Britain's EU Presidency: A Chance to Realign with Key Issues

Strategic Insights -

As Britain takes on a six-month presidency of the European Union, starting on January 1, there are concerns that the country may focus too much on projecting a modern image, rather than tackling the serious issues that require a collective effort. The EU is poised to make crucial decisions on the single currency, enlargement, and reform of the common agricultural policy, which could have significant implications for the Union's future. Meanwhile, the UK's own economic agenda, centered on flexible labor markets and welfare reform, may not find an easy reception among EU partners, particularly France.

Key Takeaways:

  • The UK presidency begins against a backdrop of mutual irritation between Britain and other EU member states over the single currency, with the UK having avoided joining the euro.
  • The main decisions on the single currency have already been made in deals between Paris and Bonn, leaving Britain to focus on other issues of strategic importance during its presidency.
  • The UK should prioritize reforms of the EU, including enlargement, and the common agricultural policy, to facilitate the integration of new members.
  • Britain's diplomatic expertise and position between America and Europe can help strengthen co-ordination between EU and Nato enlargement strategies.
  • The major theme of the next six months will be jobs, jobs, jobs, with Britain pushing for flexible labor markets and welfare reform.

Statistics:

  • 11 countries, as forecast by EU Competition Commissioner Karel van Miert, are set to join the euro in the first wave.
  • The single currency is expected to be implemented by 1999, when Germany assumes the presidency.
  • Britain's unemployment rate has been steadily decreasing, with the need for flexible labor markets becoming increasingly pressing.
  • The Asian "tiger" economies are expected to export themselves out of trouble quickly, with many economies set to suffer a significant demand shock.

Sources:

  • "The Times," January __, 1997, Copyright (C) 1997.

Note: The date of publication is not explicitly stated in the source material.