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<p align="justify"><b><font face="Verdana" size="3"><span style="letter-spacing: -.1pt">T</span></font><span style="letter-spacing: -.1pt"><font face="Verdana" size="3">he
1996 Intergovernmental Conference of the European Union</font></span></b></p>

  <p align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt"><b>Doc.
  7721</b></span></font><br>
  <font face="Verdana" size="2"><span style="letter-spacing: -.1pt">7
January 1997</span></font></p>

  <p align="justify"><font face="Verdana" size="2"><b><span style="letter-spacing: -.1pt">REPORT</span></b><a href="#_ftn1" name="_ftnref1" title><span style="letter-spacing: -.1pt" class="MsoFootnoteReference">[1]</span></a></font></p>

<p class="MsoNormal" style="text-align:justify;line-height:12.0pt;"><b><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Rapporteur:
M. Jean-Pierre MASSERET, France, Socialist Group</span></font></b></p>



<hr size="1">


  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Summary</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Of the Council of Europe's 40 member states, 15 are members of the
  Union;&nbsp; 11 are candidates for membership of the Union;&nbsp; and all
  others have relations with the Union through bilateral or multilateral
  programmes, including certain programmes of the Council of
  Europe.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The future of the European Union is accordingly a legitimate foreign policy
  concern of all Council of Europe member states.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Political Affairs Committee presents some observations on the agenda and
  context of the Intergovernmental Conference established to revise the Union
  treaties as foreseen in the Treaty of Maastricht.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The committee calls for the opportunity to be taken to adjust the Treaties to
  permit the European (Community) Union to accede to the European Convention on
  Human Rights.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><b><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">I.
  Draft resolution</span></font></b></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly welcomes the prospect of a stronger, wider and more democratic
  European Union.&nbsp; The Union and the Council of Europe should work in a
  complementary way in the interest of the whole continent.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Of the Council of Europe's 40 member states, 15 are members of the Union; 11
  are candidates for membership of the Union; and all others have relations with
  the Union through bilateral or multilateral programmes, including certain
  programmes of the Council of Europe.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  It follows that the future of the European Union is a legitimate foreign
  policy concern of all Council of Europe member states.&nbsp; This interest is
  natural as the Council of Europe is the only European structure in which 40
  European states have equal status and in which their national parliaments are
  represented.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Intergovernmental Conference of member states of the European Union (IGC)
  opened on 29 March 1996.&nbsp; Its purpose is to revise the Union Treaties as
  foreseen in the Treaty of Maastricht.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The IGC is taking place in parallel to discussions on a single European
  currency, and also on its agenda is the definition of a European defence
  identity related to the Union's Common Foreign and Security Policy (CFSP).</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly wishes the Conference to continue until it is clear that</span></font></p>
  
    <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    enlarging the Union's membership will not weaken the Union's capacity for
    decision,</span></font></p>
    <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    that the decision process of the Union is democratic,</span></font></p>
<p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    that relations with the Council of Europe are formally strengthened and
    clarified - especially in regard to the protection of human rights and the
    definition and verification of respect for democratic principles in the
functioning of European states.</span></font></p>
  
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly takes note of the prospect of a single currency for the European
  Union. However, the currency must be introduced on a reasonably broad
  geographical basis and its introduction should not be a divisive factor for
  pan-European relations. To safeguard the project of European integration, the
  social dimension must be preserved and extended, notably for employment and
  working conditions. Social protection, as set forth in the Social Charter of
  the Council of Europe, is a key factor for the commitment of citizens to a
  properly functioning democracy.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The wars in the former Yugoslavia illustrate the need for the emergence of a
  credible European defence identity, in conformity with the OSCE's &quot;common
  and comprehensive security model for Europe for the 21st century&quot; as set
  forth in Lisbon on 3 December 1996.&nbsp;&nbsp;&nbsp; The Western European
  Union is the sole European institution competent for security and defence
  matters;&nbsp; an expansion of its membership, as expected, should establish
  it as the platform from which a credible European security identity can take
  shape.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Dayton Agreements for peace in Bosnia and Herzegovina show the potential
  for concerted action between the international institutions. For greater
  efficiency, joint programmes between the Union and the Council of Europe
  should be further developed.&nbsp; Moreover, political dialogue within the
  Committee of Ministers of the Council of Europe should be structurally related
  to the CFSP.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly re-affirms its view that there must be no competing human rights
  protection mechanisms in Europe, with the risk of divergent case-law. The
  institutions of the European Convention on Human Rights, operating within the
  frame of the&nbsp; Council of Europe, are competent to examine all questions
  of human rights under the Convention.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly recalls its Resolution 1067 (1995) and Recommendation 1279 (1995)
  in favour of accession of the European (Community) Union to the European
  Convention on Human Rights. The IGC provides an opportunity for adjusting the
  treaties so that action can be taken following the opinion of 28 March 1996 of
  the European Court of Justice on possible accession of the European
  (Community) Union to the European Convention on Human Rights.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly further considers that there should be no competing mechanisms
  for evaluation of respect of democratic principles by European states. In this
  regard, the quality of the monitoring procedures carried out by the
  Parliamentary Assembly and the Committee of Ministers of the Council of Europe
  should be recognised.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly resolves to increase its efforts for concordant and complementary
  action with the European Parliament. The contributions of national parliaments
  of&nbsp; Council of Europe member states to all subjects dealt with by the
  European Union which affect the democratic functioning of the continent should
  be enhanced.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly welcomes the ratification by the Russian Federation of its
  agreement on partnership and co-operation with the European Union, and
  supports its entry into force as an important step forward in the creation
  of&nbsp; &quot;a common European home&quot;.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Assembly requests its President to transmit this resolution to the
  governments of those of its member states which are members of the European
  Union, with a view to its presentation to the Intergovernmental Conference.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><b><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">II.
  Explanatory memorandum </span></font></b><b><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">by
  the Rapporteur</span></font></b></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><b><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">I.
  Introduction</span></font></b></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Intergovernmental Conference (IGC) of the European Union (EU) opened on 29
  March 1996 in Turin.&nbsp;&nbsp;&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In the context of the conference, the EU member states meet monthly on the
  level of Ministers for Foreign Affairs and weekly on the level of Ministers'
  representatives. The IGC has also been discussed by Heads of State and
  Government of the EU on several occasions<a href="#_ftn2" name="_ftnref2" title><span class="MsoFootnoteReference">[2]</span></a></span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A draft revised Treaty was presented to the European Council meeting in Dublin
  on 13 and 14 December 1996. The Conference is expected to close with the
  Amsterdam summit in June 1997, at the end of the Dutch Presidency to the EU.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The purpose of the Conference is to reform the Union, prepare it for
  enlargement, adjust to a new economic, social, political and security
  environment in a post-cold war Europe and make it ready to meet global
  challenges of growing economic interdependence coupled with&nbsp; political
  instability.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The outcome of the Conference is certain to have important implications for
  Europe as&nbsp; a whole. It will also have an important impact on the Council
  of Europe, which has developed close co-operation with the EU. Moreover, 26 of
  its 40 member states are members or candidates for membership in the EU. All
  others also have some sort of contractual relationship with the Union or are
  the beneficiaries of bilateral or multilateral programmes.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In September 1995 the Assembly had adopted Recommendation 1279 (1995) and
  Resolution 1067 (1995) on the IGC, drawing the attention of the EU Governments
  to the Council of Europe's achievements in many of the fields that the
  forthcoming IGC was to deal with. It made&nbsp; a number of concrete proposals
  on closer links between the Council of Europe and the European Union.
  Resolution 1068 (1996) had been adopted at the same time, calling for an
  accession of the European Community to the European Convention on Human
  Rights.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The EU Governments' response to these proposals has been very
  limited.&nbsp;&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  With regard to European Convention on Human Rights, the European Court of
  Justice ruled on 28 March 1996, that an accession by the European (Community)
  Union to the Convention was not possible without a revision of the Treaties.
  The question since has remained open.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The European Union has been reluctant to set up an Observatory on racism and
  xenophobia together with the Council of Europe. In general, however,
  inter-institutional and sectoral co-operation has developed positively in
  1996.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The institutional arrangement of 16 June 1987 was supplemented by a new
  exchange of letters between the Secretary General of the Council of Europe and
  the President of the European Commission on 5 November 1996. In addition,
  quadripartite meetings between the Chairman in Office of the Committee of
  Ministers and the Secretary General of the Council of Europe and the
  Presidency of the EU and the President of the EU Commission resumed on more or
  less regular basis.<a href="#_ftn3" name="_ftnref3" title><span class="MsoFootnoteReference">[3]</span></a>&nbsp;&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  This report has been drafted before the Summit of EU Heads of State in
  Government in Dublin on 13-14 December 1996, and is therefore based only on
  information available prior to the meeting at which a draft revised Treaty,
  prepared by the Irish Presidency to the EU, has been discussed.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><b><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">II.
  The IGC in 1997</span></font></b></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  What is at stake?</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Treaty of Maastricht establishing the European Union provided for its own
  revision in 1996. In fact, the original agenda for the IGC was rather limited,
  and only few specific articles of the Treaty were set for revision.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A prospect for enlargement, a pressing need to strengthen EU's role in foreign
  and security matters&nbsp; and the&nbsp; expected introduction of a common
  currency added considerably to the political weight of the Conference.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The EU member states are expected to prepare the EU for enlargement by
  reforming its institutions and making them more effective. Among the most
  important issues are the scope of qualified majority voting and the weighing
  of votes in the Council of Ministers, the manner of appointing and the
  composition of the EU Commission, a reduction in the number of
  legislative&nbsp; procedures and the scope of the co-decision procedures
  involving the European Parliament, as well as the role and functioning of the
  European Court of Justice.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Another important institutional issue is the idea of a so called
  &quot;flexibility clause&quot; which would allow an inner group of member
  states to integrate more closely.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The IGC should strengthen and enlarge the scope of the Union's common foreign
  and security policy, increase the effectiveness of its co-operation in justice
  and home affairs and review its relations with the Western European Union
  (WEU).</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  There is widespread agreement that the democratic legitimacy of the EU has to
  be strengthened. Its work should become more transparent and open. the
  Treaties should be simplified so as to make the Union's goals and functioning
  easier for the public to understand. The role of national parliaments in
  shaping EU policies should be strengthened. The protection of human rights has
  to be further improved. The Union has to be brought closer to its citizens, by
  providing effective answers to their needs for security, employment and&nbsp;
  protected environment.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Discussions at the Conference are parallel to preparations for stage 3 of the
  Economic and Monetary Union, aimed at introducing a common currency among a
  number of EU member states by 1 January 1999.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Preparation for enlargement</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The preparation for the enlargement is not one of the original items on the
  IGC agenda. The Maastricht Treaty came too early after the events in 1989 to
  foresee the political, security and economic inevitability of an EU
  enlargement with former communist countries. It was not until June 1993 when
  the European Council agreed on a principle of such enlargement,&nbsp; set a
  number of political and economic criteria, although without any fixed
  agenda.&nbsp; A year later in Corfu, the EU Heads of State or Government
  agreed that negotiations with Cyprus and Malta would start 6 months after the
  conclusion of the IGC. In December 1995, the same decision was taken for
  central and east European candidates.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Cyprus, Malta and ten central and east European countries, which have
  concluded a Europe agreement on associated membership with the EU<a href="#_ftn4" name="_ftnref4" title><span class="MsoFootnoteReference">[4]</span></a>,
  had already applied for accession. The Council of Ministers instructed the EU
  Commission to prepare an opinion on their candidature. Preliminary opinions
  have already been prepared for Cyprus and Malta. The latter has recently
  suspended its candidature, following the recent general elections and the
  victory of the Labour party which campaigned against EU membership. The
  membership of Cyprus is related to the question of relations with Turkey,
  which has an agreement on a customs union without an evolutionary clause on
  full membership, contained in Europe agreements on associated
  membership.&nbsp; Switzerland, which also suspended its candidature, is
  currently negotiating a number of bilateral agreements with the Union.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Although it is not expected that all 11 candidates would enter the EU
  simultaneously, it is clear that the enlargement will have far-reaching
  institutional, financial, political, social and other implications for the EU.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  For the time being, talks at the Conference are reportedly blocked on several
  key issues of institutional reform. The President of the EU Commission had
  warned that an enlargement without a progress on institutional changes risks
  to paralyse the Union for a long time<a href="#_ftn5" name="_ftnref5" title><span class="MsoFootnoteReference">[5]</span></a>.
  Mr Marcelino Oreja, the member of EU Commission responsible for institutional
  affairs, has recently stated that enlargement-related issues have been
  completely absent from negotiations until now and criticised the attempts to
  settle those issues immediately prior to the Amsterdam Summit in June 1997 or
  even to postpone them to the next round of enlargement
  negotiations.&nbsp;&nbsp;&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  To what extent a possible insufficient progress on institutional reform by
  June 1997 would cause a delay in accession of new member states remains to be
  seen. It would certainly seem necessary to reach satisfactory conclusions by
  June 1997 or, alternatively, to continue the Conference until all
  institutional pre-conditions for enlargement are met. Any other outcome would
  represent a serious blow to EU's credibility with negative political and
  economic consequences for whole Europe and beyond.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A stronger role in foreign policy and security matters</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  If previous inter-governmental conferences of EU member states dealt primarily
  with internal matters of the Union (Community), the present one is clearly an
  attempt to strengthen the Union externally.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Union, with its accumulated economic power, needs a greater say in
  determination of political conditions in which it is exercises this power.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Treaty of Maastricht equipped the Union with an inter-governmental
  institutional mechanism for consultation on foreign policy matters. It works
  primarily through resolutions and declarations and less through joint actions,
  which would be more expected to be a tool of a&nbsp; common foreign
  policy.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A yawning gap between what was expected from a common foreign and security
  policy (CFSP) and what this policy was able to provide was most obvious in a
  painful experience of the war in Bosnia and Herzegovina. The EU, although
  being the most important contributor of humanitarian assistance, was forced to
  leave the political initiative to resolve the conflict to the United States
  and other countries, including some of its member states.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The IGC has to provide answers how to make the CFSP work. On the other hand,
  it cannot go beyond what member states are at present ready to agree upon.
  Although it is highly improbable that the IGC will result in giving the CFSP a
  supranational character, it is admitted even by the strongest opponents of any
  further transfer of powers that the existing mechanisms has to be changed and
  made more effective<a href="#_ftn6" name="_ftnref6" title><span class="MsoFootnoteReference">[6]</span></a>.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Without any doubt the EU, a global economic power with a common commercial
  policy, diversified development co-operation policy and a number of other
  instruments, already has an important political role in the world. The reform
  of the CFSP is therefore needed not to invent an EU foreign policy, but to
  make it more efficient, coherent, consistent&nbsp; and visible.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The original IGC agenda also included a review of relations with the Western
  European Union (WEU). Although a merger between the two organisations does not
  seem&nbsp; to be feasible for the time being, the efforts continue to
  develop&nbsp; WEU in stages as the defence component of the Union.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Following the experience of the war in Bosnia, there is a general
  understanding among all EU member states that a European defence identity has
  to be developed in concordance with NATO. The transatlantic link clearly
  continues to be central to stability and security in Europe. This, however,
  does not preclude European countries to take on a significantly larger share
  of responsibility for their security than it the case today. There are a
  number of developments which are making this possible.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A concept of the WEU as a European pillar of NATO is benefiting from an
  agreement between the two organisations on WEU's use of NATO's military assets
  to conduct &quot;European-only&quot; operations in accordance with the
  Petersberg Declaration of 19 June 1992.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The announced re-integration of France and Spain into the NATO military
  command structure and the accession of former communist countries is further
  strengthening the European side of the Alliance. The NATO enlargement should
  be seen as a step to increase security in Europe and should be carried out
  accordingly.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A development of closer links between the EU and the WEU, manifested, for
  example, in parallel policy towards candidates for membership in the two
  organisations, as well as recent first contacts between the EU and NATO, are
  also contributing to this process.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The emergence of a credible European defence identity should find expression
  according to the Organisation for Security and Co-operation in Europe's&nbsp;
  (OSCE) &quot;common and comprehensive security model for Europe for the 21
  century&quot;, adopted at the OSCE Summit in Lisbon on 3 December 1996.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A&nbsp; need to strengthen the democratic legitimacy of the Union</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  After the conclusion of the inter-governmental conference in Maastricht in
  February 1992, a new born Union was faced with growing scepticism with regard
  to further integration. This was clearly manifested in the first Danish
  referendum on 2 June 1992 in which Danes rejected the Treaty of Maastricht,
  but signs of growing discontent were also apparent in other member states.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">37.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  There is a clear correlation between the popularity of the EU and the state of
  economy in Europe. The recession thus partly explains the phenomenon of a
  switch from &quot;euro-euphoria&quot; to &quot;euro-realism&quot;.
  Nevertheless, the criticism of the functioning of the EU, which quickly spread
  also to central and east European countries,&nbsp; is not only economically
  generated. The EU's institutions are regarded as overly bureaucratic, its
  procedures too complex to understand and its activities alienated from its
  citizens.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">38.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The EU, in the context of the IGC, is trying to react on several fronts. It is
  doing so, firstly, through a wide public relation campaign, explaining the
  goals and means of European integration to EU citizens.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">39.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In addition, the Treaties and the functioning of EU institutions should be
  simplified to make them easier for the general public to
  understand.&nbsp;&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">40.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The number of decision making procedures should be drastically reduced<a href="#_ftn7" name="_ftnref7" title><span class="MsoFootnoteReference">[7]</span></a>
  in order to make EU's functioning more transparent.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">41.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The role of national parliaments in the EU legislative processes is under
  revision and their influence on shaping the EU decisions should be
  strengthened.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">42.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The principle of subsidiarity, aimed at limiting EU action only to matters
  that cannot be more appropriately dealt with on national level, should be more
  strictly applied. It may be noted that the principle of subsidiarity refers to
  a level of decision making and as such does not exclude inter-governmental
  co-operation from a notion of an action on a national level .</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">43.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Finally, the EU should concentrate more on issues that are of closest interest
  to its citizens. These include more effective measures to combat unemployment,
  closer co-operation in the area of justice and home affairs and sustainable
  development policies. Incidentally, these are the areas where the IGC has had
  most progress until now, although opposition to further transfer of powers
  remain.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Protection of Human Rights</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">44.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Treaty of Maastricht refers to the European Convention on Human Rights
  (the Convention) in the preamble and in the chapter on co-operation in the
  field of justice and home affairs. It does not, however, confers any specific
  powers on the European (Community) Union in the field of human rights.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">45.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The European Court of Justice has upheld the protection of human rights by way
  of general principles of Community law, referring to common constitutional
  traditions and to international instruments, in particular the&nbsp;
  Convention.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">46.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In order to clarify the question of jurisdiction of the human rights control
  mechanisms, established by the Convention, the Parliamentary Assembly, as well
  as the European Parliament and the European Commission, repeatedly called for
  the accession by the European (Community) Union to the Convention<a href="#_ftn8" name="_ftnref8" title><span class="MsoFootnoteReference">[8]</span></a>.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">47.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Seized by the Council of Ministers, the Court of Justice, on 28 March 1996,
  ruled that the European (Community) Union, at present,&nbsp; had no competence
  to accede to the Convention.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">48.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In spite of a support by a majority of EU member states for amendments to the
  Treaty which would allow for such accession, some countries remain strongly
  opposed to such a move.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">49.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In light of this, a proposal has been made for an amendment of the Treaty
  conferring an exclusive right to review the conformity of Community acts with
  the Convention to the European Court of Justice.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">50.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The risk for divergent case law is particularly important. There should not be
  two Courts which independently supervise the application of the same
  Convention.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">51.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Moreover, the proposed exclusive right of the Court of Justice to review the
  observance of the Convention with regard to Community acts would seem to
  introduce a notion that EU member states have exonerated themselves of a part
  of obligations under the Convention by transferring some of their powers to
  the Community institutions. This is evidently not the case, as the European
  Court and the Commission of Human Rights have competence to examine all
  questions of human rights under the Convention involving relations between
  states that are parties to it and persons within their jurisdiction, including
  questions which arise from member states' participation in the EU.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">52.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The IGC should therefore continue with the efforts to reach a consensus on
  amendments to the Treaty, allowing for an accession to the Convention by the
  European (Community) Union.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A single currency for Europe</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">53.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The third phase of the Economic and Monetary Union, introducing a single
  currency by 1 of January 1996 formally does not require any further decisions
  on the inter-governmental level. However, final preparations for the
  introduction of the Euro are running in parallel with discussions at the IGC
  and a single currency will require a more effective decision making and
  implementation of EMU related policies. This makes the EMU also relevant for
  this report.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">54.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Moreover, all Council of Europe member state have close economic and trade
  links with the EU. A single currency will&nbsp; therefore have important
  consequences for economic and social conditions for Europe as a whole.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">55.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The EU has difficulties in clarifying the application of criteria for the
  participation in the third phase of the EMU. It has also repeatedly failed to
  reach an agreement on detailed &quot;rules of the game&quot; in particular
  with regard to a role and prerogatives&nbsp; of a European Central Bank and on
  a &quot;stability pact&quot; guaranteeing a long term&nbsp; respect of EMU
  participation criteria.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">56.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The fate of EU member states that will not qualify to join the single currency
  in a first wave is also not full clarified. This is even more so for countries
  that are not members of the EU, but will nevertheless feel the consequences of
  EU's monetary reform.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">57.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The single currency is a landmark in the process of European integration. It
  should bring benefit to all countries taking part in this process in one form
  or another. Continuous efforts should be made to ensure as wide as possible
  participation which should not exclude strict observation of conditions
  necessary for its success. It should be regarded as an instrument of
  strengthening the social dimension of European integration, benefiting
  employment and improvement of working conditions and implemented accordingly.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">58.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A report on this matter is being prepared by the Committee on economic affairs
  with a view to its presentation at the January 1997 part session, together
  with the present report,&nbsp; in relation with the visit of the President of
  the European Commission.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><b><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">III.
  Conclusions</span></font></b></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">59.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The outcome of the IGC will have significant consequences for Europe as a
  whole.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">60.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Council of Europe and the EU have developed a close co-operation in a
  number of areas such as human rights, media, social and socio-economic
  problems, culture and education, sport, youth, health, environment and
  regional planning, local democracy and legal co-operation. This list includes
  matters which are highly relevant in the context of the IGC.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">61.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In 1996 marked a significant step forward in terms of number of joint
  activities as well as with regard to inter-institutional co-operation.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">62.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Joint programmes for co-operation with countries of central and eastern Europe
  have given very positive results. Both sides are determined to continue and
  expand these programmes in favour of Russia and Ukraine and to consider the
  possibility of extending this co-operation to countries such as Moldova and
  the Transcaucasian Republics. The European Commission is ready to contribute 4
  million ECUs over a two year period to these programmes.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">63.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The implementation of the Dayton Agreements for Peace in Bosnia and
  Herzegovina is an evident example of how useful a concerted action of the EU,
  the Council of Europe, OSCE&nbsp; and other international organisations and
  agencies can be.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">64.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  On the inter-institutional level, the Arrangement of 16 June 1987 on
  co-operation between the European Community and the Council of Europe has been
  revised by an exchange of letters between the President of the European
  Commission and the Secretary General of the Council of Europe on 5 November
  1996. The European Commission may henceforth be invited to the meetings and
  activities of the Committee of Ministers, Minister's Deputies, rapporteur
  groups of the deputies and any other working party. In exchange, the
  Commission expressed its willingness to consider requests for participation by
  the Council of Europe in Commission's departmental meetings whose work has not
  yet been submitted to the Community internal decision-making process.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">65.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  This upgrading of institutional relations, which needs to be further develop,
  in particular to include contacts with the Council of Ministers, should also
  lead to opening of a Commission's representation with the Council of Europe in
  Strasbourg.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">66.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  On a more critical note one should mention the issue of an observatory on
  racism and xenophobia which the EU, in spite of the Council of Europe's
  proposal for a joint venture, insists to establish on its own.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">67.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Very little consideration has also been given, with some exceptions, to
  proposals contained in Assembly's recommendation 1279 (1995). These included,
  among others,&nbsp; a revision of Article 230 of the Treaty of Rome, aimed at
  recognition of the Council of Europe's achievements in a number of areas, a
  proposal&nbsp; to establish appropriate links between the Council of Europe's
  political dialogue and the CFSP and invitation to the Community to accede to
  all the treaties which allow it to accede. These proposals, which have not
  lost any of their relevance, should be reiterated.&nbsp;</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">68.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  With regard to the Council of Europe's contribution to the implementation of
  the IGC results, the following suggestions can be made.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">69.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Council of Europe has a significant role in the preparation of candidate
  countries for EU membership. With its process of legal harmonization of
  social, cultural and other policies, it is helping these countries to bring
  their legislation in line with EU standards. The Council of Europe's role has
  been particularly important in the preparation with regard to democracy, human
  rights and protection of minorities, which was one of the key criteria for
  membership&nbsp; defined by the Copenhagen summit in June 1993<a href="#_ftn9" name="_ftnref9" title><span class="MsoFootnoteReference">[9]</span></a>.
  This was recognized by the European Parliament, which has, in a resolution
  adopted in April 1996<a href="#_ftn10" name="_ftnref10" title><span class="MsoFootnoteReference">[10]</span></a>,
  urged the Council and Commission, in their policy towards Central and Eastern
  Europe, to take full account of political activities of other international
  bodies&nbsp; with regard to the rule of law, democracy and respect for the
  rights of minorities.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">70.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Parliamentary Assembly and the Committee of Ministers' 's monitoring
  mechanism may be used to review the observance of the human rights clause,
  which, in addition of being a criterion for membership, exist in all
  association, partnership, trade, and other agreements that the EU has
  concluded with third countries.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">71.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Council of&nbsp; Europe's experience in the development of democratic
  security in the countries of central and eastern Europe may be put at the
  disposal of the European Union in its co-operation with Mediterranean
  countries and other regional groupings.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">72.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Parliamentary Assembly, through a regular debate on issues also dealt with
  by EU institutions, may contribute to an enhanced role of national parliaments
  in shaping EU decisions with a pan-European dimension. This is fully
  concordant with the efforts to strengthen the democratic legitimacy of the
  Union.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">73.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  A Second Summit of the Council of Europe's Heads of State and Government,
  planned for the second half of 1997, provide an&nbsp; opportunity to consider
  and complement the results of the IGC with a view to a strengthened
  co-operation between the Council of Europe and the Union.</span></font></p>
  
    
      
        
          
            
              
                
                  <hr size="1">
                
              
            
          
        
      
    
  
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Reporting
  Committee: Political Affairs Committee.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Budgetary
  implications for the Assembly: to be assessed.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Reference
  to committee: See Recommendation 1279 (1995) and Resolution 1067 (1995)</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Draft
  resolution adopted by the committee on 18 December 1996 unanimously.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Members
  of the committee: <i>Mr</i> <i>B�rsony (Chairman)</i>, Mr. van der Linden
  (Vice-Chairman), MM. <i>Aloglu</i>, Antretter, Baumel, <i>Mrs Belohorska, </i>MM.
  Bergqvist <i>(Alternate: Andnor</i>), Bernardini, Bj�rck, Bloetzer, Bokov,
  B�chel, B�hler <i>(Alternate: Fischer)</i>, <i>Cem,</i> <i>Cerqueda Pascuet</i>,
  <i>Chornovil, Deasy</i>, Desyatnikov, Diacov, <i>Domljan</i>, <i>Sir Anthony
  Durant</i>, MM. E�rsi, <i>Evangelisti, Gjellerod</i>, Gotzev, Gricius, <i>Hardy</i>,
  Irmer, <i>Iwi_ski, Kalus</i>, <i>Kaspereit</i>, Kyprianou <i>(Alternate:
  Christodoulides)</i>, <i>Mrs Lentz-Cornette</i>, MM. Lopez Henares, <i>Maginas,
  Masseret</i>, Medeiros Ferreira, Mota Amaral, Muehlemann, Mrs Ojuland, MM.
  Oliynik, Paasilinna, <i>Pahor</i>, Popovski, de Puig (<i>Alternate: Martinez),
  </i>Radulescu Botica, Mrs Ragnarsd�ttir, MM. Risari, <i>Schieder</i>, <i>Schwimmer,</i>
  <i>Selva</i>, Severin, <i>Sinka</i>, <i>Sir Dudley Smith</i>, Mr <i>Spahia,
  Mrs Stepova</i>, Mrs. Suchocka, MM. Thoresen <i>(Alternate: Berg)</i>, <i>Urbain</i>,
  Van der Maelen <i>(Alternate: Staes)</i>, Vella, <i>Vrettos</i>, Woltjer,
  Zhirinovsky <i>(Alternate: Glotov)</i>, Ziuganov <i>(Alternate:&nbsp; Lukin)</i>.</span></font></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><i><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">N.B.
  The names of those members who took part in the meeting are printed in
  italics.</span></font></i></p>
  <p class="MsoNormal" style="line-height: 12.0pt" align="justify"><font face="Verdana" size="2"><span style="letter-spacing: -.1pt">Secretaries
  of the committee : Mr Hartland, Mr Kleijssen, Mr Gruden.</span></font></p>
  <hr size="1">
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref1" name="_ftn1" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[1]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;by the Political Affairs
  Committee</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref2" name="_ftn2" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[2]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Since the launch of the IGC, the following EU summits took place: Turin, March
  1996 (informal summit, inaugural session of the IGC), Florence, June 1996
  (regular summit at the end of the Italian Presidency to the EU), Dublin,
  October 1996 (informal summit on the IGC), Dublin, December 1996 (regular
  summit at the end of the Irish Presidency to the EU).</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref3" name="_ftn3" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[3]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  While there were no meetings in 1994, two meetings took place in 1995 and one
  in 1996.</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref4" name="_ftn4" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[4]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Poland, Hungary, Czech republic, Slovakia, Bulgaria, Romania, Estonia,
  Latvia,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lithuania and Slovenia.</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref5" name="_ftn5" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[5]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Jacques Santer in an interview in Handelsblatt of 5 December 1996.</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref6" name="_ftn6" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[6]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &quot;A more clear-cut and effective decision making procedures should be
  introduced&quot; (a British government memorandum of 2 March 1995 on the
  approach to be adopted to European security matters at the IGC )</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref7" name="_ftn7" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[7]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  There are presently 22 procedures involving the European Parliament. These
  should be reduced to only three; co-decision, assent and consultation.</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref8" name="_ftn8" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[8]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The Parliamentary Assembly has done so most recently in its recommendation
  1279 (1995) and resolution 1068 (1995). See also the European Parliament's
  resolution on relations between the Union and the Council of Europe of 15
  December 1993 (Dury Report), the resolution of 11 December 1996 on the
  preparation for the meeting of the European Council on 13 and 14 December 1996
  in Dublin; and the European Commission's Communication on the European Union
  and the external dimension of human rights policy: from Rome to Maastricht and
  beyond (COM(95)567 final).</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref9" name="_ftn9" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[9]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &quot;Membership requires that the candidate country has achieved stability of
  institutions guaranteeing democracy, the rule of law, human rights and respect
  for and protection of minorities&quot;.</span></font></p>
  <p class="MsoFootnoteText" style="line-height: 12.0pt; margin-bottom: 11.85pt" align="justify"><font face="Verdana" size="2"><a href="#_ftnref10" name="_ftn10" title><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">[10]</span></a><span style="letter-spacing: -.1pt; vertical-align: baseline" class="MsoFootnoteReference">.
  </span><span style="letter-spacing: -.1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Resolution (A4-0101/96) on the White Paper &quot;Preparing the associated
  countries of Central and Eastern Europe for integration into the internal
  market of the Union&quot;</span></font></p>

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