Nicolas Schmit, the Luxembourg Minister responsible for relations with the European Parliament during the Luxembourg Presidency of the Council of the EU, presented the priorities of the Presidency to MEPs of the Committee on Constitutional Affairs (AFCO) on 15 July 2015.
"Institutional aspects are often considered to be limited to experts, yet that is where the issue whether the Union is truly democratic, transparent and inspires confidence lies". With these words Nicolas Schmit opened discussions and expressed his determination to explain to citizens that these are important issues.
Following EU Treaty reform, the feeling that a period of calm was needed was shared by many, but the resounding feeling was that many improvements were needed, in particular with regard to the functioning of the EMU, explained the Minister by way of an introduction. He is of the opinion that the democratic deficit is more than just a catchphras. It is something that we must continue to work or in order to regain citizens' confidence in the EU. This goal is a key priority of the Presidency which has given its work programme the title "A Union for the citizens". In order to win back citizens' confidence, it is necessary to explain and convince, using facts and method, argued the Minister before highlighting the seven main priorities on which the work programme of the Presidency is based.
Better Regulation
An Interinstitutional Agreement on "Better Regulation" is one of the priorities of the Presidency, stressed Nicolas Schmit. By the end of the year, he wants to reach an agreement to establish a balance between the need for high-quality legislation, the fact that the principle of subsidiarity must be applied, and that " we should not to reduce our capacity for regulation". In his opinion, this Interinstitutional Agreement is "very important' since it will "define interinstitutional relations' which is of great importance to citizens, given the impact it can have on the quality and functioning of the EU.
A number of MEPs expressed concern in that regard during the debate that followed. "It is not a question of limiting on the sly the powers and competences implied in the treaties", Nicolas Schmit reassured them. "Politics must prevail", he announced, underlining the fact that, although a work-in-progress, the EU is a political Union where decisions are ultimately taken by politicians. It is therefore for the two co-legislators - the Council and the European Parliament - to shoulder their responsibility. This is the spirit in which Nicolas Schmit wanted to alleviate concerns relating to the impact assessments: they are necessary but not above political powers. "We don't want to dismantle the social structure, which is already inadequate", added Nicolas Schmit, reassuring the MEPs that this is not the intention of Frans Timmermans.
The European Citizens' Initiative
The European Citizens' Initiative (ECI) is a tool of direct democracy which is "very important" for the Luxembourg Presidency, continued Nicolas Schmit who noted the determination of the European Parliament, expressed in an own-initiative report, to strengthen the operational framework of the ECI. The Council is prepared to support this idea and discussions in the Council will highlight what improvements need to me made, explained the Minister. He advocated a "pragmatic approach" on this issue.
The European Parliament's right of inquiry
The right of inquiry is an essential function of any parliament and, therefore, the European Parliament, and is provided for in the Treaties, stated Nicolas Schmit, who takes the view that it is a"'universally recognised fundamental prerogative of political control". During the previous parliamentary term, the European Parliament adopted a Proposal for a Regulation on the detailed provisions governing the exercise of the European Parliament's right of inquiry. The challenge is to determine "in respect of whom must the European Parliament exercise political control and how".
However, with regard to this sensitive issue, Nicolas Schmit explained that the position of the Council "does not appear to coincide with that of the European Parliament" and several legal opinions have been requested from the Council's Legal Service. Nevertheless, Nicolas Schmit affirmed that "it is necessary to make progress on this issue".
"I am ready to discuss with you this issue which is dear to your hearts", stated Nicolas Schmit following the debate. But, in view of the sometimes high expectations of some MEPs who fear that the Council considered the European Parliament's vote on this issue in 2012 to be a"hostile act", he had to clarify that the Presidency of the Council is not mandated to put forward proposals, but rather to work on what has already been presented and to find the middle ground. He stressed his intention to make every effort to "see what concerns the Council has and to identify possible and credible common areas with regard to the position of the European Parliament".
European Electoral Reform
Nicolas Schmit then referred to an own-initiative report which is currently being prepared on the reform of the European Electoral Act 1976. "I am prepared to maintain contact with the AFCO Committee on this sensitive issue, in so far as it falls within the national scope", stated the Minister who believes that it is necessary to "make progress on this issue by adopting a pragmatic approach and analysing what is possible, what is feasible, what improvements can be made and how certain administrative absurdities can be eliminated".
Questioned about this during the debate that followed, Nicolas Schmit stated that adjustments needed to be made in order to harmonise electoral laws by laying down fair rules such as, for example, fixing time-limits for submitting electoral registers, which vary from one country to another.
Managing a monetary zone is not possible without political power
Nicolas Schmit was questioned several times during the debate on institutional problems which came to light during the economic crisis and, in particular, with the agreement finally reached with Greece on 13 July.
"The construction of the Economic and Monetary Union (EMU) is flawed", he stated and, while he considers that there are still improvements to be made, he believes that the Five Presidents' Report is, in that regard, "a good start"'.
And, while he understands the concerns of some MEPs with regard to initiatives that risk complicating the European Union even more, Nicolas Schmit also stated that he intends to invite eurozone Ministers of Employment and Social Affairs to discuss the social aspect of the EMU during an Informal Meeting of Ministers of Employment, Social Affairs and Equal Opportunities the following day. The challenge is to define the scope of the objective to earn a ‘social triple A’ set by the Presidency and the approach to integrate the social aspect into the governance framework at EU level. "The problems are slightly different with regard to a monetary zone", he explained to MEPs, some of whom put off the idea of creating institutions developed in parallel to existing EU institutions.
"A higher European interest rate has occasionally been ignored in recent times", admitted Nicolas Schmit who shares this view with several MEPs. It is "in limbo because the institutions are also in the dark", he explained: they are not designed to handle the crisis we are in, in so far as the EMU was created with "blissful optimism" at a time when we thought that the worst crises were behind us. Like several MEPs, Nicolas Schmit believes that the Community method alone will make it possible to identify a higher European interest rate. He would like to re-establish it and ensure that certain aspects are brought back within its framework.
Questioned on the need to plan for an orderly exit from the eurozone, Nicolas Schmit acknowledged that it is "necessary to amend the Treaties", but he qualified the question, which he believes demands caution, by asking when. First of all it is necessary to "restore confidence in the European project", he stated, which will be achieved only through the way in which the EU is perceived by the citizens.
There is the issue of democratic accountability within the EMU and there is no easy answer, responded Nicolas Schmit to comments from MEPs. The Minister observed that political governance in the eurozone had not been planned for. However, we have realised today that managing a monetary zone is not possible without political power.