European Union reform: French-German proposal

Translated by Valeria D’Alessandro

As announced by the President of the European Commission, Ursula von der Leyen, during the plenary session of the European Parliament in Strasbourg on September 13^th, it is of fundamental importance to reconsider the internal mechanisms of the European Union in relation to a future expansion of the Union. In her speech about the EU, she emphasized the need to anticipate how EU institutions, including the Parliament and the Commission, and the voting system will function in the prospect of future enlargement.

A growing concern underlies this initiative, which commenced with work initiated in January 2023 and jointly coordinated by France and Germany. The proposal was formalized during the French-German Council of Ministers and involved a working group consisting of 12 experts from both countries. Their primary objective was to formulate coherent recommendations for reforming EU institutions, with particular attention to reviewing the unanimity voting system in critical fields such as foreign affairs and taxation, as well as proposing a new integration system. This initiative is considered imperative in anticipation of the future accession of new member countries. It will necessitate broader adoption of qualified majority voting, particularly within the Council, to address the challenges that have arisen in issues related to foreign affairs, common security, and taxation. The entry of new members could exacerbate these challenges.

After months of work, on September 19th, a 58-page report titled 'Sailing on High Seas: Reforming and Enlarging the EU for the 21st Century' was presented to the ministers of Foreign Affairs in Brussels. In this report, the 12 experts expressed suggestions and recommendations to simultaneously realize both the widening and the reform of the EU. The report is organized into three key chapters addressing crucial issues: measures to improve the EU's ability to act, strategies to guide the enlargement process for candidate states, and provisions for strengthening democracy and the rule of law.

Deepening and widening

In the third section of the report ('How to Manage Progress: Deepening and Widening the EU'), the committee of the 12 has underscored the current EU's inability to welcome new members, both from an institutional and political standpoint. Another aspect that was particularly emphasized is that “the current institutions and decision-making mechanisms are not built to manage a group of 37 countries.”

To begin with, the Paris-Berlin proposal entails a reform procedure of Article 48.1-4 of the Treaty on European Union (TEU), which is the process initiated by the European Parliament based on requests expressed following the Conference on the Future of Europe. This procedure represents the primary path forward, albeit fraught with challenges, as it requires unanimous approval from both governments and national parliaments. Another approach would involve linking treaty reform to the enlargement procedure, which again necessitates the unanimity of governments and ratifications, still subject to the double unanimity requirement of the Council and ratifications. If these options were to prove impracticable, consideration would be given to the institution of a new treaty.

Moreover, the report envisions the future of European integration according to distinguished concentric levels. The core idea is an integration at four levels and multiple speeds, comprising an inner circle of European countries inclined towards deeper integration (such as the Schengen Area and the Eurozone), consisting of the current EU members; another level for countries associated through exchange or economic policies (similar to the arrangements currently in place with Switzerland, Norway, and Iceland); and finally, the European Political Community, open to countries in the Mediterranean region.

Reform of treaties

The second section, 'Addressing Institutional Challenges: Five Key Areas of Reform,' focuses on necessary institutional transformations. In this part of the document, proposals are presented that would enable the EU to expand without necessarily modifying its treaties, a process which would require unanimous consent from the 27 member states and a lengthy ratification process.

Among the most important proposals, the French-German committee firstly plans for a maximum number of Parliament members set at 751 in anticipation of enlargement, with a redistribution of quotas among the members. Secondly, regarding decision-making processes, the proposal aims to extend the qualified majority voting system to all subjects where, as stated in the Treaties, unanimity is currently required and excludes the co-decision of the European Parliament. As written, unanimity would be preserved for 'constitutional decisions, such as modifying the EU's treaties, accepting new members, or adapting EU institutions.' Moreover, it is suggested to modify the threshold for the so-called qualified majority to 60% of countries representing 60% of the EU's population, from the current requirement of 55% of countries representing 65% of the population.

In the report, to achieve the goal of extending the use of the majority vote, the 'Bridging Clause' is explicitly referenced, ratified in Article 48.7 of the Treaty on European Union (TEU). This clause grants the European Council the power to decide that the Council can operate through qualified majority voting and adopt an ordinary legislative procedure, with the exception of the military and defense sector, in areas where the Treaty requires unanimity and a special legislative procedure that excludes the European Parliament.

Review of the financial statements and Rule of law

In addition, the report addresses the issue of the budget and the distribution of funds in an EU that is continually expanding. The committee emphasizes the importance of having a broader and more flexible budget, which would enable greater decision-making ability regarding expenditures and the establishment of common debt instruments. Furthermore, it is proposed that smaller groups of Member States in the Union could enter into 'intergovernmental funding agreements' to pursue their spending programs, ensuring more efficient management of resources.

In a growing European Union, it is becoming essential to adopt stricter rules to preserve its core values, particularly democracy and the rule of law. There is a concern about the spread of similar difficulties encountered in candidate countries to Member countries. Consequently, the report emphasizes the need for the European Union to have more impactful tools to sanction Members that violate the rule of law and engage in illegal activities such as money laundering. These sanctions could involve the suspension of funding or the exclusion of responsible governments from the decision-making process, all in the name of respecting and promoting Europe’s core values.

Mondo Internazionale APS - Riproduzione Riservata ® 2023

Resources available at:

- https://www.csfederalismo.it/images/2023/Policypaper/PP_CSF_APadoaSchioppa__Franco-German_Report.pdf

- https://it.euronews.com/my-europe/2023/09/19/il-piano-di-francia-e-germania-per-la-riforma-dellue

- https://www.eunews.it/2023/09/19/proposta-allargamento-ue-riforma-trattati/

- https://www.eunews.it/2023/01/24/francia-germania-riforma-dellue/

- Picture: https://www.istockphoto.com/it...