Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

EU must overhaul decision-making before enlargement -Franco-German document

Published 09/19/2023, 09:37 AM
Updated 09/19/2023, 11:56 AM
© Reuters. A large European Union flag lies at the centre of Schuman square, outside the European Commission headquarters, on the eve of Europe Day, commemorating the declaration made by Robert Schuman in 1950, in Brussels, Belgium, May 8, 2021.  REUTERS/Yves Herman

By Jan Strupczewski

BRUSSELS (Reuters) -The European Union must radically overhaul its decision-making and funding before it can accept more countries to join the 27-nation bloc by 2030, a paper commissioned from experts by the French and German governments said, polarising EU countries.

Eight countries currently have official EU candidate status - Turkey, Ukraine, Moldova, Albania, Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia - while two, Georgia and Kosovo, are potential candidate countries.

"For geopolitical reasons, EU enlargement is high on the political agenda, but the EU is not ready yet to welcome new members, neither institutionally nor policy wise," said the report, presented to EU ministers in Brussels on Tuesday.

The document, seen by some officials as an opening bid in a long debate over the coming years on how to reform the EU, got mixed initial reviews from EU government ministers.

"It was able to concentrate the debate on a few points and at the same time polarise the answers of Member States," Pascual Ignacio Navarro Rios, Spain's acting Europe minister told a news conference.

The document, which states it should not be seen as representing the views of Paris and Berlin yet was presented by the two countries, says the EU should move to taking all of its decisions by a qualified majority, rather than reserving some areas for unanimous agreement.

"The institutions and decision-making mechanisms were not designed for a group of up to 37 countries and ... they make it difficult even for the 27 to manage crises effectively and take strategic decisions," it said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

PUT AN END TO UNANIMITY

The EU requires unanimous decisions on foreign and security policy, taxes, EU finances, some areas of justice and home affairs and social security and protection.

The unanimity requirement has been criticised by some governments and experts as either substantially slowing or even blocking the EU's development, as all decisions in these areas have to be reduced to the lowest common denominator.

Yet changing this would require amendments to EU treaties, which would be a long and difficult process and would itself require unanimity.

The paper also calls for a strengthening of the condition that a government must observe the rule of law and EU values to get EU money, as the bloc has been struggling for years with nationalist and authoritarian governments in Poland and Hungary.

The document urges the EU to change its treaties to allow the issuance of common EU debt and shorten its budget cycle to five years - the term of the European Commission and Parliament - from the current seven years.

It says the EU budget, now around 1% of the EU's gross national income a year, should be increased to handle the rising number of tasks the EU is handling as a bloc, and that new revenue sources should be permanently allotted to it.

Finally, the paper says that some countries in the EU should be allowed to form closer cooperation than others, forming four tiers of European integration.

The deepest integration would be in the inner circle similar to the euro zone using the single currency and the passport-free Schengen travel zone.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The second tier would be the EU itself, a yet larger circle would be made up of Associate Members who would participate in the EU's single market for goods and services and adhere to the EU's common principles.

Finally there would be the European Political Community - a forum proposed by France that was launched last year - as an outer tier for political cooperation without having to be bound to EU law, it said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.