Constitution paves way for ‘core-Europe’

By Dana Spinant

Date: 24/06/04

THE integration of Europe was taken to a deeper level with the adoption of a constitution for the European Union at the Brussels summit last week.

The constitutional treaty paves the way for greater and, above all, more differentiated integration between groups of member states, although it will have to be ratified by all 25 states if it is to enter into force by the hoped-for 2007.

The constitution's most significant consequence is that it encourages the development of different layers of integration within the EU. The final text agreed last week makes it easier for groups of member states to go further down the road of integration in justice and home affairs, social matters, taxation and foreign policy than the initial draft drawn up by the Convention on the EU's future.

Valéry Giscard d'Estaing, the chairman of the 105-strong Convention, admits that "the final text goes further than the Convention on enhanced cooperation, which allows member states to deepen their integration".

The price for an agreement on the constitution was the entrenchment of the national veto in some sensitive areas - such as taxation, foreign policy and social matters, as requested by the UK.

But the British representatives had to accept that if national vetoes are to apply, they should not prevent member states that so wish from integrating more quickly and more deeply.

Such groups of states which are willing to do so will be able to take decisions by qualified majority vote (QMV), even if the unanimity rule applies to those policy areas (for instance, corporate taxation). But further integration may not undermine the EU's single market.

The so-called emergency brakes introduced in several areas - notably justice and home affairs, and social matters - are also set to encourage the growth of enhanced cooperation.

They have been introduced to enable a government that opposes a decision being taken by QMV to prevent its adoption by referring the matter to the European Council. The heads of state and government then have four months to decide either to send the matter back to the Council of Ministers for a decision by QMV or request the European Commission to submit a new draft.

But if the European Council reaches no decision or if, within 12 months from the submission of a new draft, the legislation has not been adopted, member states which so wish can form a group of enhanced cooperation and apply the law among themselves.

They have to number at least one-third of the member states (a minimum of nine).

In addition, the way is now open for states belonging to the Eurogroup to implement common tax policies (including in the field of VAT harmonization or green taxes), provided they do not undermine the single market.

The constitution also gives the go-ahead to enhanced cooperation in defence and common foreign and security policy (CFSP). While closer military cooperation between member states is likely to develop, the emergence of a "core-Europe" of more integrated states on foreign affairs is unlikely. A viable CFSP would draw its strength precisely from being applied to all member states.

While some purists have expressed dismay at the fact that the constitution opens the way for different levels of integration within Europe, Jacques Delors, the former president of the European Commission, has insisted this will be the only way forward for the Union.

The Frenchman has said that the EU can only advance in the future with groups of states moving integration further forward in specific areas at a different pace.

Analysis of the agreement reached on the text of the Constitutional Treaty for Europe at the European Council, Brussels, 17-18 June 2004.