Vienna must take lead after Blair’s slow-step presidency

Two leading European Parliamentarians urge Austria to show stronger leadership

Austria has the formidable task of solidifying the draft budget deal and bringing the constitution back from the dead, says Hans Gert Pottering

When Austria takes on the presidency of the Council of the European Union in January 2006, it will inherit two difficult issues left over from 2005 and previous presidencies.

This is firstly to guarantee the future financing of the European Union and secondly the fate of the EU constitution.

After the results of the European Council in Brussels brokered by German Chancellor and newcomer to the European Council, Angela Merkel, the Austrian presidency will now have to face the task of negotiating the final deal with the European Parliament, since the assembly's agreement is necessary to implement the new financial perspectives.

The surprisingly positive move which the heads of state and government made at the last minute of their meeting will of course have to be evaluated by Parliament.

But at the same time Parliament will defend its position with a view to implementing political priorities as defined by the EU institutions such as employment and competitiveness; to ensure democratic decision-making in the external programmes, including the new neighbourhood policy, and to achieve more flexibility in the budget structure.

In January, the assembly will examine very carefully the compromise achieved by the European Council.

The compromise is an offer for negotiations with Parliament. Being two equal partners of the Union's budgetary authority, Council and Parliament will have to decide together on the future budgetary policy.

This is not just about the money. It is also about the powers of Parliament and the democratic control of the European Union's spending in all areas.

This has also to be the case in those areas where the European Parliament is not in a co-decision position, like the Union's foreign policy.

As one arm of the budgetary authority, Parliament will bear its responsibility for the future of a working budget.

It is our goal to reach an agreement with the Austrian presidency over a future-oriented and sustainable financial package.

There is also hope that the debate on the substance of the EU constitution will be re-launched under the Austrian presidency.

An open and positive debate on the main content of the constitution could raise public awareness of what was really meant in the text as a step to a more positive attitude.

The content of the EU constitution is an important contribution to more efficiency, more democracy and transparency in the Union and therefore all these positive elements need to be brought into legal and political reality.

Austria can make an important contribution to raise this debate and give it a new and positive approach.

Other important subjects for the Austrian presidency include a deal on the services directive and, more generally, the objectives of the Lisbon Agenda such as creation of jobs and economic growth through innovation, research and development while at the same time defending the European social model.

Austria as one of the smaller members states and a close neighbour to Central Europe will certainly also contribute to involve the new member states closely in the work of the presidency.

It will be a challenge for Austria to demonstrate that a smaller member state can conduct the business of 25 member states professionally and efficiently.

After six months with Tony Blair at the helm of the European Union, strong leadership is still sorely lacking, says Martin Schulz

On one famous occasion back in 1992, the British monarch, Queen Elizabeth II, said in a speech that that year had been, for her and her family, an annus horribilis.

Whilst 2005 may not have been an annus horribilis for the European Union, it most certainly has not been one of its glory years. Six months ago, at the start of the UK presidency, Tony Blair came to the European Parliament and delivered a fighting speech - in it he said that if the Union was indeed in a crisis situation, it was a crisis born out of a lack of strong leadership. That strong leadership is still lacking today.

I would say to the incoming Austrian presidency, Europe needs leadership. It does not need heads of state and ministers who are scared to tell the positive European story, who blame the European Union when things go wrong and yet take the credit when things go right. Europe needs a leadership that can once more connect the people with the goals of European integration - peace, solidarity, prosperity, security, and respect for human rights.

Austria takes on the presidency at a difficult but critical time.Initiatives are needed on both economic and social issues and on the constitutional question.

Now that we finally have a position on the table from the Council on the financial perspectives 2007-13, the Parliament will have to look at the details to ensure that this is a budget for growth and employment, that this is a budget that takes the EU in a new and modern direction and that this is a budget for solidarity and development. I would advise the Austrian presidency not to take the Parliament's approval of the Council position for granted but to engage with us in discussion and negotiation immediately, not only on the overall figures but on the content.

The constitutional question, of course, is not something that the Socialist Group expects the Austrian presidency to solve on its own overnight but we do expect to see significant progress in terms of the constitutional process. This is not something that can be put in the corner and ignored or left untouched to stagnate. Statements made so far by the Austrians on reviving the constitutional process have not been encouraging. After the votes in France and in the Netherlands, we rightly said that we needed a period of reflection and consultation, to engage with our citizens. This reflection period must be structured and driven forward with real purpose and vitality.

If the EU is to make a success of the next round of enlargement and is to offer the Balkan states a future European perspective, then we must first put our own house in order.

The Socialist Group in the European Parliament is committed to maintaining a strong social Europe. We realise that social Europe is something that cannot be embalmed forever unchanging but must move with the times. For that reason we believe it is even more important to establish genuine social standards, to campaign for decent work at home and overseas. Here again, Europe needs leadership and we want to see that leadership come from the Austrian presidency and not from big business. The EU must not promote measures that lead to a further decrease in social standards.

At the request of my group, the European Parliament has agreed to set up a committee to examine the alleged CIA activities in Europe that have recently come to light and we would expect the Council presidency to lend us its support and co-operation in our work.

Mr Sch�ssel, the challenges are great. We will only meet them by working together - not with fine words and declarations but with meaningful actions. If you are prepared to work for a just and social Europe, for a Europe of citizens, for transparency and civil rights then you will have our full support.

Article is part of a European Voice Special Report previewing the Austrian Presidency of the European Union, January - June 2006.