[ARTICLE 28 ]

COMMON FOREIGN A= ND SECURITY POLICY:

COUNCIL TO DETERMINE SPENDING ON CRISIS AREAS<= /p>

WHILST FOREIGN MINISTER DECIDES ON BRITISH

CONTRIBUTIONS FOR NEW PETTY-CASH FUND

[ARTICLE 28]

AMENDMENT TO: Treaty of Lisbon amending the Treaty on European Union and t= he Treaty establishing the European Community (Lisbon, 13 December 2007)<= /span>

&= nbsp;

Policy Area:

Treaty= on European Union, Title V, provisions on Common Foreign and Security Policy, Chapter 2, Specific provisions on the common foreign and security policy, section 1 Common provisions, Article 28

Amendment:

Clause 2, page 1, line 12, leave out ‘any’ and insert—

‘(i) Article 1, paragr= aph 47, amendments to Article 28 TEU relating to financing of the Common Foreign and Security Policy; and

(ii) any other’

Amendment:

Clause 2, page 1<= /span>, line 12, leave out ‘any’ and insert—<= /o:p>

‘(i) Article 1, paragr= aph 25, headings relating to the Common Foreign and Security Policy; and=

(ii) any other’.=

&= nbsp;

<= st1:City w:st=3D"on">Lisb= on Treaty Article:

47) Article 28 shall be amended as follows:

(a) paragraph 1 shall be dele= ted and the remaining paragraphs shall be renumbered

accordingly; throughout the Article the w= ords "budget of the European Communities"

shall be replaced by "Union budget";

(b) in paragraph 2, renumbere= d 1, the words "which the provisions relating to the areas

referred to in this Title entail"= shall be replaced by "to which the implementation of this<= /p>

Chapter gives rise";

(c) in paragraph 3, renumbere= d 2, the words "the implementation of those provisions" in the first subparagraph shall be replaced by "the implementation of this Chapter";

(d) the following new paragra= ph 3 shall be added and paragraph 4 deleted:

"3. The Council shall adopt a decision establishing= the specific procedures for guaranteeing rapid access to appropriations in the = Union budget for urgent financing of initiatives in the framework of the common foreign and security policy, and in particular for preparatory activities f= or the tasks referred to in Article 28 A(1) and Article 28 B. It shall act aft= er consulting the European Parliament.

Preparatory activities for the tasks referred to in Arti= cle 28 A(1) and Article 28 B which are not charged t= o the Union budget shall be financed by a start-up fund made up of Member States' contributions.

The Council shall adopt by a qualified majority, on a proposal from the

High Representative of the Union<= /st1:place> for Foreign Affairs and Security Policy, decisions establishing:=

(a) the procedures for settin= g up and financing the start-up fund, in particular the amounts allocated to the fund;

(b) the procedures for administering the start-up fund;

When the task planned in accordance with Article 28 A(1) and Article 28 B cannot be charged to the Union b= udget, the Council shall authorise the High Representa= tive to use the fund. The High Representative shall report to the Council on the implementation of

this remit.".

Consolidated Treaty Article(s):

“= ;Art= icle 28

1. Articles 189, 190, 196 to = 199, 203, 204, 206 to 209, 213 to 219, 255 and 290 of the Treaty establishing the European Community shall apply to the provisions relating to the areas refe= rred to in this title.

2. Administrative expenditure which the provisions relating to the areas referred to in this title entail= for the institutions shall be charged to the budget of the European Communities= .

3. Operating expenditure to w= hich the implementation of those provisions gives rise shall also be charged to = the budget of the European Communities, except for such expenditure arising fro= m operations having military or defence implications and cas= es where the Council acting unanimously decides otherwise.

In cases where expenditure is= not charged to the budget of the European Communities, it shall be charged to t= he Member States in accordance with the gross national product scale, unless t= he Council acting unanimously decides otherwise. As for expenditure arising fr= om operations having military or defence implicati= ons, Member States whose representatives in the Council have made a formal decla= ration under Article 23(1), second subparagraph, shall not be obliged to contribut= e to the financing thereof.

4. The budgetary procedure la= id down in the Treaty establishing the European Community shall apply to the expenditure charged to the budget of the European Communities.”<= /o:p>

Explanation:

This Article concerns the financial provisions fo= r Common Foreign and Security Policy (CFSP) and Common Security and De= fence Policy (CSDP) activities.

The terms of funding have not changed a great dea= l. The expenditure arising from = CFSP and CSDP activities are charged = from the EU budget, except for such expenditure arising from operations having military or defence implications and cases wher= e the Council acting unanimously decides otherwise. The costly expenditure arising from military operations will be met by the individual Member States but if a Member State has abstained from a decision taken with regard to a military operation, it is not obliged to contribute = to its financing.

However, the Lisbon Treaty adds a new provision w= hich allows the Council, after consulting with the European Parliament, to adopt= a decision setting up the specific procedures for the rapid financing of activities in this area, and in particular for the preparatory activities of crisis management operations. This will enable the Council and the Parliame= nt, by their own volition, to rapidly divert existing funds within the Union to= new activities of crisis management that may not be in Britain’s interest. Britain and Europe<= /st1:place> do not share a common vision of crisis management areas or operations and therefore, this would enable decisions on financing to be made both outside= of the knowledge and interests of the participating Member States. =

Furthermore, it provides that “Preparatory activities for the tasks referred to in Article 28A(1) and Article 28B which are not charged to the Union budget shall be financed= by a start-up fund made up of Member States' contributions.” Hence, it w= ill create a start-up fund based on Member States’ contributions for crisis management operations. However, all the issues concerning the fund such as Member States contributions will be decided by the Council by Qualified Majority Voting on a proposal from the High Representative of the Union for Foreign Affairs and Security Policy. The decisions on the use of such a fund would be taken by unanimi= ty.

&= nbsp;

The provision states that “when the task planned in accordance with Article 28 A(1) and Article 28 B cannot be charged to the Union budget, the Council shall <= span class=3DSpellE>authorise the High Representative to use the fund.= 221; All Union requests for crisis management which cannot be met by the Union budget will, by default, fall to the new bottomless petty-cash box, funded by the = 27 Member States.