European Council head Donald Tusk on Tuesday unveiled a package of EU reforms demanded by British Prime Minister David Cameron in return for backing the country's continued membership of the bloc.
Here are the main points of the Tusk reform package which will now have to be agreed with Cameron's 27 EU peers at a summit on February 18-19.
- LOTS OF PAPER -
EU leaders will have to wade through a thicket of paperwork: a letter from Tusk, a draft decision of EU leaders that will be legally binding, a declaration on competitiveness, and three European Commission declarations.
- EURO 'INS' VERSUS 'OUTS' -
Britain is not part of the 19-nation euro single currency bloc and jealously guards the pound and the City of London, one of the world's largest financial centres, against any encroachment by Brussels.
France however has led opposition to anything that would impinge on eurozone decision-making.
Tusk spells out a mutual accommodation -- non-euro countries must help, not hinder, eurozone integration in exchange for their rights as non-euro states being recognised.
"The respect for these principles is backed up by a draft decision establishing a mechanism that while giving necessary reassurances on the concerns of non-euro area member states, cannot constitute a veto nor delay urgent decisions," he said in a letter outlining the proposals.
In addition, the EU will aim to increase its economic competitiveness -- another of Cameron's demands -- by cutting red tape and reducing undue burdens on business.
- SOVEREIGNTY -
As with the euro, Britain has chafed at oversight from Brussels and Cameron wants a clear opt-out from the bloc's onwards march towards "ever closer union".
"It is recognised that the United Kingdom, in the light of the specific situation it has under the (EU) treaties, is not committed to further political integration," the text of the Tusk proposals says.
To give that provision more teeth, national parliaments will be able to challenge and reject EU legislation if they can muster a 55 percent majority among the 28 member states under a "red card" system.
The EU's current "yellow card" system -- using a term taken from football -- only allows parliaments to demand an explanation of EU laws.
An EU official said this simple majority mechanism meant all member states would be put on an equal footing -- for example Malta would have as much say as Germany's Bundestag.
Economic powerhouse Germany is often criticised for supposedly bullying smaller member states who lose out under the EU's qualified majority system.
- MIGRATION/WELFARE CURBS -
Cameron's demand to curb welfare benefits to EU citizens working in Britain for four years is the biggest sticking point, with critics seeing it as undercutting the bloc's core principle of freedom of movement.
The draft concedes there is a "pull factor" whereby differing social security systems attract workers from less well off member states, distorting the single market where all are meant to be equal.
Accordingly, there will be an "alert and safeguard mechanism that responds to situations of inflow of workers... of an exceptional magnitude over an extended period of time".
Crucially, a member state can apply such a mechanism for up to four years but the text notes that such limitations should be gradually reduced over that period.
The provision will apply to all member states, who will have to ask for clearance in the European Council and the European Commission, the bloc's executive arm, before going to a qualified majority vote of EU states.
However, in practice EU officials say they expect only Britain to qualify and to apply.
On this issue, Tusk stressed in his letter the need "to fully respect the current treaties, in particular the principles of freedom of movement and non-discrimination".
European Council head Donald Tusk on Tuesday unveiled a package of EU reforms demanded by British Prime Minister David Cameron in return for backing the country’s continued membership of the bloc.
Here are the main points of the Tusk reform package which will now have to be agreed with Cameron’s 27 EU peers at a summit on February 18-19.
– LOTS OF PAPER –
EU leaders will have to wade through a thicket of paperwork: a letter from Tusk, a draft decision of EU leaders that will be legally binding, a declaration on competitiveness, and three European Commission declarations.
– EURO ‘INS’ VERSUS ‘OUTS’ –
Britain is not part of the 19-nation euro single currency bloc and jealously guards the pound and the City of London, one of the world’s largest financial centres, against any encroachment by Brussels.
France however has led opposition to anything that would impinge on eurozone decision-making.
Tusk spells out a mutual accommodation — non-euro countries must help, not hinder, eurozone integration in exchange for their rights as non-euro states being recognised.
“The respect for these principles is backed up by a draft decision establishing a mechanism that while giving necessary reassurances on the concerns of non-euro area member states, cannot constitute a veto nor delay urgent decisions,” he said in a letter outlining the proposals.
In addition, the EU will aim to increase its economic competitiveness — another of Cameron’s demands — by cutting red tape and reducing undue burdens on business.
– SOVEREIGNTY –
As with the euro, Britain has chafed at oversight from Brussels and Cameron wants a clear opt-out from the bloc’s onwards march towards “ever closer union”.
“It is recognised that the United Kingdom, in the light of the specific situation it has under the (EU) treaties, is not committed to further political integration,” the text of the Tusk proposals says.
To give that provision more teeth, national parliaments will be able to challenge and reject EU legislation if they can muster a 55 percent majority among the 28 member states under a “red card” system.
The EU’s current “yellow card” system — using a term taken from football — only allows parliaments to demand an explanation of EU laws.
An EU official said this simple majority mechanism meant all member states would be put on an equal footing — for example Malta would have as much say as Germany’s Bundestag.
Economic powerhouse Germany is often criticised for supposedly bullying smaller member states who lose out under the EU’s qualified majority system.
– MIGRATION/WELFARE CURBS –
Cameron’s demand to curb welfare benefits to EU citizens working in Britain for four years is the biggest sticking point, with critics seeing it as undercutting the bloc’s core principle of freedom of movement.
The draft concedes there is a “pull factor” whereby differing social security systems attract workers from less well off member states, distorting the single market where all are meant to be equal.
Accordingly, there will be an “alert and safeguard mechanism that responds to situations of inflow of workers… of an exceptional magnitude over an extended period of time”.
Crucially, a member state can apply such a mechanism for up to four years but the text notes that such limitations should be gradually reduced over that period.
The provision will apply to all member states, who will have to ask for clearance in the European Council and the European Commission, the bloc’s executive arm, before going to a qualified majority vote of EU states.
However, in practice EU officials say they expect only Britain to qualify and to apply.
On this issue, Tusk stressed in his letter the need “to fully respect the current treaties, in particular the principles of freedom of movement and non-discrimination”.
