President Janez Drnovsek is concerned about the current situation in the EU, as there are no new ideas regarding the constitutional treaty. The ratification procedure should resume, whereby France and Netherlands should take a renewed vote, he told the press in Ljubljana on Wednesday.
The EU's main problem is that it does not have an appropriate institutional framework for further enlargement, which could be problematic for the EU bids of countries from Southeastern Europe.
If the prospects that countries in the region join the EU falter because of a lack of such an institutional framework (the rejected constitution), the region could see renewed tensions, while Europe would split into two.
Drnovsek stressed that "the EU's doors must remain open," and announced that he would appeal with fellow heads of state to push for a continuation of the ratification process. "The European projects must be finalised," he said.
Another reason for concern, said Drnovsek, is the unsuccessful debate on the EU's 2007-2013 budget framework, which further strengthens the sense of crisis in the Union.
"EU funding must be adjusted to the present day, which means the Common Agriculture Policy must be reformed, the British rebate eliminated and funding increased for research, development and competitiveness," he stressed.
For the CAP, Drnovsek proposed a reduction of tier-one farm subsidies by 25%, which would save the EU 10 billion euros. This would not only save money, but also have a beneficial impact on world trade in farm products, where poor countries are worse off now.
According to Drnovsek, because of farm subsidies poor countries cannot compete with products from developed countries, which pushes them into poverty and increases their dependence on development aid.
If the EU reduces subsidies and accepts the US challenge in WTO trade liberalisation talks, it could create conditions for fairer global trade, Drnovsek is convinced.
In calling for increased funding for R&D, Drnovsek also criticised the [failed] budget proposal of the Luxembourg EU presidency, which planed cuts in this field. Only if the EU focuses on competitiveness can it improve its status and standing in the world, he said.
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