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EU-25: MAKING IT WORK Proceedings of the CEPS International Advisory Council 19-20 February 2004 Palais d’Egmont- Place du Petit Sablon 8 - 1000 Brussels Chairman: H. Onno Ruding Chairman of the CEPS Board of Directors Programme Thursday, 19 February Dinner Address: Pascal Lamy, Member of the European Commission Friday, 20 February 9.15 Chairman’s Opening Remarks 9.20 Keynote Address: Dick Roche, T.D., Minister for European Affairs of Ireland 9.35 First Session: The Enlarged EU on the International Scene Panel Discussion: Danuta Hübner, Minister of European Affairs of Poland George Iacovou, Foreign Minister of the Republic of Cyprus László Kovács, Foreign Minister of the Republic of Hungary Sandra Kalniete, Foreign Minister of the Republic of Latvia 11.30 Second Session: Concrete Proposals for a 25-Strong Commission Keynote Speaker: Desmond Dinan, Professor, George Mason University, US Panel Speakers: Henning Christophersen, Former Vice-President of the European Commission and Former Member of the Praesidium of the Convention, Senior Partner, KREAB Philippe de Schoutheete de Tervarent, Former Permanent Representative of Belgium to the EU; Member of the CEPS Board of Directors Sir John Kerr, Former Secretary General of the Convention on the Future of Europe, Former Secretary General of the Foreign Office of the United Kingdom 13.00 Lunch 14.30 Third Session: Realigning the EU with its citizens Panel speakers: Heidi Hautala, Member of the Finnish Parliament, former MEP Ola Hellblom, EU Correspondent, Dagens Industri Robert Manchin, Chairman and Managing Director, Gallup Europe Larry Siedentop, Professor, Keble College, University of Oxford 16.00 Chairman’s closing remarks and end of conference 2 | CEPS Conference Proceedings Opening Dinner Address∗ by Pascal Lamy EU Trade Commissioner EU Trade Commissioner Pascal Lamy gave the opening dinner address at the CEPS 2004 International Advisory Council. He pointed out the radical nature of the European project of the last fifty years but also the sense that there is a crisis of confidence in the European Union. Enlargement, which ought to amount to an expression of confidence in a European future, is not overwhelmingly popular. The real debate is now less about how to make enlargement work, and more how we can make the EU work. First, Europe’s twin deficits in growth and competitiveness need to be addressed. Economic growth is stagnant and the long-term pointers are ominous: an aging population and declining research spending leading to a lower level of innovation in industry. Measures to create real, high-paying jobs in Europe are the single most important priority, if we are to deliver results that matter to people. In order to enable us to deliver this vision, we also need institutional reform. Europe’s organisation has to be updated and improved. Voters want a clearer idea of what Europe does and what Europe does not do. The single key fix is to make each of Europe’s institutions more receptive to its citizens. The Commission ought to be more accountable than it already is − to the Council as well to the Parliament, for instance. Even more pressingly, the Council needs to sort out its decision- making procedures, and here the obvious answer is a simple double majority: i.e. agreement would require 13 members out of 25, representing a simple majority of Europe’s population. This would seem to be the only way to find a compromise between the bigger and smaller countries. Here, the Constitution should help in clarifying responsibilities within the system. If we want to avoid citizens turning their backs on Europe, these institutional decisions must be taken soon. But we have to ensure that the final document is simpler, and clearer to understand. Clarity has to be a key priority for a new constitution. Finally, on image and communication, the European system of today entirely lacks any sense of political animation. There is a total absence of real or meaningful debate to get across to citizens what the issues are all about. Europe does not entertain its citizens because it does not involve them. Due to its political and geographical dispersion, Europe probably needs a double dose of political legitimacy, a double dose of political entertainment, to really engage its citizens. European ‘identity’ and ‘values’ are essential, but they don’t put food on the table. The message should be to emphasise where Europe adds real value above and beyond what member states can do on their own. In conclusion, the EU-25 can work, and work well. But we have to look urgently at how we can produce tangible, measurable, concrete results that respond to the wishes of our citizens. We need to bring to life the political challenges that confront us. Fundamental questions in Europe can no longer be swept under the carpet, or buried under mounds of written procedures or details. This message must be brought home to our people, addressing topics of urgency and engaging their support for their EU resolution as the appropriate level. ∗ This is a synopsis of Mr Lamy’s speech prepared by CEPS Senior Research Fellow David Kernohan, the full text of which can be found in an annex at the end of these proceedings. International Advisory EU-25: Making it work Council 19-20 February 2004 CEPS Conference Proceedings | 3 Keynote Address by Dick Roche Irish Minister for European Affairs Starting off on an optimistic note, Dick Roche said that although EU enlargement to 25 member states poses great challenges, the rewards are greater still. With 25 members, and with other states set to join later, the EU is a formidable force. The Union is a unique experiment, and enlargement entails the reunification of Europe after fifty years, extending the zone of peace and stability. Mr Roche described the EU as the most advanced and complex conflict-solving mechanism in history. The Irish government was honoured to preside over the largest enlargement in the EU’s history, and will invite the Heads of State and Government to celebrations in Dublin on 1 May. But Europe is about its people, and the citizens are unclear about the European Union. This is the fault of those who espouse Europe in the institutions and among politicians. It is necessary to remind EU citizens that the EU is a community of values. This could indeed strike a chord among the people, Mr Roche believed. The international role of an enlarged EU is an area that needs more focus. The question is how to unite different traditions and policies. The EU’s role in the world is based on a set of fundamental values, beyond geography and the protection of economic interests. These common purposes are strengthened, and not diluted, by enlargement according to the Irish Minister. He noted in particular the additional strength of the EU in international organisations such as the United Nations. But the EU needs to be more strategic in its approach to foreign and security policy. It needs to engage in more long-term strategic thinking, and look seriously at its objectives and its interests. He warmly welcomed the European Security Strategy drafted by the EU High Representative for the CFSP Javier Solana, in particular in providing clear objectives for EU security policy. Mr Roche noted that work was underway on a three-year strategic programme, and mentioned four particular areas of focus under the Irish Presidency: to develop an EU strategy on the Middle East, to prepare the EU’s mission in Bosnia, to undertake an assessment of EU-Russia relations, and to advance the EU’s new neighbourhood policy, including the question of how to incorporate South Caucasus. Although we differ on the details, we agree on our overall policy, according to Mr Roche. The new members will bring in invaluable experience, in particular on relations with the EU’s new members, who for many of them have been old neighbours for a long time. The EU has already established the necessary mechanisms, such as the Barcelona process with the Mediterranean neighbours and the Partnership and Co-operation with the countries of the former Soviet Union, but these need to be strengthened. There is agreement among all 25 EU members on the need for a new institutional framework for EU foreign and security policy. Agreement on the creation of the post of EU foreign minister was one of the important successes of the Constitutional Treaty. The ‘double hat’- arrangements (with the EU foreign minister being both a member of the European Commission and representative of the Council of Ministers) would work, according to the Irish Minister. Mr Roche emphasised the importance of the Constitutional Treaty. The Irish Presidency would have a position on the future of the Constitutional Treaty in March. Commenting on Mr Lamy’s speech the preceding evening, he reiterated the need of the institutions to communicate better with the citizens, building a ‘bridge to the people’. This was crucial, as the Constitutional Treaty would collapse if one referendum rejects it. He noted that the political will and enthusiasm for the Constitutional Treaty was there, and that the problem was a lack of political leadership. Mr Roche noted how close the European leaders were on agreement on the Constitutional Treaty, and said that the EU should be able to agree given the political will. The world was waiting for European leadership, according to the Irish Minister of European Affairs. Rapporteur: Marius Vahl, CEPS Research Fellow International Advisory EU-25: Making it work Council 19-20 February 2004 4 | CEPS Conference Proceedings 1st Session: The Enlarged EU on the International Scene The Foreign Minister of Cyprus George Iacovou started by emphasising the important step being taken on May 1st.

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