What is happening in the EU now?

[SouthernDem2004]

Since their constitution failed and Germany is talking of abandoning the Euro what is going to happen to the EU?

[Stockholm]

1. Nothing much really...

The only decision that came out of the EU summit the other day was to shelve the "constitution" for the time being.

There was also no decision on the budget but from reading about the summit it must have been is an interesting meeting.

http://news.bbc.co.uk/1/hi/world/europe/4106250.stm

http://observer.guardian.co.uk/politics/story/0,6903,1509781,00.html

What it all boils down to is that the EU rolls on in its current form into the UK presidency.

[muriel_volestrangler]

2. Some think the failure to agree the budget is quite serious

because, with Blair taking over the rotating presidency, the chances of agreeing the budget in the next 6 months are zero (I don't think I've ever seen French and British leaders with such open contempt for each other). So if there'll be no movement on agreeing the 2007 budget until the start of 2006, it makes it difficult for countries (especially the new members) to plan.

[Stockholm]

3. Not necessarily

The Nice treaty will have to do the next couple of years. Remember it was all there was during the entry of the new member countries. Ok, it´s not very good but it works for the every day tasks.

"But Friday's acrimonious summit has opened a period of political uncertainty and financial paralysis that will make Europe more inward-looking, less self-confident and less able to play a global role, diplomats and analysts say. "

But it is not the first time, remember the Luxembourg compromise period, and the EU came out of it strengthened especially thanks to the ECJ.

IMO the heated debate was long overdue, do EU want a free-trade anglo-saxon (US/UK) model or a German-Franco Social model?

What is clear is that nothing will happen during the UK presidency. The Swedish PM stressed that his position on the budget does not reflect his position on ideas where the EU should be moving policy wise (I guess it´s the same for the others as well). But the CAP and the whole budget should have been modernised years ago - and there is no better opportunity than now.

[Kellanved]

4. nothing.

The UK and the Netherlands are blokcking any compromise on tha budget and the continental countries are too proud to give Blair a victory. SO, for the next six months nothing will happen.

As to Germany going out of the Euro: the reports are BS.