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European Institute European Affairs
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Winter 2003 Volume 4 - Number 1
Leader in Focus

A Bigger EU Must Be More Effective and More Democratic
Costas Simitis,
Prime Minister of Greece
Greece, which assumed the EU Presidency for six months on January 1, will work to make an enlarged EU more inuential in world affairs and closer to its citizens at home. Relations with the United States will be of prime importance. A new EU constitution should preserve the traditional institutional balance and the "Community method," and not shift greater power to national governments.
European Integration

Yes to Enlargement - But the Worst Problems Are Still Ahead
John Wyles,
Partner, GPlus Europe, Brussels
The historic agreement at the Copenhagen summit to enlarge the EU eastward brought into focus the even more difcult problems that lie ahead. The EU countries still have to dene the geographical scope and political purpose of their union; agree on new, efcient and more democratic institutions; and decide how to make their economies stronger and more competitive. A federal constitution is not for tomorrow, but it may be inevitable within a generation.

At 40, the Franco-German Couple Shows New Signs of Life
Ulrike Gurot,
Head of the EU Unit at the Research Institute of the German Council on Foreign Relations
With the European Union about to accept ten new members, and a recent history of strife between Paris and Berlin, the Franco-German partnership needs to be revamped if it is to continue to function as the motor of European integration. As the two countries celebrate the official 40th anniversary of their partnership, there are signs of a new dynamism in the relationship. Berlin and Paris have reached a number of significant, and surprising, new agreements, but it is not yet clear how long the new momentum will last.e
Transatlantic Relations

Patten vs. Perle: Is the U.S. A Unilateralist Hegemon?
Chris Patten,
European Commissioner for External Relations
Richard Perle,
Chairman of the U.S. Defense Policy Board
Two leaders from the European Union and the United States debate the latest tensions across the Atlantic and the world role of the United States. (An edited version of discussions at a meeting of the Trilateral Commission, Europe that took place in Prague in October.)
Defense and Security

France Is Ready to Play its Role in Global Security
Michle Alliot-Marie,
Defense Minister of France
The French government is determined to confront the major new threats posed by terrorism, weapons of mass destruction and organized crime, and is signicantly increasing defense spending. France will maintain its independence of action and its own nuclear deterrent, but it is ready to work closely with its allies, including its European partners and its old friend, the United States.

NATO Takes on New Tasks
Michael Rhle,
Head of Policy Planning and Speechwriting, Political Affairs Division, NATO
The NATO summit meeting held in Prague in November succeeded in dealing with a number of serious challenges to the Alliance that had emerged since the terrorist attacks of September 11, 2001. In addition to inviting seven new members to join the Alliance, the leaders in Prague took steps to convince doubters in the United States that the Alliance is still relevant and that it is determined to counter terrorism and weapons of mass destruction. NATO hopes these reforms will help it to remain the key forum for Transatlantic military and defense cooperation.

Fighting Terrorism: Transatlantic Differences Over the Details
Reginald Dale,
Editor-in-Chief, European Affairs
As the United States introduces measures to improve homeland security in the war against terrorism, Europeans are voicing a number of concerns. They worry about the protection of privacy and the extent to which Washington will be able to cooperate with the institutions of the European Union. During a recent visit to Washington, Members of the European Parliament expressed support for the United States, but said that Europeans may know more than Americans about fighting terrorism.

Special Report
New Challenges to Energy Security

U.S. Seeks Greater Diversity of Oil Supplies
Bill Loveless,
Chief Editor, Inside Energy
The main aim of U.S. international energy policy is to diversify sources of supply in a world in which war and terrorism threaten to disrupt supplies for the United States and other nations. Although the Middle East remains key, Washington is aiming to buy more oil from Russia, the Caspian Basin, Nigeria and Canada, as well as hoping to increase politically sensitive domestic production. Over the longer term, however, the Bush administration hopes that the development of cheaper alternative energy sources will give markets a wider choice.

Shaping an EU Energy Strategy Has Become More Urgent
Marcel Rommerts,
Principal Administrator, Transport and Energy Directorate-General, European Commission
Although the European Commission launched a debate on a new EU energy strategy more than two years ago, recent events have made the need for such a strategy far more urgent. The Commission is working on plans to make EU energy supplies more secure, reduce European emissions of greenhouse gases, complete the liberalization of EU energy markets and incorporate ten new member states into a common approach to energy problems.

Conventional Energy Sources Are Still the Most Important
John Felmy,
Chief Economist, American Petroleum Institute
The terrorist attacks of September 11 demonstrated that there are three elements to energy security - physical safety, reliability of supplies and consumer condence. Even with increased conservation and greater use of renewable sources, the United States will still need more conventional energy - oil, coal, gas, nuclear and hydroelectric power - and many more steps need to be taken to guarantee supplies.
In the News

The EU Needs Stronger Economic Policy Coordination
Philippe Lematre,
Brussels Correspondent, European Affairs
When European Commission President Romano Prodi called the EU's Stability and Growth Pact "stupid" in October, he set off a much needed debate on reforming and strengthening the Pact's inflexible procedures. The EU's bad experiences with the Pact may spur the current Convention on the Future of Europe to propose deeper EU integration in the field of economic governance. Member governments seem ready to move in this direction.

Opinion

Moscow and the WTO: A Unique Chance to Modernize Russia
Bob Vastine,
President, and
Vladimir Gololobov,
Associate, US Coalition of Service Industries
Moscow's negotiations with the WTO offer the country's leaders a unique opportunity to modernize the Russian economy by opening the crucial service sector to foreign investment. If Russia's leaders do not confront the vested interests that are holding up the necessary reforms, they will consign Russia to second-class status in the world economy. Moscow's offers in the negotiations, however, fall far short of the kind of commitments that the United States and the European Union are seeking.

A New Court Would Help Resolve the European Patents Mess
Stefan Luginbuehl,
Legal Advisor, Swiss Federal Institute of Intellectual Property; Deputy Head, Swiss Delegation to the Working Party on Litigation, European Patent Organisation
Despite substantial progress in harmonizing patent laws, there are still widespread differences in applying the law among European countries. The resulting confusion is bad for the European Union's single market, and hinders the development of new technologies. A proposal for a new European Patent Court would help to remedy the situation, but the European Commission is opposing it.
Trade Relations

Background Brief: Geographical Indications

U.S. Hopes for a Deal on Wines - And What to Call Them
James M. Murphy, Jr.,
Assistant U.S. Trade Representative for Agricultural Affairs
The United States and the European Union are seeking to negotiate an agreement under which American wine makers would limit the use of European wine names, such as Burgundy, in exchange for easier access to the European market. The United States and other countries, however, are opposing EU attempts to extend the list of protected names to include many more products, including food.

The EU Wants to Protect its Prestige Place Names
Roger Kampf,
Deputy Head of Unit, Directorate-General for Trade, European Commission
The European Union is seeking to improve protection for place names used to designate high-quality food and drink products, such as Champagne or Stilton cheese, in the current Doha Round of multilateral trade negotiations. The aim is both to establish a register of names of items eligible for international protection in future and to reclaim European names that have long been usurped by producers in other countries. But the Europeans will have to pay a price to get their names back.
Finance and Banking

A Transatlantic Securities Market Would Benefit Everyone
Gnter Burghardt,
Head of the Delegation of the European Commission in Washington


Book Reviews

Decline and Fall of the U.S. Empire?

Reviewed by Helle Dale
The End of the American Era: U.S. Foreign Policy and the Geopolitics of the Twenty-First Century. By Charles A. Kupchan

Britain vs. Europe: A Ringside Seat

Reviewed by Reginald Dale
The Mandarin's Tale. By Roy Denman

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