The aim of this session at the beginning of the General Affairs and External Relations Council is to iron out the differences before Heads of State and government meet at the European Council in Brussels on Thursday and Friday.

After the Inter-Governmental Conference (IGC) under the Italian presidency failed to reach agreement on the new EU Constitution at last December’s European Council, the Irish presidency made a fresh attempt to reach agreement over the sticking points that marooned the attempts of their predecessors.

On Thursday, the Irish Presidency submitted a new proposal to delegations which, in the words of the presidency, “represents a fair balance between the different views of delegations”.

The latest presidency proposal is reiterating that the maximum number of seats in the EP as from 2009 should not exceed 736. The minimum threshold of four seats per Member State is being maintained, although a footnote to this clause states that “the drafting (...) may have to be adapted to reflect the outcome of the IGC discussion on European Parliament seats”.

Malta currently has five seats but has been pushing for a sixth seat.

As regards the presidency of the Council of Ministers, the proposal is to have an equal rotation of pre-established groups of three Member States which will hold the presidency for 18 months. The groups will be formed “taking into account the diversity and geographical balance with the Union” of each Member State. Each member of the pre-established group will chair all configurations of the Council for a six-month period. However, the foreign affairs configuration will be chaired by the Union Minister for Foreign Affairs, which is one of the new posts being created in the EU Constitution.

In practical terms, this proposal will allow all Member States to hold the presidency for six months while at the same time ensuring better co-ordination at the top.

The latest presidency draft is introducing a new clause which will enable the European Council to downgrade areas that require unanimity to a qualified majority regime.

According to this proposal, where the Constitution provides for the European Council to act by unanimity in a given area or case, the European Council may adopt a decision authorising the Council of Ministers to act by a qualified majority in that area or in that case.

This provision shall not apply to decisions “with military implications or those in the area of defence,” the proposal states.

Likewise, it is being suggested that where the Constitution provides for European laws to be adopted by the Council of Ministers according to a special legislative procedure, the European Council may adopt a decision allowing for the adoption of such European laws according to the ordinary legislative procedure.

Any initiative taken by the European Council on the basis of these two provisions shall be notified to the national Parliaments of the Member States. If a national Parliament makes known its opposition within six months of the date of such notification, the decision shall not be adopted. In the absence of opposition, the European Council may adopt the decision.

In both cases, the proposal states that in order for the European Council to adopt such decisions, it shall act by unanimity after obtaining the consent of the EP, which shall be given by a majority of its component members.

Another new proposal in the presidency draft is a simplified procedure for amending that part of the EU Constitution which will deal with the internal policies of the Union.

According to this proposal, the European Council may adopt a decision amending the internal policies if there is unanimity on the matter. The European Council has to consult the EP and the Commission – and the European Central Bank in the case of institutional changes in the monetary area – before taking such a decision.

Such a decision shall not come into force until it has been approved by the Member States in accordance with their respective constitutional requirements.

Moreover, the decisions taken under the provision may not increase the competences

attributed to the Union under the EU Constitution.

With respect to the proposed solidarity clause when a Member State is hit by a terrorist attack or a disaster, a new declaration has been inserted stating that “none of the provisions (...) of the Constitution is intended to affect the right of another Member State to choose the most appropriate means to comply with its own solidarity obligation towards that Member State”.

The Council of Ministers will also discuss the annotated draft agenda for the Thursday European Council.

The first item on the agenda of the European Council will be the nomination of a successor for European Commission President Romano Prodi.

There will also be the designation of the secretary general of the Council, who is also the High Representative for Common Foreign and Security Policy, and his deputy for the period starting 18 October 2004. The current secretary general of the Council is Spaniard Javier Solana.

Secondly, the European Council is expected, on the basis of a communication from the Commission, to initiate the process for the further development of policies in the area of justice and home affairs, building on the achievements of the Tampere programme.

Thirdly, the European Council will consider, on the basis of a detailed report from the Council of Ministers in co-operation with the Secretary-General/High Representative and the Commission, the state of implementation of the measures set out in the Declaration on combating terrorism of 25 March 2004. It will also consider proposals by the Secretary-General/High Representative for the integration within the Council Secretariat of an intelligence capacity on all aspects of the terrorist threat.

Fourthly, the European Council is expected to reflect the state of play in the accession negotiations of Bulgaria and Romania, to note the progress made by Turkey in its reforms ahead of the decision to be taken by the European Council in December, and to take a decision on the recommendation in the Commission Opinion that negotiations for EU accession should be opened with Croatia.

The fifth item on the agenda deals with the financial perspectives. The European Council, which will have an analytical report from the Presidency based on the study conducted in the permanent representatives committee of the Commission communication, is expected to indicate a process for the further handling of this dossier.

The sixth item on the agenda is the endorsement of the Employment Guidelines for 2004 and the recommendations to the Member States as agreed by the Employment and Social Affairs Council on 1/2 June. The European Council will also note the progress achieved on a number of major policy files relevant to the implementation of the Lisbon Strategy.

Finally, the European Council will deal with various issues of external affairs, including the approval of the European Neighbourhood Strategy, the proposed strategic partnership with the Mediterranean countries and the Middle East, and the EU’s relations with Iraq.