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 Foreword
  

Paul Steinmetz
The Luxembourg Ambassador, representing the EU Presidency in New Delhi

“Their cry for protection is there for all of us to hear. Governments will need to explain more convincingly that trade is not a zero-sum game. Selling textile products and IT services to Europe does allow India to finance its airplanes made in Europe....”

After a successful start in early spring, the Luxembourg Presidency had to confront a major crisis in May and June. The peoples of France and Netherlands, two founder members of the European Community, rejected the draft constitutional treaty. At their June Summit, governments were also unable to come to an agreement on the distribution of the financial benefits and burdens for the next five year budget period starting 2007.

European citizens appear to be increasingly concerned about what they perceive as too many regulations from their governments and from Brussels, the rapid and successive enlargements, the pace of European integration, and of globalisation generally.

Some “no” voters wanted to just give a gentle slap on the wrist of their governments. But little did they know that these individual frustrations would end up in a collective rejection of a landmark treaty. A coalition of the unwilling!

Politicians themselves are now talking of a deep crisis.

Has Europe come to a standstill?

There will definitely be some pause for reflection. But as the proverbial saying goes: like a bicycle, European integration must move ahead or else will end in the ditch.

For some months things might move a little slower. People and politicians alike must be able to take it all in. Which direction are we moving in? Where will integration stop? Is the EU bound to become a real federation? Should it restrict itself and become a classically cooperative venture? Or will it remain sui generis, moving somewhere in between these two poles?

EU citizens are definitely willing to pay for EU policies, but they must also be reassured that their monies are being put to good use, that jobs are created and that the EU works for their future.

In the meantime our integrated policies on international trade, agriculture, transport, competition policies, etc., will of course continue and the funding will continue to flow. Nothing will change. The nascent European Security and Defence Policy will further develop. Last week a European Security and Defence College was established: it will network national academies, colleges and institutes and integrate the EU Security Studies Institute. Our troops are present in Bosnia. We are also in Sudan, in support of peace efforts. We are training the Iraqi police.

Many provisions of the draft constitutional treaty were just about clarifying, bundling and cleaning up existing regulations, for the sake of clarity and simplicity. Some provisions, such as a permanent presidency and an EU foreign minister,0 might still be implemented without having recourse to a formal treaty. The financial regulations might be passed any time between now and 2007, though with consequences.

The reforms provided by the previous Treaty of Nice (2000) will anyhow allow the Union to function more decisively. Nice had decided to make the EU Commission smaller and to change the composition of the EU Parliament.

The agreements made with Bulgaria and Romania remain in place, just as the commitment to decide in October whether we will negotiate with Turkey. Enlargement is not a closed chapter. The Union must remain a standard and a beacon for neighbouring countries. Europe, whole and free, is a great success story already but is also a work still in progress.

Partners like the United States and India have unequivocally expressed their desire for the Union to remain strong and live up to its objectives. Indian External Affairs Minister Natwar Singh said recently, “We have no doubt that the EU will emerge an even stronger partner from its period of introspection.” (Chatham House, 27th June).

With India, our interaction will certainly improve: a Strategic Partnership was offered to India by the EU a year ago and is very much at the heart of our bilateral discussions. The new partnership will expand on a 1993 joint political statement and a 1994 cooperation agreement. The idea of an Action Plan to implement this new partnership was approved in November 2004 at The Hague Summit. The Delhi Summit in September 2005 will hopefully endorse the details. The Luxembourg Presidency was entirely devoted to negotiating a draft text. In February we even had an impressive brainstorming session in Delhi, where civil servants from both sides had intensive discussions on what we could and should do together in the future.

This would be the first such comprehensive Action Plan that India has signed with any of its partners. It would intensify our engagement in all matters: from discussing regional issues and peace building to energy dialogue and trade liberalisation. We will work harder to fight terrorism and organized crime. We will step up efforts towards disarmament and non-proliferation. We will organise joint workshops on research fields and have a macroeconomic dialogue. Our space organisations will collaborate. Experts will meet to discuss climate change.

The Union now needs to resist the temptation to become more inward looking. Many of our citizens feel that they are losing out under globalization and have identified the EU as one of the main causes and instrument of this never ending fight for bigger market shares and cheaper sources of production. Their cry for protection is there for all of us to hear. Governments will need to explain more convincingly that trade is not a zero-sum game. Selling textile products and IT services to Europe does allow India to finance its airplanes made in Europe; same for all our other trade partners.

Rather than devote too much time and money to its own institution building, the Union will need to adopt forward-looking policies in research, education, science and technology, and improve on its exchanges with the new emerging powers, including India.

Luxembourg tried to promote this vision when it chaired the EU. It will continue to do so in the future.

One should also not forget that two out of three issues were successfully addressed in the last six months: on monetary issues a rewording of the growth and stability pact was agreed and on competitiveness, the Lisbon process was streamlined. Both are achievements which are indispensable but not sufficient to keep the bicycle of European integration running.

It is now up to the British Presidency to do their best. We wish them the best of luck.

Paul Steinmetz 29 June 2005

 

 
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