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A B C D E F G H I J K L M N O P Q R S T U V W Y Z

C
Cabinet
The private office of a European VIP, especially a Commissioner.
CAP
See Common Agricultural Policy.
Capital of the European Union
There is no capital of Europe, the nearest
approximation being Brussels, which
houses the Commission,
the Council of Ministers and
parts of the European Parliament.
Three-quarters of the Commission's
staff work in Brussels - a rich source of rent and restaurant trade.
It has been estimated that Brussels earns around $1.5 billion a year
from European officials and their multifarious visitors.
Luxembourg serves as the second city
of the EU, playing host to the
European Court of Justice,
the European Investment Bank
and the Court of Auditors. The
third city is Strasbourg, principal seat of the European
Parliament (and incidentally the home of the European
Court of Human Rights and the Council
of Europe).
Carbon tax
A proposed energy tax, favoured by the
Commission
as a way of boosting its revenue in the name of protecting the environment
from excessive carbon dioxide emissions. The tax has not been approved
by the Council. It would be anti-competitive unless introduced throughout
the advanced world.
Cassis de Dijon case
The 1979 Cassis de Dijon ruling
of the European Court of
Justice was a landmark judgment. It established that a product (in
this case, a French blackcurrant liqueur) sold lawfully in one member
state may not be prohibited in another member state (in this case, Germany)
except on public health grounds - the so-called 'mutual
recognition' principle.
Cecchini Report
The 1988 Cecchini Report, named
after the chairman of a Commission-appointed
committee of experts, is chiefly famous as a cautionary tale. Basing
their results on econometric models and a survey of 11,000 businessmen,
the authors of the 16-volume report forecast that the single
market would add around 5% to the GDP of the
Community's member states, reduce prices, raise growth to 7%, create
several million extra jobs and 'put Europe
on an upward trajectory into the next century'. In the event, the achievement
of the single market in the 1990s
coincided with stagnation and a massive increase in structural unemployment
- evidence, if evidence were needed, of the shallowness of economic
predictions, especially by businessmen.
Censure
Under the Treaty of Rome, the European
Parliament has the right to force the Commission
to resign en bloc on a motion of censure
carried by a two-thirds voting majority, representing an absolute majority
of all MEPs. It was long assumed that the Parliament would never use
this nuclear option, but in 1999, following a devastating report on
nepotism, negligence and corruption within the Commission
under the presidency of Jacques Santer,
all the Commissioners resigned rather than face dismissal. The Parliament
has no right of censure against individual
Commissioners.
CERN (Centre
Européen pour la Recherche Nucléaire)
CERN
is the French acronym for Europe's Geneva-based
advanced non-military high energy physics
research centre. It is financed by European
governments, including certain non-EU
countries, and strictly speaking is not a Community organisation. The
CERN
particle accelerator has produced interesting pure science results but
the Centre's main practical benefits have been by-products, notably
the invention of the internet.
CET
See Common External Tariff.
CFP
See Common Fisheries Policy.
CFSP
See Common Foreign
and Security Policy.
Channel Islands
See Small countries.
Chapeau
See Preamble.
Charlemagne (742-814)
Europeans who like to trace the history of unification to the past
have a number of candidates to choose from. The Romans gave Europe
law, roads, the Latin language and the spreading of Christianity, and
Napoleon gave it a modernised legal code, but it is the name of Charlemagne
that is most frequently invoked. He conquered France,
Belgium, North Italy,
Saxony, Bavaria and North Spain and systematised
the secular and ecclesiastical administration of his empire, which comprised
a remarkably similar geographical area to that of the
six original EEC
members. Although his empire did not long survive his death, the imperial
concept lasted for over a thousand years with the Holy Roman Empire
and its successor, the Austro-Hungarian Empire, not being finally brought
to a close until the First World War.
Charter of Paris
Signed in Paris in 1990, the Charter
of Paris for a New Europe signalled
the end of 'the era of confrontation and division in Europe'
and is widely regarded as sealing the close of the Cold War. (See also
OSCE.)
Chirac, Jacques (1932-)
A Gaullist who had twice served as French premier, Jacques Chirac
was elected president of the republic in 1995, reluctantly inheriting
the commitment to European monetary
union of his Socialist predecessor François Mitterrand
at a time when economic stagnation was being exacerbated by France's
efforts to meet the Maastricht convergence
criteria. A national election, called by Chirac
in 1997 to gain endorsement for his policy of austerity, backfired when,
despite his personal popularity, the Socialists won a majority in the
Assembly, with Lionel Jospin replacing
Chirac's Gaullist ally, Alain
Juppé, as premier. Jospin's
old-fashioned leftist manifesto was incompatible with Chirac's
centre-right economic views, and although both co-habitants of France's
highest offices now proclaimed their support for the single
currency, concern arose in Germany
that France would be a weak link, possibly
to the extent of undermining the strength of the future euro.
Chirac's loss of political authority
coincided with a deterioration in the domestic standing of Chancellor
Helmut Kohl of Germany.
There was little love lost between the two men, and for a time the hitherto
solid Franco-German partnership came under strain as disagreement arose
over matters ranging from foreign policy to the independence of the
future European Central Bank
and Italy's suitability for the single
currency. By 1999, however, the euro had been launched and France
was enjoying a robust economic recovery. Jospin
had swung to the right, largely stealing Chirac's
clothes, and his influence had grown to the point that Chirac
was no longer unambiguously in charge of the agenda even for foreign
policy, the traditional preserve of the president. Impetuous, charming
and inconsistent, Chirac had
no durable vision for the EU and
seemed in danger of becoming little more than a figurehead.
Christian Democracy
The nearest approximation to a transnational
centre-right political creed in post-war Europe,
Christian Democracy was the
political home of many of the founding
fathers of the European idea,
including Konrad Adenauer,
Alcide de Gasperi, Walter
Hallstein and Robert Schuman.
At the end of the century, however, it fell on evil days with the self-destruction
of the Italian party and its most prominent figure, Giulio Andreotti,
and the more surprising disgrace of the German CDU, when Helmut Kohl,
its leader for 25 years, was implicated in a party slush fund scandal.
(See also Religion and Political
groups.)
Churchill, Winston (1874-1965)
Winston Churchill's incomparably
distinguished political career ended with his retirement from the premiership
in 1955, nearly ten years before his death and 17 years before the accession
of the UK to the EEC.
It is thus an anachronism to enlist him on either the Eurosceptic
or the Europhile side; it is, however,
relevant to recall that his mother was American and that he held a fervent
faith in the Commonwealth and the Anglo-American alliance. Perhaps his
ultimate loyalty was to the English-speaking world.
In the summer of 1940, with France near
collapse, it was a typically bold gesture on Churchill's
part to agree with Jean Monnet
and Charles de Gaulle a
proposal for a complete union between the UK
and France; France
fell and the idea came to nothing. For his considered thoughts on Europe
after the war, the primary source is his speech made in September 1946
in Zurich, in which he called for the building of a 'kind of United
States of Europe', of which the UK
would be a 'friend and sponsor' - natural words in the context of the
times, with much of the Continent lying in ruins. This is not very different
from his earlier published observations in 1930 ('We are with Europe
but not of it. We are linked but not comprised'); and when he said in
1948 that if Europe united was to be a
living force the UK would have to
play its full part as a member of the European family, the words are
sufficiently vague to admit of more than one meaning.
It is easier to state that Churchill
was in favour of European unity than that he would have favoured UK
entry into the EEC,
still less that he would have acceded to Walter Hallstein's
and Jacques Delors' vision of
a supranational Europe; it is barely conceivable
that he would have been willing to compromise British independence or
forget the UK's obligations to the
Commonwealth. The fact that he was president-of-honour of the 1948 Congress
of Europe owed more to his prestige, and to the content of his Zurich
speech, than to any coherent pan-European strategy. Churchill
alone had played a leading role in the century's two world wars, both
of which had started in Europe; nobody
could speak with more authority about the necessity of radical new thinking
to prevent a third one.
CIS
See Commonwealth
of Independent States.
Citizenship
It is no accident that European citizenship
conjures up the image of a country called Europe.
The idea first found expression in 1984 with proposals for a 'People's
Europe' designed to improve the flagging popularity of the
Community and strengthen the sense of European
identity by creating a raft of miscellaneous citizens' rights.
Many of these were enacted into Community
law over the ensuing years. But it was not until the Treaty
of Maastricht in 1992 that citizenship
itself (at Spain's urging) was formally recognised
as part of the acquis communautaire.
The Treaty ordained that all nationals of member states must also be
citizens of the Union. Initially, the privileges conferred by European
citizenship are modest: the right to
complain to the European Parliament,
to vote or stand in local or European elections, to obtain diplomatic
protection in countries where the citizen's member state is unrepresented
and to reside anywhere in the Union (subject to not being a burden on
the host country). But the Treaty envisages these rights
being strengthened or expanded; thus the intent of multiplying the trappings
of a single state appears evident.
The requirements for EU citizenship
are left to member states. For example, British subjects with the right
of abode qualify, whereas those with Dependent Territories status, with
the exception of Gibraltarians, do not. Germany
faces a particular dilemma. It houses some 7 million recent immigrants
- many more than other European states. Yet under an Imperial Decree
of 1913 the right to citizenship has
been based on blood descent, which rules out children of foreigners
even if born in Germany. Long blocked,
from fear of encouraging an unmanageable influx of new immigrants, reform,
albeit partial, was finally introduced by Chancellor Gerhard Schroder
in 2000.
The City of London
The impact of EMU on the
City's position as a financial centre is one of the five criteria set
by the Labour government for whether the UK
should adopt the euro. While the test is too subjective to be of value,
it would certainly be hard to replicate the City's unique concentration
of talents and activities elsewhere in the eurozone.
Moreover, in the first year after the launch of the single
currency, the City's share of global financial transactions rose.
Closer co-operation
Closer co-operation is a significant
'flexibility' principle introduced
by the 1997 Treaty of Amsterdam
(technically, as Title VII of the Treaty
on European Union). It provides that as a last resort a majority
of member states may use the Community's
institutions to develop closer links with each other in a new policy
area, without involving the remaining member states. The Treaty makes
it plain that this Title is not intended as a loophole for preventing
the advance of the acquis communautaire,
still less for reversing it. The intention rather is to allow certain
countries to move ahead with integration faster than others. A good
example was the introduction of the Schengen
Agreement border controls by way of a protocol
to the Treaty of Amsterdam to
which all the member states were parties except the UK
and Ireland. (See also Variable
geometry.)
Club Med countries
Italy, Spain,
Portugal and Greece,
so named because of their supposedly relaxed financial policies and
southern temperament, in contrast to the stern discipline of the northern
'hard core'. Paradoxically, the impending
introduction of EMU in 1999
saw the Club Med countries making
equally determined efforts as Germany and
France to prove their fiscal rectitude.
In the event, Italy, Spain
and Portugal were admitted as immediate
entrants to the euro. Greece, too, seemed
likely to be accepted within five years.
Cockfield White Paper
In the early 1980s the Common Market
had substantially ground to a halt. Progress in freeing trade was blocked
by indecision in the Council of
Ministers, resulting in a heavy backlog of draft Directives and
Regulations which seemed unlikely ever to see the light of day. At the
1985 summit meeting of heads of state, the Commission
was instructed to draw up a remedial programme with a timetable. The
task was entrusted to the British Commissioner for the Internal
Market, Lord Cockfield, whose White Paper identified some 300 necessary
measures and set the end of 1992 as the target date for completing the
single market. The Cockfield proposals,
drawn up in close collaboration with the Commission
president Jacques Delors, were
an important formative influence in the Single
European Act of 1986, which proved in retrospect to have marked
a decisive moment in the federalisation of Europe.
Ironically (for his spell in Brussels turned him into an ardent integrationist),
Cockfield had been appointed to the Commission
by Prime Minister Margaret Thatcher
on the grounds that he was no more than a convinced advocate of free
markets.
Co-decision
Joint decision by the Council
of Ministers and the European
Parliament. Established by the 1992 Maastricht
Treaty (and now largely replacing the weaker 'co-operation' procedure
brought in by the 1986 Single
European Act), co-decision was intended
to increase democratic accountability in the EU's
lawmaking process. The procedure essentially allows the Parliament to
veto legislation on which it has not reached agreement with the Council.
The mechanics are worth noting, if only because they illustrate perfectly
the arcane nature of the EU's decision-making
methods. In simplified form:
- The Commission
submits a proposed piece of legislation
- Parliament, acting by absolute majority, gives its opinion
to the Council
- If Parliament does not suggest amendments, the Council decides by
qualified majority voting
- If Parliament rejects the proposal, it does not become law
- If Parliament suggests amendments, the Council and the Commission
consider these
- If the Commission
accepts the amendments, the Council may also accept them, acting by
qualified majority voting
- If the Commission
rejects Parliament's amendments, the Council must act unanimously
if it wishes to accept them
- If the Council does not accept the amendments, the 'conciliation
committee' (consisting of equal numbers of Council and Parliament
representatives) is convened, with the Commission
participating
- If the conciliation committee cannot agree a text, the proposal
lapses
- If the conciliation committee agrees a text, the Council (by qualified
majority) and the Parliament must both vote in favour or the proposal
lapses.
Co-decision initially applied to a
limited range of policies (such as the single
market, education, the environment,
consumer protection and health) but the 1997 Treaty
of Amsterdam greatly extended its scope, making it the principal
form of legislative collaboration between the Council and the Parliament.
It now covers most areas except EMU,
which remains subject to the co-operation
procedure, under which the Parliament has delaying and obstructing
powers but no outright veto.
Co-habitation
The power-sharing which arises, especially in France,
when there is a leftist president and a rightist prime minister, or
vice versa.
Cohesion
Eurospeak for the reduction of economic
disparities between regions in a spirit of social solidarity.
Cohesion Fund
See Structural funds.
Comecon
Established in Moscow in 1949 and dissolved in 1991, Comecon
was the Soviet-dominated organisation for co-ordinating communist economic
policy in Eastern Europe (and later Mongolia,
Cuba and Vietnam). Co-ordination amounted in reality to abject subservience
to the Soviet Union. The former Yugoslavia
was never a member. Albania, which considered
the USSR soft after Stalin's death, left Comecon
in 1961. For 40 years a stony-faced enemy of the West, Comecon
relaxed enough under Mikhail Gorbachev to permit its European members
to sign bilateral trade agreements with the EC. Within 18 months, Comecon
itself would be dead.
Comitologie
The science of committees, a necessary skill in Brussels, where the
Commission's
implementation of policy and law is subject to supervision by numerous
committees set up, and staffed, by the member states. These committees
may be purely advisory or may have some real delegated powers. The general
rule is that the Commission
is obliged to 'take account' of Opinions, but not to act on them unless
ordered to do so by the Council. The European
Parliament, resentful of its own exclusion from these secret proceedings
dominated by the Commission,
favours increased 'transparency' -
for example, by requiring the Commission's
committees to report regularly to the Parliament's committees.
Commission
See European Commission.
Committee
of Permanent Representatives (COREPER)
See Permanent representatives.
Committee of the Regions
Established on a German-Spanish initiative (strongly backed by the
Commission)
under the 1992 Maastricht Treaty,
the Brussels-based Committee
of the Regions consists of 222 representatives (most of them holding
regional or local elective office in their home countries) who advise
on the impact of EU legislation.
The Committee's remit covers five sectors - education
and vocational training, culture, public health, transport systems,
and economic and social cohesion - although the Treaty allows the Commission
and the Council of Ministers
to consult it on other issues. The Committee may also volunteer Opinions
on regional matters. No EU institution
is, however, obliged to follow its advice, whether solicited or unsolicited.
Indeed, its real raison d'être is to undermine the nation state
by encouraging direct relations between regions and Brussels. The Committee
shares certain services and a reputation for imaginative expense accounts
with the Economic and
Social Committee. It was censured in 1997 by the Court
of First Instance for nepotistic recruitment within its own 80-strong
bureaucracy. (See also Regionalism.)
Common Agricultural Policy
(CAP)
The CAP is a protectionist
system for supporting agriculture in the EU.
Established by the Treaty of Rome
in 1958, it was for many years the only significant Community policy,
accounting for over two-thirds of the budget,
providing vast subsidies and substantially raising the cost of food
to consumers. The CAP
has enriched some farmers, saved others from poverty and ensured plentiful
home-grown production; but at the same time it has served as an accomplice
to fraud and has disrupted international
markets through import levies, subsidised exports and the creation of
unwanted surpluses disposed of by intermittent bouts of dumping.
In more recent times some reforms have been progressively brought about
by financial constraints and pressure from the GATT.
The effect has been to reduce the cost of the CAP
to about half the Community budget
and to make some inroads on surplus production. But many member states
have a vested interest in resisting change and the reforms have fallen
far short of a genuine liberalisation of agricultural trade. With the
accession or approaching accession
of new countries, some, like Poland, poor
and with large rural areas, others with Arctic or mountainous conditions,
further modifications to the CAP
are inevitable if the farm budget is not
to run out of funds. As long, however, as the CAP
is seen as a talisman of European integration and a battlefield of free
traders against protectionists - and increasingly against environmentalists,
too - it will continue to attract passionate controversy.
Origins (1958-73)
The five aims of the CAP
as set out in the Treaty of Rome
in 1957 were couched in elevated terms: increased productivity, a fair
standard of living for the agricultural population, stabilised markets,
regular supplies of food and reasonable prices for consumers. The underlying
political reality was that France wanted
to guarantee high prices to farmers in return for enlarging the markets
in industrial goods for German manufacturers. Fear of social instability
and vivid memories of food shortages increased the determination of
the member states to create a prosperous farming community and to make
Europe self-sufficient in staple items.
The CAP was to be
based on three principles:
- A single market in farm products,
with common prices and free movement within the
Community
- Community preference, that
is, a tariff system of import levies and export refunds on trade with
non-members
- Shared responsibility for costs.
The system was introduced progressively from 1962 to 1967 with a series
of artificial 'price regimes' for different products, to be paid for
by consumers. Imports would be penalised by duties, exports would be
subsidised by refunds, known as 'restitutions'.
In the context of these policies, the UK's
application to join the Common Market
was both a threat and an opportunity. The opportunity lay in the fact
that the UK was one of the world's
largest food importers; if it could be persuaded to switch suppliers,
the EC would gain an additional paymaster and a new market. The threat
lay in the UK's predilection for
free trade and cheap Commonwealth food. Charles de
Gaulle's vetoes of British entry in the 1960s had much to do with
the UK's initial unwillingness to
abandon its Commonwealth trade links by agreeing to Community
preference. The withdrawal of de
Gaulle from the political scene and the concession by Prime Minister
Edward Heath of most of the
UK's negotiating points (with the
exception of some special arrangements for New Zealand and the Caribbean)
brought this phase to a close, clearing the way for British entry, at
a cost to the domestic consumer estimated over the years at around $1,500
per year per family of four.
Mounting problems (early 1970s-late 1980s)
The need to restructure inefficient Continental agriculture had led
to the 1968 Mansholt Plan,
featuring import protection and compensation for job losses. A watered-down
version of this plan was adopted by the EC in 1972 and funded by the
European Agricultural Guidance and Guarantee Fund (known by its more
pronounceable French initials, FEOGA). The
resultant combination of improved productivity and generous guaranteed
prices proved little short of disastrous to everyone except farmers
left on the land. Agricultural incomes were sustained not by direct
subsidies to struggling farmers but by unlimited intervention
buying of any produce which could not be sold at a higher price on the
open market. As a result, market discipline was virtually non-existent.
By the early 1980s 'wine lakes', 'butter
mountains' and large surpluses of dairy produce, cereals and sugar
were accumulating.
To the cost of overpriced food was now added the cost to taxpayers
of storing or disposing of unwanted stockpiles. The easy answer was
dumping, through export refunds, gifts in aid or cut-price deals. Such
action caused extensive international ill-will, as competing exporters
were undercut and low-cost agricultural economies were hit by a flood
of produce at prices which even they could not match.
The scale and complexity of FEOGA's operations
gave rise to growing scope for exploitation and fraud,
which an expanding bureaucracy was unable to control and which there
was little incentive for offending countries to expose. Public bewilderment
was compounded by an artificial system of 'green
currencies' and 'monetary compensation amounts', designed to make
up for currency fluctuations and create the illusion that farmers were
operating in a single European currency zone.
The accession to the EC of Greece
in 1981 and Spain and Portugal
in 1986; the impending round of GATT
negotiations, at which trade agreements appeared sure to be conditional
on some degree of agricultural liberalisation; and the spectre of the
Community budget being stretched to
breaking point - together these factors demanded reform. From 1983 onwards
the Commission
and the member states wrestled with proposals to tackle over-production
and limit subsidies, hampered for a while by the weakness of the dollar,
which increased the gap between world prices and European prices. In
1988 a package of measures was agreed by the Council
of Ministers, of which the principal elements were that the overall
growth of CAP expenditure
would be not more than 74% of the growth of the budget;
that farmers would be paid not to farm (the notorious 'set-aside');
that output quotas and levies on excess production would be extended
(leading to an unseemly rush to swell the volumes on which the ceilings
would be based); and that the Community's
structural funds would be retargeted
to include among their objectives the easing of agricultural reform
and aid to rural areas.
Recent developments
The 1988 measures failed to address the radical changes which the British
wished to see and which the USA
and the Cairns Group of efficient agricultural countries, led by Argentina,
Australia, Canada and New Zealand, considered essential to a healthy
international market. The biggest stumbling blocks to progress were
the antipathy of the French and German governments to any action which
might jeopardise countryside prosperity and their fear of adding to
unemployment, anxieties which were exacerbated by the disproportionate
power of farm lobbies and rural voters in France
and Bavaria. Moreover, the complexity of the CAP
had given it a bureaucratic life of its own. It was the centrepiece
of the EC. It favoured Denmark, Ireland
and The Netherlands, among others,
and it had provided such scope for abuse that negotiations over reform
were invariably painful and protracted.
Nevertheless, some change continued to be eked out in response to budgetary
pressures and the worldwide trend towards freer markets. In the early
1990s Commissioner MacSharry's labyrinthine proposals to cut prices
and surpluses by moving away from price guarantees towards direct income
support narrowly averted the failure of the GATT
Uruguay Round. In theory, the MacSharry proposals should in the long
run reduce the cost of the CAP.
But no provision has been made for the approaching accession
of poor countries with large rural areas, including Poland,
Hungary, the Czech
Republic and Estonia - perhaps to be
followed by others. These former communist states will, like East Germany,
pose additional budget strains, which as
the CAP is presently
structured will cumulatively exceed the EU's
financing capacity.
At the turn of the century, the EU
continued to shirk fundamental reform. Some modest cuts in intervention
prices were agreed in 1999. The Commission's
Agenda 2000 paper remained on the table,
with suggestions for integrating agricultural policy into a broader
rural strategy. Environmental and health issues loomed larger, highlighted
by genetically modified food and the 'mad cow disease' crisis over British
beef. Many resented the fact that the CAP's
main beneficiaries tended to be not subsistence farmers but prosperous
'barley barons'. Some called for a repatriation of agricultural policy,
to enable individual countries to set their own priorities - a move
that would strike at the heart of the Commission's
doctrine of centralisation. Cutting across these multifarious questions,
the WTO was certain to
make liberalisation of farm produce a central feature of the next global
trade negotiating round.
Amid this catalogue of difficulties and shortcomings, it is fair to
say that some of the original Treaty objectives have been achieved.
Productivity has increased, with agricultural employment
falling since 1958 from 20% of total Community-wide employment
to an estimated 5%. Farmers' incomes have risen and Europe
is self-sufficient in temperate foodstuffs. It is the cost that has
been inordinate, not only to taxpayers, consumers and the developing
countries, but also to the moral standing of an EU
which ought to be more sceptical of bureaucratic interference and less
tolerant of corruption and waste.
Common commercial policy
A term used to denote the Community's
trade policy, which under the 1957 Treaty
of Rome is required to be uniform for all the member states. The
defining characteristic is the customs
union, under which from 1958 onwards internal tariffs were progressively
eliminated and external barriers harmonised. The customs
union was completed in 1968, increasing internal trade, albeit to
some extent at the expense of external trade (a phenomenon known as
'trade diversion'). Many non-tariff barriers to internal trade remained,
and indeed still do remain, despite the Single
European Act of 1986 and the 'completion' of the single
market in 1992.
As an intrinsic part of the common
commercial policy, the member states have ceded to the EC their
right to negotiate on external trade. This the Commission,
under guidelines from the Council, negotiates on their behalf with the
WTO. The Commission
also negotiates special trading arrangements such as the Lomé
Convention, which ensures equal treatment for 71 former dependent
territories of EU countries; various
Association Agreements have
a similar standardising effect on trade relations with other states.
There remain, however, certain non-tariff barriers which are not uniformly
applied, including French and Italian 'voluntary' quotas for Japanese
car imports, which have been approved by the competition commissioner
as a transitional measure. Although not quite liberal enough for dedicated
free traders, the Community has certainly
played a significant part in the global reduction in trade barriers
since World War II. (See also World
Trade Organisation.)
Common currency
A common currency differs from
a single currency by operating alongside
national currencies, not in substitution for them. In 1990 British prime
minister John Major proposed abandoning
EMU in favour of the creation
of a strong European common currency,
the 'hard écu'. If enough people
used it, the plan was that it might come to replace domestic currencies
by a process of natural evolution, much as the dollar has replaced various
local currencies throughout the world. The hard
écu was rejected by the other EU
member states as insufficiently integrationist. Ironically, the euro
will have considerable opportunity to compete with the pound as long
as the UK stays outside EMU.
It will thus be not unlike a common
currency within the UK, although
it will serve as a single currency
elsewhere in Europe.
Common External Tariff (CET)
As a customs union, the
Community has no internal tariffs but a uniform external tariff,
which is one of the sources of revenue for its budget.
Following the 1994 Uruguay Round of GATT
negotiations, the weighted average Community external tariff has fallen
to some 3% and is expected to decline further with the continuing liberalisation
of world trade.
Common Fisheries Policy (CFP)
The saga of the CFP is an unhappy episode
in the EU's history, and particularly
in its relations with the UK. In
the late 1960s Britain, Norway, Ireland
and Denmark were negotiating entry into
the Common Market. The four countries
were rich in fish, which the existing members of the
Community ('the Six') coveted. Having
no legal justification for their ambitions the
Six hastily created the CFP, under which
all member states would have equal access to Community fishing grounds,
which would become a 'common resource'. Anxious to secure the prize
of membership of the Community, the
British prime minister, Edward Heath,
gave way. Despite assuring the public that the CFP
was unacceptable, the government contented itself with a ten-year 'derogation',
an interim arrangement which temporarily protected coastal fishing.
The UK signed its Treaty of Accession
in 1972. The same year, Norway voted against
joining the Community, partly because
of its rejection of the CFP.
The UK's derogation,
which was also accorded to the other applicant countries, allowed an
exclusion zone of six (in some places twelve) miles. In 1976 the British
government passed an Act of Parliament raising its limits to 200 miles.
The Act accorded with international law and practice, but when tested
in the courts it proved subordinate to Community
law, which gave the EC itself the right to a 200-mile limit (a right
which it exercised in 1977) but did not recognise exclusivity as between
individual member state fleets outside the coastal zone. Meanwhile,
Canada, Iceland and Norway
had also extended their limits to 200 miles, barring Community vessels
from many of their habitual fishing grounds and driving them into other
waters.
At the end of 1982 the derogations expired. Revised arrangements were
proposed for a further 20-year period, granting the UK
access to just over one-third of the Community's
fish, compared with its contribution of some two-thirds of the
Community's total resources. In January 1983 a Danish skipper was
fined for operating inside the UK's
12-mile limit. The European Court
overruled his conviction on the grounds that at the time no derogation
had been in force and he had therefore been entitled to equal access.
This judgment exposed the weakness of the UK's
negotiating position: the alternative to losing half of its natural
fishing rights was to lose them all. For
Ireland, too, the message was clear.
In 1986 Spain and Portugal
joined the EC, bringing with them limited fish resources but adding
two-thirds to the Community's combined
fleets. To reduce disruption and over-fishing, the EC entered into fishing
agreements with some 30 maritime countries and put in place interim
arrangements for national quotas and fleet reduction; meanwhile, the
new member states' full integration into the CFP
would be delayed for 16 years. Spanish owners responded by flying under
the British flag, or 'quota-hopping',
a practice banned by a 1988 Act of Parliament but reinstated when the
European Court again overruled the
English courts.
In 1994 Spain and Portugal
gained accelerated integration into the CFP
by threatening otherwise to veto the enlargement
of the EU by the accession
of four additional member states (ironically, a referendum
in Norway, one of the successful applicants,
rejected membership for the second time, after a campaign which again
featured the need to protect the Norwegian fishing industry). There
followed a bitter dispute and an uneasy compromise over Spain's
access to Irish and British waters in the Irish Sea. As surplus capacity
was forcibly scrapped and their coastal village communities declined,
British fishermen were so dismayed that they even failed to take advantage
of the modest EU funds available
for decommissioning and modernisation. Their worst suspicions seemed
to them confirmed by Canadian allegations of illegal Spanish fishing
in the North Atlantic.
The new CFP regime introduced in 1983 was
built on the concept of balanced conservation and exploitation through
'Total Allowable Catches' (TACs) - supposedly scientifically designed
quotas on a species-by-species basis. These TACs are then divided between
member states in acrimonious annual bargaining rounds and are enforced
by national supervision and by specified mesh sizes to allow young fish
to escape. Amid a welter of mutual accusations it was hard to establish
the truth, but Spanish compliance was
said to have been lax, resulting in indiscriminate fishing and heavy
dumping of unwanted by-catches. The resultant grave environmental damage
and depletion of stocks undermined the EU's
argument that 'European-level action' would inevitably be more effective
than national controls. Nor could it be said that the CFP
had done anything to ease the divisiveness of rivalries between fleets.
If anything, the reverse was the case.
When the current CFP derogations expire in
2002, the Mediterranean states command enough votes to block any renegotiation
which goes against their interests. Moreover, the next stage of the
CFP, embodied in the 1995 Accession
Treaties of Austria, Finland
and Sweden, already envisages the Commission
controlling all aspects of Community fishing via permits. A campaign
to withdraw from the CFP has attracted considerable
popular sympathy in the UK but would
put at risk British membership of the EU,
since it would mean reneging on fundamental Treaty obligations - a step
that no British government would contemplate.
The verdict on the CFP, therefore, is that
it has evolved into a complex and incoherent system which deters Norway
and Iceland from joining the EU,
has failed to achieve conservation and is particularly disadvantageous
to the UK. Nevertheless, the problems
are real. Fish are too mobile to be easily classified as a national
resource; and consumer demand has begun consistently to outstrip supply.
Controls at sea are notoriously difficult to police. Add to these problems
the bureaucratic centralist ambitions of the Commission
and a multitude of conflicting national interests, and it is clear that
in the medium term no equitable solution is likely to be found. (See
also Factortame.)
Common Foreign and
Security Policy (CFSP)
One of the two intergovernmental
pillars of the EU
created by the Maastricht Treaty,
the Common Foreign
and Security Policy is the successor to the previous system known
as 'European Political
Co-operation'.
For 25 years before Maastricht, Community circles had discussed the
idea of co-ordinating foreign policy, a subject not mentioned in the
Treaty of Rome. Following two reports
in the early 1970s by a Belgian diplomat, Etienne Davignon (later a
prominent commissioner), regular meetings and exchanges of information
were set up, but nothing of enduring value resulted. The obstacles were
forbidding. Not all the member states were signatories to NATO,
whereas other European countries were in NATO
but not in the Community. There were
historical differences in national interests and geopolitical orientation.
The neutrality of several countries
was a problem, as was West Germany's Ostpolitik
in the 1970s and 1980s. Among European countries only France
and the UK possessed the nuclear
deterrent and an independent seat on the UN Security Council. Denmark
refused to recognise the Community's
competence in matters such as defence,
which lay outside the scope of the Treaty
of Rome. Greece had its own agenda.
In reality, therefore, Declarations and expressions of the
Community's determination to 'assert itself on the international
stage' amounted over the years to little but words, the only common
actions being the occasional joint imposition of economic sanctions
against errant third countries. Authentic strategic defence was left
to the Atlantic Alliance.
The collapse of communism in East Europe,
by removing the most serious immediate military threat, gave Europeanists
the excuse to adopt a more chauvinistic foreign policy stance and to
downgrade their reliance on NATO.
It was safer now to sketch out an independent 'European
Security and Defence Identity'. These aspirations were crystallised
in the 1992 Maastricht Treaty,
which stated that the CFSP covers 'all questions
related to the security of the Union, including the eventual framing
of a common defence policy, which
might in time lead to a common defence'. The Treaty went on to identify
the WEU as the EU's
future defence arm, a hitherto ineffective body that was soon to acquire
a bewildering variety of classes of member - five EU
states (Austria, Denmark,
Finland, Ireland
and Sweden) would be 'observers'; three
countries that are members of NATO
but not of the EU (Iceland,
Norway and Turkey)
would be 'associates'; and a number of East European states would be
'associate partners'.
We do not interfere in American affairs. We hope they will have
enough respect not to interfere in ours. Commission
President Jacques Delors at
the outset of the Balkans crisis
The Amsterdam Treaty built on
the Maastricht proposals. It gave the Commission
a greater say in policy formation. It raised the prospect of integrating
the WEU into the EU.
It cut down the role of the nation states. Under a new doctrine of 'constructive
abstention' by dissenters, 'joint action'
in the CFSP domain would no longer require
unanimity among the member states ('implementation'
of agreed policies was already in the
Community fold, being subject to qualified
majority voting). In 1999, the EU's
complex committee arrangements were to make decision-making
very difficult during the Kosovo crisis.
In a proper military emergency they would certainly come unglued: but
that was not the point - their true purpose was to advance the federal
agenda.
How much substance has been given to the CFSP
by the two Treaties is debatable. Europe
is as reliant as ever on NATO
for intelligence, logistics and the projection of power at long range,
despite the formation of the 60,000-strong Eurocorps
in the mid-1990s. A proposal that European forces assigned to the WEU
should also be assignable to NATO
('double-hatting') was a grudging recognition of military realities.
The critical issue, however, was whether the WEU
was ultimately intended to be a burden-sharing arrangement inside the
NATO framework,
as Washington wanted, or a rival Community organisation, as Paris seemed
to suggest. The risk of expensive confusion and duplication of effort
was self-evident. As long as the UK
was unequivocally committed to the Atlantic Alliance there was little
cause for concern. Late in 1999, however, Prime Minister Tony Blair
(perhaps to compensate for not having adopted the euro) agreed to contribute
some British facilities to the Eurocorps
and made a joint declaration with France
referring to 'autonomous' European forces. Clarificatory statements
were rushed out, but the seeds of doubt had been sown.
US alarm about the new ambiguity of its European relationships reflected
its suspicion that EU member states
wanted the benefit of NATO
fire power without having either to accept American military or diplomatic
leadership or to pay the cost of developing a comparable capacity for
themselves (European defence budgets were being regularly cut). This
would be a recipe for American disenchantment, perhaps even isolationism.
As a compromise the concept had recently been put forward of Combined
Joint Task Forces, whereby the USA
would put its NATO
material and logistics at the disposal of the WEU,
if an operation was mounted in which the Alliance as a whole was not
engaged. This plan, however, was fraught with weaknesses. Historically
the USA had shared intelligence
only with the UK. It was questionable,
too, how Washington would react if the Europeans pursued a policy with
which it actively disagreed. Nor, of course, would these moves in themselves
contribute anything towards unity of purpose. Deep internal divisions
among the EU member states had
surfaced during the 1991 Gulf War and repeatedly throughout the 1990s
in the successive Yugoslav crises. Indeed, it often seemed that the
sole distinguishing characteristic of a 'European' foreign policy was
the desire of certain Francophone and Latin élites to distance
themselves from Washington.
Europe can only speak with
one voice when it has nothing to say. Jean-Pierre Chevènement,
French interior minister
In the last analysis, the logical conclusion of the CFSP
would be that both France's and the UK's
nuclear deterrent would be placed in the hands of the WEU
and that their permanent seats on the Security Council would be merged
into a single seat for a united Europe.
This, however, would require a communautaire
spirit beyond that which either country has shown. Despite withdrawing
from the integrated military command of NATO
in 1966, in protest against American domination, and despite its advocacy
of a Europe-centred defence strategy, France
appears determined to maintain an independent nuclear capability. As
for the UK, for all the gesture
politics of a Labour government anxious to prove its European credentials,
it remained the case that in every real crisis - whether over Iraqi
or Serb or Libyan aggression - British forces have stood shoulder to
shoulder with those of the USA
in NATO solidarity.
In the EU's Treaties, the CFSP
is still a matter for individual governments. But the encroachment of
the Community is plain to see. The
appointment of a 'High Representative'
for foreign affairs (the former Secretary-General of NATO,
Javier Solana), the growing involvement of the Commission
and the frequent use of the language of statehood signify a challenge
to national sovereignties. It is of the nature of foreign and security
policy that for most of the time it appears to the electorate unimportant
compared with domestic issues; but on the rare occasions when it matters
to ordinary citizens it engenders powerful emotions, the more so when
lives are put at risk. The European
Parliament is not capable of serving as a safety valve for feelings
of the sort occasioned by war or by a threat to the vital interests
of a nation. Thus the absence of either a credible communal democracy
or shared historical memories poses a fundamental question mark over
the rationale of a collective defence
policy in the complex world which faces the next generation. (See
also European
Security and Defence Identity, NATO
and WEU.)
The Common Market
For many years the generally used term for the European
Economic Community, later re-named the European
Community. The term originally denoted the customs
union envisaged in the 1957 Treaty
of Rome. It is sometimes still used loosely (especially by those
who close their eyes to the reality of political integration) to refer
to the single market, now that the
wider political, social and economic set of policies and institutions
has become known as the European Union.
Common position (1)
The provisional position agreed by the Council
of Ministers after the first reading stage of legislation, that
is, after taking account of any amendments proposed or opinions offered
by the European Parliament.
Common position (2)
An agreed common stance of member states in foreign affairs or security
policy. Once such a position is reached, generally by unanimity,
any resultant action may be governed by qualified
majority voting.
Common transport policy
The Treaty of Rome envisages a common
transport policy, but not in language specific enough to presuppose
any particular course of action. In 1982 the European
Parliament brought proceedings against the Council
of Ministers for failure to carry out its Treaty obligations in
the transport area. The Court of Justice
delivered a split ruling: it supported the Parliament in limited respects,
based on general principles, but it held that the common
transport policy itself was too vague to be relied on in a court
of law.
There followed a variety of Commission
initiatives - on road safety, on frontier documents, on commercial lorries,
on rail links, on infrastructure (trans-European
networks), on safety at sea, on liberalisation of air fares, on
state airline monopolies, and so forth. Each of these, however, could
be dealt with as single market legislation
or under EU competition policy,
and although many aspects of transport are well suited to supranational
governance (air traffic control in Europe,
for example, is notoriously chaotic), it remains the case that a comprehensive
common transport policy is
unlikely to take shape unless the EU
becomes a fully federal entity.
Commonwealth of Independent
States (CIS)
Formed by Russia, Ukraine and Belorussia
in 1991, the CIS is a group of 12 sovereign
states that were formerly republics of the USSR. The highest of its
co-ordinating bodies is the Council of Heads of State, followed by the
Council of Heads of Government. The charter of the CIS
obliges members to respect existing borders, reject the use of force
for the settlement of disputes, fulfil the former USSR's treaty obligations
and accept unified control of nuclear weapons. There are also arrangements
for economic co-operation. These were seriously damaged with the collapse
of the rouble zone in 1993 and the introduction of national currencies,
followed by various failed attempts at creating a common
market. At present Belarus, Tajikistan and Russia
are in a new rouble zone, while Kazakhstan, Kyrgyzstan, Tajikistan,
Belarus and Russia have signed a common
market treaty.
The eleven smaller states are even more poverty-stricken than Russia.
Many have been edging back towards closer integration with Russia,
some to protect themselves against local Islamic militance, some out
of disenchantment with the consequences of independence: a common motive
is the need to secure access to Russian oil and gas. The exception is
Georgia, which has opposed Russia's war
with its neighbour Chechnya and is forging links with Turkey.
Communautaire
In the spirit of the Community, that
is, integrationist. In the corridors of Brussels, communautaire
denotes the ultimate in politically desirable attitudes.
Communitisation
The act of transferring a policy area from the control of the member
states to that of the Community's
institutions. There is no word for a transfer of powers in the opposite
direction, an eventuality prohibited by the doctrine of the acquis
communautaire.
The Community
See European Community.
Community law
The starting point for Community law
was the 1951 Treaty of Paris, which
established the European
Coal and Steel Community. The 1957 Treaty
of Rome extended its scope and in the Van Gend en Loos case in 1963
the European Court of Justice
(ECJ) ruled '... the
Community constitutes a new legal order ... for the benefit of which
the States have limited their sovereign rights
...' Unlike international law, Community
law goes beyond agreement between states and has a direct impact
on citizens and businesses throughout the EU.
Where it conflicts with national laws it claims superiority, based on
the Treaties of Accession, in which each
signatory state acknowledges the subordination of its own law.
Community law advances in three ways:
by new Treaties, which add to or amend the Treaty
of Rome, notably the 1986 Single
European Act, the 1992 Maastricht
Treaty and the 1997 Treaty of
Amsterdam; by the issuance of Regulations, Decisions and Directives,
at the instigation of the Commission
or the Council of Ministers;
and by case law created by the ECJ,
building on the Preambles or principles enunciated in Treaties or at
summit meetings. As Community law
expands, its clashes with national law grow more frequent; and since
the ECJ is Treaty-bound
to support an integrated Europe, the Court's
decisions generally go against individual countries.
No longer is European law an
incoming tide flowing up the estuaries of England. It is now like
a tidal wave bringing down our sea walls and flowing inland over our
fields and houses. Lord Denning, former Master of the Rolls, 1991
A Regulation counts as domestic law
without need for further action, being, in the words of the Treaty
of Rome, 'binding in its entirety and directly applicable in all
Member States'. In theory based on specific Treaty Articles but in practice
often reliant on general principles, Regulations are the main instruments
of the Common Agricultural and Common Fisheries Policies. Decisions
are similar but more narrowly focused, being binding only on 'those
to whom they are addressed'. Directives are binding in terms of the
result, leaving the form to the individual country. Normally, national
legislation has to be passed for a Directive
to become effective, but in the Francovich v. Italy
case the ECJ gave a citizen
the right to damages where a member state had failed to transpose a
Directive into domestic law.
In addition to these formal instruments, there is a grey area of Opinions,
Resolutions and Declarations, which, like the Treaty Preambles, are
often mistakenly dismissed as mere rhetoric. Although not enforceable,
these create a framework, paving the way for future legislation and
guiding the courts on the underlying purpose of Community
law. As such, they are a reminder of the difference between English
law, which is based on the literal meaning of the text, and Community
law, which serves a grand design.
The secrecy of the European law-making
process is protected in several ways. The ECJ
does not publish dissenting judgments. The Council
of Ministers meets privately, rarely issuing minutes of its deliberations.
The Commission's
unaccountability, to be expected in a bureaucracy, sits less happily
with that body's executive and legislative powers (including the unique
right of initiative to propose
new legislation). Lacking the checks and balances of the US constitution,
the Commission
and the ECJ in tandem
draft, interpret and enforce the law with a remarkable lack of transparency
considering the democratic nature of the EU's
membership.
The Treaties obtain their legal effect through enabling legislation;
for example, in the UK's case, the
European Communities Act
of 1972 enacted British accession to
the EEC and validated
the operation of Community law in
the UK. The 1972 Act was obliquely
worded with regard to the treatment of conflicts. It was clear that
Community law would be superior to
pre-existing English law and to subordinate regulations, such as Orders
in Council. It was less clear whether a subsequent Act of Parliament
would be overridden by the 1972 Act, since it is a fundamental constitutional
doctrine that no Parliament can bind its successors. This doctrine would
be in jeopardy if Parliament was to be bound permanently by the 1972
Act, unable either to revoke it or to enact any law which conflicted
with it.
The best view is that Parliament does still retain its ultimate supremacy,
in that it could repeal or supersede the 1972 Act if it did so with
that intent; but in the absence of an express provision, Community
law will continue to prevail over any Act of Parliament. Nevertheless,
given the UK's unwritten constitution
and the traditional reliance of its courts on precedent, the anxiety
has been expressed that, if ECJ
rulings continue to expand unchallenged, the doctrine might gain ground
with the passage of time that the sovereign power of Parliament had
been surrendered.
In countries with written constitutions the original draftsmen rarely
envisaged a progressive ceding of sovereignty.
Thus the situation of Continental countries is little clearer than that
of the UK. Each country has its
own way of resolving conflicts between Community
law and the national constitution. In France,
for example, there is a constitutional committee, while Germany
has a constitutional court. Scandinavian countries more often resort
to referendums. The Treaty of Amsterdam
marked the first specific assertion of the supremacy of Community
law over the constitutions of member states, but the effectiveness
of this assertion, which has received little attention, remains to be
tested.
'Community method'
The principle that the EU should
formulate guidelines, 'be associated' or instigate common action in
areas where the initiative was formerly reserved to the member states,
such as foreign and security policy and judicial co-operation. The 'Community
method' is often regarded as a first step towards full 'communitisation'.
Community preference
Community preference denotes
the CAP regime of import
tariffs and export refunds designed to advantage Community agricultural
produce as compared with produce from elsewhere. The system is a negation
of the principles of trade liberalisation (including those of the Treaty
of Rome) and is a cause of dismay in Eastern Europe
and in other impoverished countries which rely on farming but are faced
with import levies on their trade with the EU.
For the UK, the switch from Commonwealth
preference to Community preference
on joining the Common Market was
a painful and costly experience.
Community trade marks
Since 1994 trade marks throughout the European
Economic Area can be protected by registration with the Office for
Harmonisation in Alicante, Spain.
Competence
The right to decide or legislate in a given field of activity. A competence
is described as either exclusive or shared, depending on whether the
Community has the sole authority to act or whether member states
also have some jurisdiction. Under the Treaty
of Rome, the European
Court of Justice ultimately determines where a competence
lies; the Court is entitled to rule in its own favour when the supremacy
of Community law over national law
is in dispute. External negotiations fall within the competence
of the Community, rather than that
of individual member states, if the Court decides that the issue in
question would have been a matter for the
Community had it been internal to the EU.
This is called the doctrine of 'implied
competence'.
Competition and merger policy
Any anti-trust policy has inherent contradictions, and that of the
EU is no exception. The 1957 Treaty
of Rome, which is the foundation stone for EU
competition policy, prohibits price-fixing, market-sharing, discriminatory
agreements and abuse of dominant position, with the aim of promoting
free trade; but it is a sufficient defence to prove public benefit.
Thus state aid, theoretically forbidden as a distortion of markets,
is often justified by elastic interpretation of clauses in the Treaty
permitting aid for restructuring, regional problems and development.
The clearest example of systematic anti-competitive activities is the
Common Agricultural Policy, which is exempted
by the Treaty from the general ban on restrictive practices, on the
grounds that it aims to ensure rural prosperity and stability of food
supply.
The Commission,
subject to the ultimate jurisdiction of the Court
of Justice, is responsible for the execution of competition policy.
It has draconian powers, deriving from a Regulation
of the Council of Ministers,
which supersedes national law. It can enter premises without warning,
seize documents, terminate agreements and fine an offender up to 10%
of its annual turnover. In practice, many cases of suspected restraint
of trade are settled by negotiation under threat of sanction; others
are pre-cleared or exempted.
The progressive integration of the EU,
allied to the advent of the single market
and the determination of recent commissioners, particularly Leon Brittan
and Karel Van Miert, has led to an increasingly activist prosecution
of competition policy. Since 1990 the Commission
has also had specific authority to block or approve substantial mergers,
provided that at least 6250 million of the turnover of the companies
concerned is generated in more than one member state. The assumption
of this power was a sensitive matter, although some companies have found
that the Commission's
remit - to judge amalgamations on competition grounds - has provided
at least as much predictability as the politicised decisions often made
by national monopoly-policing authorities.
The Commission
growingly asserts extra-territorial jurisdiction. Restrictive practices
within the EU on the part of subsidiaries
of non-EU companies fall incontestably
within the Commission's
ambit, but alliances between European companies and, for example, US
companies (such as between British Airways and American Airlines) would
once have been considered the province of the relevant national regulators.
A particularly controversial Commission
action was its ruling in 1997 that the amalgamation of two US companies,
Boeing and McDonnell Douglas, could not go through unless they rescinded
20-year exclusive supply contracts with three US airlines to which Airbus
had ambitions to sell aircraft. Doubtless an element in the Commission's
decision to intervene was resentment at
the extra-territorial activity of US regulators. The Commission's
policy adds complexity to the regulatory hurdles which any sizeable
merger now faces.
The Commission's
attempts to curb state aid have often been frustrated by chauvinism,
notably its failure in 1998 to block France's
massive cash injection into Air France.
Nevertheless, it has had its share of successes, backed by the Court
of Justice. Among its best-known cases have been those of Renault
and Crédit Lyonnais; and
it has also taken on German state aid to Volkswagen and the Bremer Vulkan
shipyards, an attempted Belgian government bail-out of a steelworks
and British restructuring subsidies to Rover's Longbridge car plant.
In 1997 the Commission
embarked on a campaign to dismantle European telephone monopolies. These
activities have incurred the displeasure of governments, which take
an elevated view of their own motivation and are sensitive to any move
which might affect employment. On the
other hand, the Commission
is criticised by liberal economists for allowing too many subsidies,
nor has it yet made significant inroads into opening financial services
to free competition.
A new avenue for intervention currently
proposed by the Commission
concerns fairness of treatment of shareholders in takeover bids. Avowedly
basing itself on the successful London Takeover Code, the Commission
would like to introduce a Directive to
enforce similar provisions by law. This proposal would offer the shareholder
less protection than is afforded by the Code; but by substituting the
law for the voluntary nature of the UK
system, it would stifle flexibility
and open the way to delaying tactics, thereby helping to entrench management
and frustrate bids. The outcome of the proposal, which is being opposed
by the UK, remains uncertain.
Compliance
As a result of the European Parliament's
requests, the Commission
publishes an annual statistical table of individual states' application
of EU Directives. In its 1997 report
the Commission
noted that it was increasingly difficult to monitor compliance
and commended the value of individual citizens' 'vigilance' in reporting
cases of failure to implement Community legislation. Non-compliance
in fact comes in three forms - refusal to enact; refusal to comply;
and refusal to enforce. On most counts France
was reckoned to be the EU's least
obedient country at the end of the 20th century, followed by Italy
and Germany. (See also Directive.)
Compulsory expenditure
Compulsory expenditure is
the term for that part of the EU
budget (mainly CAP
expenditure) which arises directly from the fulfilment of Community
obligations. The European Parliament
has little say in this category of spending, which is decided by the
Council of Ministers. The Parliament
can, however, amend the non-compulsory section of the budget
within strict financial limits, subject, in case of disagreement, to
conciliation with the Council. From time to time Parliament and the
Council argue over the classification of items, which is not clearly
defined.
Concentric circles
The metaphor of concentric circles
is designed both to explain and to persuade. The idea is of a galaxy.
The central core consists of model EU
states, surrounded by less communautaire
members such as the UK and Denmark;
Norway and Switzerland
are more distant planets in a third circle; and aspiring candidates
with Association Agreements
are in a still more remote fourth circle. In the farthest outer ring
are temporarily rejected applicants such as Turkey
and Bulgaria, while the fringes of space
are occupied by countries in the Russian orbit, which have European
connections but no prospect of membership of the Union. The implied
message is of an irresistible centripetal pull towards the core.
There is considerable disagreement about whether it is proper for the
EU's institutions to be fully involved
in activities undertaken by the inner core alone, or whether the
Community's machinery should be reserved for policies common to
the entire membership of the Union. This seemingly arcane debate has
much importance for the future of the EU.
(See also Variable geometry.)
Conciliation procedure
Since 1975 budget disagreements between
the European Parliament and
the Council of Ministers have
been resolved (in cases where the Council cannot decide unilaterally)
in a 'conciliation committee' consisting of an equal number of representatives
of each body. As the powers of the Parliament have grown, the scope
of this procedure has expanded to embrace the resolution
also of legislative disputes. (For a fuller description of the process,
see Co-decision.)
Conference
on Security and Co-operation in Europe (CSCE)
See OSCE.
Congress of Europe
Modelled on the 1815 Congress of Vienna after the Napoleonic wars,
the Congress of Europe was held
in The Hague in May 1948 and attended by 800 eminent political, professional
and academic figures under the presidency
of Winston Churchill (it
was, however, boycotted by the then Labour government of the UK).
The Congress led to the foundation of the European
Movement and the Council of Europe
and indirectly to the European
Convention on Human Rights. But despite its 'Message to Europeans',
calling for a united Europe with its own
Assembly, Court of Justice and freedom
of movement, ideas and goods, the Congress did not develop concrete
ideas for reconstruction or integration and is remembered as a romantic
event rather than as the foundation of the EU.
Constituent assembly
The European Parliament has
often seen itself (most notably in the heyday of Altiero Spinelli)
as a 'constituent assembly',
that is, an elected body tasked with designing a constitution for Europe.
This has not found favour with national governments.
Constitution of the European
Union
The EU is not a legal entity and
has no formal constitution, but as it has come increasingly to resemble
a federal state, its Treaties, which perform a comparable function,
have grown in size and complexity. Its structure revolves essentially
round two texts:
The Treaty of Rome, now styled the
Treaty establishing
the European Community, governs inter alia the single
market, the CAP,
EMU, social
policy and the supranational institutions of the
Community. The intergovernmental
Titles of the Maastricht Treaty
cover the Common
Foreign and Security Policy, some aspects of Justice
and Home Affairs and the flexibility
('closer co-operation') provisions
which permit some limited exceptions to the principle that all member
states must be equally bound by the Treaties. The whole (including the
1951 Treaty of Paris constituting
the ECSC and
the 1957 Euratom
Treaty - both now of historical interest only) is consolidated into
the Treaty on European Union,
which, confusingly, is also the formal name of the Maastricht
Treaty.
The member states accept the acquis
communautaire and the supremacy of Community
law through their individual Treaties of Accession.
There are, however, proposals to replace this entire treaty-based system
by a new European constitution. Doubtless such a change would give rise
to bitter controversy.
Constitutionalisation
The process of formalising the EU's
relationship with national governments by means of a constitution. The
main elements in the new structure would be some version of the following:
the conversion of the Commission
into a government answerable to the European
Parliament ('parliamentarisation'); the creation of Europe-wide
political parties; the universal application of qualified
majority voting in the Council, which would become a senate representing
nations or districts; the abolition of national rights
to appoint commissioners; the harmonisation
of laws and judicial systems (including the establishment of Europol
as a 'European FBI'); and the subordination of existing sovereign powers
to a new EU Charter, under the
aegis of the Court of Justice. In
2000 these ideas, many of which had been canvassed in Europe
since the time of Altiero Spinelli,
were current in the Parliament, the EU's
traditional ideological front-runner, as well as in Germany.
The pretext for advancing them more actively was the fear of a loosening
of the EU's institutional structure
as a result of the Community's Eastward
enlargement. (See also Subsidiarity
and 'Treaty of Nice'.)
'Constructive abstention'
A procedure whereby individual member states (for example, neutrals)
may indicate dissent from an EU
foreign policy or security initiative without vetoing it. This mechanism
was introduced by the Treaty of Amsterdam:
previously unanimity had been required.
The intent was to ease the insertion of the EU
into the field of defence and foreig |