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Wednesday 5 November 2003

PMOS afternoon briefing - 5 November

Briefing from the Prime Minister’s Official Spokesman on: EU Constitution, Foundation Hospitals and Northern.

EU Constitution

Asked if the Prime Minister would agree to hold a referendum on the EU Constitution if the Chancellor was unable to persuade other EU countries to set down in writing the ruling out of tax harmonisation, the Prime Minister’s Official Spokesman (PMOS) said the Government did not believe that the UK’s red lines would be crossed at the conclusion of the IGC. As the Prime Minister had stated several times during PMQs today, we did not believe that the IGC would alter the fundamental relationship between this country and the EU. His words had been very clear on a referendum.

Asked to clarify the changes the Prime Minister wanted to see made to the text of the Constitution, the PMOS said that it would be a little odd were the British Government to set out the detail when there was a negotiation under way with twenty-five member states. The important point was that we were confident in our position within the debate. There were clearly issues which had to be negotiated and resolved and we would continue to work constructively to that end. However, as the Prime Minister and the Chancellor had both written in articles in different newspapers this week, economic reform was important in relation to the EU. We did not believe that tax harmonisation would be in this country’s interest and nor would it help the wider process of economic reform. We also believed that unanimity should apply to taxation issues. Pressed as to whether the Prime Minister believed that the text of the Constitution needed to be changed, the PMOS said that we did not want to end up in the position whereby we allowed something to come in through the back door which we were seeking to ensure did not come in through the front. Of course the details of the text were important. However, it was not in the national interest to get into a line by line commentary on the negotiations. Pressed as to whether the Prime Minister endorsed the Chancellor’s view that the text of the Constitution needed to be changed, the PMOS said that the Prime Minister and the Chancellor were on exactly the same page in relation to taxation and the economic arguments. It went without saying that the two were working together very closely on these issues.

Asked whether tax harmonisation would lead to a ‘federal Europe’, the PMOS said that the Prime Minister had spelled out in his joint article with the Estonian Prime Minister in the FT on Monday that, "Harmonising tax or welfare systems would be a giant step in the wrong direction….In principle, too, taxation should be a matte of national sovereignty". He couldn’t be any clearer than that.

Asked if the Prime Minister shared the disgust of some his colleagues at the mocking of the Estonian Prime Minister during PMQs today by some in the Chamber, the PMOS said that that was not how he personally had seen events in the House, but others could take their own view. The Prime Minister had spelt out the benefits of an important new alliance. He would not have taken the trouble to write a joint article with the Estonian Primer Minister if he did not regard relationships with new entrants to the enlarged EU as being very important. He would continue to build alliances throughout Europe.

Foundation Hospitals

Asked if the Government was expecting to make further concessions on Foundation Hospitals if Peers voted against the Bill tomorrow, the PMOS cautioned journalists against getting too far ahead of themselves at this point. People should be patient and wait for the result of the vote in the Lords tomorrow. It went without saying that the Government remained absolutely committed to the policy, as it was one of the central planks of the legislative programme. The Government believed that Foundation Hospitals were a logical part of the NHS reform agenda and would ensure that the changes which patients wanted to see would continue to be made up and down the country.

Northern Ireland

Asked again about how much detail General de Chastelain had given the Prime Minister regarding the latest IRA act of decommissioning, the PMOS said that the Prime Minister had dealt with this issue during successive PMQs.

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