Governments split over the abolition of national vetoes

Date: 04/05/2000

By Gareth Harding

EU GOVERNMENTS have so far only agreed to abolish national vetoes in three minor areas, underlining the depth of the split between member states over plans to extend qualified majority voting to a raft of policy issues.

The refusal of several member states to give up their right to block progress single-handedly in key areas has dealt a blow to the Portuguese presidency, which had hoped to make significant progress on this issue before handing over the baton to France at the end of June. It also points to a long and bumpy road ahead before EU leaders sign up to a new treaty in December.

The extent of the impasse was revealed at a meeting of Intergovernmental Conference negotiators earlier this week which discussed a report drawn up by Lisbon listing the 25 articles which it believes should switch from unanimity to qualified majority voting (QMV) before the EU takes in the dozen or so countries queuing up to join the bloc. Portugal also put forward new draft treaty texts in the highly-contentious areas of taxation and social policy.

Portuguese diplomats said the paper took account of the views expressed by EU member states since the talks began in February. But that claim was undermined when it emerged that governments were only ready to agree a move to QMV in three relatively insignificant areas at this stage in the negotiations. These are working procedures for the European Court of Justice and the Court of First Instance, and a redundant article on social security for migrant workers.

One diplomat said the lack of concrete progress so far was inevitable given the poker-game tactics employed by governments. "It is a frustrating phase," he said, adding: "Because we have so much time on our hands, no one is moving." Another said governments were keeping their cards close to their chest and would only reveal their hand on the final night of the year-long talks.

Some countries complained that a number of areas where QMV was essential were not on the presidency's list. In particular, the EU's more liberal member states regretted that it made no reference to scrapping the veto on commercial policy.

Despite the current deadlock, diplomats believe that most of the 25 articles identified by the Portuguese will switch to majority voting when the new treaty is signed in Nice. These include rules on state aid, cultural cooperation and the free movement of self-employed workers. But fierce arguments are in prospect over the most sensitive issues: taxation, social security, justice and home affairs, and the structural funds.

The UK, Ireland, Denmark and Sweden are opposed in principle to any moves towards QMV in the taxation field and are likely to veto any proposed changes. The Portuguese paper says that unanimity should be kept for both direct and indirect taxes, but argues that majority voting should be used for measures aimed at combating fraud and tax evasion. Lisbon also favours moving environmental taxes, such as the proposed energy levy, to QMV. Most other member states back this change but Spain remains hostile.

Officials say most progress has been made in the justice and home affairs areas. Although the presidency paper acknowledges there is "little inclination" to scrap the veto for policing and criminal matters, almost all countries are now willing to move to majority voting for visa policy, asylum and immigration and judicial cooperation on civil matters, with only France holding out against this.

The majority of member states also favour deciding the rules governing how the EU's structural funds are spent by QMV, but three of the countries which benefit most from Union funding - Spain, Italy and Portugal - are opposed to any change.

EU governments have so far only agreed to abolish national vetoes in three minor areas, underlining the depth of the split between member states over plans to extend qualified majority voting to a raft of policy issues.