EUU, Alm.del - 2015-16 - Bilag 87: Britisk udspil til forhandlinger om et reformeret EU

Europaudvalget 2015-16
EUU Alm.del Bilag 87
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10 DOWNING STREET

LONDON SWtA 2AA

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THE PRIME MINISTER

10 November 2015

A NEW SETTLEMENT FOR THE UNITED KINGDOM IN A

REFORMED EUROPEAN UNION

Thank you for inviting me to write setting out the areas where I am seeking

reforms to address the concerns of the British people over our membership of

the European Union.

As you said, the purpose of this letter is not to describe the precise means, or

detailed legal proposals, for bringing the reforms we seek into effect. That is a

matter for the negotiation, not least as there may, in each case, be different ways

of achieving the same result.

I am grateful for the technical discussions that have taken place over the last

few months and, as we move to the formal stage of negotiations, I welcome this

opportunity to explain why these changes are needed and how I believe they can

benefit all Member States. I am also making a speech today to update the

British people on the process for the negotiation and how I intend to address

their concerns.

I have been encouraged in many of my conversations with my fellow Heads of

Government in recent months that there is wide understanding of the concerns

that I have raised, and of the case for reforms that would benefit the European

Union as a whole. I particularly appreciate your own personal support

throughout.

The European Union has a long history of respecting the differences of its many

Member States and of working to overcome challenges in a way that works for

the whole European Union. For example, with the protocols and other

instruments agreed for Denmark and Ireland, the EU was able to arrive at a

settlement, which worked for each country and did not disadvantage other

Member States.

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Our concerns really boil down to one word: flexibility. And it is in this spirit

that I set out the four main areas where the United Kingdom is seeking reform.

Proposals for reform

1. Economic Governance

There are today effectively two sorts of members of the European Union. There

are Euro members and non-Euro members. As set out in Protocol 15, the

United Kingdom has a permanent opt-out from the Eurozone. Other countries

will in due course join the Euro. But, for now, there are nine of us outside; and

it matters to all of us that the Eurozone succeeds.

So we do not want to stand in the way of measures Eurozone countries decide to

take to secure the long-term future of their currency. But we want to make sure

that these changes will respect the integrity of the Single Market, and the

legitimate interests of non-Euro members.

I am confident we can achieve an agreement here that works for everyone.

Britain is not seeking a new opt-out for the UK in this area - we have the

opt-out from the single currency we need. Nor are we looking for a veto over

what is done in the Eurozone. What we seek are legally binding principles that

safeguard the operation of the Union for all 28 Member States - and a safeguard

mechanism to ensure these principles are respected and enforced.

These principles should include recognition that:

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The EU has more than one currency.

There should be no discrimination and no disadvantage for any business

on the basis of the currency of their country.

The integrity of the Single Market must be protected.

Any changes the Eurozone decides to make, such as the creation of a

banking union, must be voluntary for non-Euro countries, never

compulsory.

Taxpayers in non-Euro countries should never be financially liable for

operations to support the Eurozone as a currency.

Just as financial stability and supervision has become a key area of

competence for Eurozone institutions like the ECB, so financial stability

and supervision is a key area of competence for national institutions like

the Bank of England for non-Euro members.

And any issues that affect all Member States must be discussed and

decided by all Member States.

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2. Competitiveness

People across Europe want the European Union to help generate growth and

jobs. The United Kingdom has always been a champion of making Europe

more competitive.

So the United Kingdom welcomes the current European Commission's focus on

supporting economic growth and scaling back unnecessary legislation. This has

included some important measures that British businesses have called for, such

as the further steps towards a single digital market, which could add 3 per cent

to EU GDP; and a Capital Markets Union, which will help get finance to

entrepreneurs and growing businesses.

The United Kingdom also welcomes the new trade strategy published last

month, reflecting an agenda we have been advocating for years and including

pursumg potentially massive trade deals with America, China, Japan and

ASEAN.

But with the best will in the world, we would all acknowledge that the EU can

go much further. In particular, for all we have achieved in stemming the flow of

new regulations, the burden from existing regulation is still too high. So the

United Kingdom would like to see a target to cut the total burden on business.

The EU should also do more to fulfil its commitment to the free flow of capital,

goods and services. The United Kingdom believes we should bring together all

the different proposals, promises and agreements on the Single Market, on

trade, and on cutting regulation into a clear long-term commitment to boost the

competitiveness and productivity of the European Union and to drive growth

and jobs for all.

3. Sovereignty

As you know, questions of sovereignty have been central to the debate about the

European Union in Britain for many years. I have three proposals in this area.

First, I want to end Britain's obligation to work towards an "ever closer union"

as set out in the Treaty.

is very important to make clear that this commitment

will no longer apply to the United Kingdom. I want to do this in a formal,

legally-binding and irreversible way.

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Second, while the European Parliament plays an important role, I want to

enhance the role of national parliaments, by proposing a new arrangement

where groups of national parliaments, acting together, can stop unwanted

legislative proposals. The precise threshold of national parliaments required

will be a matter for the negotiation.

Third, I want to see the EU' s commitments to subsidiarity fully implemented,

with clear proposals to achieve that. As the Dutch have said, the ambition

should be "Europe where necessary, national where possible".

In addition, the UK will need confirmation that the EU institutions will fully

respect the purpose behind the JHA Protocols in any future proposals dealing

with Justice and Home Affairs matters, in particular to preserve the UK's ability

to choose to participate. National Security is - and must remain - the sole

responsibility of Member States, while recognising the benefits of working

together on issues that affect the security of us all.

4. Immigration

The UK believes in an open economy. But we have got to be able to cope with

all the pressures that free movement can bring - on our schools, our hospitals

and our public services. Right now, the pressures are too great.

The issue is one of scale and speed. Unlike some other Member States,

Britain's population is already expanding. Our population is set to reach over

70 million in the next decades and we are forecast to become the most populous

country in the EU by 2050. At the same time, our net migration is running at

over 300,000 a year. That is not sustainable. We have taken lots of steps to

control immigration from outside the EU. But we need to be able to exert

greater control on arrivals from inside the EU too.

Britain has always been an open, trading nation, and we do not want to change

that. But we do want to find arrangements to allow a Member State like the UK

to restore a sense of fairness to our immigration system and to reduce the

current very high level of population flows from within the EU into the UK.

These have been unplanned and are much higher than forecast - far higher than

anything the EU' s founding fathers ever envisaged. These very substantial

flows of population have, of course, also had a significant impact on a number

of Member States, many of whose most highly qualified citizens have departed

en masse. So this is a shared challenge.

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We need to ensure that when new countries are admitted to the EU in the future,

free movement will not apply to those new members until their economies have

converged much more closely with existing Member States.

We also need to crack down on the abuse of free movement, an issue on which I

have found wide support in my discussions with colleagues. This includes

tougher and longer re-entry bans for fraudsters and people who collude in sham

marriages.

means addressing the fact that it is easier for an EU citizen to

bring a non-EU spouse to Britain than it is for a British citizen to do the same.

means stronger powers to deport criminals and stop them coming back, as

well as preventing entry in the first place. And it means addressing ECJ

judgments that have widened the scope of free movement in a way that has

made it more difficult to tackle this kind of abuse.

But we need to go further to reduce the numbers coming here. As I have said

previously, we can reduce the flow of people coming from within the EU by

reducing the draw that our welfare system can exert across Europe. So we have

proposed that people coming to Britain from the EU must live here and

contribute for four years before they qualify for in-work benefits or social

housing. And that we should end the practice of sending child benefit overseas.

I understand how difficult some of these issues are for other Member States and

I look forward to discussing these proposals further so we can find a solution

that deals with this issue.

NEXT STEPS

As we agreed, the details of the reforms in each area are a matter for the

negotiation itself. But I hope that this letter can provide a clear basis for

reaching an agreement that would, of course, need to be legally-binding and

irreversible - and where necessary have force in the Treaties.

I look forward to a substantive discussion at the December European Council.

remains my aim to conclude an agreement at the earliest opportunity, but the

priority is to get the substance right.

I believe that reform in these areas would address the UK's concerns and

provide a fresh and lasting settlement for our membership of the

European Union. Furthermore, I believe such reform is both reasonable and in

the wider interests of the European Union as a whole.

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The United Kingdom is the EU's second largest economy, the fifth biggest in

the world. We bring an enormous contribution - political, economic, financial

- to the European Union.

we are able to reach an agreement, it will show the

world that, amongst the many more difficult issues it faces, the European Union

is flexible enough to accommodate the concerns of its members.

I hope and believe that together we can reach agreement on each of these four

areas.

we can, I am ready to campaign with all my heart and soul to keep

Britain inside a reformed European Union that continues to enhance the

prosperity and security of all its Member States.

I look forward to discussing this with you and colleagues further in the weeks

ahead.

I am copying this letter to the President of the European Commission, the

President of the European Parliament and all Heads of State and Government in

the European Council.

His Excellency Mr Donald Tusk