MEPs left Strasbourg for the Christmas break in the sure knowledge that once again major decisions affecting the future of the Union had been shelved for another day. While Austria's Chancellor Klima was anxious to emphasise that progress had been made during the Austrian Presidency, for example, on the need to reform the regional funds, he acknowledged there were major differences between the member states over budgetary contributions.
Next March was the target date for agreement on the Agenda 2000 proposals which are required to pave the way for enlargement. But with Germany, Holland and others anxious to fix limits on the budget and southern countries not wanting to lose regional and social funding, compromises will be needed if agreement is to be reached.
This point was taken up by European People's Party leader, Wilfried Martens (B, EPP), who urged all the member states to negotiate in a spirit of compromise; otherwise there was a danger that an over-simplistic approach based on defence of so called national priorities would threaten further integration and postpone enlargement.
The Party of European Socialist's leader, Pauline Green, felt, however, that progress had been made, not least with the Employment Pact and the commitment to jobs which, she felt, would be an important counter to the Growth and Stability Pact accompanying the launch of the new currency.
Creating new jobs, she said, was essential for the EU. She welcomed the agreement to allow member states to introduce lower rates for VAT on labour-intensive activities where there was no cross-border competition. And, she pointed out, this idea came from the European Parliament.
She also welcomed the commitment to human rights and tackling racism and called on EU leaders to try to stamp out any reference to extremist or racist politics during the European election campaign.
Uncertainty
Pat Cox (Munster, ELDR), however, warned there was an absence of any clear direction. While the Employment Pact was to be welcomed, it should in no way be seen as a replacement for member states' action and over-regulation. There was a growing tendency to carry forward innumerable issues for future presidencies.
The Union runs the risk of a prolonged period of uncertainty and crisis and stands on the threshold of sending deeply negative and dispiriting signals to the applicant states. Gerard Collins (Munster, UPE) said the suggestion that the EU budget should be frozen until 2006 means that the richer states are seeking to have the cost of enlargement met by the less developed states.
Countries which are net beneficiaries will have great difficulty in accepting such a proposal. These countries are situated to the south and west of the Union and are likely to benefit far less from enlargement than the better-off countries in central and northern Europe, who will have the advantage of proximity to the markets of the new member states.
Indeed, taking up the theme of jobs, Austria's Foreign Minister noted that, for the first time since 1992, unemployment on the Continent had dropped to below 10 per cent and that over the past year more jobs had been created in the EU than in the US.
The emphasis on employment at the Vienna Summit and agreement on a European Employment Pact underlined the priorities of the member states towards creating jobs and the recognition that an EU dimension could contribute towards this. EU education programmes such as Socrates and Leonardo also played a part in this process. In addition, Mr Schussel saw the recent reduction in base rates as a sign of confidence for the launch of the euro and the strength of Europe's economy.