Fischer moves into the driving seat of European reform

BRUSSELS: Gloomy November days make the European Quarter in Brussels more desolate than ever, as darkness falls on its rain-…

BRUSSELS: Gloomy November days make the European Quarter in Brussels more desolate than ever, as darkness falls on its rain-soaked streets halfway through each afternoon. But there is an unusual thrill in the air this week as Europe's policy-making class wake up to the fact that the European project has entered an exciting new phase in its development.

Mr Valéry Giscard d'Estaing's presentation last week of a preliminary draft of Europe's new constitutional treaty marks the start of serious work for the Convention on the Future of Europe.

The convention's working groups have been toiling for months to find a consensus on such issues as the future role of national parliaments in the EU and the economic governance of the euro-zone. But the most important questions, relating to the reform of the European institutions - the Commission, the Council of Ministers and the European Parliament - have yet to be addressed.

If the change of pace at the convention has given Brussels something to think about, the fall-out from last month's meeting of EU leaders in the city has made European politics more interesting than it has been for years.

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A deal struck between the French President, Mr Jacques Chirac, and the German Chancellor, Mr Gerhard Schröder, on farm subsidies left Mr Tony Blair's nose out of joint. Mr Blair and Mr Chirac exchanged harsh words, and Mr Chirac accused the British Prime Minister of gross rudeness. Relations are so bad that the two men have postponed an Anglo-French summit due to take place next month.

Meanwhile, French and German officials have been hailing the return to full power of the Franco-German motor that has driven the European project for half a century. Downing Street is taking such talk seriously, and the mood among Mr Blair's European advisors is reported to be bleak.

There are a number of reasons for the revival of the Franco-German relationship, the most important of which is the conservative Mr Chirac's enhanced authority now that he is no longer obliged to govern with a Socialist government in Paris.

Iraq has played a role in isolating Britain from the other two big powers in Europe, and London's influence on European foreign policy has been undermined by what is perceived as Mr Blair's unquestioning support for President George Bush.

Until recently, Britain was confident that the convention would reflect its own preference for strengthening the role of national governments at the expense of the European Commission. Mr Blair, Mr Chirac and Mr Jose Maria Aznar of Spain made a joint proposal to create a permanent President of the European Council with significant powers in such areas as foreign policy, a move that would have effectively downgraded the Commission to a secretariat.

Britain's influence at the convention was enhanced by the presence of Sir John Kerr, a former head of the Foreign Office, as Mr Giscard's right-hand man. And the British government's representative at the convention, Mr Peter Hain, who has just been promoted to Welsh Secretary, has been among the assembly's most impressive performers.

Last week, however, a political mega-star joined the convention in the shape of Germany's Foreign Minister, Mr Joshka Fischer. Mr Fischer is not only one of the most charismatic politicians in Europe; he can also claim with some justification to be the intellectual father of the convention.

In a speech at Berlin's Humboldt University 2½ years ago, Mr Fischer called for a constitutional treaty to determine what should be decided in Brussels and what should be left to national governments. He predicted that an enlarged EU would only function properly if there was "a constitutional re-foundation of Europe".

Regarded as fanciful at the time, Mr Fischer's speech now appears prophetic, and he is clearly determined to ensure that the opportunity for radical reform presented by the convention should not be missed.

He has signalled that, although he accepts that there should be a President of the European Council, such a figure should have no real power. Instead, he wants to enhance the role of the Commission President, who would be chosen by the Parliament.

Germany is presenting itself as the champion of the Commission and of small states, which will number 19 out of 25 in an enlarged Union. Mr Chirac has said that he wants France and Germany to adopt a joint approach to the convention. With his commitment to the Franco-German alliance and his intellectually vigorous approach to EU reform, Mr Fischer could be just the man to make such a deal.