---

European Affairs

I absolutely agree that that is the danger. One of the features of these debates is that they are very much like groundhog day. We never get to grips with the way in which the European Union really works because we are dealing with such a long-term process. It was mentioned earlier that if one wants to get something on the agenda, one has to flag it up about two years in advance. It is easy to overlook the way in which the process by which the European Union forms its institutions actually works. There is no single voice with any cohesion within the Union, other than the one calling for deeper European integration, and it is foolish to think otherwise. There are two ways of achieving that deeper integration. The first is to use crises, and the other is to create new institutions. Rather than anyone saying, ““On this occasion, we will deal with the problem in hand,”” crises, whether it be a terrorist attack or bird flu, are used as a pretext for setting up structures that lead to deeper integration. New institutions always start with a particular function but end up doing something quite different. My objection to that is the absence of honesty; what is proposed may be fine, but we should be up front about it. It is interesting to follow the path of the European Defence Agency, an institution that is just emerging as something quite different from what it was meant to be. I hope that the Government will keep a close eye on it to ensure that it delivers what it was originally meant to deliver. It is a bit like a mixture of Cardinal Newman and Kevin Costner’s character in ““Field of Dreams””. The European Union believes the saying, ““Build it and they will come””. Cardinal Newman believed that it did not matter how small the step was, as long as it was a step forward, and that applies to attitudes to deeper integration, too—one must never turn back, because to do so is to be regarded a heretic. The European Defence Agency started life just before the European Convention process started in 2003. Defence has largely been outside the treaty obligations. Any real, big progress in defence co-operation has always occurred when the UK and France decided to do something, and things would move on from there. It was during work on the Convention in 2003 that it was first rumoured that a new agency was to be set up. I thought that it was an extremely good idea, because it was to be called the European military capability agency, and it was supposed to identify and monitor military capacity. When it was first set up, the UK Government were most concerned that it was the Commission’s way of making defence procurement a Commission responsibility through the back door, but that was never mentioned, and the agency was set up. It was a key part of the constitutional treaty, and although the treaty was rejected, we went ahead with the agency because the truth was that we did not need the treaty provisions to set it up. The UK was comforted by the thought that it was run by a Brit. If one looks into the way in which the agency operates, there is still a hell of a lot of duplication going on. It seems to be leading to greater protectionism, too. It has a budget of €22 million for 2007, which, in defence terms, is chickenfeed. The United States of America spends $18 million a month supporting Pakistan in its counter-terrorism activities, so €22 million for the whole of Europe is not very much. However, what the agency does with that small sum is bicker and argue. Four or five years after its original, very helpful, purpose was decided on, it is enlightening to look at the agency’s report on what it thinks that it has achieved. The agency thought that its major achievement was"““a Code of Conduct on Defence Procurement””," which shows that it concerns itself with procurement, rather than with conducting a real audit of the capabilities and shortcomings across Europe, or with setting out who needs to do what. The agency claims that its website is a big achievement, and that its"““Electronic Bulletin Board now carries details of over 60 contracting opportunities””." The agency"““supports the consensus on the need for less duplication, more specialisation and more interdependence in the European Defence Technological and Industrial base””," but it goes on to say that it supports"““less dependence on non-European sources for key technologies.””" That was not the original idea; the original idea was to make the money spent far more effective by making sure that, when a country purchases something, it fits in with what is needed across Europe. That does not mean that there should be only European purchasing, or that we should become protectionist. The agency regards it as one of its main achievements to have made things much more protectionist. Towards the end of the document, under the heading, ““Some negatives””, the agency casually mentions that"““There have also been disappointments to set against these encouraging developments. Principally, we still lack evidence of real readiness on the part of ””" member states"““to take significant steps towards repairing the now familiar capability gaps in any early time-frame.””" Many Europeans regard the institutions as a huge achievement, but all that we have done is set up a bureaucracy that bickers about how much money it spends. The UK is comfortable with the agency, because it was headed by a Brit but, in its own words, it has failed to address the problem that the EU must confront if it wants to be a serious player in defence. It must start spending more on defence—despite all the protestations, defence spending continues to go down—and rather than fighting NATO, it must start to work with it. The Foreign Affairs Committee has just returned from Afghanistan. The operation there is not a proper NATO operation but a balkanisation of NATO troops. Command is provided by the international security assistance force, but the national units protect their own turf, and in some cases they are sitting on their hands. In Riga, we did not secure the advances that we wanted, but the good Europeans are comfortable in the knowledge that they have created an institution. That happens repeatedly, so I urge Ministers to demonstrate at the Council the healthy pragmatism for which the Brits are renowned. What is the purpose of the institutions that we have set up, and are they delivering it? For most partners, the setting up of institutions and initiatives is a mechanism to achieve deeper integration. I will admit that I am wrong the minute that a French or German politician says that there are some EU functions that are better performed by the nation states. But no one says so, as there is a continuous push for deeper integration. I care about the issue—and this is where I have a deep disagreement with the hon. Member for Stone (Mr. Cash)—because I do not want to return to an association of trading states. The EU should have political and trade functions, and it should work effectively. It appears, however, that with every step, we are moving further away from the people who have given us their consent. Their disillusion with the EU has deepened, because it is not delivering. The EU therefore risks falling apart, which would be a matter of deep regret. I wish the Minister fair speed at the European Council, and I look forward to his response, particularly on Kosovo and energy.