William Hague: New law will spell out limits of EU powers

Britain's parliamentary sovereignty will be enshrined in law, Foreign Secretary William Hague said today.

In a move that delighted the Tory faithful, he confirmed that a clause will be inserted into the European Union Bill to prevent EU directives defying the will of Westminster. The Bill will be tabled this autumn.

Mr Hague said he wanted absolute clarity on the issue and to make it impossible to argue in a British court that ultimate sovereignty had shifted to the EU.

The Foreign Secretary said that he wanted "to reaffirm once and for all the sovereignty of our ancient Parliament".

"A sovereignty clause on EU law will place on the statute book this eternal truth: what a sovereign Parliament can do, a sovereign Parliament can also undo," he said.

A clause in the Bill will make clear that EU law only takes effect in the UK through the European Communities Act 1972, which Parliament may amend or repeal at any time. The Bill will also include measures to introduce a "referendum lock" requiring a public vote before any treaties transferring powers to Brussels.

David Cameron promised a sovereignty clause in a speech last year in which he said it would "make it clear that ultimate authority stays in this country, in our Parliament".

Speaking today, Mr Hague said: "It will not alter the existing order in relation to EU law. But it will put the matter beyond speculation. And it will be in line with other EU states, like Germany who in a different constitutional framework give effect to EU law through their own sovereign act. This clause will enshrine this key principle in the law of the land."

Mr Hague also signalled a new approach to foreign affairs that linked diplomacy with economic policy and the need to boost overseas trade, particularly with India and China.

"The last government did not connect the conduct of foreign affairs with the prosperity of our people; we understand that each depends intimately on the other," he said.