European institutions threaten to reject treaty on members’ finances

By Ann Cahill, Europe Correspondent, Copenhagen

Friday, January 13, 2012

THE battle to devise an EU treaty governing member states’ finances faces a new hurdle with both the European Commission and the European Parliament threatening to reject it unless they have a role.

The latest draft has been significantly watered down — reducing the chances that Ireland will have to hold a referendum and increasing the likelihood that Britain may sign up to it. However, clauses giving a greater role to the EU’s institutions have disappeared, leading to MEPs and the Commission warning that it could weaken the union.

Commission president Jose Manuel Barroso said they could only support it if it was fully compatible with EU treaties and the community method — where the commission acts on behalf of member states — as well as being seen as protecting smaller countries.

"It is an intergovernmental treaty but the commission can only support it if this agreement does not weaken the EU as a whole, does not break the EU, is not a threat to European unity. We are very clear about this and this is why all EU countries should be associated with it if they share the goals."

French President Nicolas Sarkozy and German Chancellor Angela Merkal have been criticised for presenting EU leaders with what has been seen as a fait accompli.

Mr Barroso, addressing this issue, said: "We regret any kind of development that could mean a division of Europe could be detrimental to our common pursuit. We need more co-operation and we can do it without undermining the basic principle of solidarity among all member states."

He was in Copenhagen for the handing over of the EU presidency from Poland to Denmark.

Members of the European Parliament have been highly critical of the latest treaty draft, saying all meaningful clauses have been cut out.

"In fact they feel that it has now become a charade with no need for a treaty change as everything in it could be dealt with using normal EU legislation," said a parliament spokesperson.

Talks will continue on the draft up to the January 23 deadline. EU leaders are expected to sign off on it at the end of the month.

This appeared in the printed version of the Irish Examiner Friday, January 13, 2012