The Hindu : A crucial year ahead for E.U.

Online edition of India's National Newspaper
Wednesday, Jan 07, 2004

International

International

A crucial year ahead for E.U.

By Batuk Gathani

BRUSSELS JAN. 6. The year 2004 is widely rated as a crucial one for the European Union as it expands from its current 15 members to 25 in May.

As Europe prepares to end the divisions of the past, disputes of the present are casting a long shadow on the Union. The Irish Prime Minister, Bertie Ahern, whose country took over the six-monthly rotating presidency of the E.U. on January 1, has warned against the "two-speed '' approach to the Union's integration.

The "two-speed" expansion strategy has been mooted by France and Germany, which want a faster integration.

On this issue, Mr. Ahern's stand appears to contradict that of Romano Prodi, President of the European Commission. Mr. Prodi is credited with having said that it might be desirable for some states to pursue integration "on their own'' if the current impasse over adoption of the Constitution was not broken.

Mr Ahern warned that a "two-speed Europe", with one group going ahead and others being left behind, would create divisions in the Union. He also appealed to the member states to tackle the rift, which is holding up approval of the new Constitution.

Mr. Ahern has also promised to improve relations with the U.S. and adopt a "snappier'' approach to trade and political issues among member states.

The year is also an important one for some key European leaders. The Spanish Prime Minister, Jose Maria Aznar, is due to retire from office in March. The British Prime Minister, Tony Blair, is facing an uncertain future in the wake of a controversial legislation to introduce higher university fees. He could be toppled through a leadership challenge from the Chancellor of the Exchequer, Gordon Brown.

In France, the centre-right Prime Minister, Jean-Pierre Raffarin, is faced with the prospect of losing popular support. In Germany, the Chancellor, Gerhard Schroeder, is battling strong opposition to his economic reforms.

To compound the political crisis, the member nations of the E.U. may also miss out on the global economic boom, widely predicted to occur in 2004. The economic crisis in the E.U. is aggravated by the sliding dollar and the appreciating euro.

According to leading economists and financial institutions, in 2004, the U.S., Japan, China, India, Australia, Latin America and ASEAN countries will grow faster than Germany, France and Italy and the euro zone region.

The U.S. economy is forecast to grow by 4.4. per cent while the euro zone is predicted to grow by only 1.8 per cent.

On the political side, the key event in the E.U. will be when it admits into its fold 10 new countries from Eastern Europe on May 1.

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