Belgium takes over EU presidency

Belgium has assumed the presidency of the EU after Spain was at the helm for the past six months. Spain, which had successfully presided over the EU three times, in 1989, 1995 and 2002, did not have an easy presidency. It was overshadowed to a considerable extent by Europe's debt crisis and its own fragile economy, as well as teething problems with the entering into force of the Lisbon Treaty.

Furthermore, an EU-US summit planned for May was cancelled after US President Barack Obama said he couldn't attend due to a busy schedule, while a summit of the Union for the Mediterranean due in June was postponed until November because of tensions in the Middle East.

The Spanish EU presidency did preside over a free trade agreement between the bloc and central America and the re-launch of free trade talks with Mercosur (Argentina, Brazil, Uruguay and Paraguay). It was also successful in persuading EU leaders at last month's summit to agree to make bank stress tests public, which many analysts says is fundamental in restoring calm in the markets.

On the whole, Spain had to deal with difficult circumstances, both in the EU and domestically - where it had to introduce unpopular austerity measures and an overhaul of its rigid labour markets - this meant some of its priorities for the EU presidency, such as gender equality and improved relations with the Maghreb, were sidelined.

Belgium's EU presidency comes in the aftermath of last month's inconclusive general election (not unusual for Belgium), which saw the New Flemish Alliance, which wants gradual independence for Dutch-speaking Flanders, gaining the largest number of seats in Parliament.

The Belgian government heading the EU presidency, led by Prime Minister Yves Leterne, a Flemish Christian Democrat, is only a caretaker government; a new administration is expected to take over in a few months' time.

This might not seem to be the ideal situation for a country at the helm of the EU, but Belgium is highly experienced in EU affairs, having already held the presidency 11 times and having some excellent diplomats.

The fact that Herman Van Rompuy, the president of the European Council - a post created by the Lisbon Treaty - is a former Belgian prime minister (and like Leterne also a Flemish Christian Democrat), could work in Belgium's favour.

Leterne is expected to adopt somewhat of a low profile during this presidency; he knows he will not be prime minister for much longer and is comfortable with allowing Van Rompuy, a fellow countryman, more space in presiding over the EU.

During a recent press conference to discuss the Belgian presidency, Leterne acknowledged that the role of the rotating EU presidency is "more limited now", meaning Belgium is at ease with the Lisbon Treaty, which it believes should allow Van Rompuy and Catherine Ashton, the High Representative for Foreign Affairs and Security, more space to fully establish themselves.

Of course, the EU presidency still has a very important role to play and Belgium is expected to push through a package of financial regulations including new rules on hedge funds as well as to forge an agreement on greater economic co-operation throughout the bloc.

Belgium's EU presidency programme was formally adopted by the Cabinet and Belgium's constituent regions last month. The main economic priorities include tackling the economic crisis with measures to increase the surveillance of financial markets, the promotion of green jobs and innovation and the transition to a 'green knowledge economy'.

The main social issues of the Belgian presidency are the promotion of social cohesion by fighting poverty and stressing the EU's positive role in areas such as health and ageing, including pension reform. On the environment and climate change, the presidency will have to prepare for the UN climate conference in Cancún in December, certainly not an easy task.

In the area of justice and home affairs the Belgian presidency is committed to implementing the so-called Stockholm Programme, which defines the framework for EU police and customs cooperation, rescue services, criminal and civil law co-operation, asylum, migration and visa policy for the period 2010-2014.

The Belgian presidency will also continue with the EU's enlargement policy - as usual, Turkey's EU bid will present the greatest challenge - and is committed to putting in place the bloc's new diplomatic corps.

Perhaps the EU's greatest test during this presidency will be the attempt to forge an agreement on increased economic co-operation between the member states, and Van Rompuy will present a final report on economic governance at the EU summit in October.

The EU has already agreed to greater surveillance and coordination of national budgets as from next year and it will be interesting to see how much further the bloc is willing to go in this area.

Innovation policy is expected to be one of the highlights of the Belgian presidency, and EU leaders will debate a new 'Research and Innovation Plan' at their October summit, with the focus likely to be on intellectual property, research funding, public procurement and innovation infrastructure.