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There are two letters from Strasbourg this month.  Directly below is the latest.

 

SOUTH WEST FIRST

LETTER FROM STRASBOURG - JANUARY 2002  (2)
   
MID-TERM RESHUFFLE

The January Plenary week in Strasbourg is definitely atypical.  It marks the beginning of the second half of the parliamentary term with elections and/or appointments afresh for virtually all posts in the Parliament from President down.  The mid-term reshuffle, you might say.

 

RULES TO FOLLOW

The whole process, with the odd exception, is run under d'Hondt rules whereby posts are allocated to political groups according to their relative numerical strength.  Our group, the centre right European Peoples Party - European Democrats (EPP-ED), is the largest with 232 MEPs and is top of the pecking order.

 

EXPLAINING THE PARTIES

After that come the Party of European Socialists (PES) with 179; the European Liberal Democrat and Reformists with 53, the Greens/European Free Alliance (a mishmash of regional parties such as the Scottish and Welsh Nationalists in a curious link up with the Greens) with 45; the European United Left/Nordic Green Left (EUL/NGL or communists for short) 44; the Union for Europe of the Nations (UEN) 22; the Europe of Democracies and Diversities (another ragbag of a group containing whats left of the UKIP) (EDD) with 18; and finally the Independents or Non Inscrits (NI) with 34 including the Rev. Ian Paisley, an ex UKIP and an ex Labour MEP (of which more anon).

 

WHEELING AND DEALING

By applying a mathematical formula based on these numbers (which I haven't the space to explain) a pecking order list is established.  Each group uses its turn to bid for whichever post remaining vacant that it favours.  In this way jobs are supposed to be distributed fairly among all groups.  A similar process takes place before hand, within each group, between the different national delegations belonging to it, so as to determine priorities ahead of the actual share-out.  I leave it to your imagination to picture all the lobbying, jockeying, wheeling and dealing that goes on.

 

CAUSE TO SPECULATE

The big job is President.  This is a combination of Speaker, Managing Director of the Board and external representative spokesman for the Parliament.  At the beginning of this term in 1999, a deal was struck between the EPP-ED and the ELDR, for the latter to support the former's candidate and vice versa, at the halfway mark. This posed a problem for Conservatives being a choice, this time round, between Irish Liberal (the 'deal' candidate) or Scottish Labour.  Our policy was to observe the sanctity of the secret ballot and say nowt, because there was a certain amount of speculation about what we would do.

 

STRANGE HAPPENINGS

Funny things happen.  The lifts indulged in one of their periodic pouts by ignoring buttons pressed for down and going up or not moving at all, just when we all needed to reach the hemicycle or chamber.  I got in a lift which displayed just such a will of its own, but eventually it began to descend, stopping at every floor.  As it happens, both principal candidates got in, hotly pursued by TV cameras, and engaged in forced friendly banter while I cringed in a corner.

 

THE DRAMA CONTINUES

It had been decided to allow each of the five candidates five minutes speaking time before the secret ballot.  This was surely intended to add to the theatre of the occasion as everyone must have made up their mind how to vote long before.  Likewise, having a paper vote rather than an electronic one, was more about stretching out the drama.  Anyway they spoke while the oldest member - doyen d'age - took the chair.  Mr Bonde mentioned coming from room 007, Mr Cox talked about the gift of the gab and kissing the blarney stone, Mr Onesta wanted Green reform and Mr Wurtz made a pointed criticism of those who campaigned for reform in the first round, yet were willing to do a deal with the candidate of the right (liberal!) in the second.  Three speeches in English and two in French by the way.

 

POLITICAL INTRIGUE

And so to the vote.  We were all issued with voting papers and envelopes and queued up to drop the product of our efforts in the ballot box (made of clear plastic in keeping with our determination to be transparent in our proceedings), before heading off for coffee and a gossip about what might happen next.  A couple of hours later smoke emerges and we hear the first result.  583 voted, 7 were spoiled papers so the absolute majority of those voting required for victory was 292.

 

INCONCLUSIVE RESULTS

It was Bonde 66, Cox 254, Martin 184, Onesta 37, Wurtz 42.  The surprise was the high showing for Mr Bonde, a Danish eurosceptic, whom some Conservative MEPs were believed to support secretly.   Mr Wurtz graciously withdrew his candidacy and urged his EUL/NEL colleauges to vote for the Socialist candidate in round two.  Mr Onesta was more enigmatic in saying he was sure his Green colleagues would make an interesting vote.

 

ENDLESS VOTING

So we voted again and waited again.  The second result came in the afternoon and was Bonde 76, Cox 277, Martin 226.  Total votes 579, spoiled 13, required majority 290.  Mr Cox was making it the hard way and Mr Bonde was very pleased to ask for some time in a room elsewhere (not 007 it would seem) to discuss with his supporters what they should do now.  He obviously had such a good time that he forgot to come back in time to withdraw his name so we had a further ballot with the same candidates.

 

AT LONG LAST

And at last, at the third time of asking, white smoke emerged, the absolute majority was achieved and Mr Cox was elected President.  Voted 568, spoiled 18, Bonde 33, Cox 298, Martin 237, absolute majority 285.

 

NO TIME WASTED

Next we turned to the question of Vice-Presidents. As we need 14, you might be forgiven for thinking that could mean interminable votes among dozens of eager candidates.  Not a bit of it, Mr d'Hondt clicked into action and hey presto, there were just 14 candidates, no more and no less.  So that’s alright then, they are all declared elected.  However, we do have to vote so as to establish a ranking in seniority which determines who does what.  The vice-presidents form the Bureau under the chairmanship of the

President, which is the body which runs the Parliament, the managing board if you like.

 

NEED TO IMPROVE

Because they were already elected, the popularity poll was not so important, but afforded us the opportunity to make a point or two, by plumping or voting for fewer candidates to give them a higher rating and the others a lower one. The defeated candidate for the Presidency, Mr Martin came top by a long way with 300, while the Greens and EUL/NGL candidates Mr Onesta and Mr Puerta came bottom with 148 and 120 respectively.  Sad to report, our Conservative candidate came close to bottom, with the lowest score in the EPP-ED Group, possibly an indication of our standing in general, or his in particular within the Group and the Parliament.  We must do better.

 

POLITICAL HOTHOUSE

These results were declared on Wednesday morning.  To digress a moment, let me say that outside in the real world, I had a very cold walk in to the Parliament that morning and wet underfoot too, as it had snowed overnight.  A marked contrast with the hothouse of politics within.  Immediately after the results, we moved to vote for the Quaestors.  Quaestors deal with the day to day management of Members affairs and act as a sort of shop steward for us vis a vis the officials who run all the Parliament administration.  There are five of them, and although they are supposed to be elected under d'Hondt considerations, there have been two independent candidates elected in the previous two elections, an Irish MEP and a Labour MEP.

 

TRYING TO OBSTRUCT

However this time the Labour MEP was not only not his PES Group nominee, but he had been suspended from membership of that Group, so as to clear the way for two PES official candidates.  We Tories happen to like this particular Quaestor, so many of us signed his nomination papers as an Independent candidate.   The Socialist Group, knowing well that there was widespread support for this independent candidate, had done all they could to obstruct him and enforce their d'Hondt share of two places.  This obstruction included making a big song and dance about the voting method because they somehow thought that the electronic system might favour him.  The complaint raised by the Spanish leader of the Socialists was that electronic voting on a list of names was not secret because members sitting around you could see your screen (one for each seat) and tell whom you had voted for.

 

WHO SAID LIFE WAS FAIR

There was a vigorous debate and a vote about it (by electronic vote naturally!), before we decided to go ahead.  The majority of members were getting impatient after three rounds of President and one round of Vice-President voting by secret paper ballot and wanted to get on with it.  So we shouted and voted down the luckless Socialist leader.  Of course, he was actually right, you can see other colleagues' screens and under present arrangements an asterisk appears by each name you vote for, so it is not very secret.  But politics and life are not always fair and being right is no guarantee you will get your way.

 

BUSINESS AS USUAL

On the first vote, two of the five places were filled  by candidates who received the requisite absolute majority of votes cast.  They were the two serving EPP-ED candidates.  Then we had a debate as to whether to vote again straightaway or wait until the next scheduled time at noon.  This time the socialists and the greens had their way and we waited.  However it did them no good because second time round we elected a third EPP-ED candidate, a Socialist and our independent chap.  Business as normal could resume.


SPANISH ALLIES

The first piece of agenda business was the statement from Prime Minister Azner on the Spanish Presidency of the Council for the first six months of 2002.  His government is formed by the centre right Partido Popular, members of EPP-ED and therefore allies of ours.

He impressed the Parliament with what he said and the manner of saying it.  I would point out four points that he emphasised.  First was the over-riding need to pursue the competitiveness theme set out in the Lisbon, Stockholm and impending Barcelona summits with the aim of making Europe the worlds most dynamic information technology led economy by 2010.  Next was the importance of the major task immediately before us of carrying out the enlargement process by bringing in new Member States from central and eastern Europe successfully in 2004.  Third was the need to make progress with internal reforms and come up with significant improvements in the way the EU operates from the new Constitutional Convention being set up (as a variation on the past practice of Inter Governmental Conferences) at Laaken.  The fourth theme dovetailed the understandable Spanish pre-occupation with terrorism into the wider international issues of the post September 11th campaign against global terrorism.

 

BURDENS OF SMEs

These are hefty ambitious items and the rhetoric was both effective and positive.  However Europe has a long track record of talking things up on a grand scale while rarely actually achieving the stated aims.  I can think of the great emphasis laid on the importance of SMEs (Small and Medium-sized Enterprises or small businesses to people like me who have actually worked in and run a small business) for innovation and job creation in virtually the same breath as announcements of yet more social (they are very careful to avoid the correct word -'socialist', to describe these measures) proposals which will add administrative and financial burdens to SMEs that actually damage and diminish inventiveness and employment.

 

SMOOTH TRANSITION

So it is with the competitiveness agenda, although many people believe that the advent of the euro in note and cash reality will force both governments and businesses in euroland to adapt to become more flexible and more competitive.  We shall see.  To be fair the transition to the euro seems to have gone very smoothly, considering the scale of the exercise.  However the cynic in one expects prices to creep up by stealth.  I am even more sceptical about the chances of keeping the enlargement process on schedule given the fundamental dilemma of the budgetary implications. New Member States will want access to lots of eurodosh for agriculture support and regional development, while existing Member States are reluctant in the extreme to give up their present levels of receipts (Spain foremost among them) and equally unwilling to put their hands in taxpayers pockets for increased contributions.

 

LESSONS TO LEARN

Let me change track somewhat and report a piece of good news.  As a result of a lot of groundwork put in by my colleague Robert Sturdy (our then Agriculture spokesman) last year, with our EPP-ED colleagues and other political groups, a proposal to establish a Temporary Committee of Enquiry into the outbreak of Foot and Mouth Disease was forced onto the agenda, despite stiff socialist opposition led by Labour MEPs.  At the vote there was a substantial majority in favour.  This means that a long look at what happened, what went wrong and lessons to learn will take place over the next nine to twelve months.  I hope this will help make up for the deplorable way in which the Blair 'I'm in charge' Government has sought to sweep the whole sorry saga under the carpet.  I wish Robert and our new Agriculture spokesman Neil Parish all the best on the Committee.

 

INTERPRETING COSTS

Finally a different issue and a piece of information.  The Parliament Bureau has been considering some of the practical implications of enlargement viz more languages.  They have come up with proposals that do not find favour with the English booth. They are aimed at saving money by increasing the use of 'relay' interpreting, or working from the interpretation provided by another language booth, and introducing 'retour' interpreting, or working from the mother tongue into another language, rather than the other way round, which is normal at present.  At worst this could mean a phasing out of the English booth as we move towards EuroEnglish as the lingue franca of Europe or a significant loss of quality and time lag in reception.  A worrying development.

 

QUALITY NOT QUANTITY

I thought I would add up the votes we made during the Thursday vote as it is a long time since I did it for one entire Plenary session.  Then I counted well over 700 votes during the week.  This time for one day I counted 498, of which 58 were recorded votes and I don't know how many were electronic checks in case of unclear results.  Some would say we must be improving our productivity, but I would say never mind the quantity, feel the quality.

More is certainly worse, I fear, since by definition, we only have the same amount of time to study the amendments.

 

COURT OF AUDITORS REPORT

View some figures I have extracted from the Court of Auditors Report on the 2000 Budget. They may be of interest.
These are scanned in image format. 

 

 

 

 

SOUTH WEST FIRST

LETTER FROM STRASBOURG - JANUARY 2002  (1)
 
 
WORK AS USUAL

The December Strasbourg session was definitely not in the category of winding down for the Christmas and New Year break.

 

SMOOTHING COMPLICATIONS

On the Monday the main item on my horizon was the final stage of the Second Reading of the Telecoms package.  There are six legislative proposals of which one was delayed at First Reading earlier in the year and referred back to Committee.  Four of them are the responsibility of my Industry Committee, so as the co-ordinator, my task was to see that discussions and votes went through smoothly.  These are important but technically complicated matters covering fixed line and mobile telephones, satellite broadcasting, cable networks and the regulatory regimes in fifteen member states.

 

INTERCONNECTED INTERESTS

To be precise we are talking about:-

1)   Authorisation of electronic communications networks and services;

2)      Regulatory framework for radiospectrum policy in the European Community;

3)      Access to electronic communications networks and associated facilities;

4)      Framework Directive on electronic communications networks and services; and

5)      Universal service and users'  rights relating to electronic communications networks and  services. 

The sixth one concerns data protection.  From these titles, you can see it is all very interconnected.

 

EUROPEAN HANDLING

The process is an interesting illustration of how things are handled at European level.  Second Reading starts when the Parliament receives the Common Position of the Council (or Member States governments to put it another way) and has three months to decide whether to let the proposal through unamended, to reject the proposal out of hand or to seek to re-instate amendments adopted at first reading but rejected by the Council.  The third option is the most common with both Parliament and Council asserting its own agenda.

 

WILLING TO COMPROMISE

If both sides nonetheless wish to achieve a result and show willingness to compromise then the bargaining can commence.  This takes place at a formal level through debate in Committee between the Rapporteurs, their shadows from the other political groups, the Commission and Council representatives.  At a less formal level, discussion takes place within each group, between groups and between the Rapporteurs, Commission and Council in what is called informal trialogue.  That is to distinguish these meetings from the formal three-way meetings of the conciliation process leading up to the Third and final Reading.

 

DESIRE FOR AGREEMENT

In the case of the telecoms package the issues which divided Parliament and Council were clearcut and identifiable, but the desire to reach agreement was strong on both sides.  I should mention one other aspect of the process at this stage, which is that the informal discussions almost invariably take place in one language which both makes matters move along quicker and can lead to difficulties of comprehension and national pride.  It is not for me, as an Englishman, to say which language is used but I reckon it is a fairly easy guess!

 

NUMEROUS ISSUES

The issues boiled down to:-

1)      A definition of the relationship between the National Regulatory Authorities (NRAs) and the Commission in determining  how the last word is reached (Article VI of the Framework Directive);

2)      Whether operating companies  could appeal against NRA decisions on whether correct procedures had been applied or on the substance of the matter (right of appeal, Article IV Framework Directive)

3)      Whether a single standard for digital set top boxes should be mandatory or left to the market;

4)      To what extent the so-called 'must carry' requirement  for public service broadcasters should apply to satellite and other digital broadcast systems; and to a lesser extent

5)      The issues of price transparency and competition on 'roaming' and ' call termination'.

 

EXTORTIONATE CHARGES

Roaming is the facility whereby I can take my mobile into other countries, yet have access through mobile network operators in those countries, while call termination is a euphemism for how such calls (and calls between fixed and mobile phones) are charged.  It is a matter of some contention, because the mobile networks have caught the auction house habit of charging both the caller and the receiver combined with the old telecoms monopoly supplier habit of charging heavily for long-distance calls (which don't cost much more than local calls) until competition brought prices down.  I admit to being unenthusiastic about paying the greater part of the charge for a call made by someone else to my mobile, effectively without a say in the matter.  Anyway the issue is whether special sector specific regulation is needed or overall competition rules will solve this one.

 

SUCCESSFUL COMPROMISE

The negotiations continued right up to the morning of the vote after the debate which took place on the Monday evening.  In fact we, meaning all the main political groups, agreed to ask for the vote to be deferred by 24 hours, until the Wednesday, in order that the wording on final, positively the last compromise amendments could be agreed and translated in time.  The outcome was certainly a compromise but one in which most of what the Parliament sought was agreed by Council (I was particularly pleased about right of appeal on substance being agreed) and we were able to show we could get on with it to achieve agreement sooner rather than later.

 

POLITICAL MACHINATIONS

The next important item demanding attention was the rather more parochial issue of our internal elections within the UK delegation of Conservative MEPs.  These elections take place annually for the post of Chairman, deputy Chairman, Treasurer and three Bureau Members.  I had a close interest in the matter as one of the supporters of the incumbent Chairman Edward McMillan-Scott and as Treasurer standing for re-election.  This time all posts were contested and you may imagine this made for a charged atmosphere and much jockeying for position.  Almost as soon as the elections are over all the tensions and pressure dissipate and everyone settles down again, but for a couple of weeks between closing date for nominations and the actual election, things get quite interesting.

 

TIME FOR CHANGE

In the event, there was a dead heat, a tied vote, for Chairman, followed by a re-vote when one colleague changed sides in favour of the challenger Jonathan Evans from Wales.  After that the bandwagon of 'time for a change' rolled, and I lost by a much wider margin.  As my mother would have observed, worse things have happened at sea and I had held the post for three years, but one would prefer to choose one's own time to change.  It should ease the workload somewhat!

 

BUDGET 2002

The third event to mention was definitely of greater importance and it was the vote on the second reading of the Budget 2002.  The detail of the last minute negotiations between Parliament and Council is a complicated illustration of a process that seems almost impenetrable but appears to work.  It is rather similar to the sort of discussions we had over the Telecoms Package and amounts to a sophisticated form of haggling over relatively small amounts.  The Budget Committee have a debate about political and financial priorities, then discuss them with the Council.  It seems to boil down to an overall agreement about global sums with a lot of bargaining over adding a bit here and cutting a bit there within the total sum.

 

TOUGH BARGAINING

The way the Parliament puts pressure on the Commission is to put part of a budget line into 'reserve' and refuse to release it until some condition is met.  To bargain with the Council is altogether tougher because it is the Member States who have the final say as they have to actually produce the money.  No wonder the Commission and others keep coming up with bright ideas for European taxes that would by-pass national governments!

 

THREE WAY DEFINITION

The budget is defined in three ways, the Financial perspective or pre-determined upper limits to spending, Commitments and Payments.  All these figures vary from each other, unsurprisingly, but usually not by very much.  For 2002 overall commitments have been set at approximately €98.5bn. or just over £60bn. in real money at the current exchange rate.  Expenditure is under seven headings.

 

SEVEN CATEGORIES

Agriculture is the largest at

€44.25bn. or just under 45% of the overall budget.  Next comes Regional Aid at €33.85bn. or 34⅓%

of the overall budget.  After these two large categories the other five are bound to seem relatively small.  The five headings are Internal Polices (e.g. Research, Trans-European  Networks); Foreign Policy (e.g. food aid, co-operation with third countries); Administration (e.g. running costs of Commission, Parliament, Council, Court of Justice and the rest); Reserves; Pre-Accession Aid (for the candidate countries).

 

PUT IN PERSPECTIVE

The Administration part of the Budget will probably be of interest to all those who subscribe to the "it all costs too much" school of thought.  It amounts to €5.1bn for 2002, which is just over the 5% of the Budget level which is the target that is not supposed to be exceeded.  It is a lot of money to be sure, but as a proportion of the overall budget, it isn't exactly out of sight.  Final thought, the EU budget is a similar amount of money to what the U.K. spends on the NHS.  I used to compare it with the UK social security budget but that is now well over £100bn.

 

 

 

 

  

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