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Europe Daily Bulletin No. 7821
SPECIAL EDITIONFOR THE INFORMAL EUROPEAN COUNCIL OF BIARRITZ OF 13 AND 14 OCTOBER 2000 / (eu) eu/european concil/institutional reform

Summit reveals great differences over size of the Commission - Substantial progress on enhanced cooperation

Biarritz, 15/10/2000 (Agence Europe) - Even though marked by such important external events, such as the crisis on the Middle East and the choice of democracy in Serbia, the informal European Council of Biarritz provided grater clarity on the main issue for which it had been convened, the EU's institutional reform which must be completed in Nice. For the first time, the Heads of State or Government had an opportunity to express themselves very frankly on the most delicate issues on the agenda of the Intergovernmental Conference, and especially the size of the future Commission. At his final press conference (alongside Lionel Jospin), Jacques Chirac spoke of the negotiations in the IGC, stipulating that he was speaking "on behalf of the Fifteen" (there were no "written conclusions" from the Presidency), and trying to play down the vivacity of the exchange of views that had taken place over Friday's dinner regarding then future European Commission. EUROPE has reason to believe that President Chirac had opened the debate stressing the need to count, in an enlarged Europe, on a strong Commission and thus, according to France and the other "large" Member states, a Commission reduced in numbers (there was talk of a Commission with hardly fifteen or so members) and attracting attention to the responsibility of those who, by slowing down the necessary reforms, risked causing a crisis and delays in the enlargement process.

At his press conference, Jacques Chirac said that the summit had devoted "eight hours to in-depth discussions" on the institutional reform from which he had learnt "three lessons": - all agree to "set a high level of ambition for the future Treaty of Nice; - in Biarritz, there had been "genuine progress" on two subjects, extension of qualified majority voting and enhanced cooperation; - there had been a genuine exchange of views on the more sensitive subjects of negotiations, which are the composition of the European Commission and the re-weighting of votes in Council. Our talks were especially "warm, open and demonstrated solidarity", said the President of the European Council.

Regarding qualified majority voting, Chirac said that there was already agreement on "very many articles", whereas for others, there needs to be more in-depth talks; in Biarritz, "we were able to clarify the challenges" and identify "paths along which to think". Thus: - in the field of tax, there remain reservations, Chirac stipulated, while referring to openings in the fight against fraud and legislation adaptation; - in social policy, there were "openings on all that relates to the principles of social security"; - for the common trade policy, we can move forward as long as it does not lead to increased Community powers, and that account is taken of the situation in certain sensitive sectors (notably cultural); - regarding justice and home affairs, problems arise especially for asylum and immigration policy; - difficult questions remain regarding non-discrimination, the environment and cohesion.

Regarding enhanced coopration, there was great progress, said Jacques Chirac. Everyone agrees on the principles, which are the "totally open nature" of the mechanism, that "must exclude nobody", and that has to "respect the acquis communautaire" and develop within the institutional framework. "We are approaching agreement on the mechanism for triggering it, the minimum number of countries necessary, on the "clause for appealing to the European Council" and on the "clause of last resort", Chirac added, stipulating that "modalities" would also have to be found for enhanced cooperation in foreign and defence policy. "It is out of the question that one single country may block a desire for enhanced cooperation", he said in reply to a question.

"We entered into negotiations on the Commission", and everyone explained how they saw its reorganisation before enlargement, so as to strengthen it and render it more efficient, said Jacques Chirac, recalling that there were "two possibilities" on the table, and that they would have to decide in Nice, "bearing in mind the general interest of the Union", these are: - a ceiling to the number of Commissioners, with "egalitarian rotation" between all Member States; - "at least one national per Member State", but then the question of the Commission's reorganisation arises.

On the weighting of votes in Council, said Chirac, we acknowledged the need to chose a system that took account of "democratic legitimacy", and examine two formulae: simple reweighting and dual majority (one formula suggested would consist in doubling the number of votes of each Member State so as to be able to establish greater differentiation between Member States, and further proportionally increasing the number of votes of the "large" countries, for example from 10 to 25: Ed.).

Answering questions, Chirac said that the French authorities were "very attentive" not to accept "gaps between small and large Member States", as these gaps are "counterproductive" and risk "triggering bad moods". "There are, however, demographic realities that must be recognised in the system of managing the institutions", he added, noting that "the truth about Europe" is that, in its history, there has been no systematic alliance of the small against the large, but rather "one or two large countries with three or four small ones". Commission President Romano Prodi denied that at Biarritz there had been a "large/small confrontation: we "clarified" the situation, he said, while noting that, depending on the formula chosen, there would have to be "deep changes in the way the Commission is organised".

Asked about the chances of an agreement in Nice, Lionel Jospin simply said that the "depth of the talks in Biarritz, especially over Friday's dinner", had demonstrated "the will to conclude". He added: "Succeeding in Nice, is to carry out a genuine reform", which is also necessary to maintain the "confidence of Europeans" and to "strengthen our currency, which needs affirming".

Jacques Chirac also said that, Friday morning, the Heads of State or Government had also raised the issue of a "device aimed at preventing" violations to the EU's fundamental principles and that "many States are open to the idea of an amendment of Article 7 of the Treaty" along these lines. Jospin stipulated that "the desire to amend Article 7"but that there but that as yet there was no agreement on how.

Jacques Chirac also said that the European Council had examined the problem of safety at sea, and that at Nice they would have to reach conclusions on three elements: - an accelerated elimination of the older oil tankers; - improvement of licencing procedures for classification companies; - tightened controls at ports. We need a "European area of safety at sea", said President Chirac, noting that in Nice the Fifteen would have three new commission proposals at their disposal, concerning: - the information system; - a European compensation system to complement national ones; - the creation of a European maritime safety structure..

Finally, may we mention that, at the beginning of Friday's session, Chancellor Schussel made his announced statement on the activation of the nuclear power plant of Temelin, in the Czech Republic. The European Council decided that the French Presidency and the Commission would follow-up on this affair, to which we shall return.

Barnier considers that institutional reform is on the right track

Noting progress even on the most sensitive subjects, Commissioner Michel Barnier welcomed the spirit that emerged at the European Council of Biarritz to "succeed in and not only conclude" negotiations on institutional reform in Nice. "It seems to me that we have sound elements to achieve that", he said, stressing that two questions remained to be decided upon: the organisation of the Commission and the voting system in Council. A majority of Member States for now remain in favour of one Commissioner per Member State, he observed. Regarding the extension of qualified majority voting, he said that "many, around the table, said: we have been too squeamish: we must overcome the reluctance of national administrations". "I see no more major difficulties on enhanced cooperation if we retain the provisions of the Amsterdam Treaty by correcting them on two points: the number of countries able to engage in enhanced cooperation ("It will be eight", he said, recalling that the Commission has suggested a third. For some fields, notably security and defence, there would be a lower threshold, in the order of 3 to 5). And the abolition of the right of veto", he explained. He then added that with this formula, "the risk of the acquis communautaire unravelling does not exist" and enhanced cooperation will be an "additional tool of integration, and not exclusion". Some Member States proposed that only the Commission should have the right of initiative for enhanced cooperation in the 1st pillar, which, according to the Commission, would even further guarantee the preservation of the acquis. Referring to post-Nice, Barnier hoped that the next European Council would be the opportunity to decide on a new timetable for the reform on (1) a simplification of the Treaties, (2) competencies, (3) the incorporation of the Charter of Fundamental Rights, with the goal of "achieving a fundamental treaty fairly quickly".