Brussels, 29 May 2015
112th PLENARY SESSION OF THE EUROPEAN COMMITTEE OF THE REGIONS
– 3 JUNE 2015 –
ITEM 4
BACKGROUND BRIEFING
IMPROVING THE FUNCTIONING OF THE EUROPEAN UNION:
LISBON TREATY AND BEYOND
Submitted by the Secretary-General
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EN
112th PLENARY SESSION OF THE EUROPEAN COMMITTEE OF THE REGIONS
– 3 June 2015 –
Item 4
Background Briefing
"Improving the functioning of the European Union: Lisbon Treaty and beyond"
1.
Institutional and political background
The European Parliament's committee on constitutional affairs (AFCO) is working on two reports
related to the institutional set up of the European Union.
1.1
"Improving the functioning of the European Union building on the potential of the
Lisbon Treaty" (co-rapporteurs: Elmar Brok (EPP-DE) and Mercedes Bresso (PESIT)).
The aim of this report is to explore the areas where the Lisbon Treaty has hitherto unrealised potential
e.g. enhanced cooperation, permanent structured cooperation on defence and specific Eurozone
provisions).1 The report will be ready in September/October 2015. In the European Commission, the
secretariat-general is in charge and the responsible Commissioner is Frans Timmermans. (The launch
of a common AFCO-CoR follow-up study to this report, additionally taking into account the
European Parliament's Europe 2025 report, is currently the subject of discussions between president
Markku Markkula and AFCO chairwoman Danuta Hübner.)
1.2
"Possible evolutions and adjustments of the current institutional set up of the European
Union" (rapporteur: Guy Verhofstadt (ALDE-BE)).
This report will be tabled at the end of 2015 and will examine what Treaty changes need to be
envisaged after having realised the full potential of the Lisbon Treaty. The report will enable the EP to
formulate a comprehensive Treaty amendment proposal according to Article 48 TEU Treaty
amendment initiative giving a clear mandate to the European Convention to be established for
preparing an eventual Treaty change.
1
The following shadow rapporteurs have been appointed to handle this matter: Kazimierz Michał Ujazdowski, Charles Goerens,
Barbara Spinelli, Sven Giegold and Fabio Massimo Castaldo. An opinion on the report will be issued by the BUDG committee;
Jean Arthuis is the rapporteur.
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A joint draft working document has been prepared for both EP reports assessing the current context
and challenges and making proposals in four areas: economic governance, democracy and
accountability, foreign policy and institutional set up.
The EP is also acting in light of the integration of the Treaty on stability, coordination and economic
governance into the EU's legal framework and the announcement that the UK will be holding a
referendum on its EU membership, which is already giving rise to discussion between the Member
States on a possible agenda for the reform of the way in which the EU works.
The EP's stated goal is to propose, during the 2014-2019 term of office, an institutional framework
capable of ushering in real "political union", and as a result the potential of the current treaties will
need to be fully harnessed and/or the treaties will need to be revised.
The debate to be held during the European Committee of the Regions' plenary session on 3 and 4 June
2015 with the three EP rapporteurs (Ms Bresso (S&D/IT), Mr Brok (EPP/DE) and Mr Verhofstadt
(ALDE/BE)) will enable it to prepare its contribution with a view to the formal EP referral, drawing
attention to the main political recommendations and institutional proposals adopted in June 20142 and
the 50 recommendations set out in the report on the future of the European Committee of the
Regions3.
With the reform proposed by the EP on the cards, the following issues will be discussed in detail:
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the structure of the EU, particularly the differentiated approach and unity of the EU (including the
co-existence of several treaties and the use of enhanced cooperation);
the balance of powers between the executive and legislative bodies (roles and competences of the
European Council, the Council of the European Union, the EP and the European Commission
which beg the question of Community initiative and democratic control);
the distribution of competences and the implementation of the founding principles of subsidiarity
and proportionality (impact of the future inter-institutional agreement on better lawmaking and
implementation of the Better lawmaking package presented by the Commission on 19 May 2015;
EU policies, particularly the completion of Economic and Monetary Union and the internal
market, the establishment of an Energy Union and the consolidation of the EU's external and
defence policy;
the recasting of the EU's democratic functioning (way in which the Council functions, reform of
the European Elections Act, reform of the European Citizens' Initiative.
A first exchange of views was held in AFCO on 26 February 2015, and president Markkula
represented the CoR at an AFCO hearing on the institutional future of the European Union within and
beyond the Treaty of Lisbon on 26 May 2015.
2
3
Resolution on Proposals of the Committee of the Regions for the new European Union legislative mandate (COR-2014-0233300-00-RES-TRA).
Resolution entitled Empowering regional and local authorities in the European Union (COR-2014-02332-00-00-RES-TRA.
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The AFCO committee has asked the EP to consult the CoR (as well as the EESC) on the two owninitiative reports. Following the debate with the three EP rapporteurs Bresso, Brok and Verhofstadt at
the June plenary session, the CoR will adopt a resolution at its July plenary session after holding an
exploratory debate on the resolution on 22 June at the CIVEX meeting.
2.
Key challenges identified in the EP working document and related CoR messages
The EP working document underlines that the current political context is not favourable for
substantial Treaty reform and stresses that most existing challenges can be addressed under the
existing Treaties or by inter-governmental treaties like the Fiscal Compact. The latter should,
however, be transposed as quickly as possible to the EU Treaty framework. The changes that will
have to be achieved through an amendment of the Treaties are mostly related to achieving a fullyfledged political union.
2.1
Economic governance, economic and monetary union and political union
Scope of the EP working document:
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The institutional structure of European economic governance and the EMU must be re-assessed
and integrated into the Union's legal structures, and democratic control by the EP must be
increased;
The EU's own resources system must be revised and better use must be made of flexibility
provisions given by the Treaty (so-called "passerelle clauses");
The single market must become a genuine economic and political union (including an energy
union, a digital union, the harmonisation of social standards, security and defence unions, etc.).
New and more effective instruments should be adopted to boost the European economy,
employment and competitiveness; the "Juncker Plan" is an important first step, but is not
sufficient on its own;
A wide public debate must be launched involving national parliaments, local authorities,
European citizens and civil society, in order to define a vision and narrative for Europe
(including a comprehensive division of responsibilities and powers and with the aim of
transforming the EU into a system closer to national systems).
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Possible CoR messages on economic governance, the EMU and political union:
Items relating to the Bresso/Brok report
 To make the economic policy coordination of the European Semester more efficient and
representative, the CoR emphasises that local and regional authorities must be more closely
involved by all EU institutions and Member States, along the lines of the partnership principle
governing the Structural Funds. This includes in particular:


involvement in the economic dialogue between the Commission, the European Parliament
and national MPs (e.g. participation in the European Parliamentary Week);
when the Treaty on Stability, Coordination and Governance in the Economic and Monetary
Union is incorporated into the legal framework of the European Union, a horizontal clause
should be introduced requiring the CoR to be consulted in areas of shared responsibility for
measures coordinating economic and employment policies and in areas of support,
coordination and ancillary action.
 The CoR asks the European Commission and the Member States to follow the logic and criteria of
multi-level governance when implementing the Europe 2020 Strategy.
 The EU budget must be less dependent on direct contributions from Member States, and the EU's
own resources must increase. The CoR calls for the integration of the proceeds of the envisaged
financial transaction tax into the system of EU own resources.
 To foster local public investment, the European Commission, the European Investment Bank and
the CoR should develop a common methodology in order to assess where financing is a problem
and which types of investment can best deliver tangible and sustainable results.
 The CoR asks that better account be taken of the territorial dimension in any further proposal on
deepening the EMU, and asks the European Commission and the Member States to avoid negative
financial impact on local and regional authorities. All major dossiers should be submitted for exante territorial impact assessment.
 The CoR, and the local and regional authorities it represents, must be fully involved in the public
debate to define a vision and narrative for Europe (through decentralised communication,
hearings and citizens' dialogues). As foreseen in the CoR cooperation agreements with both the
Commission and Parliament, cooperation with both institutions' representations in the Member
States must be made more effective and should include cooperation with the communication
services of local and regional authorities on the ground.
 The CoR supports the EP proposal to develop roadmaps for the completion of the political
union (energy union, digital union, harmonisation of social standards, security and defence
unions, etc.) and to define the minimum content of a "union" according to the principles of
conferral and subsidiarity. The CoR requests that it be consulted on the preparation of these
roadmaps and on the definition of the minimum content of a union.
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Items relating to the Verhofstadt report (requiring Treaty change)
The CoR proposes that the Treaties should recognise the principles of multi-level governance and
partnership in the adoption and implementation of EU legislation.
2.2
Democracy and accountability
Scope of the EP working document:
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The 28 national procedures for the EP elections must be replaced by a uniform European
electoral procedure;
Transparency in the ordinary legislative procedure must increase and the "passerelle clause"
(Article 48(7) TEU) to shift from unanimity to qualified majority voting or to the ordinary
procedure must be used;
Greater use must be made of enhanced cooperation (Article 20 TEU and Articles 326–334
TFEU);
The procedures for the European Citizens' Initiative must be simplified.
Possible CoR messages on democracy and accountability
Items relating to the Bresso/Brok report
 The CoR supports the EP request to make systematic use of the "passerelle clause" to increase
qualified majority voting (QMV) and the application of the ordinary legislative procedure
(which also envisages CoR consultation).
 The CoR supports the EP request for the creation of a uniform European election procedure for
the European Parliament elections.
 As the EU body representing local and regional authorities in the legislative procedure, the CoR
should be more involved in the negotiations on a new Interinstitutional agreement on better
law-making (and not as a mere stakeholder). Concrete proposals are as follows:
 that the CoR should be more involved in the strategic planning process of the legislative
cycle, based on the implementation of its existing cooperation agreements with the European
Commission and the European Parliament;
 more engagement in the pre-drafting phase of legislative EU proposals, including through
territorial impact assessments;
 participation as an observer with speaking rights in Council working parties dealing with
policy areas that fall under the CoR's mandatory consultation procedure;
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 increased transparency in the ordinary legislative procedure by opening the trialogue
negotiations to the CoR as an observer with the right to speak in areas where CoR
consultation is mandatory. The CoR should also be invited to participate in preparatory
meetings for trialogue meetings to which the CoR has been invited.
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2.3
As regards the Transparency Register, the CoR reiterates its request for equal treatment of
local and regional authorities and their associations.
Foreign Policy
Scope of the EP working document:

The lack of a coherent and united EU foreign policy and the requirement of unanimity often
prevent the EU from taking action:
 The definition of foreign and security policy should be set by the Council of the European
Union instead of the European Council in order to allow for the use of the flexibility clause.4
 The competences of the Commission Vice-President and High Representative of the Union
for Foreign Affairs and Security Policy should be better used (including switching to QMV
on the proposal of the High Representative, the use of the permanent structured cooperation
procedure to create a defence union, and the establishment of a strategic framework for
common foreign and security policy).

An EU agency should be established in order to increase intelligence and anti-terror cooperation.
Possible CoR messages on foreign policy
Items relating to the Bresso/Brok report

The CoR supports the use of the tools proposed by the Lisbon Treaty in the area of common
foreign and security policy, especially the use of qualified majority at the request of the High
Representative, or permanent structured cooperation (Article 42(6) and Article 46 TEU), which
can be used with limited scope (similar to enhanced cooperation).
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The CoR proposes stepping up cooperation with the EP through priority files and relevant
bodies (e.g. ARLEM, CORLEAP and the relevant EP delegations) and committees (AFET) to
increase the effectiveness of the Neighbourhood Policy.
4
Article 352 TFEU enables the Council to act if action by the Union should prove necessary and if the Treaties have not provided
the necessary powers. However, this clause is framed by a strict procedure and by certain restrictions in terms of its application
that imply an increased role for the Parliament, in terms of consent.
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2.4
Institutional structure and functioning of the EU
Scope of the EP working document:
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Rules regulating the nomination, size and gender balance of the European Commission must be
adapted;
A better distinction between the role of the European Council and the Council of the European
Union is needed and the accountability of the President of the European Council to the EP should
increase;
Dialogue between national parliaments and EU institutions must increase. A body composed of
national and European parliamentarians should be created to serve as an interlocutor with the
European Council;
The potential of differentiated integration must be considered to pursue a closer union. In this
context, a new kind of EU membership could be considered (for example, differentiating
between Eurozone and non-Eurozone Member States).
Possible CoR messages on the institutional structure and function of the EU
Items relating to the Bresso/Brok report
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The CoR asks for the creation of a specific Council configuration on EU cohesion policy and
other financial instruments concerning investment in Europe, allowing for a strategic debate on
investment in EU infrastructure (including energy infrastructure).

The CoR requests to be formally included in the dialogue between national parliaments and
EU institutions, based on its prerogatives in the control of subsidiarity. It also supports the
active involvement of regions with legislative powers/regional parliaments in this cooperation,
given that the subsidiarity principle (Article 5(3) TEU) explicitly contains a local and regional
dimension.
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The CoR asks to be involved in any future European Convention preparing Treaty revision, as
it was in the previous Convention.
Items relating to the Verhofstadt report (requiring Treaty change)

The CoR should be granted the status of an EU institution and its name should be changed to
the "European Committee of the Regions".

The European Commission should be made more accountable to the CoR on EU legislative
proposals where consultation of the CoR is mandatory. This should involve more extensive
reporting on follow-up of CoR opinions and the right for the CoR to send formal questions to
Commissioners.
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The revised Treaty should explicitly recognise the principle of multi-level governance and
stipulate that the annual report on better law-making should also include a section on multi-level
governance in the adoption and implementation of EU legislation.

The CoR requests to be included in the early warning mechanism foreseen in the subsidiarity
protocol and that parliaments from regions with legislative powers should have access to
COSAC.
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The CoR wants to be a recognised observer with the right to speak at meetings of the Council
dealing with EU cohesion policy and areas related to investment in Europe.

The CoR requests to benefit from the consent procedure for legislative proposals relating to
economic, social and territorial cohesion.
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