impinge on the fiscal responsibilities of the member states, which are obviously key responsibilities that should reside with them. On hedge funds, or the alternative investment vehicles directive, which the right hon. Member for Richmond, Yorks mentioned, he should know—indeed, I am sure that he does know—that this is not one of the matters to be discussed now. Rather, proper details will come forward under the Swedish presidency. He is absolutely right that it is vital that we get the detail right, but it would be wrong to move at a pace that would make it impossible for us to achieve that. Let me move from the economy to the referendum in Ireland and the necessary legal guarantees that the Council said in its December meeting it was intent on ensuring could be given to Ireland. The necessary legal guarantees will be given on three points. First, nothing in the treaty of Lisbon makes changes of any kind for any member state to the extent or operation of the Union's competences in relation to taxation. Secondly, the treaty of Lisbon does not prejudice the security and defence policy of member states, including Ireland's traditional policy of neutrality and the obligations of most other member states. Thirdly, the provisions of the Irish constitution in relation to the right to life and to education and the family are in no way affected by either the fact that the treaty of Lisbon attributes legal status to the EU charter of fundamental rights or by the justice and home affairs provisions of the same treaty. Hon. Members raised various foreign policy issues, to which I should like relatively briefly to respond. The shadow Foreign Secretary raised the matter of EU sanctions against Burma, whether they would be imposed properly and whether we would go further. The sanctions against Burma are already the EU's toughest autonomous measures against any country and were renewed for a further 12 months, until 2010, by member states in April. The UK continues to believe that further targeted financial sanctions would increase pressure on the regime. The EU common position allows for the revising or reinforcing of sanctions to be considered in response to actions by the regime. We are not aware of any instances of complaints about the operation of the sanctions, and we are keen to ensure full implementation, through the Treasury and the Department for Business, Innovation and Skills in this country. The right hon. Gentleman also raised the issue of Serbia. The Government welcomed Serbia's signature of the stabilisation and association agreement with the European Union last year. The Government are keen that the ratification of the agreement should be conditional on Serbia's full co-operation with the International Criminal Tribunal for the Former Yugoslavia. In particular, it is obviously important that the outstanding suspected war criminals come to trial. We want to ensure that that happens. The Government would be content, on the basis of Serbia's significantly improved co-operation, for the EU now to implement Serbia's interim agreement with the EU. The hon. Member for Rayleigh asked about Russia and Georgia. Obviously, there are significant issues relating to those countries that we want to pursue, but if he does not mind, I will write to him later to clarify the precise nature of the points that he raised. Other hon. Members raised various issues, including the question of whether Mr. Barroso's appointment would be made legally binding. That can be done only when there has been a vote in the European Parliament; that is part of the process. The hon. Member for Kingston and Surbiton mentioned the Lille loophole. That loophole has already been closed—