BELGIUM ASSUMES the EU’s rotating presidency from Spain in two days’ time, taking charge of Europe’s political agenda amid crisis in the euro zone and acute instability in its domestic politics.
High-level Belgian sources say the top priorities of the presidency are to advance a sweeping programme of economic and regulatory reforms and to secure the establishment of Europe’s new diplomatic corps by the first anniversary of the enactment of the Lisbon Treaty on December 1st.
The presidency must also reach agreement with the European Parliament on the EU’s budget for 2011, a process in which MEPs are likely to flex new oversight powers they gained under Lisbon in advance of the looming negotiation of a budget plan for the years 2013 to 2019.
The presidency will be led by caretaker prime minister Yves Leterme as talks on a new coalition continue following a general election three weeks ago in which Flemish nationalists and French-speaking socialists prevailed. Mr Leterme’s five-party coalition collapsed this spring due to a long-running dispute over electoral boundaries outside Brussels.
Amid fear of prolonged political stalemate over divisive constitutional reform issues, a coalition pact is considered unlikely before the autumn and some observers believe the caretaker government may well remain in situ for the six-month duration of the presidency.
However, high-level diplomatic and political sources insist the political situation will not derail plans for the presidency.
With Spain’s presidency overshadowed by the Greek crisis and the loss of market confidence in Spanish public finances, the Belgians want to avoid any escalation in the sovereign debt crisis.
Although European Council president Herman Van Rompuy presides over the assembly of EU leaders, Belgian ministers will chair monthly meetings of EU ministers across the spectrum of political portfolios.
Following a political agreement last week between EU foreign policy chief Catherine Ashton and leading MEPs on the structure of the European External Action Service (EAS) – as the diplomatic corps will be known – caretaker foreign minister Steven Vanackere hopes to secure approval from his fellow ministers next month on the structure of the new service.
Agreement is still to be reached with MEPs on the staffing and financial regulations underpinning the new service. But Mr Vanackere, a Christian Democrat, wants Baroness Ashton to be in a position to make high-level appointments very soon.
The economic portfolio will be managed by long-serving finance minister Didier Reynders, leader of the French-speaking liberals, who may be squeezed out of government in any new coalition.
Belgian sources say Mr Reynders will concentrate his efforts on a new pan-European financial regulation system, a tax on banks to insure against the costs of any future rescues and a tax on bank transactions.
Mr Reynders believes new European regulators should have primacy over national regulators but faces opposition to that from British chancellor George Osborne. Britain and the Czech Republic also oppose a transaction tax.
Separate talks under Mr Van Rompuy’s chairmanship are geared at reaching agreement on new governance rules for euro and non-euro countries by October. However, Mr Reynders is known to favour setting up a special “convention” of EU leaders to develop an overarching reform package.
