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EUROPEAN REVIEW

ISSUE 21 - Page 2

 

EU enlargement : the first act nears it end

THE LONG SAGA OF THE new wave of applicants attempting to join the European Union (see issue 18 page 5) appears to be coming to a conclusion, at least as far as ten of them are concerned. At the recent Brussels summit the EU Member State governments agreed that Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia would be ready to join from the beginning of next year. The December summit in Copenhagen will finish off negotiations with them and they will be formerly admitted at the Athens

summit in April Some of the remaining contentious issues were sorted out by the governments at Brussels. One of the most contentious was the subsidies payed to farmers under the Common Agricultural Policy (CAP). New entrants were concerned that they were being offered only one quarter of the payments that the farmers in the current Member States receive. Countries like Poland and Estonia feared that their food producers would be overwhelmed by cheaper produce from the West. The deal reached at Brussels will see their payments rise gradually, coming into line with existing members by 2013. As it is also intended that the total payments will gradually fall in real terms, the applicants may not see this as very attractive. This is important because each new entrant has to ratify its accession to

EUenlarge (Finland)

the EU, usually by referendum in autumn 2003, as do the existing members and the European Parliament. There are still concerns about customs, regional policy and financial control in the applicant countries but in general the EU Commission President Romano Prodi explained 'the overall performance of their economies is improving' and their 'growth rates are higher than ours, their inflation rates and deficits are being kept under control and direct foreign investment is flooding in'. As well as these economic criteria they are seen as having 'stability of institutions guaranteeing democracy, the rule of law, human rights and the respect and protection of minorities'.

A Finnish take on EU enlargement


The biggest single problem for any of the ten applicants is the division of Cyprus. A major effort is being mounted to unify the island's Turkish and Greek communities in a new settlement before the country's accession to the EU.

Future Europe shapes up as Blair, unions have say

THE FUTURE OF THE EUROPEAN UNION, a baby that has been growing inside the body of its convention all year, has shown signs of imminent birth in the last few months. Announcements by Valery Giscard d'Estaing, the proud father, of a 'skeleton' of chapter headings for the new constitutional treaty have galvanised midwives as diverse as Tony Blair, Anna Diamantopoulou and the European Trade Union Congress to assist in the delivery.In the first article of the draft document M. Giscard gets the ball rolling with musings on a possible new name for the EU, 'United Europe' or even 'United States of Europe' being considered. The outline affirms the values of the EU as 'human dignity, fundamental rights, democracy, the rule of law, tolerance' and respect for international law. Its objectives include protection of these values, promotion of economic and social cohesion, strengthening of the internal market and economic and monetary union, promotion of a high level of employment, social and environmental protection, encouragement for technological progress, creation of an area of liberty, security and justice and a common foreign and security policy. On citizenship the draft says 'every citizen of a Member State is a citizen of the Union; enjoys dual citizenship' and 'there shall be no discrimination between citizens of the Union on grounds of nationality'. It outlines how the new treaty would allocate powers to the EU as a whole, to the Member States and to the institutions of the Union. It says that the method of appointing the presidency can be established 'When the Convention has discussed it' and, similarly that the convention could decide on a new 'Congress of the Peoples of Europe'. The document also establishes the principle of suspension of a Member State which 'violates the principles and values of the Union' as well as voluntary withdrawal.

With many of the articles of the draft document no more than chapter headings it has been left to other interested parties to fill in the blanks. The new names set alarm bells ringing in the British government anxious about UK euroscepticism. Other suggestions such as a permanent president for the Council of Ministers were more favourably received with opposition politicians going so far as to predict that Mr.Blair fancied the job himself. The prime minister favours a team presidency so that ministers from the smaller nations can take part.

Giscard d'Estaing

Chairman of the convention Giscard and friend

The ETUC published a paper setting out its requirements of the convention. After criticism of the lack of a social dimension it hailed a new working group as a way in which it could 'make sure that the values, the principles and the objectives of the European Social Model are clearly anchored in the new Constitutional Treaty'. It generally favours a Europe run by a Commission committed to full employment rather than the 'inter-governmental tendency'.

Womens' groups and Commissioner Anna Diamantopoulou attacked the composition of the convention, with only 17% of the members being female. She was also worried about the use of 'complementary powers' for gender equality and fundamental rights where 'Adoption of binding measures in these areas would be left to the Member States'. The European Womens' Lobby were more positive. 'The Convention and the forthcoming IGC are key opportunities to ensure an inclusive and fair Europe, where the whole population fully participate in its construction' commented Mary McPhail, EWL Secretary General.

The preliminary draft of the constitutional treaty is downloadable from the internet at:

http://european-convention.eu.int/searchDocs.asp?lang=EN&doctype=DOC
&searchterm=preliminary%20draft%20constitutional%20treaty&otherdoctype
=DOC|CONTRIB|PRESS|SPEECH|RELDOC|

Bargaining round-up

STEEL FIRM CAPARO have become the first subject of a strike on the issue of reduced company pension plans. The TUC campaign 'Pay up for pensions' recognises the importance of numbers of employers abandoning 'final salary' schemes for less generous ones. Caparo workers took the same view, striking for 5 days when the company closed its final salary pension entitlement. Agreement was reached with the ISTC union to start a new scheme with a similar pension which is cheaper for the company.

PORTUGAL GOES INTO into the New Year bargaining season with a large gap between unions and employers. Trade unions are claiming 5-5.5% and a minimum wage of €370-378 per month. However Francisco Van Zeller, the head of the employers' organisation, wants his members to use the 1.8% forecast for euro-zone inflation as a starting point in negotiations.

FIXED-TERM EMPLOYMENT remains at a high level in Spain according to a survey by the CC.OO union confederation. A new type of permanent contract, introduced in 1997, has been taken up with enthusiasm by Spanish employers but this has not had the intended result of reducing the incidence of fixed-term employment which, at 31.6%, is still the highest in the EU.

These facts come from IDS Employment Europe - October issue.

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