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Cover Stories
Special> World in Retrospect 2009> Cover Stories
UPDATED: December 18, 2009 NO. 51 DECEMBER 24, 2009
Better Times Ahead
The Lisbon Treaty and a new EU hierarchy point to greater stability and a resurgent dynamismBy STANLEY CROSSICK
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There is a good argument for saying that two low-key appointees are more likely to construct the necessary basis for a stronger and more unified role for the EU on the world stage. High-profile appointees would have put the leaders of the big member states on their guard. Remember foreign policy is the only major policy area, in which these leaders can appear to wield international influence. If all goes well, a high profile foreign policy chief will be acceptable in 2015.

The European Commission comes out of this new arrangement in a strengthened position. Barroso is well known and established, having served for five years as its president. Ashton was a commissioner under his leadership and is now vice president. Van Rompuy is not a forceful person and an integrationist.

The real test

The real test of further integration will come in internal affairs—the future of the single market, in particular in financial services. The single market is the EU's greatest success and the foundation of today's EU. It is inevitably strained in difficult economic times, particularly when member states wish to give financial support to domestic industry. This is frequently in conflict with the treaties which lay down the basic principle that state assistance which distorts or threatens to distort free competition is incompatible with the common (i.e. internal) market and is illegal.

Furthermore, there are serious divisions over how to regulate financial services in the wake of the financial and economic crisis. The fundamental division is between France and the UK, over whether the legislation should be "heavy" or "light" and to what extent the industry should be controlled at European and national levels. There are fundamental differences in approach, exacerbated by the British belief the French want to weaken London as a financial center. This is not in French or European interests, but has been fed by President Nicolas Sarkozy's irresponsible outburst on the appointment of Michel Barnier as commissioner responsible for the internal market and services:

"Do you know what it means for me to see for the first time in 50 years a French European commissioner in charge of the internal market, including financial services, including the City [of London]?" "I want the world to see the victory of the European model, which has nothing to do with the excesses of financial capitalism."

He gave two wrong signals. First, that the appointment ensures the "European model," or rather the French model, will be the future blueprint, because of the appointment of Barnier. Second, that Barnier alone decides on the relevant legislation. This kind of public statement does not help Sarkozy achieve his declared objective, as it heightens the guard of the British and riles other would-be supporters.

It also makes life more difficult for Barnier, who as a former commissioner well knows that commissioners do not represent their country nor take instructions from its president. Any legislation will require support within the European Commission services, extensive consultation, an impact assessment, an agreed draft, approval by the full college of commissioners, adoption by qualified majority of the members states in the European Council, and of course adoption by the European Parliament.

Worst of all, Sarkozy's outburst plays into the hands of critics of European integration. It's this kind of member state leadership that makes integration more difficult. Unfortunately, Europe currently has too many weak national leaders.

The European Parliament is the biggest institutional winner as its powers have been materially increased by the Lisbon Treaty. The main integrating force has historically been the European Commission, with the European Parliament's support. The extent to which they pursue integration together, and the extent to which European Parliament will (wrongly) regard the European Commission as a competing institution remains to be seen.

The EU had a poor 2009 but there is hope that, following the adoption of the Lisbon Treaty, and the settling down of the new team, dynamism will return. However, poor economic conditions never bode well for integration and too many member state leaders prefer inter-governmentalism to integration.

Notwithstanding these negative elements, effective leadership from Brussels can drive the EU down the road to further integration.

The author is a senior research fellow with the Brussels Institute of Contemporary China Studies

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