International Policy Analysis Unit European Policy, April 2007 Working group on European Integration* Plea for a European Social Protocol The future of the European Union depends on the other politicians, contributed the idea of a European social issue social protocol to the debate. This paper is to objectivate and to check various options in the discussion The European unification process has come to a halt. Reforms that are urgently required with regard to the way institutions operate have not materialised, despite the enlargement to 27 member states, clear competence delimitations are lacking just as is a definition of the values and targets of concerning the social dimension of the European constitution. A social protocol is the only option which makes it possible to align the constitution, on the one hand, to be more social, on the other hand, to avoid conjuring up a total failure by opening up the entire contents for new negotiations. the EU. The European conSummary It has to be borne in stitution – after the attempts of Amsterdam (1997) and Nice(2000) – marks an important breakthrough for an EU more capable of taking action, more democratic and more transparent. It is regrettable that despite the citizenoriented approach striven for, it is exactly these citizens themselves who, in France and the Netherlands, rejected the constitution with their No, even if this No only marginally and to a slight extent applied to the treaty itself. The European Peace and Single Market Project is no longer enough as foundation for the European integration for many a citizen. They demand a more active composition of the globalisation by the EU based on the understanding of a European social and community model. The future of the European Union thus depends decisively on the social problem. The revival of the European constitutional process paves the way to the opportunity to lay down the contents of a"Social Europe" at contractual level for the member states. The paper discusses the various options on the way to a more social EU constitution and advocates a supplementary social protocol. Such a social protocol must contain a commitment to social market economy and equality between the targets of competitiveness on the one hand, and combating social marginalisation and unemployment on the other hand. mind in the debate, that apart from the social argument, other reasons are given for the rejection of the constitution. It is therefore necessary to supplement the European constitution by a climate and energy protocol and a protocol on national sovereignty. Thus a "bridge", particularly for the citizens of Great Britain and the Netherlands, could be built to accept the constitution after all. As already found in the protocols appended to Many opponents of the constitution criticize that the EU policies are too orientated towards economy, the constitution, the additional protocols must be binding for all the member states. the constitution itself does not make an adequate conThe criticism concerning the lacking social orientatribution towards the development of a sociallytion of the European constitution particularly refers to minded EU. Corrections in this respect were necessary the contradiction regarding the significance imparted to achieve greater acceptance of the constitution to the social dimension in the EU. In the first section, among the citizens of the Union. Particularly in France, the constitution supplies qualitative progress in comwhere a repeated referendum is possible, modificaparison to the current treaties. Pluralism, nontions of the social alignment may be essential for the discrimination, tolerance, justice, solidarity and the success of the constitution in face of the current disequality of man and woman are defined as values of cussion. A greater emphasis should be placed on the the Union. The set-up of a social market economy, full social components and thus be a prerequisite for the employment and social progress are among the targets democratisation of the EU as intended by the constituof the European Union. In addition, a fixed constant is tion. In this connection Chancellor Angela Merkel and that the Union fights against social marginalisation and

Working group on European Integration: The new EU energy package is inadequate! Europäische Politik (02/2007) discrimination in general and promotes social justice citizens, it must, however, be more aligned to the so2 and social protection. Upon enforcement of the consticial aspect. The citizens expect the EU to actively structution the Charter of Fundamental Rights would beture globalisation based on the idea of a European socome legally binding, the citizens would be guaranteed cial and community model which is considerably difextensive social rights – from the right to strike to the ferent to that found on other continents. right to education all the way to protection from unjustified notice and dismissal. These points of progress as made were, however, not taken into account when The social dimension of the EU is a complex interacthe third section of the constitution was revised. A tion of different policies, dimensions and institutions. high level of employment instead of full employment is Full employment,„good work", social coherence, and still spoken of, an open market economy with free a high level of the quality of life of the citizens of the competition instead of a social market economy is Union call for investments in education and a healthy dealt with. Furthermore, the third section of the constienvironment just as an all-embracing health and contution gives precedence to ruling competitiveness and sumer protection scheme. To enhance the social dithe completion of the Single Market in contrast to the mension as a whole, on the one hand the necessary targets of social justice drawn up in the first section. In policies have to be shaped in those respective socioaddition it has not been possible to integrate new polipolitical areas for which the EU is responsible. Among cies and new instruments for the implementation of these, due to the priority given to the economic intethe named targets in the third section of the constitugration for decades, is the task of reformulating some tion. of the policies and realigning institutions. On the other Despite these weaknesses, the ratification of the constitution would be an important prerequisite for the EU to make progress. Based on the Treaty of Nice which is applicable today, the Union is centrally weakened on the long run in its ability to take action. The EU needs the reforms induced by the constitution to be able to fulfil its tasks. They have to be supplemented by a reinvigoration of their social dimensions, not only to cut back conflict potentials in France, but also to make the EU fit for the challenges of the 21 st hand, equality of social and economic tasks has to be provided, both to have a well-balanced relation in the sense of the European community model and to achieve endorsement and acceptance by the population of the EU and its added value. For this purpose the effects on employment, social coherence and the quality of life of the Union's citizens are to be considered in all the European resolutions. There are many phases on the way to a social Europe of which only four requirements of central importance are to be drawn up here: century. 1) The introduction of minimum social standards: In the EU the Single Market and the directly involved liberalisation policy is essentially within the competence Demands made on a social Europe of the European level, whereby social policies are still solely of national competence level. The protection of The call for a social Europe has not only become audible since the constitution failed in France. The European Peace and Economic Growth Project is no longer adequate for many, particularly the young Europeans, as a reason for the European integration. They demand steps from the EU to close the increasing crevice between poor and rich and to make a contribution towards more qualitative employment. In the range of European social policies some progress can, indeed be noted in the past years. To name among others the posting of workers directive, the anti discrimination policy, the equality polices, the Euro works councils, occupational health and safety, and the regulations governing the transferability of social insurance contributions. The Lisbon strategy also includes some approaches of social aspects to enhance the EU policies. If the EU is to come up to the expectations of the the market is within the European responsibility, whereby the social protection is a national matter. As a result of the effects of the Single Market, competition and liberalisation policy, the member states have ever less effective instruments with which a social protection can be formed in an appropriate manner. A possibility to reduce the two-way dumping competition between the member states without ceding national competence in social policies would be in the introduction of minimum standards. Apart form the harmonisation of corporate taxes, binding minimum wages, graduated and classified in industries, should be introduced throughout Europe. These could be defined by a percentage rate which is determined to be attained in relation to the living standard in the respective member state. It would have to be ensured that the rate guarantees for the livelihood and social participation of the employees. The introduction of binding

Internationale Politikanalyse International Policy Analysis Unit maximum working hours, notice protection regulations or the rights of temporary workers are also to be aimed at throughout Europe within this scope. 2) Introduction of an„Economic Government": The members of the Eurozone collaborate in extensive areas of their economic and currency policies. Nonetheless the Eurozone lacks an identifiable, steering committee for its common economic policies which is capable of acting democratically and responsibly. The main task of this steering body, a European"Economic Government", would be to co-ordinate the economic policies of the member states while involving the European Parliament and the social partners. 3) Realignment of the European Central Bank: The paramount aim of the European Central Bank is to guarantee price stability. The general economic policies within the Union may only receive its support, provided such action does not endanger the aim of price stability. This limitation of the aims competes with the social targets anchored in the first section of the constitution. The support of EU economic growth must be a target of the ECB. In case of deflation danger, an expansive currency policy is required, in case of revaluation pressure of the Euro an intervention on the currency markets. 4) Reform of the Stability and Growth Pact: A further reform of the stability and growth pact with the aim of striving for equal growth and stability would be an important contribution towards the reorientation of the EU. Its function as anchor for the stability of the economic policy can only be fulfilled by the pact if it also contributes towards the reduction of unemployment and towards social integration of the Union's citizens. Options on the Way to a more Socially-minded Constitution Government" would be possible by amending article I15 on the co-ordination of the economic and monetary union and new articles in the third part of the constitution. A re-alignment of the European Central Bank requires a modification of article I-30 and III-185, and a reform of its statutes. The realignment of the growth and stability pact would be possible by a reformulation of article III-184 in which the targets of the pact are drawn up. Furthermore, the third part could be adapted to the formulations in the first part of the constitution. In the third part of the constitution full employment would have to be pursued by the EU policies, not as currently formulated„a high level of employment." The economic policy would have to follow the principle of a social market economy which contributes to the social progress and social justice. Even if these improvements to the constitution would make an important contribution towards enhancing the social dimension of the EU, it may not be expected that a consensus can be brought about concerning these points. Neither are all governments prepared to accept this further development of the EU, nor are there any uniform ideas on central demands in the civil society. Furthermore, there is a danger that due to these modifications all the contents of the constitution will be at disposal again. The result would be a time-consuming renegotiation of the entire constitution. In the face of the current composition of the European Council, it may not be assumed that the result would truly be a greater emphasis on the social aspects, but rather a weakening thereof. This also applies if the reformulations are limited to the third part of the constitution as called for by some politicians. This would also lead to opening Pandora's box. The advice is therefore against the option of a reformulation of the constitution. 2. Separation of the third section of the constitution 1. Reformulation of individual articles Another option with which the inconsistency between A possibility by which the social dimension can be upthe targets in the first part and the policies in the third valued would be to reformulate some articles and to part of the constitution may be encountered would be supplement others. In this way the four abovein the division of the constitutional agreement. It is not mentioned points could be included in the constitupossible to simply cancel the third section as proposed tion. In the third part of the constitution the introducby some players. Many rules of the first part of the tion of binding minimum standards and corridors for constitution are only drawn up more precisely in the social rules could be provided in the section concerning third part and supplemented therein. It would, howsocial policies and/or in the section on economic poliever, be possible to summarise the articles in separate cies. The precise formulation of theses standards agreements on the basic principles, values and targets would be the object of European framework legislaof the EU, on the competencies and on the institutions tion. The call for the introduction of an"Economic and procedures on the one hand, and the legal stan3

Working group on European Integration: The new EU energy package is inadequate! Europäische Politik (02/2007) dards on the individual policies on the other hand, in 3. Supplement of the constitution by a social protocol 4 separate agreements. A further option to lay out the European constitution The result would be a constitutional treaty – that in a more social manner would be to supplement the could as alternative be called fundamental or basic latter by a social protocol. In such a supplement of the treaty – and a treaty on the policies of the EU. The constitution the already mentioned contradictions beformer would consist – with the exception of the techtween the parts I and III could be solved in favour of nical adaptations – of the unmodified parts I, II and IV the socio-political values and targets. In the legal iniof the constitution. The latter would be worked out on tiatives made by the EU commission, primarily the tarthe basis of the EC treaty. The third part of the constigets of the Single Market and a high competitiveness tution anyway consists by up to 85% of articles that are referred to. It understands a higher employment were taken over unchanged from the Nice Treaty. ratio and social progress as a self-evident consequence These articles have already been ratified and do not of this policy. The current development of the EU, require renewed confirmation. Only the modified and however, reveals that this automatism has not set in. A new articles would then have to be integrated into the social protocol should therefore be the clear commitexisting EC treaty that would then have to be ratified ment of the EU to the equal pursuit of the targets of in its reformed version. competitiveness and Single Market, on the one hand, This modification would have three effects which could make their contribution towards France and other countries accepting the treaties: and the combat of social marginalisation and unemployment as well as consideration for the social dimension on the other hand, in the sense of a social market economy, while showing respect for the principles of a 1. Many citizens criticised that the constitution was sustained development. Furthermore, the social comtoo long and too complicated. The actual constitupatibility clause(Art. III-117) already included in the tion or fundamental agreement would be considconstitution could be enhanced by making the evaluaerably shorter after division than the hitherto protion of socio-political consequents of EU ruling and the posed constitution. In some countries only the first social dialogue basic principles of EU policy. constitutional agreement would have to be presented to the citizens in a referendum after the division in a constitution and a treaty, in two treaties respectively. In such a protocol a statement should also follow in which it is made clear which economic system the Union will pursue on the long-term. Here again there are contradictory details in the constitution. The EU should 2. The social dimension of the EU would be enface up to its responsibility in the protocol regarding hanced. The values, targets and principles which the target of a social market economy while, at the mirror the commitment of the EU to a stronger same time, respecting the principles of a sustained desocio-political alignment of their policies would be velopment. sanctioned in the fundamental agreement. A further option is the introduction of an"Eco3. The word“constitution” awakened fears in many nomic Government" as an economic-political steering citizens of a European super state. If the text no committee for the Eurozone. As this will not be put longer was called constitution but rather fundatogether of representatives of all member states to bemental treaty on the policies of the EU, these fears gin with, it is absolutely possible, to anchor such and could be stayed abreast of. institution in a social protocol and not in the articles of A great advantage of this procedure would be that the modification would primarily be of technical nature the constitution. In later reforms of the constitution they can then be integrated in the Community acquis. which would not endanger the consensus of the conIn addition, the EU should commit itself in a social stitution where contents were concerned and thus protocol to the protection of services of general interwould also not lead to the necessity to re-negotiate est, particularly to the protection of acquired rights of individual articles. In order to align the policies of the health and social services. EU to the targets it would be sensible to introduce a so-called"Sunset clause" for the treaty on the policies. Within a fixed period of, for example, 10 years, the articles would have to be revised by a new convention to be called up and could then be aligned to the current Furthermore, the protocol could include a commitment of the EU to take legal action to realise European minimum standards in the sectors of social politics, social protection and employment policies. challenges of the EU. Indeed, there is a possibility that a social protocol is only signed by a few member states. An opt-out social

Internationale Politikanalyse International Policy Analysis Unit protocol would be contra-productive. If some member states withdraw from their trans-European social responsibility, this would be to the disadvantage of the other states which are prepared to face this task. It would not be possible to stop a negative spiral of competition for the lowest and cheapest social standards; a further weakening of the national social systems would be the result. Therefore the social protocol should become an integral constituent of the constitution and be ratified by all the member states just as the 36 protocols that have already been resolved, and which contain important constitutional aspects from the role of national parliaments all the way to the modification of the Euratom treaty. The social protocol is an option which certainly promises to be successful as this would not call for an opening of the constitution, nevertheless, however, binding supplements could be resolved which cannot be considered as being simple window-dressing by the opponents. 4. Resolution of a political declaration on a social Europe As alternative to a binding protocol the resolution of a political declaration of all EU heads of state and government could be conceivable. General declarations of intent of the heads of governments could be drawn up in this declaration in which they commit themselves increasingly to a social Europe. Similar as in a protocol it could be emphasised therein that the social targets and tasks are set at the same level as the economic tasks and in future new funds and instruments will be introduced to achieve these. Contrary to a social protocol a declaration is, indeed, easier to achieve as it is only resolved by the heads of state and government, however need not be ratified. However, it is only a declaration of intent without binding legal effect which, at best, may develop a political binding effect. the EU should be oriented at the target of adapting the conditions of living of the citizens of the Union at a high level. Without doubt the EU also has to accept and practice social responsibility in the scope of its policies. This has only been inadequately considered in the European constitution so far. The target of an intergovernmental conference on the constitution should be, neither to endanger the compromise achieved in the constitutional convention and in the subsequent government conference, nor to fob the citizens with symbolic Sunday knick-knack. Of the options drawn up here, the option of a binding social protocol that becomes a constituent of the constitution and which has to be signed and ratified by all member states seems to be the most convincing in this case. When deciding for this option of negotiation the result is not a renegotiation of the constitution and it can be plausibly imparted to the citizens that their fears are taken seriously and dealt with. To provide evidence that the EU is certainly able to deal with the challenges and to dissipate the fears of a European super state, a social protocol should be supplemented by a climate/energy protocol and a protocol on national sovereignty. If, in addition, the third part of the constitution is also outsourced, a further argument of the opponents in France, the Netherlands and other states could be dealt with: the European constitution would be shorter and more comprehensible without being weakened in its substance. Conclusions From the point of view of large sections of the population, a constitutional crisis is only part of a wider crises and of the question as to whether the EU is of benefit in connection with their life and plans for their future life. Not only in France, but also in many other EU states there are doubts as to whether the EU is striving for a sufficient balance between maintaining competitiveness and the protection of the European social model. Quite rightly the demand is that the policies of 5