03 November 2011

Jean-Claude Piris: An EU architect calls for two-speed union

In this FT Opinion article, Piris says that if, as William Hague suggests, the eurozone is a burning house with no exits, the first task is to put out the fire. But this is not enough. The house must be repaired, albeit on existing foundations, because it is the entire European Union that is becoming less efficient and less relevant.

It is time to admit that the enlargement of the EU from 15 to 27 members was too rapid. Europe’s citizens no longer understand the purpose of the EU, its political aims and what its geographical borders will be. They are lost. For all its increased powers, the European Parliament, the supposed repository of democratic legitimacy in Europe, is a relative failure.

Given the fundamental disagreements among the 27 members, a major revision of the EU treaties by the 27 looks out of the question in the short and medium term. Yet to continue on the current path is fraught with danger. It runs the risk of a union becoming more enfeebled, even of splitting at the next crisis.

It is just possible to imagine a centralised monetary union with decentralised budgetary and economic policies. But the chances of a continuation of the status quo are slim. Far better would be to consider a two-speed EU, which would include an avant-garde group, probably based on the current 17 members of the euro area. This could take a “softer” or a “bolder” form.

Under the softer option, willing euro members would fully exploit clauses in the treaties to develop more enhanced co-operation. When working together within the EU framework, members would have to respect the decisions taken by a parliament and a commission in which nationals of all 27 member states participate.

Under the bolder option, willing euro members would conclude an additional treaty compatible with international and EU law. This would contain additional obligations for them, as well as a definition of the organs and rules that would govern their supplementary co-operation in the best way possible.

The present EU set-up is no longer tenable. Trying to solve the problems within the current rules and with the participation of all Member States appears impossible. Creating a temporary avant-garde group, which is already imposing itself, could stem the EU’s crisis. It would also pave the way for greater democratic legitimacy, without changing the EU’s essential characteristics. The solutions are available. What is lacking is the political will.

Full article (FT subscription required)

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