Will industry groups push proactively for ratification?

By Leen Van Parys

Date: 16/09/04

EUROPEAN business has generally welcomed the new constitution as an improvement to Europe's competitiveness, but it has not come out fighting for it. Governments and parliaments across the EU have embarked on a difficult campaign to ratify the constitution. Several countries will do this by referendum. Are national business federations ready to play an active role in the campaigns? European Voice asked various business groups across the Union.

Ireland

The Irish Business and Employers Confederation, IBEC, strongly supports the constitution and is prepared to play an active role in championing a "Yes" vote in the referendum, says Arthur Forbes, who heads their Brussels' office. He is optimistic about a positive result in his country, as "we have learned a lot from previous experiences". The negative outcome of the first referendum on the Nice Treaty in 2001 came as a shock, but it had the advantage of forcing the Irish to reflect on Ireland's role and place in Europe. IBEC is currently analyzing the constitution and informing its members about the impact for the business world. The confederation is particularly pleased with the new obligations on the Commission to inform national parliaments about new initiatives and to review the proposal if one third of national parliaments so require. Other positive points for the Irish business are the emphasis the constitution puts on competitiveness and the status quo (unanimity decision-making) on taxation.

United Kingdom

Although not obliged under UK constitutional rules to hold a referendum, Prime Minister Tony Blair has announced he will do so. The Confederation of British Industry is still undecided about the strategy it will follow. "We have not taken an official position yet," says Jaymeen Patel, policy officer at the CBI Brussels office. The CBI will inform its members about the constitution, but at the moment it is consulting and investigating what line to take. "Just like the euro, this is a rather sensitive issue," Patel says. While the constitution obliges the British people to think about its contacts and relationship with Europe, many business leaders believe the issue is too political and does not matter much to business.

Denmark

In Denmark, business organizations have played an active role in all EU referenda since 1972 when the Danes had to vote on EU membership. Danish Industries (DI) is already well advanced in preparing its strategy for the referendum on the constitution.

"Together with the trade unions, we are releasing a pamphlet next month and we do recommend a 'Yes'," says DI's head of projects Thomas Möller Sörensen.

DI sees three major reasons for defending the constitution: it will simplify the "whole treaty mess", provide a framework for a more efficient EU and improve competitiveness, and it will enable the Union to be a more united player on the international scene.

France

The French Business Confederation MEDEF usually does not take a position in political matters. It did not intervene in the referendum campaign for the Maastricht Treaty in 1992 and it has no intention of playing a major role in the debate on the referendum on the constitution.

Nevertheless, MEDEF President Ernest-Antoine Sellière last week spoke out in favour of the constitution.

"We are strongly in favour of strong and efficient European governance and we have closely followed the work of the [constitution-drafting] Convention," says André-Luc Molinier, head of European affairs at MEDEF. "We will provide our members with clear and concise information on the impact for the business world. We cannot dictate how the people have to vote, but we will plead in favour."

But he says that in France, national topics have always influenced the outcome of referenda. "The referendum on the constitution risks being more a referendum on Turkey or on enlargement," he added.

Simplification of legislation and increased transparency are the biggest advantages of the new constitution, for MEDEF. Other advantages are the wider use of majority voting, although MEDEF had hoped for more: qualified majority voting in fiscal policy and an end to the rotating presidency of the EU, says Molinier.

Germany

Germany has no tradition of holding referenda and the German Industrial Federation (BDI) does not see any reason for changing German law to ratify the constitutional treaty. "It would be wrong to change the system of referenda for this treaty: compared to the Maastricht Treaty, the constitution is less far-reaching," says Thomas Stammen, expert for European affairs at BDI.

The key advantage of the constitution for BDI is that it modernizes EU law. "It is the only way to adapt some of the constitutional rules to an enlarged EU. It is still far from being perfect; but it is a way to modernize EU law and to start clarifying the different competences." BDI will strongly recommend ratification of the constitution to both the Bundestag and Bundesrat.

Sweden

Although there will be no referendum in Sweden, Swedish Industry (SI) is one of the few European business federations which has put its comments on the constitution on its website. It believes the treaty contains "considerable advantages", although in some areas there could be some changes. SI supports the constitution but is not in favour of a referendum, says Jan Herin, director of SI's Brussels office.

The Netherlands

The Dutch employers' federation VNO-NCW has welcomed the constitution as a "good promise". "We are satisfied with the compromise. It is well balanced and a clear improvement compared to the previous treaty. We believe it can certainly contribute to a more competitive Europe," says VNO-NCW's Mechteld Oomen.

The federation has not yet decided what role it will play in the campaign for the referendum. "We will certainly inform our members and especially the SMEs. We will clearly explain the impact of the treaty for the business world." Biggest advantages, according to Oomen, are the wider use of majority voting and more transparency.

Poland

The Polish Confederation of Private Employers, PKPP will be involved in promoting the constitution. Henryka Bochniarz, president of the PKPP, said its main task was "to explain and educate the public what the European constitution is about". The consolidation of several treaties in one, more readable treaty, a clear division of competences between the EU and national governments and a wider use of majority voting, while maintaining unanimity in those areas most sensitive to member states, can only be welcomed by the business community, according to Bochniarz.

Referenda on the EU constitution

• Belgium: non-binding referendum likely
• Czech Republic: date uncertain
• Denmark: no date announced
• France: to be held in the second half of 2005
• Ireland: in 2005
• Luxembourg: likely, no date announced
• Netherlands: likely December 2004
• Poland: no date announced
• Portugal: likely early 2005
• Spain: February 2005
• United Kingdom: likely following the UK's general elections in late 2005.
• Leen Van Parys is a Brussels-based freelance journalist.