'IGC threatens Treasury autocracy over parliamentary democracy'

12.00.00am GMT Wed 5th Nov 2003

In a speech in the European Parliament today, European Liberal Democrat spokesman Andrew Duff accused the Intergovernmental Conference of seeking to impose 'treasury autocracy over parliamentary democracy'.

Warning of the attempt by the Economic and Finance Ministers to overthrow the Convention's proposals on the future financial system of the Union, Duff said:

"Ecofin, presumably under the guidance of Mr Tremonti - the representative of the Italian presidency that claims to support the Convention's proposals - is subverting the whole package. In their reactionary proposals, the Finance Ministers appear to want to move back to permanent unanimity on the financial perspectives and to remove Parliament's right of assent. They want to move away from ordinary law to Council law and to remove Parliament's last word on the annual budget.

"One certain consequence of retaining the national veto over the Union's finances will be to push up the size of the budget. Without being to out-vote troublesome or greedy member states, the Union as a whole will have to make endless, costly concessions after protracted and damaging rows.

"In effect, the Finance Ministers are suppressing this Parliament's role as a partner with the Council in the budgetary authority. They are imposing Treasury autocracy over parliamentary democracy.

"The power of the purse is the core function, the most central and long-standing power of parliaments in all our member states. If this coup des états is allowed to flourish, this Parliament will be reduced to a pale mockery. The autocrats will have won over the democrats."