Europe expects

Mighty Germany takes over the presidency of the EU on Monday. Mark Wood looks at some of what it hopes to achieve for Europe during its six-month term, from progress on the Constitution to strengthening the fight against illegal immigration, and how these plans might affect Malta.

Facing some 40 journalists from across the European Union in Berlin recently, minister after German minister sought to bring down the high expectations with which the country's forthcoming EU presidency is being viewed. The overriding message was: "We will push forward but let's be realistic about what we can achieve in these six months".

Yet the anticipation is, as it were, to be expected. Presidency of the EU entails a wide range of functions: leadership, management, coordination, agenda setting, representation of the Union beyond its borders. According to a recent research paper from the German Institute for International and Security Affairs, Germany's material and human resources not only make it better equipped than others to fulfil these functions but its current domestic political situation makes it more prepared for an active leading role in Europe than the other major member states, which face imminent leadership changes or unstable coalition majorities. The country has also been bolstered by an improved economic performance.

So what is Germany planning for its stint at the helm? At the top of its agenda, along with revitalising Europe economically, is breathing new life into the so-called European Constitution. Given French and Dutch rejections of the constitutional treaty in referendums last year, which some argue have killed it off, as well as British views on it which range from lukewarm to frosty, it is no wonder the German institute describes the task as a "tricky" one.

In short, Germany has been asked by its fellow member states to consult with them individually first and then submit a report to the European Council that will serve as a basis for the way forward on reform of the EU, primarily its institutions and decision-making capacity as envisaged in the draft Constitution. Malta, along with the majority of member states, has already ratified the constitution in its present form. It is possible that it may be called upon to ratify it again in some new incarnation.

However, what might result at the end of six months is all still very vague. True to its word Germany is being realistic about its prospects for anything binding, especially given that France will hold presidential elections in May. This means no clear French policy is likely until later in the year and France holds a pivotal influence in this issue.

From the meetings with ministers and other high-ranking officials it emerged that Germany expects to forge an agreement on procedure rather than substance - and perhaps on a change of name in order to facilitate the Constitution's passage.

More forthcoming on the issue than most, Matthia Wissman, chairman of the Committee on the Affairs of the European Union of the German Bundestag, said it was in Germany's interest to get as much of the Constitution through "as necessary".

"The whole institutional part is absolutely key. The EU cannot be governed with the same methods as when it had fewer members," he said.

It does not make sense to start the whole constitutional process again, he added, referring to the European convention that drafted the treaty over many months. Neither, in his committee's view, is asking for another referendum.

On the other hand they are open to a new name: "The less ambitious the name, the more ambitious the contents can be".

On another front, Germany also faces the daunting challenge of "shaping Europe's economic future", as it puts it. "Europe is the largest internal market in the world in terms of economic strength. The potential of this market must be exploited to boost growth and create new jobs," the presidency programme says.

To achieve these ends it plans to push for the further opening of markets in "growth industries" and the fostering of innovation, with the aim of making the European economy stronger on the global stage. For example, it intends to move closer to full liberalisation of postal services and to reduce the cost of making mobile phone calls abroad. It plans to promote innovation within SMEs via new forms of financing and by stimulating public demand for innovative products and services. Working with the European Commission, it aims to come up with precise initiatives to improve competitiveness in industries such as engineering, biotechnology and, of particular interest to Malta, clothing and textiles.

Ominously for some countries, including Malta, it is also looking to forge ahead with the idea of creating a single tax base for companies, believing strongly that this would enhance the competitiveness of European enterprises. Malta, with no corporate taxation system and a maximum 35 per cent tax levied on company profits, feels it has an important tool for attracting foreign investment. However, Germany is making it clear that tax rates are not on the agenda - it is only after harmonising the corporate tax base. The commission's legal proposal is planned for submission in 2008.

Under the heading "Growth and stability-oriented financial and economic policy", the presidency programme states that Germany will support other member states in their preparations for the introduction of the euro. Malta is planning to submit its application for eurozone entry towards the end of the presidency term.

However, when asked for specifics on what form that support might take, Finance Minister Peer Steinbruck's emphasis was rather on fairness of treatment, saying judgement of a country's readiness would be made on the same criteria already applied to other countries.

Another issue of vital importance to Malta is migration - and Germany appears intent on pursuing the fight against illegal immigration fairly aggressively while also focusing on issues of integration.

Its position is that the EU must pay equal attention to the south, southeast and east. It talks in its presidency programme of developing "innovative concepts which combine preventive cooperation with countries of origin and transit with increased Community assistance" while at the same time improving protection of the Union's external borders. It plans to extend practical cooperation on repatriation. And it intends to "focus intensively on the global approach to migration issues", which includes looking into the causes of migration, cooperating on development and humanitarian aid, reducing poverty and the readmission obligations of countries of origin and transit.

When asked whether Germany would do something about African countries' non-compliance with readmission obligations under the Cotonou agreement - an issue Malta has insisted should be given more importance by the EU - German Federal Minister of the Interior Wolfgang Schauble said: "We are already making efforts to improve readmission. The chances of success will be brighter if we work together, which is the basis of a proposal we have made with Poland, France and Spain". Indeed, on the agenda at the next interior ministers' council meeting will be a common EU asylum policy, which Malta is pushing for.

His reply to a question on the Dublin convention will be less to Malta's liking. Asked whether Germany would be in favour of amending the convention to allow illegal immigrants to be moved from one EU country to another - as a form of burden sharing which Malta is keen to procure - he said such a move would not help in the fight against illegal immigration.

On the other hand, in Malta's favour, Germany wants to strengthen the EU's border agency Frontex, which for two weeks last summer ran anti-illegal immigration patrols in the middle of the Mediterranean with resources from a number of countries including Germany. The European Commission has now asked Frontex to look into the possibility of operating permanent control and surveillance operations on the southern borders and the agency will be receiving more funds.

"The member states must provide the agency with enough personnel to allow the long-term deployment of joint teams of experts at illegal migration hotspots and all major border crossings," the presidency says. "To this end a pool of border police experts is to be formed at Frontex and officers from other member states are to be granted executive powers for joint border patrols." Referring to the recent EU-Africa conference on migration held in Libya, Mr Schauble said: "The Libya conference showed an element of solidarity with countries of southern Europe. Strengthening Frontex goes in the same direction".

In the context of fighting illegal immigration, the federal minister also spoke about the need to transpose into European law the Prum Treaty on cross-border police cooperation and exchange of information. So far the treaty has been signed by a number of EU countries that do not include Malta.

In the midst of all this, precisely in the middle of the presidency term, the EU will celebrate the 50th anniversary of the creation of the European Economic Community with the Treaties of Rome.

Germany is keen to put the message across that the EU has been "an unprecedented success story", uniting the continent in peace and guaranteeing previously unknown levels of prosperity and stability.

At a ceremony in Dublin, leaders will issue a joint declaration "calling to mind Europe's values and ambitions and confirming their shared commitment to resolving the tasks ahead".

Recently reunited, led by a Chancellor held in high esteem internationally and with an economy that may again become the engine of Europe, Germany may be the ideal place from which to issue this rallying cry as the EU struggles to find a common purpose.