The Treaty of Nice was agreed in December 2000 by the 2000 Intergovernmental Conference (IGC) and signed in February 2001. Paving the way for further EU enlargement, it provided a solution in further reforms to the institutions and decision making process which had been started at the Treaty of Amsterdam.
Background of Nice
Amsterdam and the 1996 IGC's reform had failed to prepare the EU institutionally for enlargement, postponing reform in this area. A protocol annexed to Amersterdam had attempted a temporary solution, but one that largely went ignored.
Further reform was galvanised by the publishing of 'Agenda 2000' in 1997 by the Commission, a blueprint for further enlargement. The Luxembourg European Council agreed to open accession negotiations with six potential new member states, which at the time it was considered the EU's 1997 structure would be able to accommodate, however opinions changed, especially in the aftermath of the 1999 Kosovo conflict and with an additional six states entering into accession negotiations.
With this enlargement on the horizon the 2000 IGC was called. The objective at Nice was clear: to deal with the ‘Amsterdam leftovers’, that is to say, finish the reforming of the institutions and to prepare the EU for further enlargement.
Opening in February 2000, the Portuguese-led Council had a limited agenda: dealing almost soley with these 'leftovers'. This was not to the liking of all the institutions: the EP criticised the 'excessively narrow agenda' and the Commission introduced a Wise Men's Report in 1999: boldly recommending a total re-organisation of the Treaties and integrating the Western European Union (WEU) into the EU.
During negotiations, further conflicting interests emerged. An inter-governmental agenda, mainly from France and President Jacques Chirac, wanted to see more power given to the Council and less to the Commission. In contrast the Commission - led by President Romano Prodi - wished more power to the Commission over the Council. There also existed the more extreme opinions, such as Germany's Foreign Minister Joschka Fischer promoting a vision of a parliamentary European Federation.
After an agreement was reached in December 2000 the Treaty was signed by European leaders on February 26th 2001 and entered into force February 1st 2003.
Changes Made at Nice
Summary
The major changes made at Nice and the declarations and protocols annexed to it concerned further reform of the institutions and the decision making process. In preparation for enlargement it altered the composition of the European Parliament (EP) and the Commission, as well as increasing the jurisdiction of the Court of First Instance (CFI) to mitigate the work load of the Court of Justice.
In addition, to streamline the desion making process and make it more democratic, the Treaty extended both QMV and co-decision in the EU Community (1st Pillar) and improved conditions for achieving enhanced co-operation in all three pillars.
Significant Implications
Robert A. Jones (2001) evaluating the Treaty shortly after it was signed identified several areas where significant implications for specific policies occured:
Justice and Home Affairs: An extension of QMV and co-decison in areas under the Third Pillar (PJCCM) Although the application of many of these changes were defered to be decided at a later date.
Defence: Removing most reference to the Western European Union (WEU) from the TEU, the Treaty of Nice also anned a declaration on the European Security and Defence Policy (ESDP) calling for the Council to take a decision as soon as possible in 2001 to make ESDP operational. However Defence was excluded from enhanced co-operation.
Social Policy: Despite a clash of UK opposition and French support the Treaty furthered Social Policy to a limited extent. The Social Protection Committee (SPC) was established in article 144, ECT, and by unanimous decision the Council was allowed to decided if co-decision was to be extended into areas concerning rights for workers.
The Environment: Declaration on article 175 of the EC Treaty, asserting a determination for the EU to play a global role in environmental protection.
Trade: QMV extended to included intellectual property disputes. However education, health, social services and culture issues are all excluded.
Full List of Changes
To the Institutions:
- European Parliament:
o Composition:
§ From 2004 Elections onwards there will be a new distribution of seats. Number of seats available increased from 700 to 732.
§ The 15 Member States present at Nice are to have their seats reduced from 626 to 535 by 2009 elections.
§ However, until then membership may increase to reach 732 and even exceed that number to accommodate for new Member States.
o Other Changes:
§ Article 191 of the EC Treaty supplemented by a legal base to allow for a statute of European level political parties and rules concerning their funding (via co-decision procedure).
§ Regulations and general conditions governing the performance of the duties of members of the EP will be approved by QMV in the Council. (excluding taxation) (alteration of article 190 of the EC Treaty)
§ EP will be able to initiate procedures to have acts be declared void without having to demonstrate specific concern (alteration of article 230 of the EC Treaty.)
§ Extended Co-decision and EP now consulted on human rights by the Council.
- The Council
o QMV:
§ Number of votes allocated to each Member State has increased. In particular, the largest states: the 5 biggest holding 60% of the total votes (up from 55%)
§ Qualified Majority threshold to be fixed in successive treaties, 71.31% of votes required for the 15 at Nice, increasing to 73.91% with 27 states.
§ Allows for the possibility for a member of the Council to request verification that the QMV represents at least 62% of the total population of the EU.
- The Commission
o Composition:
§ Deferred imposing a ceiling on the number of members
§ One member per Member State (meaning Germany, France, the UK, Italy and Spain all had to give up their additional Commissioner)
o Appointment:
§ Nomination of the president to be decided by European Council QMV and approved by the EP.
§ The Council and Commission president then select the remaining members from the proposals of Member States, once more requiring the approval of the EP.
o Increased powers for the President:
§ Re-wording of Article 217 of the EC Treaty to allow for more presidential powers.
§ Can now control the internal structure of the Commission, allocating portfolios and reassigning responsibilities, appointing the vice-presidents and the ability to demand a commissioner's resignation with the rest of the Commission's approval.
- The Community Courts
o Composition:
§ The Court of First Instance (CFI) allows for one Judge from each Member State.
o Distribution of Responsibilities between the Court of Justice and CFI:
§ CFI becomes the common law Judge for all direct actions and action for damages (alteration of articles 230 and 235 of the EC Treaty).
§ Court of Justice retains all other proceedings, however the Treaty allows for future statute to redirect more responsibilities to the CFI.
§ Court of Justice also maintains community law and preliminary rulings in this area, but the CFI gains preliminary rulings in specific matters (again to be directed by statute) (alteration of article 225 of the EC Treaty)
o Specialised Chambers
§ To be set up concerning specialist areas to settle disputes between the community and its servants, such as the arena of intellectual property.
§ Allows for an appeal to the CFI.
o Community Patent
§ Allows for a unanimous Council to grant the Court of Justice the power to settle any EU community intellectual property disputes.
- Court of Auditors
o Explicitly stipulates the Court of Auditors will consist of one national from each member state.
o Court of Auditors may establish internal chambers to deal with specific reports or opinions.
- European Central Bank
o Allows for changes to the rules on decision making – can be made by unanimous European Council decision ratified by Member States.
- European Investment Bank
o Introduces possibility of altering the composition of the board of directors and the rules of decision making by a unanimous Council decision.
- Economic and Social Committee
o Members cannot exceed 350 (alteration of articles 258 and 263 of the EC Treaty)
o To consist of representatives of economic and social components of organised Civil Society (alteration of article 257 of the EC Treaty)
- Committee of the Regions
o All members must hold a regional or local electorate, or be held accountable to an elected assembly.
To the Decision Making Process:
- QMV
o Widens scope of QMV with 27 new provisions changed to totally or partially QMV.
o Five main areas of QMV extension can be identified:
§ Taxation
§ Social Policy
§ Cohesion Policy
§ Policy on asylum and immigration
§ Common commercial policy
- Co-decision
o Extended to 7 / 27 of the new QMV provisions
o Most post-Nice legislation will now be co-decision (however this excludes any legislation decided by QMV prior to Nice, such as agriculture or trade).
- Enhanced Co-operation
o Minimum number of Member States required to establish enhanced co-operation is 8 (changed from needing a majority) It will stay at 8 even after enlargements.
o European Community (1st Pillar) veto of enhanced co-operation has now been removed, though a Member State may still appeal to the European Council and assent of the EP is still required.
o CFSP (2nd Pillar) possibility of enhanced co-operation, the Council may authorise enhanced co-operation in areas of military / defence by QMV.
o PJCCM (3rd Pillar) Veto of enhanced co-operation also removed.
Other Changes:
- Fundamental Rights
o Supplies additional methods to accuse a Member State of breaching fundamental rights and address recommendations to them.
o Now if a 1/3 of Member States, the EP or the Commission accuse a Member State if they receives a 4/5ths from the Council and assent of the EP.
- Security and Defence
o Adopts ESDP
o Amends article 17 of the Treaty on the EU removing provisions defining the relations between the Union and the WEU.
o Political and Security (PSC) may be authorised by the Council to manage a crisis and during the crisis control all relevant elements of CFSP.
- Judicial Co-operation in Criminal Matters
o The proposition by the Commission to create a European prosecutor to protect the financial interests of the community rejected.
o Supplement article 31 of the Treaty on the EU, creating the task of ‘Eurojust’ - a unit of second magistrates to contribute to the co-ordination of national authorities responsible for criminal proceedings.
- Inter-institutional Agreements
o Declaration stating relations between community institutions should be based on co-operation upholding Treaties.
o Agreements may not change or supplement provisions of the Treaty. (and must be ratified by the EP, Council and Commission)
- Social Protection Committee
o Introduces the Social Protection Committee established by the Lisbon European Council.
- Name of the Official Journal
o Name of the ‘Official Journal of the European Communities’ changed to the ‘Official Journal of the European Union’ (altering article 254 of the EC Treaty)
- Financial Consequences of the expiry of the ECSC Treaty
o Identified need to transfer ECSC funds to the European Community (which expired 2002) to be used in coal and steel research matters.
o To be further decided in a protocol annexed to the Treaty of Nice.
Declarations and Protocols Annexed to the Treaty
Protocols
- The Protocol on the Enlargement of the European Union (EU)
- The Protocol on the Statute of the Court of Justice and the Court of First Instance
- The Protocol on the financial consequences of the expiry of the Treaty establishing the European Coal and Steel Community (ECSC Treaty)
- The Protocol on Article 67 of the Treaty establishing the European Community (EC Treaty)
Declarations
Twenty-four Declarations were annexed to the Treaty of Nice, chief amongst these being:
- Declaration on the Future of the Union (Declaration 23)
o Declaration that with Nice completed the EU is ready for the accession of more Member States.
o Call for a deeper and wider debate about the future of the European Union
o 2001 Swedish and Belgian Presidencies, in co-operation with the Commission, to host this debate, focusing on:
§ Demarcation of responsibilities between the Union and Member States.
§ Charter of fundamental rights of the EU.
§ Simplification of Treaties.
§ Role of national parliaments.
- Venue for the European Councils (Declaration 22)
o From 2002 onwards, one European Council per presidency to be held in Brussels.
o Once membership exceeds 18 members, all formal meetings to be held in Brussels.
The Irish Referendum
To be put into motion all EU Treaties require the consent of the Member States. In Ireland’s case, ever since ‘Crotty vs. An Taoiseach’: the Irish Supreme Court had ruled Ireland’s constitution could only be amended by referendum.
To the surprise of the international community the Treaty of Nice was initially rejected by Ireland in its June 2001 referendum, meaning that changes made at Nice would not be able to go ahead. This situation was later resolved as the Treaty suceeded in being accepted in a second referendum held in September 2002 (this time a Treaty that allowed for Ireland to opt out of any common defence policy.)
Proponents of the Treaty of Nice
Arguments supporting the Treaty of Nice as a success include those claiming it:
- Was necessary to allow for further enlargement.
- Did so by streamlining the decision making process, such as the introduction of QMV, and readjusting the institutions to ensure they could cope with additional members. Thus preventing the danger of leaving the institutions bogged down with too many members and conflicting opinions that would have made decision making near impossible.
- Gave more power to the elected elements of EU, namely through co-decision.
Criticisms of the Treaty of Nice
Arguments purporting Nice to be a failure include those claiming:
- Enlargement could have legally continued without the Treaty.
- The EP issued a statement summarising the general feeling that the Nice Treaty did not go far enough, failing to reform sufficiently. CAP, cohesion, tax regulation and social legislation were all ducked out on or scarcley addressed. Indeed the aim of the Treaty to simplify previous treaties was believed to have failed. Thus future Treaties will again be required to amend the system.
- It was a technocratic treaty, centralising more power in the hands of unelected and unaccountable institutions.
- Changes to voting in the Council was in favour of larger states (Germany, France, Britain, Italy, Spain and Poland) who recieved treble their original votes under QMV while smaller states recieved approximatley only double.
Bibliography / Further Reading
- Jones, R.A. (2001) The Politics and Economics of the European Union (2nd ed.) Edward Elgar Publishing limited, Cheltenham
- Phinnemore, D. (2004) Towards European Union in Cini, M. (2004) European Union Politics Oxford University Press, New York
- Summary of the Treaty of Nice, Europa website, accessed 06/02/09 http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/03/23&format=HTML&aged=0&language=EN&guiLanguage=en
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