The Week in Europe 09-15/07/03

EU news in brief

Convention signs draft EU Constitution

The European Convention, set up by the Laeken European Council in December 2001, successfully completed its work after more than 16 months of debates. On 10 July 2003, the 105-member Convention, grouping representatives of parliaments and governments of 15 current and 10 future Member States as well as three candidate countries, adopted its final proposal for a future European Constitution.

The first two parts of the draft Constitution, dealing with the EU's institutions and decision-making processes, had already been endorsed by the leaders of the enlarged EU of 25 countries at the Thessaloniki European Council on 19-20 June 2003. The leaders said the Convention's proposal would serve as a basis for inter-governmental convention.

The Thessaloniki European Council granted the Convention an extension of its mandate until 10 July to complete the last two parts of the draft Constitution, dealing with EU policies and final provisions.

The final text underwent a few minor changes on the last day of the European Convention's work. It contains 338 articles defining the EU's policies and institutions.

The Convention added a reference to the EU's official symbols on the last day, including a flag (blue with yellow stars in a circle), an anthem (Beethoven's "Ode to Joy"), a motto ("United in Diversity") and a Europe Day (9 May).

On its last day, the Convention decided over the application of qualified majority voting. Unanimity will remain the rule for the politically sensitive policy areas, such as the foreign and security policy, immigration and taxation. France won the battle to maintain its right of veto to protect its film, television and music industry in international trade negotiations.

The final text also equips the Union with its own diplomatic service with its headquarters in Brussels to assist the future EU Foreign Minister.

The Commission takes action on financial mismanagement in EUROSTAT

Over the past few weeks the European Commission has conducted its own internal investigations into the Statistical Office of the European Communities, EUROSTAT. The preliminary results of these analyses clearly point towards the existence of systemic management weaknesses and irregularities within EUROSTAT. With all due respect to the independent and on-going proceedings of the European Anti-Fraud Office OLAF, the Commission believes these concerns have to be dealt with immediately. Therefore the Commission has today agreed on a series of measures which are designed to address the most pressing problems.

[Background paper IP/03/979]

Commission decides on further steps to develop its "Wider Europe" policy

Following the European Council in Thessaloniki, which endorsed the approach proposed by the European Commission for strengthening relations with the new neighbours of the enlarged EU, the Commission today took important decisions on the implementation of its policy for "Wider Europe". Commissioner Günter Verheugen, assisted by a "Wider Europe Task Force", will be in charge of further developing the political concept of a new neighbourhood policy and of drawing up action plans with the countries and regions concerned (Eastern European and Southern Mediterranean countries). Commissioner Chris Patten retains the overall responsibility for external relations, including bilateral relations with those countries.

Commission indicator forecasts euro area quarterly GDP growth of 0% to 0.4% for 2nd and 3rd quarter of 2003

The indicator-based model for quarterly GDP growth for the euro area, developed by the European Commission's Directorate General for Economic and Financial Affairs, forecasts a range of 0% to 0.4% for GDP growth in the second quarter of 2003, unchanged compared to last release. Most indicators used in the model for this horizon continue to suggest slow growth, although some recent confidence indicators have shown a slight improvement. For the third quarter of 2003, the model suggests growth in the same 0 to 0.4% range.

[Background paper IP/03/992]

Launch of logo competition for the European Year of Education through Sport 2004

This competition is open to graphic design students living in the European Union, one of the new Member States or in a country of the European Economic Area. The winner will receive a prize worth EUR 5000 and a trip to the Athens Olympic Games or the European Football Championships in Portugal. Prizes will also be awarded for projects placed second and third. The logo, which will be selected by the Commission on the advice of a panel of experts in design and marketing, will be presented in autumn 2003. The closing date for the competition is 15 September 2003. Details, including the precise conditions for participation in the competition, are available on the following website:

http://www.eyes-04-design-competition.info/

[Background paper IP/03/987]

EUROPE DIRECT: bringing the European Union closer to the citizen

As the Convention on the Future of Europe this week concludes its work, the European Commission is extending its EUROPE DIRECT service a concrete example of efforts to bring Europe closer to its citizens. EUROPE DIRECT already allows people across the EU to get answers to their questions about the EU in all 11 official languages through the toll-free phone number:

00800 6 7 8 9 10 11 or

by e-mail : (http://europa.eu.int/europedirect/).

From last month, the service has been extended to allow visitors to the EUROPA web server to have a one-to-one session with a EUROPE DIRECT Call Centre operator who will provide assistance for their on-line research.

Eurostat news releases

Second estimation for the first quarter of 2003 Euro-zone and EU15 GDP up by 0.1%; +0.8% and +1.1% respectively compared to first quarter of 2002

Gross Domestic Product (GDP) grew by 0.1% in both the euro-zone and the EU15 during the first quarter of 2003, according to estimates out from Eurostat. These results follow an increase of 0.1% in both zones in the fourth quarter of 2002.

In comparison with the first quarter of 2002, GDP grew by 0.8% in the euro-zone and by 1.1% in the EU15, after increases of 1.2% and 1.4% respectively in the previous quarter.

[Background paper STAT/03/79]

Enlargement news

Cyprus ratifies Treaty of Accession

The European Commission congratulated Cyprus on 14 July for the ratification of the Treaty of Accession. It demonstrates the strong will of Cyprus to join the European family of democratic nations as a member of the European Union, with equal rights and obligations. The Commission is confident that Cyprus will play an important role in the development of the European integration process and looks forward to it. Once in the EU, Cyprus will take advantage of all the opportunities of membership. The Commission reiterates its support for the efforts of the UN Secretary General in reaching a comprehensive settlement of the Cyprus problem and calls for an early resumption of the talks on the basis of his proposal.

Estonian doubts met by leaders' conviction

Estonian enthusiasm for EU accession is finely balanced against scepticism, according to the latest polls there. With just two months to go until Estonia's EU binding accession referendum on September 14, 65% of Estonian citizens are decided to vote, 55% of whom would “Yes” and 45% against membership. The resistance to the EU is mainly among rural, lower-income, less educated sections of the population.

In a bid to muster support for accession, Estonian President Arnold Rüütel, chairman of the parliament (the Riigikogu) Ene Ergma, and prime minister Juhan Parts have issued a joint statement making clear their intention to vote "yes" in the referendum. And they "recommend all Estonian citizens do it."

To explain their conviction, the three leaders say that Estonia has been, is, and will always remain a part of Europe. To counter fears of cultural absorption, they state: "Working together with the European countries that share similar values with us, we will be able to protect and secure our independence, develop our language and culture. The Estonian language will become an official European Union language and this will secure the future of our mother tongue."

They also claim that joining the EU "will give new impetus to our economy thereby guaranteeing the increase in the wellbeing of every Estonian person and helping the Estonians' living standards reach the level of the wealthy European Union nations." And, as a European Union member state, "we will be able to protect the interests of Estonia both in Europe and in the world."

If Estonia does not join the EU, there will be negative consequences, the leaders urge. Remaining outside the EU means "a serious backlash for the economy", "a security vacuum", "narrowing the prospects for Estonian language and culture", and "an end to the opportunity for Estonia to voice its opinions in Europe."

For the latest poll analysis,

see http://www.gallup-europe.be/epm

For more on Estonia,

see http://europa.eu.int/comm/enlargement/estonia/index.htm

Prodi encourages Croatia on its "journey towards EU membership"

"A European Union that is enlarging and growing stronger" will, "in some years' time", be joined by Croatia, said European Commission President Romano Prodi, addressing the Croatian Parliament in Zagreb last week. The EU membership application that Croatia submitted in February year "reaffirmed Croatia's European vocation", and amounted to a declaration that "the long and trying period of war, division and nationalism is well and truly over", said Prodi.

"The journey will not always be easy", Prodi warned. "It means bringing legislation and implementation of new rules into line with the Union's standards. No sector of administrative life will remain unaffected by this process of adaptation to EU rules." He highlighted areas such as the reform of the judicial system, freedom of the media, respect for minority rights, the return of refugees, and co-operation with the International Criminal Tribunal for the former Yugoslavia.

But it will be worth it, he insisted: "All the countries that have gone through this strenuous and at times painful process have come out stronger, with a hugely enhanced capacity to meet the challenges of international life. This is true of all countries in the Union, from the founding members to those that are still to become full members". It is, said the Commission President, "a process of continual growth and constant adaptation."

And the preparations for accession will be a learning process for both sides, Prodi suggested. "We will discover more about each other… about each other's systems… Our fellow citizens will get to know each other better, to understand where we come from -- our different histories, cultures and traditions -- and how we have got where we are today." This is how, he said, member states "learn to live side by side in a Union of diversity and minorities, because no member state of the Union is large enough to take decisions alone without coordinating them with the others."

Europe's unification can never be regarded as complete until all the countries in the Balkan region are full members of the Union, Prodi insisted: "No wall, no barrier must divide the Balkans. That would be unthinkable". And although Croatia has an important role as the leader, "the process of enlargement for the Balkan countries is one and indivisible. And ultimately the region as a whole must be fully integrated into the Union."

Now Croatia will have to start responding to a comprehensive, wide-ranging Commission questionnaire containing over 2,500 questions on the political, economical and administrative situation in the country. The answers will form the basis for the Commission's opinion on the starting of accession negotiations.

The Commissions opinions on the existing candidate countries were published in 1997. See http://europa.eu.int/comm/enlargement/intro/ag2000_opinions.htm

Regions' key role in cohesion in an enlarged EU

When representatives from all of Europe's regions, including the current and acceding member states, met in Brussels last week, it was greeted as "highly meaningful" by European Commission President Romano Prodi, "because it makes enlargement so much more real and tangible". In his remarks to the Commission's conference on the regional role in cohesion and the Constitution, Prodi said enlargement is "the great achievement of this Commission, in particular because of the widespread diffidence and difficulties it involved." The regions contribute crucially to enriching the diversity of experience, languages and cultures that is the EU's great asset, he went on. "Diversity is one of Europe's distinctive features of which I am proudest." But the other challenge is to ensure institutional reform is in line with the needs of an enlarged EU. And within that framework, "We need to put more stress on the policy of citizenship that binds together all Europe's peoples, over and above their differences. This is becoming critical as 25 plus countries come together and seek to even out their differences within the enlarged Union."

Prodi urged attention to the goal of sustainable development based on growth, solidarity and the conservation of the EU's natural resources. And, he said, "The regions play a vital role in achieving that goal today. Regional and cohesion policy is very important, because we cannot have lasting, balanced growth unless all regions share in it." He told the representatives of the regions: "You have a big responsibility in this area because experience shows that the regions with the highest growth are those that have developed their administrative and management capacity to take full advantage of the resources available."

Opportunities and responsibilities in the enlarged EU

The opportunities and benefits an enlarged EU will bring are clear, but not enough people are aware of what EU enlargement means or the significant new opportunities it will soon create for the UK and the regions, the UK European affairs minister Denis MacShane said last week at a conference in Sheffield. "Economic benefits will come as we create more prosperous consumers, wanting more British goods and services", he predicted. And environmental benefits will increase as the candidates are all improving the cleanliness of their beaches, waterways and industrial plants in order to meet EU targets. There will also be benefits to security, as candidates will have to meet EU standards on border controls and work with existing member states on tackling illegal immigration, drug smuggling and people trafficking from further east. "None of this would be possible without their accession to the EU", he insisted. But, he went on, what we should be aiming to create in this new enlarged Europe is a society in which every individual, of whatever racial or ethnic origin, is able to fulfil his or her potential through enjoying equal rights, opportunities and responsibilities. All the new member states will have to enforce EU equal treatment standards and "This is good news for minority communities and for people Europe-wide". MacShane emphasised: "We need to create a Europe in which all citizens, regardless of race or ethnic origin, will have equal access to the single market, including all goods and services and freedom of movement throughout Europe.

Landaburu moves on to external relations, Barbaso takes over

Eneko Landaburu, head of the European Commission's Enlargement Director General since it was set up in January 2000, is to become Director General for External Relations on September 1. Landaburu, who has been the chief negotiator in the accession talks - and a key figure in nailing down the agreement with the ten acceding states at the Copenhagen summit in December last year is to be replaced by Fabrizio Barbaso, who becomes acting Director General for Enlargement. Barbaso, a 53-year-old official of Italian nationality. He worked as a lawyer and in business before he joined the Commission in 1976. He has been responsible for industrial affairs and for international relations, and was a member of the Cabinets of Commissioners Giolitti and Ripa di Meana. He is currently Deputy Director General for Agriculture.

Who's going to be who in the new member states, too

There are changes underway at senior level in the new member states too: a number of new diplomats have arrived to take over at the head of their country's mission to the EU, and to stay on as permanent representative once their country becomes a full member states in May next year. The new Slovak ambassador is Miroslav Adamis, who took over last week from Juraj Migas. Already the Czech Republic has brought in Pavel Telicka who was his country's chief accession negotiator and deputy foreign affairs minister - as its head of mission. Hungary has put Péter Balázs in as ambassador in Brussels since mid-April, when he took over from Endre Juhasz (who has returned to Budapest to become deputy foreign affairs minister, after years of playing his key dual role as head of mission in Brussels and chief negotiator for his country). However, Poland's current ambassador, Marek Grela, will stay on to become his country's permanent representative, as will Estonia's Väino Reinart and Cyprus' Theophilos V. Theophilou.

EBRD opens Kaliningrad office

The European Bank for Reconstruction and Development has opened a business advisory service in Kaliningrad, the Russian enclave on the Baltic coast, bordering Lithuania and Poland. With technical co-operation funding of €500,000 from Finland, Luxembourg and Sweden, the programme will work with about 75 Kaliningrad entrepreneurs on self-improvement projects. It is part of a drive to develop the local economy by stimulating the growth of local small and medium-sized enterprises. Using local consultants and working directly with individual SMEs, the programme provides practical business advice on how to remove barriers to growth and development, as well as on how to make firms more efficient and competitive. The assistance will normally focus on short-term projects such as upgrading IT systems to improve financial controls, carrying out market research, and the introduction of systems for quality management and enterprise reorganisation. It will also offer local consultants a chance to prove their worth, further develop their skills, and position themselves to meet the future needs of Kaliningrad's business community, according to Natalia Makova, who will be heading the office.