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Introduction
Sceptic quotes
Europe is a
cul-de-sac
Forget about Europe -
Britain's only real ties are in the special relationship with
America
Britain is trapped
inside a Fortress Europe
European
integration is destroying national identity
Europe is
undemocratic. The power lies with unelected, faceless bureaucrats
The EU Budget rips us
off - we want our money back (rip-off)
The EU is strangling
enterprise with red tape
The EU is riddled with
fraud and corruption
Brussels finances
propaganda in Britain
The idea of an EU
foreign policy is a joke
Europe wants British
soldiers to fight under the EU flag (European army)
The Common
Agricultural Policy is a scandal - British Fish for the British (farms
& fish)
The are to many
problems for enlargement to work
The euro is a
straitjacket
Emu means a
superstate through the backdoor
The euro means higher
taxes
Unaccountable
bankers in Frankfurt have far too much power
Political
union is a one-way street
Europe is fostering a
disunited Britain (regionalism)
Europe never plays by
the rules: Britain always loses out (fair play)
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A glossary of eurosceptic beliefs
an exposé of misunderstanding
Source:
The European Commission
Representation in the United
Kingdom

Introduction
In the run-up to the Single Market, the process of removing internal
barriers and setting up EU-wide standards meant a leap in the amount of
EU-level legislation. This process had many different impacts – some
liberating, some inconvenient, some frustrating, some amusing.
Irritation with some of the effects combined with a general uneasiness
towards the European Union in British public opinion to provide fertile soil
for what became 'Euroscepticism' – itself a misleading term, since it was
often and remains a cover for outright hostility to the EU.
Media sympathy with Euroscepticism had a direct impact on British public
opinion, leaving an indelible impression of continental inefficiency,
introspection and ham-fisted bureaucracy. In 1994 the European Commission in
the UK produced a publication Do you believe all you read in the
newspapers?, debunking some of the Euromyths peddled by British newspapers.
It contained precise examples of misleading and factually inaccurate stories
run by newspapers about Single Market measures. It was very popular, with
copies reaching 80 countries worldwide. It was one way of pointing the
finger at the lack of professionalism and anti-European bias of much of the
British press. This was followed a year later by another publication in the
same vein Do you STILL believe all you read in the newspapers? It had even
more impact.
This Glossary of Eurosceptic Beliefs brings together many of the favourite
Eurosceptic mantras and presents the facts. We hope it will help those who
want to know what really lies behind the stories they read, and to measure
for themselves the destructive impact of 25 years of Eurosceptic distortion.
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Sceptic quotes
Countdown to disaster
Without some major change of course the British people could, by the time
the year ends, be irrevocably committed to living in just a comparatively
small part of a vast new state, under a political system as undemocratic as
any in the world.
Christopher Booker, Daily Mail
_____________________
Will Britain's repeal of the Single European Act lead to a constitutional
crisis in its relationship with Europe? The answer is, yes, of course it
will. Indeed, that is the intention of repealing the Act. And will that
culminate in the UK's departure from the EU, perhaps even its public and
humiliating expulsion? The answer then becomes, yes, that may well be the
outcome, and Britain must look forward to the day when it can again
determine its own destiny and the Westminster Parliament can once more
defend the ways of life of its people.
Professor Tim Congdon, Eurofacts
_____________________
Hitler boasted that his Reich would last a thousand years. Kohl went even
further: E&MU would be for ever. Hitler was wrong, and Kohl will be wrong.
But tens of millions of lives will be ruined and perhaps countless numbers
lost in Bosnian-style wars before his folly is brought crashing to the
ground.
Bernard Connolly, Freedom Today
_____________________
How can it now be right for our elected representatives in their own
self-interest to break up these United Kingdoms into 12 'mickey mouse'
apartheid homelands within a Superstate of Europe.
Greg Lance-Watkins, Save the Pound website
_____________________
Never mind the euro, the problem is Europe
You have to remember that the federasts have been at it since the Fifties.
The faces may change but the goal remains the same. The endgame is to lock
us all in so tightly to a federal Europe that we will have nowhere else to
go.
Richard Littlejohn, The Sun
_____________________
For to be in the European Union means to cede sovereignty to another,
namely, the acolytes of the Papacy who rule the European Union.
Chris Richards, The Reformer
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"Europe is a cul-de-sac"
Eurosceptics like to denigrate Britain's European partners, and the EU as a
whole. The reality is that the EU is strong, both economically and
politically.
The 1990s saw the transformation of the major EU economies, with low
inflation, sound public finances and buoyant trade. Some problems remain,
most obviously the scourge of unemployment. But the EU remains one of the
most dynamic, productive economic forces in the world. The euro is set to
ensure that Europe does not lose out in the race for competitiveness.
Governments across the EU are now promoting economic reform at home and
EU-wide. A new agenda of developing e-commerce and the information economy
is now accepted as the common goal across the EU.
UK businesses know that their competitors in other EU countries are amongst
the toughest in the world. It is interesting to note that those in direct
contact with other European countries are often less dismissive than those
who stay at home.
Attacks on political systems in other EU countries sit oddly with sceptics'
beliefs in national diversity. Europe's rich political heritage is founded
on a variety of constitutional arrangements. Those who claim that Britain is
uniquely democratic feel that the Westminster system is the sole measure of
democracy. In fact, membership of the EU is based on liberty, democracy,
human rights and the rule of law. The EU would simply not be able to
function if countries did not believe that their partners were worthy of
respect and trust.
 | The GDP per capita of the EU stood at euro
20,100 (£13,960) in 1998 (USA euro 28,900; Japan euro 26,900; Canada euro
17,400; Australia euro 17,300). |
 | The UK is the 10th richest EU country in
terms of GDP per capita (Source: Eurostat -- the UK Treasury has stated
that the UK is in 9th, 10th or 11th place, depending on the measure
chosen). In absolute terms, current figures put the UK as the second
largest EU economy, after Germany. |
 | Productivity in the EU averaged 44,700 in
1996 in terms of ECU per employee (Germany 50,900; Italy 50,300; France
44,900; UK 40,100; Spain 33,300). The figure for the USA was 56,300 and
for Japan 58,100. |
 | R&D spending in the EU totalled 135bn ECU
(£90bn) in 1997, less than the USA but more than Japan. As a percentage of
GDP, the highest R&D spending was in Sweden, Finland, Germany and France
(UK in 7th place). The World Economic Forum ranking of innovation in key
economies puts several EU countries in the top six: USA; Germany; Finland;
the Netherlands; Canada; France. |
 | The EU had a small trade deficit in 1999
at euro 11bn (£7bn), while the surplus for the countries in EMU was euro
58bn (£36bn). Germany, Ireland and Italy had the highest surpluses; the
UK, Spain and Greece were most in deficit. · President Clinton on Europe:
"You remain our most valued partner, not just in the cause of democracy
and freedom, but also in the economics of trade and investment."
|
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"Forget about Europe - Britain's only
real ties are in the Special Relationship with America"
The idea that Britain faces a choice between EU membership and some special
link with the US is wrong. EU membership is unique - no comparable
international arrangement exists (or has ever existed). So it is not a
question of Britain facing a range of similar options in international
relations. Mainstream UK politicians agree that Britain is a European
country whose future is inextricably linked to its European partners.
Sceptics seem to deny the realities of geography.
There is no conflict between EU membership and close relations with the US -
quite the contrary. The EU and the US are each other's most important
allies. Britain has particularly strong historic ties to the US, with the
common language at the fore. So do other EU countries, most obviously
Germany, Greece, Ireland and Italy. The US has consistently welcomed the
process of European integration, both before and after the fall of the
Berlin Wall.
The EU has a more sophisticated relationship with the US than with any
partner outside Europe. This includes joint action ranging from promoting
reform in Ukraine to tackling AIDS, from transatlantic town-twinning to
combating drugs in the Caribbean. Inevitably, as the two richest economies
and the two largest traders in the world, disputes arise. But this should
not be allowed to obscure the strength of a relationship based on shared
values including trade liberalisation and encouragement for democracy.
 | The EU and the US are each other's major
commercial partners, with more than euro 450bn (£315bn) of goods and
services traded. This trade is remarkably close to balance. Most trade in
industrial goods is already tariff-free. |
 | The New Transatlantic Agenda launched in
1995 is an action-orientated relationship reflecting the breadth of
relations - political contact includes twice-yearly meetings between the
US President, the holder of the EU Council Presidency, and the President
of the European Commission. |
 | An example of tangible results is the
EU-US Mutual Recognition Agreement which came into force in December 1998,
which cuts business costs by allowing products to be tested only once for
both markets. It covers sectors adding up to trade of some $50bn a year.
In this area, the EU's economic links with the US in fact go further than
relations under NAFTA. |
 | Family ties - according to the US State
Department, 25% of US citizens can trace family origins in Germany.
|
 | Education - according to the US Department
of Education, around 50,000 EU students study in US universities each year
(Germany 8,990; UK 7,357; France 5,692; Spain 4,673; Greece 3,010).
|
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"Britain is trapped inside a Fortress
Europe"
The picture of the EU as an inward-looking 'fortress' is wrong. Of course
domestic considerations weigh heavily on EU leaders - their electorates
rightly expect nothing less. But historic ties, commercial interests and a
sense of global responsibility combine to make the EU open and
internationalist.
The EU is the world's largest exporter of both goods and services. So
fostering protectionism would make no sense. The EU is in the vanguard of
global trade liberalisation. It led efforts to spread liberalisation into
new areas like IT, telecoms and financial services (where the UK is well
placed to benefit). Now the EU has been pushing to bring barriers down
further through a broad range of liberalisation in the World Trade
Organisation.
The Single Market has not only benefited the EU. It also helps suppliers
from outside the EU. Far from facing new barriers, it means they can sell
their goods or services under a single set of rules, throughout a market of
374 million consumers. The same effect will follow EMU - all businesses
working inside the EU will enjoy the savings and efficiency brought by the
euro.
The joint action of national governments and the EU makes Europe the largest
donor of overseas aid in the world. It is also promoting new measures to
make it easier for developing countries to trade with the EU.
Far from turning their back on a global role, EU countries are working
together, convinced that the best way to have an influence is a common
approach. From helping the Middle East Peace Process to tackling drugs in
the Caribbean to reducing the nuclear threat in Korea, European initiatives
now have a global reach.
 | The EU is the world's largest trader,
accounting for around one-fifth of world trade in goods and around a
quarter of world trade in services. |
 | Some 7.5% of EU funds are devoted to
development assistance. European aid in 1997 amounted to $71 per EU
citizen, compared to $23 per US citizen. In 1993-96, EU countries
undertook 74% of all debt forgiveness by OECD members. EU countries also
contribute the largest share of IMF funds, almost a third of the total.
The EU is also the world's largest donor of humanitarian aid. As for
trade, over the last three years, imports from the least-developed
countries have risen by some 38%. |
 | At the time of the Asian financial crisis,
there were incorrect claims that the EU was leaving others to shoulder the
burden. In fact, at the time, the EU's trade balance with the region fell
more than that of the US (euro 33.2bn Jan-Sept 1998) and the EU was second
only to Japan in support for IMF recovery programmes. |
 | The EU uses defensive trade measures like
anti-dumping only when threatened by unfair trade. Only 0.3% of EU imports
face anti-dumping measures. |
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"European integration is destroying
national identity"
The idea that there is some hidden agenda to destroy national identity in
the EU is one of the most common scare stories peddled by the Eurosceptics.
The word 'integration' is seen to imply stamping out diversity and imposing
a single way of life across Europe. The decision of EU countries to work
together in some areas and to apply a system of law - the Single Market
approach - has been used to conjure up a threat which does not exist. The
word integration, which means the process of EU countries gradually working
more and more closely, has been taken to mean a process of unremitting
centralisation, leading to a 'superstate'.
Proud and historic nations in Europe do not feel under threat from working
together. Many EU countries are familiar with different levels of government
having different powers - and understand that being 'integrated' does not
mean having a single source of power. Britain has had a relatively
centralised system for centuries, but retains strong identities in Scotland
and Wales. The process of devolution is based on the conviction that
decentralised power can exist without ending nationhood.
The reality is that the EU applies common rules only where it is necessary.
It was necessary while the Single Market was being set up, but in recent
years the number of proposals for new laws has tumbled. The need to limit
EU-level action to the essentials has now been given force in the principle
of 'subsidiarity and proportionality' - jargon perhaps, but jargon which
means that there has to be a real justification for action at EU rather than
at national, regional or local level.
 | Wim Kok, Prime Minister of the
Netherlands: "Our aim is not for each [EU country] to be the same. Nobody
is trying to mix the European palette, which is a rich variety of colours,
into a uniform dull grey." President Jacques Chirac of France: "The
peoples of Europe do not want to merge and to lose their identity … we all
need to be under the same roof, but to feel at home and to keep what is
familiar to us." Romano Prodi, President of the European Commission: "We
are not the US … we are proud to see countries maintain their roots."
|
 | Article 128 of the EU Treaty explicitly
protects cultural diversity. EU action like the Raphael programme, to help
protect cultural heritage, puts a special emphasis on multilingualism.
|
 | With the end of the Single Market
programme, the number of proposals for new legislation fell steadily from
around 60 in 1990 to fewer than 10 in 1997 (with total proposals falling
from 800 to 500). |
 | Subsidiarity is laid out as a legal
requirement in the Treaty: "The Community shall take action … only if and
in so far as the objectives of the proposed action cannot be achieved by
the Member States and can therefore, by reason of the scale or effects of
the proposed action, be better achieved by the Community."
|
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"Europe is undemocratic. The power
lies with unelected, faceless bureaucrats."
Democracy in the European Union operates in different ways. The most
powerful decision-making body, the Council of Ministers, is responsible
through its members to parliaments and electorates in every EU country. Each
country decides how to make its ministers accountable.
Direct elections to the European Parliament have created a body with a clear
mandate from the electorate. MEPs are accountable for their work on
legislation and in scrutinising the other EU institutions.
The unelected European Commission is often cited as the source of a
'democratic deficit' in the EU. However, Commissioners are nominated by
elected governments and pass through the scrutiny of the European
Parliament. Just as importantly, the Commission's work does not take place
in a vacuum. Proposals for legislation result from a long process of
consultation with national governments and interest groups. The Commission's
management role is exercised with the national governments in hundreds of
committees meeting week by week. All its work is subject to scrutiny by the
European Parliament and by an independent financial watchdog, the Court of
Auditors.
Of course, it goes without saying that the influence that a British voter
can have in a Union of 370 million is less than that in a country of 59
million - in the same way that the voice of an individual Birmingham voter
counts for more in a local authority with a population of one million than
at national level. But by convention and by law, there are many safeguards
to ensure that the representatives of every EU country are heard - and the
EU always tries to reach a consensus, even when the rules allow decisions by
majority rather than by unanimity.
 | In 1998 there were more than 3,000
meetings of the Council of Ministers at ministerial or official level - so
in any given week there are an average of 60 formal meetings where the 15
EU governments forge policy. |
 | Opportunities for public consultation have
grown in recent years. In spite of the reduction in the number of
legislative proposals, the number of green and white papers issued by the
Commission rose from nine in 1992-93 to 18 in 1996-97. |
 | The proportion of proposals for new laws
coming out of the Commission on the Commission's own initiative is
relatively small. It has been calculated that 20% of proposals follow a
request from the Council, the Parliament or national governments; 35% are
to implement international agreements; 25-30% are to update or modernise
rules; and 10% are routine, such as the annual fixing of farm prices.
Fewer than 10% of proposals come from the Commission's own initiative.
|
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"The EU budget rips us off - we want
our money back"
The idea that EU membership can be measured purely in balance-sheet terms is
a long-standing sceptic belief. The fact that most EU policies - the Single
Market, competition policy, common foreign and security policy, trade
negotiation, justice cooperation, the euro - have little or nothing to do
with the EU Budget is conveniently forgotten. In reality it is impossible to
quantify the financial impact of all these policies.
EU Budget revenues come from a variety of sources, including customs duties
and a share of VAT revenue, as well as payments based on the wealth of each
EU country. EU Budget spending is limited to areas of EU responsibility,
with more than 80% devoted to agriculture and regional support. Not
surprisingly, these revenues and spending programmes affect different
countries in different ways, in the same way that UK taxes and UK spending
have a variable impact on different parts of Britain. The effects also vary
year by year.
Inevitably, some EU countries find there is a greater proportion of EU
revenue collected in their countries than their share of EU spending. This
has recently been the case for Germany, France, Italy, the Netherlands,
Austria, Sweden and the UK. Partly because the UK is one of the less
well-off countries in the EU, a special mechanism was agreed in 1984 to
reduce the UK's payments to the Budget.
The EU Budget increased significantly from the mid-1980s, but recent years
have seen a ceiling applied to spending, and a decision to hold expenditure
broadly stable for the period 2000-06. This has combined with new efforts to
ensure better value for money in EU spending, which lies behind policy
changes such as CAP reform and institutional changes to improve financial
management.
 | The EU Budget takes up a small share of EU
GNP compared to national public expenditure. A ceiling has been agreed on
EU expenditure limiting spending to a maximum of 1.27%, though the 2000-06
Budget agreement will see a fall to 1.13% by 2006 (this figure includes
post-enlargement costs). This is a small proportion of the total share of
GNP taken by public spending in the EU, which averages 47% (the UK figure
is under 40%). The EU Budget in 2000 totals euro 94bn (£57bn).
|
 | In 1997 the share of the EU Budget
financed from Britain was the third largest, and the UK received the fifth
largest proportion of EU spending. The greatest differences between the
share of EU revenues supplied by each Member State and the share of EU
spending was : (for net contributors) Germany 15.4%, the Netherlands 3.2%,
UK 3%; (for net recipients) Spain 7%, Greece 5.3%, Portugal 3.3%.
|
 | The UK abatement amounts to a two-thirds
reduction in the difference between the UK's contribution to VAT-based
revenue and the amount of EU spending in the UK. Over the past four years,
the UK rebate has been worth between £1.4bn (euro 2bn) and £3.2bn (euro
5.7bn) a year. The Treasury has estimated that over the same period, the
total UK contribution has varied between £1.6bn (euro 2.3bn) and £4.6bn
(euro 6.8bn). |
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"The EU is strangling enterprise with
red tape"
The Single Market represents an enormous freeing-up of controls and
restrictions. It has brought opportunities for British business to sell
goods Europe-wide under a single set of standards, for traders to export
goods without costly and time-wasting customs controls, for banks to offer
mortgages to clients across Europe.
But every western democracy has rules to protect consumers from being
swindled, to protect workers from being exploited, and to prevent cartels.
The European market cannot operate without rules. So the EU countries agreed
a policy of recognising each other's regulations, and having a minimum set
of common rules to ensure fair competition. These minimum standards
inevitably involve some give-and-take. Sometimes UK rules have been relaxed
to let in new products, sometimes tightened to allow for an EU-wide minimum
standard - and sometimes the UK benchmark has become the model for the EU.
Once the avalanche of invented Euromyths so beloved of British sceptics is
swept aside, there is a clear rationale for regulation. Regulation balances
different interests, such as producers, employees, traders, retailers and
consumers. A free-for-all is not the answer.
It is often claimed that the trouble with EU rules is that only the UK tries
to apply them effectively. Naturally enough, sceptics in other EU countries
make the same claim - that theirs is the only country playing by the rules.
In practice, the UK's record is good, but several other EU countries have
done even better. And every time a country has been found to be breaking the
rules, they have in the end accepted the judgments of the European Court of
Justice.
 | The benefits of the Single Market include
lower prices (e.g. airfares), consumer protection (e.g. toy safety), and
the freedom to live, work and study throughout the EU. |
 | It also means cost savings to make
business more competitive. For example, the ending of some 10 million
customs forms for UK firms is estimated to have saved UK companies £135m a
year. |
 | Many complaints about regulation often
prove to be complaints about a liberalisation of the market putting
existing practices under threat. Examples are road haulage companies
facing EU competitors setting up in the UK, or those suggesting that the
'traditional British toilet' has been 'banned' when consumers were given
the choice over which toilet equipment to use. Others are simply invented
stories (see website
http:/www.cec.org.uk/ ). |
 | The extent to which EU countries apply
Single Market rules is closely monitored. In 1999 transposition of EU
Directives into national law ranged from 98.7% in Finland to 94.3% in
Portugal, with the UK in 7th place at 96.7%. As for possible infringements
of existing rules, in the year to March 1999 there were 334 'letters of
formal notice', the first stage in the process, ranging from five Danish
cases to 52 French cases, with the UK in joint 8th place with 21 letters
issued. |
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"The EU is riddled with fraud and
corruption"
There have been too many cases of fraud against EU funds. The EU's financial
watchdog has estimated that errors in the accounts add up to some 5% of the
EU Budget - some of this unfinished paperwork, some accidental
miscalculation, but some intentional fraud as well. So although the amount
of fraud seems much less than, for example, the level of fraud against the
UK social security system, it must be tackled.
More than 80% of EU spending is managed directly by national governments
like the UK government. So much of the responsibility for tackling fraud
lies at the national level, with governments and law enforcement agencies.
Clearer rules and better policing at the EU level help. This was one of the
goals in recent changes to policies on agriculture and regional funds. But
strong sanctions in national law and firm application of procedures on the
ground are critical.
A linked issue is the question of Commission management of funds. Even
though the Commission manages less than one-fifth of the EU Budget, it still
adds up to a significant sum, and EU taxpayers have every right to expect it
to be properly managed.
In January 1999 the Commission and the European Parliament set up a
Committee of Independent Experts to look into a number of allegations. The
Committee concluded that there had been several instances of mismanagement
which had made fraud by outside bodies possible, and that the Commission had
not been willing enough to take responsibility. It also criticised three
Commissioners for nepotism. As a result, all 20 Commissioners decided to
resign.
A new Commission took office in the autumn of 1999 with a strong reform
mandate. Reform is focused on management and financial reform with the goal
of a Commission meeting the highest standards of public service.
 | It is notoriously difficult to give a
reliable estimate of fraud. Fraud investigations covering around 1% of EU
spending were under way at national or EU level in 1998, with a slightly
larger figure for fraud against EU income (e.g. against customs duties).
The Benefits Agency estimates that UK social security fraud is around
£4.7bn a year, or 5% of total social security spending. |
 | The Report of the Committee of Independent
Experts can be consulted on the website
www.europarl.eu.int/experts/
Current reforms to achieve the Commission's goals of efficiency,
accountability, service and transparency can be tracked under the
Commission website
www.europa.eu.int/comm/reform/index_en.htm. |
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"Brussels finances propaganda in
Britain"
Eurosceptics seem to define any information they do not like as
propagandist. So even the most basic factual information prompts this
accusation. Their real objection is to the whole concept of the European
Union and its institutions. The European Commission is attacked as a way of
attacking the EU as a whole.
Every public authority has a responsibility to provide information to the
general public about its work. The Commission is no exception. Though the
primary duty to explain EU policy lies naturally with national governments,
the Commission has its own responsibilities. So when national governments
and the European Parliament agree the EU Budget each year, they ask the
Commission to help them in the task of keeping the public informed, and set
aside funds for that purpose.
Propaganda must, by definition, involve forcing misrepresentations onto an
unwilling public. But the Commission provides information on demand only.
For example, information for use in schools is only sent to those schools
which request it.
The euro presents a special case in the UK. The Commission has a
responsibility to uphold the EU Treaty in its entirety - including the right
for the UK to make its own mind up about whether to apply to join the euro.
So though the Commission has a duty to explain the benefits of EMU for the
EU as a whole as laid out in the Treaty, the same duty requires it to uphold
the freedom of the UK to determine its own policy on the euro.
 | Information work is designed to be "an
effective channel of communication and dialogue between the people of the
European Union and the Community institutions. [Actions] take account of
specific national and regional characteristics, in close cooperation with
the Member State authorities." (The EU Budget) |
 | An information service set up by the UK
Government and the European Commission received 11,000 requests for EU
information from the education sector during the course of 1999.
|
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"The idea of an EU foreign policy is
a joke"
The EU is not a single government. On some policies, EU countries have
decided to pool powers and make laws at the EU level. In other areas - like
foreign policy - the EU is more about cooperation than law. The EU's voice
is more influential as a bloc than as 15 countries. That is why world
leaders from President Clinton to Premier Jiang Zemin to President Mbeki
have set up structures to ensure regular meetings with their EU
counterparts.
Of course, different EU countries have different historical priorities. So
Spain has particular ties with Latin America, Finland with Russia and so on.
There are also different foreign policy traditions, most obviously for those
Member States which are 'neutral'. But as the process has developed,
confidence and coordination have gradually increased.
An EU foreign policy has made a difference. Sometimes this has been
down-to-earth, with the EU financing work such as mine clearance in Angola
or the international police in Albania, for which no alternative funding was
available. The EU has not found a magic solution to the problems in the
Western Balkans. But it has helped peace and stabilisation from the Baltic
to Central Africa.
The extent of coordination is without precedent. Many times every day,
governments across Europe are communicating, both electronically and in
person, exchanging opinions, intelligence and proposals. There is now a new
system in place to bring these threads together. This will allow the EU to
plan its foreign policy more strategically, and to ensure that it is clearly
articulated to partners worldwide.
 | EU countries agreed 163 policy statements
in 1998, on issues ranging from the trial of the Lockerbie bomb suspects
to the nuclear tests in India and Pakistan. |
 | EU countries pay for 38.7% of UN
peacekeeping operations (the USA share is 30.5%). The EU paid for 54% of
international support to the Middle East Peace Process in 1993-97, and 73%
to Central and Eastern Europe in 1990-97. |
 | The Common Foreign and Security Policy
(CFSP) allows the foreign policy instruments of the 15 Member States to be
used to best effect, backed up by the influence gained from the EU's
economic weight and able to draw on the EU Budget for development aid and
humanitarian assistance. The 15 EU countries now also regularly coordinate
with the 13 applicant countries, for example in the United Nations.
|
 | A High Representative has now been
appointed to coordinate CFSP (Javier Solana, the former Secretary General
of NATO). |
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"Europe wants british soldiers to
fight under the European flag"
Sceptics often attack any decision to pursue cooperation as a threat to
national identity. Attempts to achieve common goals by working together are
attacked as a threat to the nation. Security and defence cooperation is a
good example.
NATO has been the bedrock of European defence since the Second World War.
But the security aspirations of EU countries have evolved in the years since
the fall of the Berlin wall. It makes sense to try to maximise the ability
of Europe to bring its security capability to bear, and this suggests new
structures to complement the existing NATO systems. Already EU countries
cooperate in terms of logistics, intelligence and development of new weapons
systems - as well as deploying troops side by side in areas such as Kosovo.
EU countries - led first by Britain and France - are now keen to take this
one step further, to help make the Common Foreign and Security Policy more
effective by ensuring that EU countries' military capability can work in
tandem with foreign policy goals. Such a capability would be used for tasks
like peace-making or peace-keeping. This would not be a threat to NATO: NATO
itself endorsed this approach in the Washington summit in April 1999.
British and other troops are not being dragooned into some single force to
fight under the European flag. Nobody is looking to bring defence
arrangements under normal EU decision-making procedures. Nor does it mean
that the neutral EU countries will be forced to sign up to NATO-style
agreements on collective defence. EU leaders have made clear that the goal
is not collective defence. What it means is EU countries again working
together in the belief that cooperation is the best way to maximise the
effective pursuit of common goals.
 | At the Franco-British summit at St Malo in
December 1998, the UK and France agreed that the EU needed "the capacity
for autonomous action, backed up by credible military forces, the means to
decide to use them and a readiness to do so". |
 | NATO's 1999 Washington summit concluded:
"NATO embodies the vital partnership between Europe and North America. We
welcome the further impetus that has been given to the strengthening of
European defence capabilities to enable the European allies to act more
effectively together, thus reinforcing the transatlantic partnership."
|
 | The December 1999 Helsinki summit agreed
to: "develop an autonomous capacity to take decisions and, where NATO as a
whole is not engaged, to launch and conduct EU-led military operations in
response to international crises. This process will avoid unnecessary
duplication and does not imply the creation of a European army."
|
 | The Helsinki summit also agreed a precise
goal - by 2003, the EU should be able to deploy within 60 days and sustain
for at least one year military forces of up to 50-60,000. |
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"The Common Agricultural Policy is a
scandal - British fish for the British"
The Common Agricultural Policy has been one of the most controversial of EU
policies. This is not surprising. The CAP is the largest item of EU
spending, and worldwide, farming reflects not only a specific economic
interest but a special mix of social, cultural and environmental factors. By
the same token, there is nothing unusual in governments supporting farming -
on the contrary, it is the norm. Part of the original agreement of the
Treaty of Rome was to create a single agricultural market, with the costs of
subsidy falling at European rather than at national level. Within this
market, safe products cannot be excluded - and the EU Court of Justice is
there to ensure that EU countries cannot use food safety as an excuse to set
up a trade barrier.
The EU farming industry has seen huge changes since the CAP was set up.
Recently, EU farm policy has also been shifting, to a greater emphasis on
rural development, food safety and quality, and the environment. This shift
has not been perhaps as rapid as many would have hoped, but its direction is
clear.
The CAP's critics often argue that agriculture and food policy could be
're-nationalised'. This would put at risk the benefits of free trade in food
in Europe. At a time when consumers' demands for choice and quality continue
to rise, an EU-wide approach is essential to ensure a food industry which
balances competitiveness, food safety, good value for consumers, the
environment and farm incomes. Retreating into farm protectionism within the
EU is not the answer.
Critics of the Common Fisheries Policy often suggest that if EU fishing
quotas were set higher, there would magically be more fish in the sea. The
opposite is true. Without the CFP to manage fish stocks around Europe, the
threat would be that a precious natural resource would be fished to
extinction.
 | EU agricultural spending amounts to around
0.5% of GDP, or some 1% of total EU public spending. This represents a
smaller share of GDP than spending by neighbours like Norway and
Switzerland. US agricultural subsidy, though less than the EU in total, is
in fact larger per farm. |
 | Successive agreements have cut the share
of EU spending devoted to agriculture from 70% in the mid-1980s to 45% in
2000. The agreement on spending in 2000-06 will see agricultural spending
held broadly stable from euro 40.9bn in 2000 to euro 41.7bn in 2006.
|
 | Though taxpayers will pay a little more in
2000-06, consumers will win savings from price cuts estimated by the UK
Government to be £1bn a year by 2006, or £65 for each household.
|
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"There are too many problems for
enlargement to work"
Criticism of the approach to enlargement comes from two directions. Some
argue that the EU has been slow to embrace new members, suggesting that the
EU should water down its rules to ease early enlargement. Others suggest
that enlargement will mean ballooning costs and a flood of immigration
threatening jobs. Both criticisms are wrong.
The European Union is committed to enlargement. It is actively helping all
13 applicants to prepare for accession, more than doubling the funds set
aside to help the countries of Central and Eastern Europe modernise their
economies and administrations. Over recent years the EU has already
mobilised a package for the former Eastern bloc countries comparable to US
post-war support under the Marshall Plan. But this does not mean an
explosion in costs - it has already been agreed that in spite of
enlargement, the EU Budget will remain broadly stable for the period
2000-06. The costs will largely be met from savings in other areas.
But the very reason that so many countries are looking to join the European
Union is that it is a dynamic and ambitious organisation - and, by the same
token, it is a complex and demanding one. So whilst the EU has an obvious
responsibility to help accelerate the readiness of applicants for
membership, for countries to join before they are ready would be in the
interests neither of the current 15 members nor of the applicants.
 | Thirteen countries are involved in the
enlargement process: Bulgaria, Cyprus, the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Malta, Poland, Romania, the Slovak Republic,
Slovenia and Turkey. |
 | The criteria for membership were defined
in 1993 (the 'Copenhagen criteria'): democracy, the rule of law, human
rights and the protection of minorities; a functioning market economy, and
an ability to cope with competitive pressures within the Single Market;
and the ability to accept the obligations of membership, including the
rules and laws known as the acquis communautaire, a body of law with some
80,000 pages of EU legislation. |
 | Far from grinding to a halt, the process
of negotiating accession is steadily progressing day by day. EU leaders
have now agreed that negotiations should embrace 12 of the applicants, and
that the EU should be ready to commit itself to being ready for
enlargement from 2002. |
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"The euro is a straitjacket"
The euro's critics believe that a monetary policy set for several EU
countries is doomed to failure. But before EMU's participants were chosen,
clear criteria were set to ensure that their economic fundamentals were in
line. In terms of inflation, interest rates and sound public finances, the
euro-zone economies are now in tune to an extent undreamt of ten years ago -
and said by the sceptics to be impossible. Of course, this does not mean
that the economies are identical or equal, any more than the economies of
London and the Scottish Highlands, or California and West Virginia, are the
same.
Adopting the euro as a single currency means having a single monetary policy
for the whole euro-zone. Inevitably, this means that at some time in some
country, monetary policy will not be as closely aligned with national needs
as if the policy was set nationally. When countries signed up to the euro,
they assessed the economic costs involved against the economic benefits of
EMU - macro-economic stability, no exchange-rate costs, and price
transparency. They concluded that the benefits outweighed the costs.
Sceptic predictions that EMU will blow asunder have a familiar ring. They
predicted that EU countries' economies would never converge. This
underestimated the political will across the EU to tackle inflation and to
cut budget deficits. The sceptics then predicted that the exchange-rate
parities set in May 1998 would be torn apart before EMU's launch at the end
of that year. In fact, the foreign-exchange markets showed their confidence
in the system by leaving the parities untouched.
 | When the Maastricht Treaty came into
force, the 11 countries making up the euro had inflation rates ranging
from 1.9% to 6.6%. By 1999 this range had fallen to 0.4%-2.3%, with
average inflation in the euro-zone 1%. Public finances had converged from
a range of deficit of 9.5% of GDP/surplus of 1.9% of GDP in 1993, to a
deficit of 2.9% of GDP/surplus of 2.3% of GDP. |
 | Differences in wealth between EU countries
are often no less than differences between regions within a country. The
GDP per capita of the poorest region in the UK is 32% of the richest
region (Inner London). The GDP per capita of the poorest country in the
euro-zone (Portugal) is 42% of that of the richest country (Luxembourg).
|
 | EMU will not have an impact on the size of
the EU Budget. Far from pushing up the levels of spending on regional
assistance, these are set to fall: the recent agreement on the EU Budget
2000-06 will see spending on structural support falling by 2006 by around
a quarter from 1999 levels. |
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"EMU means a superstate through the
back door"
It is almost a truism that EU policies are political. The extent and the
complexity of EU policies goes far beyond a purely economic organisation -
and could never have been achieved without a high degree of common political
commitment. Economic and monetary union is no different. EMU involves
handing over control of monetary policy to common institutions, and
accepting each others' scrutiny of relevant national economic policies. This
could only be possible in a European Union where countries have political
confidence in their partners and can make such arrangements work.
But that does not mean that the motivation for EMU was the creation of some
form of superstate. Even if this chimera was a real goal of EU leaders, it
would be naïve in the extreme to believe that EU governments would blithely
press on towards a philosophical political construct when this was not in
their national interests. Every key economic decision on the EU - the
customs union, the Single Market, EU backing for free trade through
GATT/WTO, and now EMU - has been agreed because EU governments were
convinced that these steps were in the interest of the long-term prosperity
and competitiveness of their economies.
Setting up a single currency and a common European Central Bank is a
significant step. But it is wrong to equate this with a single European
state. Sovereign governments have signed a treaty to set up EMU, but they
remain sovereign governments. And however significant a step, EMU by no
means ends national economic policies. Where to set tax levels and the size
of public spending; what to tax; how to manage social security; where to
direct public spending - the vast majority of such economic decisions remain
a matter for national governments to determine. And it is clear that if
governments fail to pursue effective economic policies and face problems
like wage inflation or unsustainable pension costs, they will not be bailed
out.
 | The Stability and Growth Pact exists to
ensure that governments do not undermine the financial stability of the
euro by running excessive budget deficits. There is an early-warning
system to draw attention to the danger of budgets moving towards large
deficits, and sanctions for governments running persistent excessive
deficits. Sanctions are on a sliding scale of between 0.2% and 0.5% of
GDP, depending on the degree to which a 3% deficit reference value has
been breached. |
 | Jacques Santer, former President of the
European Commission: "We must demonstrate that a federal European Central
Bank is able to function without a real federal government …. I am sure
that it can." |
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"The euro means higher taxes"
Sceptics have seized on the idea that EMU will in some way mean higher taxes
as an argument against the euro. They hope to harness the unpopularity of
high taxes for the sceptic cause. The argument plays on the fact that most
EU countries choose to have higher taxes (and higher public spending) than
the UK. But most taxes have nothing to do with the EU. The EU is not
concerned with taxes like income tax. Although the European Central Bank and
the European Commission express frequent opinions on tax - ironically, that
healthy economies need low taxes - this is only an opinion. The EU has no
authority to impose overall tax policy on national governments.
The areas in which the EU is interested in tax are strictly limited. For
decades the EU has required common rules on VAT, to protect the Single
Market. But even here, there are strong national differences. The EU is also
looking at how tax breaks can be used to distort fair competition in the EU
('unfair tax competition'). Otherwise it would be too easy for countries to
use taxes to get round Single Market rules preventing state aids from giving
an unfair advantage. It is also reasonable for the EU to look at common
approaches to solving problems like tax evasion.
Every discussion on tax is jumped upon by sceptics, eager to promote the
idea of an EU push to higher taxes. A good example is corporation tax rates,
where some in the EU believe that without a common approach, jobs have been
lost as governments have shifted from taxing company profits to taxing jobs.
This is a minority view. Most believe that competition can be a useful way
to lower the burdens on business and keep the EU globally competitive.
Current tax reforms in Germany are an example of this policy in action.
 | The average tax burden in the EU was 42%
of GDP in 1998, with Ireland, Spain and Greece having the lowest burden,
Sweden, Finland and Denmark the highest (the UK figure was 37.9%).
|
 | The percentage of GDP taken in corporation
tax averages 3.1%, with Germany and France lower than average, the UK and
Italy higher (OECD figures). This is because although the basic tax rate
might be higher, there are more exemptions and more tax-deductible items
in these countries. Amongst the obstacles to a common EU corporation tax
would be a need for changes to the tax base and to accountancy rules.
|
 | The UK Prime Minister Tony Blair and
German Chancellor Gerhard Schroeder agreed a common statement on EU tax
policy in December 1998, agreeing on action against discriminatory tax
rules; that there should not be a unified European system of corporate
taxation; that personal income tax was a matter for national governments;
and that all action should protect European competitiveness and jobs.
|
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"Unaccountable bankers in Frankfurt
have far too much power"
There is nothing extraordinary about the independence of the European
Central Bank. Other central banks such as the Federal Reserve Bank in the
United States and the Bundesbank in Germany are independent in law. In
recent years this has increasingly been the trend for central banks
worldwide. The 1997 decision to give responsibility for fixing interest
rates to the Monetary Policy Committee of the Bank of England was a clear
step in this direction.
The reason for this trend towards independence is that a country's economy
can be best served if monetary policy is fixed with long-term economic
interests in mind, rather than the pressures of short-term politics.
Recent years have been littered with examples of pre-election booms to win
votes, at the cost of bust and recession in the following years. An
independent European Central Bank is designed to insulate the euro-zone from
such pressures.
But this does not mean that the Bank operates in a vacuum. As with all
public bodies, it is important for the Bank to command public support.
The Bank is therefore accountable - to the European Parliament, and to EU
governments through the Finance Ministers. It is also transparent, so as to
be understood by the public at large. It may be free to reach its own
decisions when it fixes interest rates. But it has to be able to justify and
explain these decisions.
 | The majority of places on the ECB's
Governing Council are made up of the governors of the national central
banks from the EU countries taking part in EMU (chosen in accordance with
national procedures). The execution of monetary policy (e.g. the issuing
of notes and coins) is largely in the hands of the national central banks.
|
 | The ECB's policy of transparency is
illustrated in the following ways: appearances of the President before the
European Parliament at least four times a year; press conferences
following the regular meetings of the Governing Council, as well as ad hoc
speeches; a weekly financial statement; a monthly bulletin giving an
assessment of the economic situation underlying the ECB's decisions; and a
full annual report. |
 | ECB President Wim Duisenberg on openness
and accountability: "Accountability for policies is the logical complement
to independence in a democratic society. The main way to achieve
accountability is through being transparent and open. Transparency also
enhances the effectiveness of a central bank. The better it is understood,
the more successful a central bank is." |
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"Political union is a one-way street"
Sceptics often try to represent the complex history of the European Union as
a crude attempt to create a 'superstate'. In fact, political union is a
process of gradual integration, with the countries taking part in the
European Union cooperating on increasingly wide areas of policy in an
increasingly varied number of ways.
The decision to develop integration in this way has been taken by the
democratically elected leaders of the EU's 15 member countries. These
leaders negotiate and agree the Treaties which set up the institutions of
the European Union. The Council, with ministers around the table from every
EU country, remains the most powerful of the EU institutions. The members of
the European Parliament are elected by the voters of the 15. National
governments nominate members of the European Commission and the European
Central Bank. And, despite the claims of sceptics that the European Court of
Justice (ECJ) exists to exploit the power of the law to drive towards a
political goal of centralisation, its real task is to ensure that the Treaty
signed by the 15 countries is applied fairly and correctly.
The foundation stones of EU economic policy such as the Single Market, EMU,
competition rules and a common trade policy must by their very nature be
policed and managed at EU level. But it is not the case that decisions are
always being dragged to the centre. Recent changes to farm reform and
regional spending, for example, mean that more decisions are being taken at
the national level, to reflect national diversity.
 | Europe's leaders do not want a
'superstate'. Romano Prodi, President of the Commission: "Far from
advocating a centralising role for 'Brussels', I believe the time has come
for some radical decentralisation. It is time to realise that Europe is
not just run by European institutions, but by national, regional and local
authorities too, and by civil society." (2000)
Former Chancellor Helmut Kohl: "Nobody wants a centralised superstate - it
does not exist and it will not exist in the future." (1996)
|
 | The ECJ has shown that it does not always
back an increase in the powers of the centre. The ECJ has backed
subsidiarity in cases like the B&Q case, which confirmed that national
standards were justifiable as long as they were fairly applied. It has
also refused to rule on cases it considers a national, not an EU issue
(such as when the House of Lords asked the ECJ to rule on Sunday trading).
|
 | Examples of where power has been shifted
from the centre are in the beef sector, where national governments can
allocate funds according to their own priorities; and under Objective 2 of
the Structural Funds, where half the resources are now dedicated to
national priorities. |
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"Europe is fostering a disunited
Britain"
One of the most bizarre of Eurosceptic claims is that the EU is undermining
the United Kingdom. The suggestion is made that any steps taken towards
devolution and the development of English regions must have been 'forced' on
the UK by Europe.
It is true that many European countries have a strong tradition of
regionalism. Regions such as Catalonia or Bavaria are powerful political
forces. But there is no set pattern - no two EU countries are alike. Far
from some Brussels-imposed pattern, the different forms of regional and
local government across the EU are proof of its vibrant political diversity.
Some EU countries are relatively centralised, like Ireland and Portugal;
others place regions at the core of their constitutions, like Belgium or
Germany. The UK is somewhere in the middle of this spectrum. Like Italy and
Spain, it has decided to grant different powers to different regions, with
devolution in Scotland to a greater degree than in Wales, and with Regional
Development Agencies in the English regions rather than a new layer of
government.
The main EU policy directly concerned with regions is the Structural Funds,
where resources from the EU Budget are channelled to regions in economic
need. Efforts are made to ensure that the regions used for these purposes
match the administrative boundaries of regions chosen by each country.
There is also a regional input into EU policy-making through the Committee
of the Regions. Local councillors and other elected representatives from the
regions have found it increasingly important that their voice is heard to
influence key issues such as EU farming or transport policy.
Sceptics have suggested that the decision to hold the 1999 European
Parliament elections on regional lists was a 'Brussels diktat'. This is
wrong. Indeed, most EU countries have chosen to run the EP elections
nationally, not regionally.
 | The regional constituencies used for the
European parliamentary elections of June 1999 were introduced under the
European Parliamentary Elections Act 1999. |
 | Four UK areas - Cornwall and the Isles of
Scilly, Merseyside, South Yorkshire and West Wales and the Valleys - will
benefit from support under Objective 1 of the Structural Funds in 2000-06,
with Northern Ireland and the Highlands and Islands having support
gradually phased out. Other areas will benefit from less intensive
Objective 2 or Objective 3 support. |
 | The Committee of the Regions is a
consultative and advisory body set up under the Maastricht Treaty. It is
not a decision-making or law-making body. It has 222 members including 24
from the UK, all of whom are local councillors at one level or another.
National governments propose names to sit on the Committee according to
their own procedures. |
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"Europe never plays by the rules:
Britain always loses out"
Some Eurosceptic claims seem little more than paranoia. The idea that
Britain has in some way been trapped inside an EU designed to frustrate
British interests is a good example of this. Of course, no country will
always get its way all of the time in the EU. Compromise is part and parcel
of taking part in international cooperation. When countries have decided to
join the EU, they have presumably judged that the overall benefits will
outweigh the occasions when they do not get their way. The many countries
with applications to join the EU now on the table will have made the same
judgment and reached the same conclusion.
The EU's institutions have been set up to ensure that all countries have a
fair say in decision-making. A permanent seat at the ministerial table means
that every government has its say. In key areas, unanimity is required to
reach a decision. The influence of the UK has helped to promote key British
priorities in EU policy such as the Single Market, proper environmental
standards and the liberalisation of markets for EU products worldwide. The
87 UK MEPs stand up for their constituents' interests. Fairness between the
different EU countries is ensured by the European Court of Justice. Any
country can take another country to the Court if it feels rules are not
being properly implemented. This may take time - but the Court's rulings
have always been accepted. Outside Europe, Britain has no such mechanism to
protect its interests.
 | EU institutions are organised so that
countries each have a fair say. So in the European Parliament, Germany,
with the EU's largest population, has 99 MEPs, the UK, France and Italy 87
MEPs, Spain 64 MEPs, and so on down to Luxembourg with 6 MEPs.
|
 | When issues are decided by Qualified
Majority Voting in the Council of Ministers, France, Germany, Italy and
the UK all have 10 votes, Spain 8 votes, and so on down to Luxembourg with
2 votes. One survey concluded that out of 261 votes in the Council, the UK
had been outvoted only seven times, less than 3% (this was less often than
Denmark, Germany and the Netherlands). |
 | The European Court of Justice is an
unbiased arbiter of European law. Amongst British groups to have benefited
from ECJ rulings are auction houses in France, pharmaceutical exporters to
Italy, and chewing-gum sellers in Spain. |
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