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Glossary of Institutions, policies and enlargement of the European Union
(Starting with "L")



© European Communities, 1995-2007

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Laeken Declaration

One year after the Treaty of Nice and the Nice Declaration, which calls for institutional reform to be pursued beyond the 2000 Intergovernmental Conference (IGC 2000), the European Council, meeting in Laeken, adopted a Declaration on the Future of the European Union, or Laeken Declaration, on 15 December 2001, committing the Union to becoming more democratic, transparent and effective.

This Declaration poses 60 targeted questions on the future of the Union, around four main themes: the division and definition of powers, the simplification of the treaties, the institutional set-up and moving towards a Constitution for European citizens. It convened a Convention bringing together the main stakeholders to examine the fundamental questions raised by the future development of the Union so as to prepare in as broad and transparent a way as possible for the 2004 IGC.

The Convention concluded its work on 10 July 2003 after reaching agreement on the proposed Constitutional Treaty. On 18 June 2004 the Heads of State or Government of the Member States reached a compromise agreement on the draft European Constitution prepared by the Convention.

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Legal personality of the Union

The two Communities (European Community and Euratom) making up the European Union each have legal personality. However, the Treaty on European Union does not contain any provisions on the Union's legal personality even though the Union comprises the two Communities and two areas of intergovernmental cooperation, namely common foreign and security policy (CFSP) and police and judicial cooperation in criminal matters.

The European Community has the power to conclude and negotiate agreements in line with its external powers, to become a member of an international organisation and to have delegations in non-member countries.

The question of the Union's legal personality has essentially been raised in connection with international relations, especially the power to conclude treaties or accede to agreements or conventions. The Union does not have institutionalised treaty-making powers, i.e. international capacity to enter into agreements with non-member countries. However, it pursues its own objectives at international level, whether by concluding agreements through the Council of the European Union or by asserting its position on the international stage, especially in connection with CFSP.

The Constitution, which is in the process of ratification, provides for the European Union to have legal personality.

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Lisbon Strategy

During the meeting of the European Council in Lisbon (March 2000), the Heads of State or Government launched a "Lisbon Strategy" aimed at making the European Union (EU) the most competitive economy in the world and achieving full employment by 2010. This strategy, developed at subsequent meetings of the European Council, rests on three pillars:

  • An economic pillar preparing the ground for the transition to a competitive, dynamic, knowledge-based economy. Emphasis is placed on the need to adapt constantly to changes in the information society and to boost research and development.
  • A social pillar designed to modernise the European social model by investing in human resources and combating social exclusion. The Member States are expected to invest in education and training, and to conduct an active policy for employment, making it easier to move to a knowledge economy.
  • An environmental pillar, which was added at the Göteborg European Council meeting in June 2001, draws attention to the fact that economic growth must be decoupled from the use of natural resources.

A list of targets has been drawn up with a view to attaining the goals set in 2000. Given that the policies in question fall almost exclusively within the sphere of competence of the Member States, an open method of coordination (OMC) entailing the development of national action plans has been introduced. Besides the broad economic policy guidelines, the Lisbon Strategy provides for the adaptation and strengthening of existing coordination mechanisms: the Luxembourg process for employment, the Cardiff process for the functioning of markets (goods, services and capital) and the Cologne process on macroeconomic dialogue.

The mid-term review held in 2005, for which a report was prepared under the guidance of Wim Kok, former Prime Minister of the Netherlands, showed that the indicators used in the OMC had caused the objectives to become muddled and that the results achieved had been unconvincing.

For this reason, the Council has approved a new partnership aimed at focusing efforts on the achievement of stronger, lasting growth and the creation of more and better jobs. As far as implementation is concerned, the coordination process has been simplified. The integrated guidelines for growth and employment will henceforth be presented jointly with the guidelines for macroeconomic and microeconomic policies, over a three-year period. They serve as a basis both for the Community Lisbon Programme and for the National Reform Programmes. This simplification in programming makes it possible to monitor implementation more closely by using one single progress report.

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Luxembourg compromise

The Luxembourg Compromise, signed on 30 January 1966, provides that "Where, in the case of decisions which may be taken by majority vote on a proposal of the Commission, very important interests of one or more partners are at stake, the Members of the Council will endeavour, within a reasonable time, to reach solutions which can be adopted by all the Members of the Council while respecting their mutual interests and those of the Community".

It ended the crisis between France and its five Community partners and the European Commission, caused by the gradual transition from unanimous voting to qualified-majority voting as provided for in the Treaty of Rome with effect from 1966. The French Government, which gave precedence to the intergovernmental approach, expressed its disapproval by applying the "empty chair" policy, i.e. abstaining from Council proceedings for seven months from 30 June 1965 onwards.

However, the Compromise, which is only a political declaration by Foreign Ministers and cannot amend the Treaty, did not prevent the Council from taking decisions in accordance with the Treaty establishing the European Community, which provided for a series of situations in which qualified-majority voting applied. Moreover, qualified-majority voting has been gradually extended to many areas and has now become normal procedure, unanimity being the exception. The Luxembourg Compromise remains in force even though, in practice, it may simply be evoked without actually having the power to block the decision-making process.

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