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Home , Gaston Thorn, Jacques Poos, Jacques Santer, Pierre Werner

The Presidencies

In 1815, the Grand-Duchy of Luxembourg was officially created by the great powers at the Vienna Congress. In 2015 tiny Luxembourg with its 550,000 inhabitants has again got the honor to assume the presidency of a of more than 500,000,000 people.

Is Luxembourg still a game ball of big powers rather than an active body in European politics? Can a tiny country like Luxembourg survive? And can it play a major role in European politics? Are rotating presidencies still the opportunity for small and medium-sized member states to play a role in European politics? The Lisbon Treaty has seriously downsized the importance of rotating presidencies. Does this mean the end to small member states’ contribution to the European process of political integration?

In 1919, just after World War I, when German troops occupied Luxembourg, the Grand-Duchy could not even choose its economic partners: showed no interest, and Belgium could impose its conditions on its junior partner. The Nazi occupant wanted to wipe out the Luxembourgian statehood for good in World War II. The neutrality status, which was of no use at all during two world wars, was finally abandoned. In 1945, as a founding member of the , Luxembourg was definitely granted political independence by all nations. But things have changed in the meantime: From 2013 to 2014 Luxembourg was a non-permanent member of the Security Council. What a change over the period of a century!

Fortunately, the European Community went into the coal and steel trade in 1950. As an important steel producer Luxembourg could not be ignored and neglected; it had to be accepted as a full member. This affiliation would have been more difficult if the Community had started with agriculture, transport or nuclear energy. Luxembourg’s contribution would have been insignificant. Thus, however, Luxembourg was admitted as an active member and was able to play a part on the diplomatic and international stage throughout the European Community.

Luxembourg has been a fully-fledged member since the beginning of the integration. Luxembourg has been called upon to assume the presidencies 11 times. Since 1960, 55 years ago, it has been Luxembourg’s turn every third year. With the admittance of new members the intervals have become larger and larger. As head of government from 1959 to 1974 and from 1979 to 1984 Prime Minister saw 6 presidencies in 20 years, whereas Jean-Claude Juncker saw only two in his 18 years as Prime Minister.

In 2005 Luxemburg assumed its last presidency with EU 25, and now, in 2015, Luxembourg will play this role again in an EU with 28 member states.

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I. Some key moments in Luxembourg presidencies

In the early days in EEC -6 In 1966 the “Luxembourg Compromise” on the issue of quality majority vote ended a longstanding conflict between France and its partners. The crisis was basically a conflict between De Gaulle’s intergovernmental approach and the other five community members’ more “community approach” founded on supranationalism. Luxemburg's Prime Minister Pierre Werner did not want to overestimate Luxembourg’s role in negotiating a compromise: French and German Foreign ministers finally reached a modus vivendi, which was consecrated as the “Luxembourg Compromise” in the town hall. In his memoirs Pierre Werner writes: “I believed that my presidency should above all create an atmosphere and environment of negotiation taking into account the sensitivity of the partners wishing to reach an understanding. The understanding should not be the loser in a row over subtleties of language disguising a persistent fundamental disagreement.” The “Luxembourg Compromise” ended the empty chair crisis. France returned to the Council meetings.

Luxembourg’s Prime Minister, , the first Prime Minister not to be a Christian Democrat after World War Two, was disillusioned at the end of the Luxembourg presidency in 1976. He could not find a way to conciliate the different partners’ controversial positions. Nevertheless he was appointed Luxembourg’s first President of the in 1981.

In the large European community of 10: Luxembourg - “the honest broker” When Luxembourg was in charge of the presidency in the second semester of 1985, it could play a major role in the negotiations of the intergovernmental conferences leading to the . The treaty itself was signed in 1986 under the Dutch presidency. This was a major step forward in completing the common market, extending the qualified voting and increasing the ’s powers. Luxembourg’s role as the “honest broker” was largely appreciated by , President of the Commission: In his eyes the Luxembourg presidency was “truly remarkable on a technical level, the understanding with the Commission being perfect.” This presidency “was a moment of happiness” for President Delors.

In the crisis years of the 90s In the first semester of 1991 the Luxembourg presidency was born under very difficult conditions. The ongoing Gulf War, the disintegration of Yugoslavia and the Soviet Union and, last but not least, the critical situation in the Baltic States were quite a challenge for the small Luxembourg diplomatic corps. Especially in Croatia and Slovenia, both aspiring to independence, little understanding was shown for words of the Luxembourg Foreign minister when he argued that European governments had a special responsibility to act in a crisis that threatened European stability. "This is the hour of Europe," he said. "It is not the hour of the Americans." Mr. Poos also stated that the mission would be to

2 report back to European leaders and to offer community assistance in redrafting the Yugoslav Constitution in such a way as to preserve a single federation and to grant ample autonomy to Slovenia and Croatia. On 29 June 1991, Croatia and Slovenia agreed to suspend their declarations of independence to allow time for a negotiated settlement. Luxembourg was in a difficult position; it had to defend the common European position. The arguments of a very small country's politician opposing another small country’s desire of independence are difficult to understand even if they are nothing but the expression of a common European policy.

On the other hand, Luxembourg’s Finance Minister could contribute during this presidency towards reaching an agreement on approximating VAT and excise duties. Again a major European treaty was negotiated and drafted under the Luxembourg presidency. The draft of the Treaty on the Economic and Monetary Union, later called the , had also been negotiated under the Luxembourg presidency. The negotiators could profit from the Werner plan elaborated by the former Luxembourg Finance Minister back in 1970.

The 1997 Luxembourg presidency was led by a multitasking Jean-Claude Juncker. Jacques Santer had been elected President of the Commission. Juncker chaired three councils, as he was at the same time Prime Minster, Minister of Finance and Employment. He achieved the adoption of a coordinated employment strategy, a framework for national action plans. A plan was defined for the conversion of national currencies into the . Hence the exchange rates were fixed in advance. The 15 member states agreed upon the method and process of the planned enlargement. Finally, a decision was taken to start immediate negotiations with Cyprus, Estonia, Hungary, Poland, Slovenia and the Czech Republic. The second group of candidates would follow in 1997.

The 2005 Presidency was surely one of the most difficult ones.

The Luxembourg government had to face two major challenges in profoundly controversial fields: The stability and growth pact had to be made more flexible, and the Lisbon process had to be re-launched to implement structural reforms in order to preserve the European social model.

The Luxembourg presidency reached an agreement to adopt the Saving Taxation Directive. The Luxembourg presidency worked hard on a common EU position on climate change. A big success of the Luxembourg presidency was, without any doubt, the signature of the accession treaties of Bulgaria and Romania, which were signed in Luxembourg.

But the Luxembourg presidency had to deal with two major crises.

1. In spring 2005 the European Constitutional treaty was rejected both in France and in the Netherlands. After the victories of the “No” votes in these two crucial referenda on the European constitutional treaty this treaty, whose elaboration had been so difficult and painful, was virtually dead. The victory of the “Yes” votes in Spain and in Luxembourg had no impact whatsoever. The failure of the constitutional treaty was undeniable. A new start was made in 2007, transforming the dead and buried constitutional treaty into the so called the Lisbon Treaty. The Lisbon Treaty amended the Maastricht Treaty (1993), and the Treaty of Rome (1958).

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2. No compromise could be found during the Luxembourgian semester concerning the EU Budget for 2007 to 2013 in spite of the undeniable efforts and numerous compromise propositions of the Luxembourg presidency. Luxembourg’s well-respected image as “honest broker” was seriously damaged. Jean-Claude Juncker could not overcome the tough resistance by British Premier . Under the subsequent British presidency a compromise was found.

In fact, Luxembourg rarely used its presidency to push through its own interests. This not so common behaviour is the reason why the former Commission President Jacques Delors states: ”Whether it presides the Council or whether its presides the , Luxembourg exhibits the same qualities[; s]olid professionalism, great impartiality, and resolute determination to advance the community. […] As a result of its geographical situation and owing to the structure of its economy, Luxembourg‘s interests largely overlap with those of the Community. It rarely has voiced specific demands or requirements. The Luxembourg presidency therefore is - and always has been- a truly European Presidency.”

II. Challenges of the Upcoming presidency

In 2014 the Italian-Latvian-Luxembourgian Presidency trio agreed on upon strong action to re-launch the economy to stimulate growth and the development of IT technologies to protect the fundamental rights of the citizens and to cope with the financial crisis.

Some priorities of the Luxembourgian EU presidency, as were already announced in the State of the Nation address by Prime Minister on May 5th, 2015, are:

- the implementation of a roadmap for industrial competitiveness: labor market, small and medium-sized businesses, research and innovation,

- social justice, fight against unemployment and poverty,

- climate change policy, a climate summit will take place during the Luxembourg presidency in December 2015

- migration : In light of the recent migrant boat tragedies Prime Minister Bettel announced in his declaration that ”we do not want to run away from that responsibility” and added that “Luxembourg itself was working on finding ways to welcome more people in need of help and assistance.” Bettel insisted on showing the migrants’ perspectives in their country of origin.

The Luxembourg government finds itself committed to promoting a broad discussion on TTIP, including unions, businesses and the general public.

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III. Small States influence after Lisbon treaty

Let us try to find an answer to the questions raised earlier. Can a tiny country such as Luxembourg play a major in European politics? Are rotating presidencies still a lever for small and medium-sized member states to play their role in European politics? The Lisbon Treaty has seriously downsized the importance of the rotating presidencies. Does this mean the end of small member states’ contribution to the European political integration process?

Until the implementation of the Lisbon Treaty the rotating office holder, endowed with leadership functions and opportunities to coordinate cross-policy matters, could influence the outcome of shaping policies. Luxembourg had a number of outstanding long-serving Prime Ministers, Ministers of Finance, Ministers of Foreign Affairs like Pierre Werner, Gaston Thorn, Jacques Santer, Jean-Claude Juncker and Jean Asselborn. Their renown, their aptitude to broker deals between partners through their multilingualism and understanding of the other nations’ way of thinking gave Luxembourg a momentum, which was much more important than it should have been when considering its size.

Since the Lisbon Treaty the rotating presidencies are disconnected from the European council with its permanent president. The High Representative permanently chairs the Foreign Affairs Council. All this means lost opportunities for the smaller member states.

In 1997 the leading French newspaper Le Monde wrote: “The praise for small nations for a successful presidency is based on how zealously the little countries implement the ideas of the big countries, not for having brought their specific concerns to the European level. “ (Le Monde, March 25th, 1997)

However, the Luxembourg permanent representative to the EU, Christian Braun, spells it out very clearly: “The rotating presidency has lost weight“ since the Lisbon treaty! This means that especially the smaller countries now have less opportunities to shape the broad lines of EU policy.

Especially for a small state the chance to sharpen profile as honest broker in conflict situations between European parliament, the Commission, the Council of Ministers to put forward a compromise, to negotiate agreements, which had always been a favourite part played by Luxembourg in former presidencies, is becomingmore and more difficult in 2015.

Guido Lessing + Jean-Marie Majerus

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