COMMISSION OPINION - "REINFORCING POLITICAL UNION AND PREPARING FOR ENLARGEMENT"
Date: 1996-02-28
Institutions: European Commission
Subjects: European Political Union, European Union, Treaty on European Union, enlargement of the Union, intergovernmental conference (EU)

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COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  28.02.1996 
COM(96)  90  final 

COMMISSION  OPINION 

"REINFORCING  POLITICAL UNION AND PREPARING  FOR 
ENLARGEMENT1' 

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COMMISSION  OPINION 

"REINFORCING POLITICAL  UNION AND PREPARING  FOR 
ENLARGEMENT" 

The  Treaty provides  that  "a conference  of  representatives  of  the  governments  of  the 
Member  States  shall  be convened  in 1996". 

With a view thereto, and pursuant  to Article  N of the Treaty, the Italian Presidency  has: 

submitted  to the  Council a proposal for  the amendment of the  Treaties on  which 
the  Union is founded;  and 
requested Parliament  and  the  Commission  to  deliver opinions  on the  holding  of 
an  intergovernmental  conference. 

This document  comprises  the  Commission's  Opinion. 

A  IK, 

"REINFORCING  POLITICAL  UNION AND PREPARING  FOR 
ENLARGEMENT" 

I. 

A  People's  Europe 

1. 

Promoting  the  European  social  model 

2. 

3. 

Establishing  an  area  of  freedom  and  security 

Simplifying  and  democratizing  Europe 

IL 

A  clear  identity  on  the world  scene 

1. 

Greater  consistency  in  foreign  policy 

2. 

3. 

4. 

More  effective  Community  action 

A  firmer  basis  for  the  common  foreign  and  security  policy 

A  European  identity  for  security  and  defence 

III. 

Institutions  for  the  enlarged  Europe 

1. 

Adapting  the  institutions 

2. 

3. 

Making  majority  voting  the  general  rule 

Organizing  flexibility 

ik 

"REINFORCING  POLITICAL  UNION AND PREPARING  FOR 
ENLARGEMENT" 

1. 

The  Intergovernmental  Conference  is  the  first  stage  in  a  busy  timetable,  which 
moreover  depends  on  the  Conference  for  its success: within  the  next  four  years, 
Europe  has to  have  set up  a  single currency  (by  1 January  1999), decided  on  its 
guidelines  for  defence,  and  particularly  the  future  of  WEU,  established  the 
Union's  new  financial  framework,  and  adjusted  its  policies  with  a  view  to 
enlargement. 

2. 

Since  1993  the  Member  States  have  adopted  and  given  effect  to  a  Treaty  on 
European  Union  which  derived  from  a broad, twofold  aspiration: 

a  determination  to  extract  all  the  positive  effects  of  the  internal  market  by 
adding  to  it a  single  currency  and  convergence  between  the  Member  States' 
economic  policies; 
a realization  of the need  to  give the Union a genuine political  dimension,  so 
that  it  could  make  a  more  effective  collective  response  to  its  internal 
requirements and, at the same time, be a forceful  presence in the  international 
arena. 

These two  aspirations  are linked:  a single currency,  as a major  integrating  factor 
for  those  operating  in the  economy  at  large  and  for  individual  citizens,  calls  for 
a  strong  political  and  social  identity. 

3. 

The Treaty  on European Union provided for a new intergovernmental  conference 
to  be  held  in  1996, to  consolidate  and  strengthen  the  still-emerging  Union. 

For  this  purpose,  in  the  first  half  of  1995  the  Union  institutions  drew  up  a 
diagnosis  of  the  functioning  of  the  Treaty  on  European  Union,  in  which  their 
views  converged  on  many  points.  The  Reflection  Group  sums  it  up  in  a  single 
sentence: the  Union  does not have  the means necessary  to  achieve  its ambitions. 

In  the  Commission's  view,  this  shortfall  alone  is  argument  enough  for  a 
substantial  overhaul  of  the  institutions. 

4. 

The  need  to  adapt  the  Treaty  does  not  end  there,  however. 
In  a  way  which 
inspires  enthusiasm,  history  gives  us  an  opportunity  to  bring  the  peoples  of  the 
continent  together  in  an  expanded  Union. 

The  principle  of  enlargement  is accepted  .  Two  aspects  of  it  stand  out: 

it is no longer some far-off  prospect.  The 1996 Intergovernmental  Conference 
is probably  the  last  and  only  opportunity  all  15 Member  States  will  have  to 
reflect  together  about  how  the  Union  is to  function  in  a wider  framework; 

\c 

because  of  its scope and  its diversity,  this enlargement  will be different  from 
previous  ones:  an  extended  Europe  is  bound  to  be  more  heterogenous  and 
therefore  more  complex. 

As the  number  of  Union  members  increases, it creates  a risk  of the Union  being 
watered down.  As one Head of State put it, we have to avoid the situation where, 
as  the  last  applicant  country  arrives,  it joins  something  which  no  longer  exists. 
Enlargement  must  be  undertaken  with  safeguards  for  the  achievements  of  forty 
years  of  European  integration.  These  achievements  are the basis  of the  Union's 
solidarity  with  the  new  Member  States. 

5. 

6. 

That is why the European Union cannot commit itself to this round of enlargement 
without  making  sure that changes, sometimes far-reaching  ones, are first  made in 
the  ways  and  means  of  its  operation. 

Similarly, the commitments undertaken  in the Treaty on European Union must  be 
fully  respected,  most  particularly  the  establishment  of  economic  and  monetary 
union  and  comprising  a single  currency  on the date  fixed. 

The forthcoming  conference  will be a crucial one: the deepening and widening  of 
the  Union  are  intertwined.  The  Commission  expects  of  the  Intergovernmental 
Conference  that  it  strengthen  the  Union  so  as  to  prepare  enlargement  around  a 
clear  political  project.  The  Union  must  therefore: 

be  closer  to  its  citizens; 
make  its presence  felt  in the  world; 
adopt  an  institutional  system  which  will  work  in  an expanded  Europe. 

Subject  to  these  conditions,  the  Commission  is  in  favour  of  holding  the 
Intergovernmental  Conference. 

I.  A  people's  Europe 

7. 

Ordinary people must feel  actively involved. The concept of European  citizenship 
enshrined  in the  Treaty  on European  Union  complements  national  citizenship. 

This  concept  of  citizenship  has  many  aspects; it  should  be  developed  further: 

it  is  based  on  a  European  social  model  which  guarantees  that  fundamental 
rights  are  recognized  by  all,  and  whose  members  are  committed  to  mutual 
support; 
it  provides  for  freedom  of  movement  and establishment,  to  be  enjoyed  with 
a  proper  level  of  security; 
finally,  it  implies  that  Europe  must  be  understandable  for  the  individual; 
successive  amendments  to  the  Treaties  have  made  European  integration 
increasingly  complex;  it  must  be  made  simpler  and  more  democratic. 

1.  Promoting  the  European  social  model 

8. 

Europe  is  built  on  a  set  of  values  shared  by  all  its  societies,  and  combines  the 
characteristics  of democracy  - human rights and institutions  based  on the rule  of 
law  -  with  those  of  an  open  economy  underpinned  by  market  forces,  internal 
solidarity and cohesion. These values include the access for all members of society 
to  universal  services  or  to  services  of  general  benefit,  thus  contributing  to 
solidarity  and  equal  treatment. 

The European  model finds  expression  in the Treaty on European Union,  through 
general  objectives  such  as  a  high  level  of  employment  or  substainable 
development,  through  specific  policies, and through measures aimed  at  fostering 
the  social  dialogue. 

As we enter a new political era, support for this model should be strengthened  and 
made  more  explicit. 

Human  rights 

9. 

The  Member  States  of the  Union  are defenders  of human  rights: all  of  them  are 
party  to  the  European  Convention  for  the  Protection  of  Human  Rights  and 
Fundamental  Freedoms.  The  Union  itself  abides  by  the  Convention  in  the 
decisions  and  action  it takes. 

However,  the Union should  signal  its espousal  of these values even more  clearly, 
either  directly  in  the  Treaty  or  in  signing  the  Convention  itself.  As  the  Union 
grows and diversifies,  such a step becomes all the more necessary.  An opinion on 
this  matter  is expected  from  the  Court  of Justice. 

The  Conference  should  also  incorporate  in  the  Treaty  provisions  banning 
discrimination of any kind - particularly on the basis of sex, thereby extending the 
provisions  on  equal  pay  - and  condemning  racism  and  xenophobia. 

A  Union based  on  the rule  of  law 

10. 

To  consolidate  the  rule  of  law  as  the  basis  of  the  Union,  the  proper 
implementation  and  enforcement  of  Community  law  has  to  be  assured,  a  task 
which  falls  primarily  to  the  national  authorities.  This  will  be  even more  vital  in 
an  enlarged  Community  encompassing  a  wide  diversity  of  national  legal  and 
administrative  systems. 

The  Commission  therefore  believes  that: 

the  means  available  to  it  to  enforce  Community  law  should  be  made  more 
effective,  notably  as regards  the  internal  market; 

there should be a stronger role for the Court of Justice, particularly  as regards 
compliance  with  its judgments. 

11. 

Fraud  against the Community's  financial  interests must be combatted  effectively. 
This cannot be done without a firm commitment  by the Member  States as well  as 
the  institutions. 

The  Commission  proposes  that  the  Union  give  itself  an appropriate  legal  basis. 

The social  dimension 

12. 

Each  Member  State  strives  to  secure  social  goals  for  all  its  people,  through 
government  policies  or  legislation  -with  the  participation  of  trade  unions, 
employers  and  civil  society  in  general-  in the context  of  an open  economy. 

The  Member  States,  industry,  trade  unions  and  employers  are  those  mainly 
concerned,  but the Union  should  also take part  in pursuing these  goals.  Ordinary 
people  must  be  able  to  see  that  the  Union  is  helping  to  ensure  that  they  can 
exercise  certain  fundamental  social  rights. 

The  social  dimension  should  be  one  of  the  central  themes  at  the  Conference. 
Above  all  there  has to  be  a  common  base  of  social  rights  for  all  Union  citizens. 
The  Commission  believes  that  to  achieve  this,  the  Social  Protocol  must  be 
into  the  Treaty,  and  clearer  provisions  laid  down  concerning 
integrated 
cooperation  between Member  States on matters of social policy,  such as the  fight 
against  marginalization  or  against  poverty.  Better  ways  must  also  be  found  of 
involving those sections of civil society capable of developing initiatives and  new 
forms  of  solidarity. 

Employment 

13. 

Unemployment  is undermining  the  foundations  of  our  societies,  affecting  nearly 
twenty  million  people,  many  of  them  young.  While  not  overlooking  the  role  of 
appropriate  macroeconomic  policies,  cutting  unemployment  depends  mainly  on 
those  directly  involved  in the  economy. 

In  its  1993  White  Paper  on  Growth,  Competitiveness  and  Employment,  the 
Commission  proposed  a  series  of  measures  aimed  at  mobilizing  all  sections  of 
society.  This  strategy  is  still  relevant  today:  growth,  competitiveness,  and 
employment  go  hand  in  hand.  Only  a  competitive  economy  can  create  lasting 
jobs. 

Structured  and coherent  action by the Union has to contribute  to restoring  a high 
level  of  employment,  which  is already  a Treaty  objective. 

To this end, the Commission proposes that specific provisions  on employment  be 
written  into  the  Treaty.  They  would  be  grounded  in  experience  accumulated  by 
the Community and treat employment as a matter of common interest; they would 
aim  at: 

establishing  the  conditions  for  a common  strategy  for  employment; 
stimulating  cooperation  between  the  interested  parties; 
consolidating the arrangements for multilateral surveillance of Member States' 
multiannual  programmes; 
taking  employment  into  account  in  all  Community  policies. 

Sustainable  development 

14. 

An  environment  benefitting  from  a  high  level  of  protection  is  one  of  the  major 
concerns of  citizens  in the  Union. 

The Commission considers that the provisions of the Treaty directed at sustainable 
development  and  at  a healthy  environment  should  be reinforced  in two  ways: 

the  right  to  a  healthy  environment,  and  the  duty  to  ensure  it,  should  be 
included  in those  provisions  of  the  Treaty  affecting  the  citizen; 

the environment  should be specifically  incorporated  into the other policies of 
the  Union. 

2.  Establishing  an  area  of  freedom  and  security 

15. 

The  principle  of  the  free  movement  of  persons  in the  Union  is  enshrined  in  the 
Treaty.  Yet  its translation  into  practice is  still  subject  to  major  restrictions: 

it  is not  fully  applied  across  the  whole  Union; 
some Member  States have had to resort to an ad hoc agreement (the  Schengen 
Agreement)  to  achieve progress  in this field; this does not however  offer  the 
same  guarantees  as Community  law. 

For  freedom  of movement to be applied in practice, solutions must also be  found 
to complex problems such as asylum and immigration, crime, drugs and terrorism. 
These problems have become international in scale; none of them stops at national 
borders. 

Hitherto, the  Union  has been  tackling these problems with outdated  methods  and 
resources. 

The  Commission  proposes  that  the  shortcomings  of  the  Treaty  in  the  fields  of 
justice and home affairs  - notably its ineffectiveness  and the absence of democratic 
and judicial  review  -  be  remedied  by  setting  clear  objectives  and  providing  for 
appropriate  instruments  and  methods. 

16. 

The  general  objective  is  to  apply  and  reinforce  the  principle  of  freedom  of 
movement and residence, already enshrined in the Treaty, in a context of ensuring 
security  for  all. 

The  specific  objectives  should  cover  four  main  themes: 

the  establishment  of  common  rules  on  the  entry,  residence  and  status  of 
nationals  from  non-member  countries  in the  Union; 
the  effective  mutual  recognition  of judgments  by  national  courts; 
the  adoption  of  measures  to  combat  all  forms  of  crime  and  fraud; 
the  stimulation  of  effective  cooperation  between  government  departments  of 

the  Member  States. 

17. 

In  addition,  the  following  instruments  and methods  should  be  adopted: 

Decision-making 
The  unanimity  rule  generally  applied  at  present  either  paralyses  the  Council  or 
reduces  decisions to the  lowest  common  denominator.  The  Commission  believes 
it  should  as a  general  rule  be  replaced  by  qualified  majority  voting. 

Parliament  must  be  more  closely  involved,  especially  in  fields  which  can  affect 
the  individual  rights  of  citizens. 

Finally,  the  Commission  should  have  the  power  of  initiative  in  all  the  fields 
concerned. 

Legal  instruments 

The legal status of the joint  action and the common position is obscure, while the 
entry  into  force  of  traditional  international  agreements  may  be  delayed  or 
uncertain: neither technique  is suitable. The Union must have more effective  legal 
instruments  in this  field. 

Review  by the Court 

Decisions  taken  should  be  subject  to  review  by  the  Court  of  Justice,  if  only  to 
guarantee  the  uniform  interpretation  of texts. 

Working  methods 

The  present  working  structures  in  the  Council  operate  at  several  levels  and  are 
ineffective.  They  should  be  simplified. 

18. 

The Commission believes that the best way of attaining all these objectives  would 
be  to  transfer  justice  and  home  affairs  to  the  Community  framework,  with  the 
exception  of judicial  cooperation  in criminal  matters and police cooperation.  The 
transfer  of  jurisdiction  is  particularly  necessary  in  the  fields  most  closely 
associated  with  the  movement  of  individuals,  such  as rules  on  crossing  borders, 
fighting  drugs, immigration, policy on nationals from  non-member  countries, and 
asylum. 

Following  the  same  logic,  the  content  of  the  Schengen  Agreement  should  be 
incorporated  in  the  Treaty. 

3.  Simplifying  and  democratizing  Europe 

19.  What  the  Union  does  has  to  be  understandable:  democracy  depends  on  this. 
Openness  is  thus  a  commitment  incumbent  on  all  the  institutions:  the  Union's 
activities  must  be  accessible  and  comprehensible,  so  that  those  affected  are  in  a 
position  to  obtain  all  the  information  they  require. 

The  role  played  by  the  European  Parliament  is  obviously  crucial,  and  must  be 
developed. 

Openness  on  the  one  hand  and  democratic  overview  on  the  other  will  only  be 
fully  assured  if  national  parliaments  are  more  closely  involved  in Union  affairs. 
This  means  they  must  have  timely  access to  all the  information  they  need,  from 
the  various  institutions  and  bodies  of  the  Union,  and  from  their  governments. 

Europe  must  do  less,  so  as to  do  it better.  It  has already  made  a  start  by  giving 
effect  to the subsidiarity principle enshrined in the Treaty. The Member States and 
the  institutions  must  continue  to  advance  along  this  road.  This  is  the  only  way 
Europe  will  find  the most  effective  level  - Community,  national  or regional  - at 
which  to  act. 

Simplifying  Europe means above all reviewing the institutional arrangements. The 
aim  must  therefore  be to: 

simplify  and  consolidate  the  Treaties;  and 
simplify  the  decision-making  process  and  make  it more  democratic. 

1.  Simplifying  and  consolidating  the Treaties 

20. 

As years  have gone  by the  Treaties  establishing  the Union  and  the  Communities 
have  grown  progressively  more  complex  and progressively  less  understandable. 

The existence of a dozen or so treaties and other basic texts, with a combined total 
of  more  than  700 articles  -  some  fundamental,  some technical  - and the  survival 
of  a  plethora  of  obsolete  provisions  make  the  European  Union's  primary 
legislation  singularly  inaccessible. 

Moreover,  the coexistence  of three  legally  separate  Communities and  of a  Union 
encompassing  them  all  but  not  enjoying  its own  legal personality  does not  make 
for  easy  public  understanding  of  the  European  integration  process. 

And  the  whole  edifice  is  all  the  more  complicated  as a result  of  the  methods  of 
intergovernmental  cooperation,  applied to foreign policy  and to justice and  home 
affairs. 

The  task  of  simplifying  and  consolidating  the  Treaties should  be  pursued  to  the 
utmost  extent. 

2.  Simplifying  and  democratizing  decision-making 

21. 

The  proliferation  and  complexity  of  both  legislative  and 
implementation 
procedures have made the Union's decision-making system unwieldy and opaque. 
The provisions governing budgetary procedure seriously need simplifying  and the 
accumulated  set  of  interinstitutional  agreements  should  be  consolidated. 

It  is  vital  for  openness  and  democracy  that  the  Intergovernmental  Conference 
should  put  order  into  this  system,  and  simplify  it. 

22. 

The  Commission  has  four  remedies  to propose: 

Decision-making  procedures 

There  should  be  three  types  only  -  decisions  adopted  on  Parliament's  opinion, 
those adopted  with  its assent,  and  the codecision procedure  involving  Parliament 
and  the  Council. 

The codecision  procedure 

The  procedure  should  be  applied  more  widely,  and  also  made  more  simple.  It 
constitutes  a  great  step  forward  in  the  maturing  of  Parliament's  legislative 
function.  The Commission,  acting in accordance with the Treaty, will present  the 
Council  with  a report  on  extending  the  scope  of the  procedure. 

The Commission's view is that the procedure has -by and large- worked well. But 
if  it  were  simplified,  notably  by 
it  could  be  quicker  and  more  effective 
determining  time-limits  for  first  readings,  by  dropping  the  announcement  of  the 

8 

intention  to  reject  a  proposal  at  the  second-reading  stage,  and  by  dropping  the 
third  reading. 

As  for  the  scope  of  the  codecision  procedure,  the  Commission's  view  is  that  it 
should  apply  to the  adoption  of  all acts of a legislative  nature.  This would  entail 
clarification  of  what  actually  constitutes  a  legislative  instrument.  The  codecision 
procedure  should  in any event  be adopted  for  all decisions currently  taken by the 
cooperation  procedure,  which  should  be  abolished. 

The assent  procedure 

The scope of this procedure should be amplified  and clarified.  Parliament's  assent 
should  always  be  required  for  decisions  on  "constitutional"  matters  (Treaty 
amendments,  own  resources). 

The procedure should not, on the other hand, be applicable to legislative  decisions 
or  for  Community  action  programmes,  where  codecision  should  be  the  norm. 

The  scope  of  assent  procedure  as  regards  international  agreements  should  be 
clarified;  the role played  by  national  parliaments  could  serve  as inspiration  here. 

Implementing  measures 

The provisions  governing  implementing  measures  are  complex  and  opaque. 

Decision-making  procedures  for  implementing  measures  need  to  be  changed  to 
reflect  the  roles  of  the  institutions  more  fully.  This  means that  the  Commission 
must  exercise  fully  its  function  as the  executive  body,  subject  to  review  by  the 
legislative  authority.  And  the  role  of  Parliament  needs  to  be  taken  into  account 
where the basic instrument has been enacted by codecision. Here, there should  be 
a  procedure  whereby  Parliament  or  the  Council  can  object  to  a  draft  measure 
proposed  by  the  Commission;  in  this  case  it  would  then  be  adopted  by  the 
codecision  procedure  itself. 

In addition, the number  of implementing  procedures need to be reduced,  so  as to 
avoid the frequent  and sterile debates between the institutions about the procedures 
to be followed,  and  so as to reflect  better the nature of the decisions to  be taken. 
The  Commission's  proposal  is  that  there  should  be  at  most  three  types  of 
committee  and  procedure  - the  advisory  committee,  the  management  committee 
and  the  legislation  committee  - and  that  all the variants  be  dropped. 

II.  A  clear  identity  on  the  world  scene 

23. 

The  Treaty  on  European  Union  calls  on  the  Union  to  "assert  its  identity  on  the 
international  scene".  In  practice,  however,  the  additional  influence  that  the 
Member  States  were to  have  achieved  by acting together  has eluded  them.  Their 
efforts  have  often  been  poorly  focused  and  are  liable  to  be  even  more  so  after 
enlargement. 

The Conference  should have a clear and simple aim: to empower the Union to act 
rather  than  react,  the  better  to  defend  the  interests  of  its people. 

In  some  areas,  such  as  trade  policy,  economic  assistance,  development  aid  and 
humanitarian  action, there  is already a coherent  single policy towards the  outside 
world,  though  to varying  degrees.  Other  areas,  such as the  common  foreign  and 
security  policy,  are  still  at  an  early  stage  in their  development. 

The prime  objectives  of  the  Conference  should  therefore  be  as  follows: 

to bring together the various strands comprising foreign relations into a single 
effective  whole,  with  structures  and  procedures  designed  to  enhance 
consistency  and  continuity; 
to  improve  the  common  foreign  and  security  policy  at  all  stages  of  its 
operation; 
to  establish  a proper  European  identity  with regard  to  security  and  defence, 
as  an  integral  part  of  the  common  foreign  and  security  policy. 

1.  Greater  consistency  in  foreign  policy 

24. 

The  Union  must  be  able  to  present  a  united  front.  Its  foreign  policy  as  a  whole 
will  not  be  effective  until  there  is  proper  coordination  between  its  various 
components,  for  which  responsibility  is shared  among  different  institutions. 

The  Treaty  already  requires  the  Council  and  the  Commission  to  pursue  a 
consistent  foreign  policy. But this has not happened under the Treaty  as it stands, 
and  the  institutions'  duties  in  this  respect  should  be  reinforced. 

The Council  Presidency  and the Commission  should  ensure effective  cooperation 
between  the two  institutions  which  are responsible  for  various  aspects  of  foreign 
policy.  This  would  considerably  enhance  the  continuity  and  efficacy  of  the 
Union's  foreign  policy. 

2.  More  effective  Community  action 

There  are  three  areas  which  need  to  be  examined. 

10 

Trade policy 

25. 

The  Treaty  should  be  updated  to  take  account  of  the  radical  changes  in  the 
structure of the world economy, in which services, intellectual property and  direct 
foreign  investment  play  an  increasingly  important  role.  These  developments  are 
reflected  in the increased  responsibilities  given to the World  Trade  Organization. 

The  Community's  powers  in  these  areas  are  poorly  defined,  leading  to  needless 
procedural  wrangles.  This  detracts  from  the  Community's  ability  to  defend  the 
interests  of the  Member  States  and  their  businesses. 

The Commission believes that the common commercial policy  should be  clarified 
accordingly. 

The  Union's  role  in  international  organizations 

26. 

Under  the  present  Treaty,  the  Union  is  ill-equipped  to  conduct  negotiations  in 
international  organizations  and  take  part  in  their  activities,  as  it  is  increasingly 
called  upon to do. Difficulties  arise when responsibility  for  the various aspects  is 
split  between  the  Community  and  the  individual  Member  States.  Attempts  to 
coordinate  the  Member  States'  positions  are  made  more  complicated  and,  as  a 
result, less successful; the Union's negotiating position is weakened in many cases. 

The  Commission  considers  that  the  Treaty  should  include  provisions  explicitly 
designed  to  enable  the  Union  to  speak  with  one  voice  and  thus  defend  all  the 
relevant  interests  more  effectively. 

Coordination  between Member  States'  policies and  that  of  the  Community 

27. 

Generally  speaking, in fields where responsibility  is shared, such as development, 
transport  and  the  environment,  the  Member  States'  policies  should  be  better 
integrated  -by  means  of  appropriate  mechanisms-  with  that  of  the  Community. 

3.  A  firmer  basis  for  the  common  foreign  and  security  policy 

28. 

It needs first of all to be emphasized  that the common foreign  and security  policy 
cannot  develop  without  real  political  resolve  on  the  part  of  the  Member  States, 
together  with  clearly-defined  objectives. 

The  Presidency  and  the  Commission  should  together  ensure  the  visibility  of  the 
common  foreign  and  security  policy. 
In  any  event,  this  requires  a  series  of 
improvements,  from  the  preparation  of  decisions  through  to  their  adoption  and 
implementation.  During  the  whole  process,  it  is  vital  that  the  Presidency-
Commission tandem operate coherently and efficiently.  Within this overall context, 
the  Commission,  for  its part,  will  strengthen  its internal  organization  with this  in 
mind.  The  Conference  should  consider  ways  and  means  of  strengthening  the 
Presidency,  with  support  from  the  Council  Secretariat. 

11 

Preparation  of  decisions 

29. 

The quality of analysis on which decisions are based must be improved. It is also 
important  that  all  Member  States  share the  same analysis. 

To this end, a "joint analysis unit" should be set up, composed of experts from  the 
Member  States and  the  Commission.  It would  be a joint  service, possibly  with  a 
contribution  from  the  Western  European  Union.  Its analyses would  be useful  for 
the Presidency and the Commission when drawing up and making more consistent 
their  proposals.  The  location  of  this unit  is less  important. 

The  formulation  of  foreign  policy  would  be  facilitated  by the  incorporation  of  a 
permanent Political Committee into the Council's existing machinery for preparing 
decisions  in Brussels. 

Adoption  of  decisions 

30. 

The  Treaty  introduced  the  concepts  of  "common  position"  and  "joint  action"  in 
connection  with  the  common  foreign  and  security  policy.  In  practice,  the 
distinction  between  these  two  instruments  has  become  blurred,  and  a  source  of 
contention. 

The  Commission  considers  that  clarification  of  their  respective  functions  is 
necessary. 

31. 

The  need  for  unanimity  makes  decision-making  difficult,  regardless  of  which 
instrument  is  used. 

The Commission takes the view that qualified-majority  voting should be the norm 
for  the  common  foreign  and  security  policy.  Specific  rules  would  apply  for 
decisions  involving  military  matters. 

There  are  also  times  when  some,  but  not  all, of the  Member  States wish  to  take 
action  on  a  specific  matter.  It  should  be possible  for  such  initiatives  to  have  the 
status of  Union  measures,  as  long  as they  are not against the  general  interests  of 
the  Union,  and provided  that  the  latter  is duly  represented. 

Implementation  of decisions 

32. 

Representing  the  Union  abroad  and  implementing  its  decisions  involves  many 
diverse  tasks, because  of  the  role  of  Member  States  and the various  elements  of 
foreign  policy.  The  only  constant  is the  single institutional  framework:  whatever 
the  field,  whether  it  be  a  matter  for  the  Community  or  for  intergovernmental 
cooperation,  the  decisions  are taken  by the  Council. 

Primary  responsibility  for  implementation  should  lie with the Presidency  and  the 
Commission.  But this clearly  should  not prevent  certain tasks being  allocated  to 
specific  personalities  designated  on  an ad  hoc basis. 

12 

33. 

The current procedure for common foreign and security policy decisions involving 
expenditure  is both  opaque  and  inefficient;  separate  negotiations  have to be  held 
for  each  decision. 

The Commission proposes that expenditure incurred in implementing the common 
foreign  and  security  policy  be  included  in  the  Community  budget,  unless  an 
express  decision  to  the  contrary  is taken. 

4.  A  European  identity  for  security  and  defence 

34. 

The  Union's  foreign  policy  suffers  from  its inability  to  project  credible  military 
force.  Events  in  recent  years  have  made  this  abundantly  clear.  A  genuine 
European  identity  in  the  security  and  defence  field  is  indispensable.  It  requires 
clear  political  will  on the part  of  Member  States. 

NATO  remains  at the  centre  of  Europe's  defence  arrangements,  and  a  European 
pillar  should  be  developed  in  it.  In  this  context,  the  WEU  plays  a  key  role  as 
already  set  out  in  the  Treaty.  As  matters  stand,  Member  States  do  not  however 
have  the  same  defence  commitments  in relation  to NATO  and  the  WEU. 

The  Commission  believes  that  a proper  common  foreign  and  security  policy  has 
to  extend  to  common  defence. 

35. 

Accordingly,  the  Conference  should: 

allow  Union  commitments  to  missions  aimed  at  restoring  or  keeping  peace 
to  be written  into  the  Treaty  ("Petersberg"  missions); 
reinforce  the Union's  security  capability by providing  for  Defence  Ministers 
to  play  an  appropriate  role  in the  Council; 
review the role of the Western European Union with a view to  incorporating 

-  it  into  the  Union  according  to  a  settled  timetable. 

In this context, the Commission  would  recall that the security  and defence  of  the 
Union  are  dependent  on  the  existence  of  a  solid  industrial  base  performing 
credibly.  This  requires  better  integration  of  the  armaments  industry  into  the 
general Treaty rules, greater solidarity and cooperation including the establishment 
of  an  armaments  agency,  and  a consistent  approach  to  foreign  trade. 

13 

III.  Institutions  for  the  enlarged  Europe 

36. 

The  aim  of  the  proposals  set  out  above  is  to  facilitate  both  the  internal  and  the 
external  development of the European Union. They are at all events  indispensable 
since  they  are  intended  to  endow  Europe  with  the  means  of  achieving  its  ends. 
They  are  also  the  prerequisites  for  a  successful  enlargement. 

37. 

This  enlargement  also  raises  its  own  specific  questions. 

The Commission  considers that  the Conference  will have to address three  issues: 

the  institutional  implications  of  the  increased  number  of  Member  States; 
the  need  to  eschew  unanimous  voting; 
the  incorporation  of  a  system  of  flexibility,  enabling  the  Union  to  move 
ahead  without  being  held  back  by  its  slowest  members. 

1. Adapting the  institutions 

38. 

The  substantial  increase  in the number  of  Member  States of the Union will  have 
repercussions on the operation of the institutions. No one doubts that the  difficulty 
of working together will increase with the number of participants: more languages, 
longer  and  less  interactive  meetings.  There  will  be  a host  of  practical  problems 
and  they  cannot  be  ignored. 

However,  enlargement  will  also  have  genuine  consequences  for  the  institutions 
which  makes  it  all  the  more  important  to  maintain  the  overall  balance  between 
them. 

The European  Parliament 

39. 

The number  of  seats  assigned  to  each  Member  State  in the European  Parliament 
has so far  allowed a balance to be struck between demographic reality on the  one 
hand,  and  its  compensation  by  an  over-representation  of  the  less  populated 
Member  States on the other. This has ensured that the main political  groupings  in 
all  the  Member  States  can  be  represented. 

This principle  should  be  maintained  in  an  enlarged  Union.  However,  to  prevent 
the European  Parliament  from  becoming  disproportionately  large, there will  have 
to be a limit  on the number  of  its members, however  many  Member  States  there 
are  in  the  Union. 

Parliament  has  itself  proposed  limiting  its membership  to  700.  The  Commission 
agrees. 

14 

One  effect  of  this  reduction  is  that  the  electoral  base  of  each  Member  of 
Parliament  will  rise,  to  over  a  million 
the  most  highly  populated 
Member  States.  The  Commission  considers  that  this  further  intensifies  the  need 
for  a common electoral procedure  so as to ensure, as is moreover laid down  in the 
Treaty,  that  the  members  are  as  representative  as possible. 

in 

The  Council 

40. 

The  increase  in  the  number  of  Member  States  will  also  make  itself  felt  in  the 
Council,  in three  main  respects. 

It  is true  that the  existing  half-yearly  rotation  of  the  Presidency  means  that 
Member  States  will  occupy  the  Presidency  less  frequently.  But  the 
Commission  sees  the  Presidency  as  a  service  and  a  task  which  each 
Member  State assumes on behalf  of the Union, and which helps to  engender 
public  support  for  Europe  in  the  state  concerned.  The  Conference  should 
however  examine  various  ways  of  extending  the  scope  of  the  Presidency's 
powers  of  action,  and  the  order  of  rotation  of  the  half-yearly  periods. 

The weighting of votes between the Member States: qualified  majority  voting 
is an essential mechanism for decision-making by the Council. The weighting 
of  the  Member  States'  votes  is  a  corollary,  introduced  as  a  compromise 
between  Member  States  equal  in  law,  but  of  different  demographic  sizes. 
Thus,  the  current  weighting  of  votes  reflects  a  generally  accepted  bias 
towards the  less-populated  states  of  the  Union. 

However,  it  is  also  a  fact  that  almost  all  the  countries  concerned  by 
enlargement  have relatively  small populations. Thus by retaining the  current 
' weighting,  the relative  weight  of  the  smaller  states  would  be  increased. 

-  The  Commission  therefore  considers  that  in  order  to  maintain  the  existing 
balance,  there  is justification,  when  enlargement  comes,  for  either  adapting 
the weighting of votes or introducing  a new system which makes a  reference 
both  to  a  majority  of  the  Member  States  and  a  majority  of  the  Union's 
population. 

The  threshold  for  a  qualified  majority:  enlargement  is  bound  to  make 
decision-making more complicated. The Commission therefore  considers that 
no  adaptation  should  have  the  effect  of  making  decision-making  more 
difficult.  The  normal  threshold  for  a  qualified  majority,  which  has  been  set 
at  around  71% since  the  inception  of  the  Community,  should  therefore  not 
be  raised  in any  circumstances. 

There is also a perceived  need  to restorate  to the General  Affairs  Council  its role 
of  coordination  and  arbitration  in  the  various  areas  covered  by  the  Treaty. 

15 

The  Commission 

41. 

The prospect  of a substantial  increase in the number of Member  States engenders 
a  need  to  preserve  the  legitimacy, 
the 
effectiveness  of  an  institution  whose  vocation  is  the  completely-impartial 
representation  of the  general  interest. 

the  collective  responsibility  and 

This means first of all securing  its right of initiative, its executive powers, and  its 
function  as  guardian  of  the  Treaties. 

The Commission considers that its President should be designated by the European 
Council  and approved by Parliament.  The President  should play a decisive part in 
the choice of the Commission's Members, the better to ensure collegiality.  In this 
regard,  its  members  should  be  designated  by  common  agreement  between  the 
President  and  the respective  governments  of the Member  States. 

42. 

The  Commission  takes the  view that,  in  the  context  of  enlargement,  the  number 
of  its Members  should  be  reduced  to  one per  Member  State. 

The  Commission  is  aware  that  its  composition  and  structure  will  have  to  be 
reexamined,  above  a certain  number  of  Member  States.  The  Conference  should 
fix  an  appropriate  procedure  for  doing this. 

The Court of Justice 

43. 

The  Court  of  Justice  will  also  be  confronted  with  the  problem  of  numbers.  The 
prospect of seeing some sixty judges at the Court of Justice and the Court of First 
Instance  is a  good  ground  for  examining  the  consequences. 

In its report to the Reflection  Group, the Court stressed how important  it is for  all 
the various national  legal  systems to be represented.  However,  it also pointed  out 
that "any significant  increase in the number of Judges might mean that the plenary 
session of the Court would cross the invisible boundary between a collegiate court 
and  a  deliberative  assembly.  Moreover,  as the  great  majority  of  cases  would  be 
heard by chambers, this increase could pose a threat to the consistency of the case-
law". 

The Commission similarly agrees with the Court when it indicates that the judges' 
term of office  could be extended, while becoming non-renewable.  Such a  reform 
would  reinforce  even  more  firmly  the judges'  independence. 

2.  Making  majority  voting  the  general  rule 

44. 

In  an  enlarged  Union,  adherence  to  unanimity  would  often  result  in  stalemate. 
Indeed,  the  difficulty  of  arriving  at  unanimous  agreement  rises  exponentially  as 
the  number  of  members  increases. 

The Commission  accordingly  proposes that qualified  majority  voting become  the 
general  rule. 

16 

Two  additional  observations  are  then  warranted: 

Unanimity  need  not  necessarily  be  replaced  by  qualified  majority  voting  as 
defined  at  present.  In  particularly  sensitive  fields,  decisions  could  be  taken 
by  "super-qualified"  majority  voting,  for  example. 

What  holds  true  for  Community  legislation  also  holds  true  for  the  Treaty 
itself  and  amendments  to  it:  if  in  future  the  Treaty  could,  as  at  present,  be 
amended  only  by unanimity,  it would be  in danger  of stagnating  in the  state 
in which the  1996 conference  left  it,  making  future  progress in the  direction 
of  European  integration  an  unlikely  prospect. 

In this respect, it should  be borne  in mind that the Treaties currently  contain 
provisions  of  various  types,  some  of  which  certainly  are  of  a  genuinely 
fundamental  nature  (preamble,  fundamental  principles,  objectives  of  the 
Union,  operation  of  the  institutions)  while  others  are  not  (Union  policies). 
The  consolidation  of  the  Treaties referred  to  earlier  should  make  it  possible 
to  establish  a clear  distinction  between  these  two types  of  provision. 

The  Commission  considers  that  in  future  it  should  be  possible  to  amend  at 
least provisions  that  are not  of  a constitutional  nature  by  a procedure  which 
imposes  fewer  constraints  than  the  one  currently  in  force. 

3.  Organizing  flexibility 

45. 

The  European  Union  must  not  be  for  ever  bound  to  advance  at  the  speed  of  its 
slowest  members. 

This  is even  more  true  in  an  enlarged  Community. 

The  Union  has  long  practised  certain  forms  of  flexibility.  Exceptions  or 
exemptions,  normally  of  a  limited  and  temporary  nature,  are  provided  for  in 
Community  law.  No  one  doubts  that  in  the  context  of  the  accession  of  new 
Member  States recourse will be had to this practice, until  such time as they  come 
to  participate  fully  in  all  the  common  policies. 

The  Commission  observes  that,  already,  organized  flexibility  is  the  route 
sometimes  to be  followed  for  deepening  the  Union,  as the  example  of  economic 
and  monetary  union  shows. 

On the other hand, the Commission  firmly  rejects any  idea of a  "pick-and-choose 
Europe" (e.g. the Social Protocol) which flies in the face of the common European 
project  and  the  links  and  bonds  which  it  engenders. 

46. 

The  Commission  takes  the  view,  however,  that  the  European  Union  must  make 
it  possible  to  have  forms  of  cooperation  or  integration  between  those  of  its 
members  wishing  to progress  faster  and  further  in the  attainment  of the  Treaty's 

17 

objectives.  This  should  be  envisaged  only  after  exhaustion  of  all  other  possible 
forms  of  action  involving  all  the  Member  States  under  the  Treaty. 

The requisite  flexibility  will  have to be guided  by the  following  principles,  so as 
to  guarantee  the  unity  of  the  Union: 

compatibility  with  the  objectives  of  the  Union; 

consistency  with  the  institutional  framework  of  the  Union; 

opportunity for other Member  States which are willing and able to join at any 
time; 

safeguarding  of  the  single  market  and  the policies  accompanying  it. 

The  Commission,  subject  to  review  by  the  Court,  will  have  to  ensure  that  the 
principles  set  out  above  are  respected. 

CONCLUSION 

What  the  Commission  would  like  to  see  is  an  Intergovernmental  Conference  with  real 
ambitions.  It is the opportunity for a genuine debate on Europe, on what Europe is about, 
on  what  course  it  is  to  take  in  the  years  ahead,  and  on  everyone's  role  in  this  Europe. 
This  debate  must  be  opened  up  at  once,  in  order  to  give  the  negotiators  their  bearings. 
At the  ratification  stage  it will  be too  late. 

In  this  debate  the  Commission  intends  to  state  some  simple  truths.  First  of  all,  the 
obvious  - but  sometimes  forgotten  -  fact  that  the  most  striking  success  of the  European 
venture  has  been the peace  and prosperity  it has  generated.  This  incomparable  heritage 
must now be developed,  and extended  to the other countries of a continent that has  been 
divided  for  too  long. 

Second,  there  is the  usefulness  of the  Community  method.  This  novel  approach  -based 
on unprecedented  institutions,  the  rule  of  law,  and  solidarity-  has  made  Europe  what  it 
is today.  But while the values must be preserved, the methods must at the same time  be 
adapted  to  the  new  context:  the  shift  to  a  more  genuinely  political  Union  and  a  Union 
soon to be made up of more than the current fifteen  members.  This is what underlies the 
reforms  advocated  by  the  Commission. 

Finally, there is the overriding requirement  of political will.  Setting clear objectives  and 
providing  the  necessary  tools  is  a sine  qua  non.  The  Union  must  equip  itself  with  the 
means to match  its ambitions.  But none  of this will lead anywhere  unless it  is  founded 
on  real  political  will. 
It  is  obvious  that  the  problem  of  unemployment  will  not  be 
resolved  simply by  inserting  a chapter  on employment  in the Treaty.  Just  as it will  take 
more  than  a  form  of  words  to  create  a  foreign  policy.  But  anchoring  provisions  in  the 
Treaty  means that  the  problems  have  to  be tackled  by  acting  together. 

Recognising the difficulties  does not mean giving in to them.  The Conference  should  be 
the  occasion  to  mobilize  energy  and  resolve;  to  convey  a  message  of  confidence  and 
determination  to the people of Europe and the rest of the world.  To demonstrate that  the 
Union  has  clear  objectives  and  the  instruments  to  achieve  them;  that  Europe  -united  in 
its diversity-  is prepared  to uphold  and  develop  its model  of  society  and to make  growth 
and competitiveness work for a social and a cultural ideal; that Europe, by harnessing the 
strength  of  its  institutions  and  the  efforts  of  its  Member  States,  will  assume  its 
responsibilities  in  the  global  arena.  To  make  clear  that  Europe,  far  from  being  an 
aggregate  of  self-interest,  is the  sum  of  all  the  wealth  of  this  continent. 

19 

ISSN 0254-1475 

COM(96) 90 final 

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ISBN 92-78-01215-7 

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