State
of the Union
The Austrian EU Presidency
January – July 2006
Lecture by Dr. Brigitta Blaha
Austrian Consul General
European Union Studies Center
September 18, 2006
What are the tasks of an EU- Presidency ?
What was the situation at the outset of the Austrian Presidency?
Big themes of the Austrian presidency
Three “construction sites”:
• the debate on the constitution
• the financial situation and
• enlargement
CFSP
Balkans
EU-US relationship
Crisis management
Discussion on values
New topics on the radar screen
State of the Union
Thank you very much for coming tonight on a beautiful late summer or early
autumn day. I think when we scheduled this lecture some month ago we were not
aware of how daring it was to choose a date at the beginning of the UN-GA, which
is always a particularly busy week in New York with many important people in
town. So I thank you again for taking time to listen to me tonight.
It is my pleasure to continue the tradition of my colleagues to talk to this
audience at the end of the respective EU-presidency and I would like to join the
previous speakers in thanking Prof. Kaufmann and his team for all the efforts to
disseminate information about the EU and to spark interest for European matters
here in New York.
I will give you a brief resumé of the Austrian Presidency, but it can , rather
some remarks and assessments from the viewpoint of the Austrian Foreign Service
and therefore with an emphasis on external relations.
Let us have a look at what does it mean to hold the Presidency of the Union?
“The Presidency is not a stage on which to present ourselves, but a service
rendered to our partners in the EU and the rest of the world.” (Plassnik)
An Austrian journalist expressed the task of the presidency in a little
different way: “The Presidency is busy most of the time to reconcile the
diverging forces, like the director of a flea circus.”
What are the tasks?
Tasks of the Presidency
• Organise and chair all meetings of the European Council, the Council and of
the preparatory committees and working groups.
• Represent the Council in its dealings with the other EU institutions and
bodies, such as the European Commission and the European Parliament
• Represent the European Union in international organisations and in relations
with countries that are not members of the EU
The Austrian Foreign Minister, at the recent ambassadors’ conference in Vienna,
used an example from sport to illustrate the situation; and since we are
Austrians the sport is skiing. It is like going down a slope in fresh white
powder snow, at the head the presidency, on its side the Commissioner for
External Relations and the High Representative for the Common Foreign and
Security Policy and – ideally - all the other member states following behind.
What you want to avoid is anybody coming from the other directions towards you.
The task was to manage a complex and multi-voiced process among the Member
States.
The world expects the EU to speak with a single voice. This is not a simple
task, it is the fruit of prudent and collaborative work toward adopting a common
stance. Achieving and preserving commonalities forms a large part of the work
and often goes unnoticed. The day-to-day coordination work is the true measure
of success for a presidency. The particular ambition of Austria was to work in a
spirit of partnership, deliberately focusing on the citizen and the citizens’
concern and anxieties.
What was the situation at the outset of the A. Presidency?
Integration was in a difficult stage: there was no constitution, no agreement on
the financial perspective and a lack of confidence. The goal of the A.
Presidency was therefore to build confidence, to provide clarity and to bring
some new impetus. The subject of confidence was like a basso
continuo during the presidency. Austria has tried to work gently on a
feeling of WE of all 25 in Europe, to keep all 25 together was the main concern.
The second motto was “realism”. The six months of A. Presidency were a
service for Europe. Fundamental changes would have been neither possible nor
sensible.
Austria has tried to do its work with common sense and a sense of proportion.
The Presidency worked on the basis of an operational program drawn up by
Austria and Finland for the whole year that set out the main objectives.
contribute to economic and social welfare
protection of the environment
freedom and security of Europe's citizens
strengthening the role of the Union in the world and
ensure that the EU responds successfully to the challenges and opportunities of
globalisation.
Big themes of the Austrian presidency:
At the beginning of the presidency, a list of 550 dossiers was identified, which
had to be continued or concluded during 3.300 meetings in the first half of
2006. Of course not all dossiers are equally labor-intensive and of general
public interest, but every single one is an important component for the
functioning of the EU.
The agreement on the Financial Perspective, the agreement on the
Services Directive (an opportunity for more growth and hence more jobs in
Europe. Some 70 percent of value-added in the EU and two-thirds of all jobs
depended on the services sector. The objective was to create a European market
for services while at the same time excluding wage and social dumping) are the
bigger chunks, but also breakthroughs on financial programs are of importance
like the 300 billion € structural package, the program for lifelong
learning, the competition and innovation program as well as external
relations instruments like the European Neighborhood and Partnership
instrument, the Stability Instrument and the Pre-accesion Instrument.
The traditionally economic-focused European Spring Council confirmed the renewed
Lissabon strategy for growth and employment and formulated the Energy Policy for
Europe. Furthermore it announced ambitious goals for economic growth and
prosperity like the creation of 2 Mio. new jobs per year until 2010. In order to
create qualified jobs, the goal to spend 3% of the Gross National Income for
research and development was confirmed.
Austria has specifically done basic work on three -as we like to call it-
construction sites:
• the debate on the constitution
• the financial situation and
• enlargement
Constitution: It had been one of the Austrian Presidency’s goals to
gather the 25 Member States round one table to get the stalled discussions on
the future of Europe moving again. It was clear that we will only be able
to move forward together on the fundamental issues concerning the future
of the European Union. As Chancellor Schüssel pointed out, “If just one member
of an orchestra plays out of tune, the whole orchestra is booed.”
There was a mandate by the European heads of States and governments. As
the starting signal for a wide-ranging debate on the future of Europe the
conference “Sound of Europe” was organised in Salzburg in January. More
than 300 personalities from the world of politics, science, arts and the media
discussed fundamental questions as to the future of Europe, European values,
identity and culture and deliberated on prospects and proposals for making
progress on the European project in view of global challenges. The unease and
scepticism citizens had expressed about Europe was also addressed and the
underlying causes analysed.
These discussions continued at the margins of the March European Council at an
informal Gymnich meeting (these meetings provide a valuable opportunity
for a frank exchange of views on important international issues, which is not
bound by a formal agenda or the obligation to produce conclusions, so these
meetings often lay the foundation for work later continued in an official
format). In April, a “Subsidiarity conference” was organised as part of
the overall debate on the future of Europe. At that conference Representatives
of the EU Member States and the EU institutions examined, how more effective
application of the subsidiarity principle can help bring Europe closer to its
citizens and what role can best be assumed by the regions and nation-states and
what role is best left to the Union. A need was felt to counter fears of a
creeping centralisation of Europe, which had surfaced in the referendums in the
Netherlands and France through stronger regions and stronger local authorities
as a counterweight.
At an informal meeting of Foreign Ministers in May in Klosterneuburg
specific proposals on how the EU could function better were put on the table.
The result was some fresh élan in the debate and the emergence of the first
building blocks of a new consensus. The common goals were clear: not standstill
but dedicated work in a spirit of mutual trust. The efficiency of the European
Union needs to be improved, its added value for the people of Europe more
clearly identified and greater efforts invested in information and
communication. The focus was on the Europe of clear results, the Europe of
concrete results and the Europe of projects, such as a greater transparency of
the work in the council and stepping up cooperation on consular matters and in
crisis management. There was a common will to set milestones for the
Constitutional Treaty, by 2009 at the latest there should be clarity regarding
the new legal basis.
Financial perspective:
Following tough negotiations, an agreement was reached in April on the EU’s
multi-annual financial framework for the period 2007-2013. The EU budget has
been increased from 862 billion euro to 864 billion euro. An additional 2
billion euro is to be made available outside the budget. It was a decisive step
which ensures that the European Union will remain capable of acting in the
future.
Following directions set at the Spring Summit for creating more jobs for young
people and improving education, the increases were made in future-oriented
areas, such as youth and lifelong learning and underline the determination to
make Europe more comprehensible and accessible to its citizens. Increased
financial support was also given for the Common Foreign and Security Policy (EUR
800 million), and for the European Neighbourhood Policy (EUR 200 million) in
order to enhance Europe’s global presence. The increased financial support can
help expand Europe’s mission of achieving social and political harmony in
various crisis-stricken areas worldwide.
Enlargement:
An important element has been brought into the discussion, i.e. the
absorption capacity. (The Absorption capacity was expressly mentioned as one
of the criteria for full EU membership in the mandate for negotiations with
Turkey). The public has put this subject in the center of the debate and it is
necessary to keep it central in order to restore the confidence of the citizens’
in the enlargement process. The Commission is due to present a report in the
second half of the year on the Union’s ability to absorb new members. This
question, however, will always be treated as the case arises, it will ultimately
depend on the individual candidate.
Back to the CFSP: It seems there is a clear demand for a strong and
reliable Europe, also on the part of the European citizen. Let me briefly
mention what that meant during the Austrian Presidency:
• 16 Foreign Ministers’ meetings in Troika format (presidency, incoming
presidency, Solana, responsible commissioner)for a political dialogue with
Russia, the Ukraine, Turkey, China, Albania, Serbia and Montenegro, Afghanistan,
Indonesia, the southern Caucasus, New Zealand, the African Union, the Economic
Community of West-African States-ECOWAS, the European Council and the OSCE.
• 11 Foreign Ministers’ meetings in the framework of association- or
cooperation councils with neighbouring countries and regions: Rumania, Bulgaria,
Croatia, Turkey, Algeria, Egypt, Lebanon, Israel, Moldova, gulf cooperation
council and countries of the European Economic Space.
• 2 accession conferences Croatia and Turkey. Closure of the first
negotiation chapter on science and research.
• 1 council meeting with the ACP countries.
Repeatedly, the question has been asked if the rotating presidency is not an
anachronism in today’s foreign policy. The institutional framework seems rather
complicated for a prompt and coordinated appearance of the EU on the political
world stage. However, in practice, it works rather well. The EU is characterised
by a pronounced culture of cooperation and it was also Austria’s pronounced goal
to have everybody on board. As long as the new constitution is not in effect,
the presidency –in spite of all the difficulties for continuity due to the
biannual rotating- is probably still the best instrument to bring together the
interests of big and small member states and the European institutions. When
dealing with Special formats of Foreign Policy, like the G8, the Middle East
Quartet, the Balkan contact group or the EU3, it is an important task of the
presidency to make sure that there is a coherent position of the 25 and that
there is a smooth flow of information/opinions between the particular special
format and the EU as such.
Austria has invested beforehand in building up a network of contact persons and
friends and has worked closely with the European institutions and social
partners. It has always behaved as honest broker. National interests during a
presidency can only be pursued effectively when they coincide with common
interests of the EU, like the priority of the Balkans in Austria’s case.
Balkans
Let me say a few words on this:
In the framework of the UN and the EU, especially during its EU Presidency in
the first half of 2006, Austria had done its utmost to promote peace, security
and stability in its neighbourhood.
Stability in the Balkans is a component of the EU’s own security.
It was crucial to support the Balkan states neighbouring Austria in their
efforts of approximation to the EU, which meant to contribute to stability and
economic prosperity in the region and in Europe. The aim was to contribute to
positive dynamics in the countries of the Western Balkans and to send an
encouraging signal: confirmation of the European perspective of this region as a
whole and of each individual country. The year 2006 was characterised by
difficult decisions in the region. It was therefore all the more important to
create a predictable environment and to maintain the EU offer. Austria’s concern
was to make this European perspective tangible and credible and thereby to
strengthen the forces of reform, the forces in the region oriented towards
Europe. The progress towards the EU continues to depend on individual merits in
meeting the conditions and requirements.
Since SE Europe was a particular concern during our presidency, the Gymnich
meeting of the Foreign Ministers in March was dedicated to this topic and
colleagues from the Western Balkan countries were present.
Every country made one further step towards Europe in the first half of 2006.
For Bulgaria and Rumania the accession date 1 January 2007 was confirmed.
With Croatia the first chapter of negotiations was completed. A
decoupling was reached of the two proceedings for Turkey and Croatia and I would
like to add, purely on factual grounds without political motivations.
Macedonia received the status of candidate country already in December
2005, however without date for the start of negotiations.
With Serbia and Montenegro as well as Bosnia and Herzegovina first
successful rounds of negotiations for a stability- and association agreement
were held.
A similar agreement was signed with Albania a few weeks ago.
We also witnessed the peaceful birth of a new European State, Montenegro.
The EU had played an important role in making the arrangements for the
referendum.
As far as the Kosovo is concerned, the presidency was active in the
contact group and supported the work of Matti Ahtisaari and his team.
Finally the political starting signal was given for a regional free trade
agreement.
Austria’s engagement for the Western Balkans was not only appreciated by the
countries of the region, but also by the US, as was demonstrated during the EU-US
summit.
Since we are in the US let me say a few words on the EU-US relationship:
As you know, the US and Europe look back on a long shared history and form a
strong and sustainable community of values and interests. The EU-US summit was
held in Vienna on June 21st with the participation of president Bush and both
sides underlined the strength of the EU-US relationship in terms of trade and
investments but also increasingly as partners in handling hotspots around the
globe.
The EU and the USA are each other’s main trading partners (taking goods and
services together) and account for the largest bilateral trade relationship in
the world: together, they account for almost 40 % of world trade. 70% of foreign
direct investments in the US are from EU countries.
(The huge amount of bilateral trade and investment illustrates the high degree
of interdependence of the two economies. Close to a quarter of all US–EU trade
consists of transactions within firms based on their investments on either side
of the Atlantic. Our mutual investment stocks add up to EUR 1.5 trillion,
generating employment for about 12 million to 14 million workers.)
Another chapter we had to deal with is crisis management. The best preparation,
the most exact planning of the presidency can not account for all eventualities.
No presidency is immune to surprises. And we have learned something: crises do
usually occur on Sundays and holidays. On January 1st Gazprom stopped delivering
gas to the Ukraine and Austria had to pass its first practical test. And there
was no script. We mastered the crisis over the following weeks and months and
have learned a lesson from it, at the first European summit in March, a new
energy policy for Europe was launched.
This was of course not the end, just a few more examples from the first days: On
January 2nd, maoist rebells in Nepal declared an end to the cease-fire, during
the following days there were fights and many deaths. As a simple EU member
Austria could have followed the situation closely and with concern, as
presidency it had to develop a coherent EU position.
January 3, the Iranian Atomic Agency announced that it would start again its
research on nuclear fuels.
January 4 fighters of the Al-Aksa brigades occupied a government building in
Gaza and damaged the border installations at Rafa. Hundreds of Palestinians went
to Egypt that day.
Presidency is also crisis management, early reaction to unforeseen events in
order to provide options for action to all Member States. This can only work if
one works closely and confidently with the partners, the member states and the
EU institutions.
Discussion on values:
What keeps us together in the EU, what is the cement between 25/27 countries,
450 Mio. people? This is a pertinent and permanent question that can never be
put aside as long as the EU is a living community and not a stiff bureaucratic
system. The EU is a community of values and the rule of law. It is founded on a
broad basis of common values and freely developed rules for living together.
This precious nucleus of our cooperation has to be taken out of the theoretical
debate and put into the public domain where these values are lived and needed.
For that we should use a new language and invest in positive statements rather
than continue to lament the situation. The specific European Model of Life
(with respect for Human Rights, freedom of expression, respect and tolerance)
taking into account social security and environment protection is an attempt to
bring some positive contribution to the debate. Austria has tried to
bring the roots of this European WE-feeling back into focus, with the Sound of
Europe conference, a reference to the specific European world of sounds or the
Café d’Europe, the European everyday life.
As new elements in a constantly changing European culture of discussion an
electronic speakers’ corner and other electronic proposals were offered.
The discussion on European values was also used in traditional ways, for
instance in statements on the development in Belarus, during the cartoon crisis,
in many demarches in individual human rights cases, in the UN reform, in
particular the new HR council, statements on Guantanamo, and even complex issues
as the handling of the Hamas or development cooperation. Ultimately we are
dealing with the question what is and will remain our common foundation of
beliefs.
At the end I would like to turn to new topics on the radar screen:
Energy: I have already mentioned the drumbeat on January 1st, the issue
remains a challenge for the EU and has many components: energy security,
diversification of sources and routes, energy efficiency, alternative energy and
sustainability.
No high-level meeting during our presidency went by without mentioning this
subject.
Migration: Another subject that started blinking red. A subject with many
facets, not only limited to secure borders. The human treatment of immigrants,
even if they are not refugees according to the Geneva Convention, development
cooperation, more attention is needed to create job opportunities in the
developing world. It is not only a subject of Africa but also in the East and
South East of Europe.
Relations with the Islamic World: A continued important subject. The
cartoon crisis has lifted the veil on an underlying discomfort on both sides.
Damage has been done and many uncertainties were revealed. Europeans noticed
feelings of neglect, lack of attention and humiliation not only in the Arab
World. These are issues we have to deal with, with open-mindedness and urgency.
Key-word: European Islam: This is a particular challenge for the EU. How
can we assure and strengthen a trusting cooperation in our societies? How can we
contribute to find answers to the concrete concerns of our fellow citizens, like
school and ways to practice their religion? Silence is certainly not the
solution. A first meeting was held in Brussels by president Barroso and Schüssel
with church and religious leaders, and Chancellor Schüssel put this subject on
the agenda of an informal meeting during the last European summit in June.
In Austria the EU presidency has lead to a real trend reversal in public
opinion: the percentage of critics has fallen by 11%, the majority of Austrians
feels that the EU is a good thing. This has also to do with being better
informed about the EU and its politics, in Austria we measured a 19% increase,
54% of Austrians feel well or very well informed. This coincides with a general
feeling in the EU 50% of Europeans believe that the EU is a good thing, has a
good image and the own country benefits from the membership.
So Austria feels we can be confident and we will master difficulties on the
European way together with patience, openness and team-work.
Thank you for your attention.