Speech by Cecilia Malmström at the seminar "The New EU Treaty - a Big Deal?"

Ladies and Gentlemen,

Thank you for inviting me to this seminar. It is a true pleasure to be here and to see so many prominent guests at this seminar. My special thanks to the Swedish Institute for European Policy Studies for organising this very timely event.

Many pessimistic voices were raised about the future of the European Union, following the results of the Dutch and French referenda on the Constitutional Treaty back in the spring of 2005. Governments used the subsequent 'pause for reflection' as an opportunity NOT to talk about Europe, rather than to reflect on tomorrow's European challenges and how to solve the constitutional crisis. It was a long pause but very little reflection.

Of course, there was reason for concern, but the pessimists were wrong. The past six months have shown that the European Union is slowly recovering from quite some time of political limbo. I dare to say that the European standstill came to an end in March this year, when the European Council decided to end the introspection and agreed on a dramatic reduction in green house gas emissions until the year 2020. That is an important decision, which also shows that Europe is ready to show global leadership, to act responsibly and take strategic responsibility for a true cross-border challenge, of the biggest facing us. At the same meeting, The European Council took important decisions on improving the Lisbon process.

Worldwide climate change is only one of many fields where Member States must be able to act together in order to deliver concrete results. Other important, and indeed difficult challenges concern our relation to globalisation and ways to increase Europe's competitiveness, combating cross-border crime, the further enlargement of the Union, issues related to asylum and migration, as well as the need for a more active and coherent foreign policy.

To achieve all this, Europe needs a considerable toolbox adapted to a new reality, and which makes it possible for a Union with 27, and maybe more than 30 members, to work effectively. It also needs to do so in a way that is transparent and comprehensive for the citizens. One of the tools needed is a new Treaty for the European Union. (Another is a the need for a modern budget and I am glad to see that SIEPS is organising a seminar on the budget in a month).

The Constitutional Treaty that was signed in 2004 was the result of a transparent process in the Convention on the future of Europe. National MP's, governments, and the European Parliament were involved in constructive discussions that were open to the public. It was this unprecedented and democratic exercise that resulted in the Constitutional Treaty. Despite of its weaknesses, it was a well-balanced document that would help citizens understand how Europe works and why our co-operation is so important. As you know, it was ratified in 18 countries, but voted down in two by public referendum.

The German presidency was very determined to get the EU out of the constitutional deadlock. Throughout the consultations between the German presidency and the Member States earlier this year in the run-up to the June European Council, it was concluded that the content of the Constitutional Treaty should still dominate the new text, but that some elements of a more symbolic nature needed to be reconsidered.

It was around four o'clock in the morning on Midsummer's Day that the heads of state and government found a compromise and agreed on a mandate for an Intergovernmental Conference. The negotiations were intensive, as a few Member States came to Brussels proposing far-reaching changes. Finally however, like many times before, Member States showed that they are ready to come to an agreement when the Unions future is at stake. This time, it was much thanks to the professional leadership of Chancellor Angela Merkel and the hard work done by the German presidency.

The Intergovernmental Conference, which was opened on the 23rd of July, is now devoted only to technical adjustments of the Treaty text and works according to the mandate given by the European Council. This mandate is very clear and precise, and I see virtually no open issues or points of controversy between Member States at this point. The IGC is proceeding smoothly, and I am confident that the Conference can be concluded by the Portuguese presidency and the Reform Treaty politically agreed at the informal European Council in Lisbon in October. Further legal-linguistic work and translation will follow to prepare for a final signature later this year.

The Swedish government, together with the 18 countries that already ratified the Constitutional Treaty, took a clear stand throughout the negotiating process in defending the content of the Constitution, and opening up only for minor changes. I would say that we succeeded in this approach. Some changes were indeed made - symbolic references to the European flag, anthem and motto were dropped, and important issues such as climate change and solidarity in the energy field were added to the list of the Union's objectives. No new obstacles were introduced to further enlargement, a very important issue to the Swedish government.

Even with those changes made, the actual content largely remain the same. The major difference between the Constitutional Treaty and the Reform Treaty is the outline. Whereas the original Constitution was a comprehensive text replacing all former Treaties, the Reform Treaty consists of articles amending texts already in force. Being a supporter of a true Constitution for the European Union, I of course regret that the Reform Treaty will be something completely different than the simple and comprehensive package that citizens would understand. But we have reached a good compromise, and I welcome that the European Union will soon have a new, solid platform that will help us take on future challenges.

If we look at the content, the Reform Treaty is an important victory for those of us who have worked for a more transparent and democratic Union. Let me dwell upon on a few issues where I think the Reform Treaty will introduce real improvements:

- We will have a quicker and more efficient legislative process, as the Council will take decisions by qualified majority in more or less all policy areas, with the exception of foreign and security policy. This is particularly important in the field of justice and home affairs, where the Union will be able to act more effectively within fields like border control, migration and judicial co-operation. The possibility of majority voting is of course absolutely necessary in a Union that remains open to further enlargement. The majority vote will become both more effective and easier to understand after 2014, when the new "double majority" system will be implemented.

- This reform also includes a larger role for the European Parliament, as co-decision becomes the default mode of the legislative process. This is a democratic reform, as directly elected politicians have a final say on the Union's policies.

- National Parliaments will have greater influence at an early stage of the decision-making process. MP's in all 27 Member States will now have the responsibility to check that the principle of subsidiarity is respected. The possibility of showing a "yellow card" will allow a quorum of parliaments to require that the Commission reconsiders a proposal. This reform is very positive indeed. It deepens the Union's democratic legitimacy, and it will also introduce a stronger European perspective into the work of national parliaments.

- The Union will become more transparent. The Council will meet in public when debating and deciding on legislation. The right of access to documents is given a prominent place in the Treaty and will not only apply to all institutions, but also to the Union's agencies. This has been one of the top priorities for Sweden, and I am pleased to see that openness and transparency is gaining ground in Europe, despite so many different traditions in this field.

- The Charter of Fundamental Rights will give a citizens' perspective to the work of the European Union. Unfortunately, the Charter is no longer an integral part of the Treaty, but it will nevertheless be legally binding for institutions and Member States when applying European law. The Charter is not a perfect bill of rights, but it's a step towards transforming the EU from a cooperation between States into a Union focusing on the citizens. Another step in this direction is that the European Union will formally adhere to the European Convention for Human Rights.

It should also be mentioned that European institutions will be obliged to consult with parties affected by policies in different areas, which in particular includes a dialogue with civil society and local and regional authorities. If used wisely, I believe this can become a good way to stimulate discussions on concrete European policies within NGO's as well as on the local and regional level.

- A double-hatted high representative, who will serve as vice-president of the Commission and leader of the External Relations Council, will co-ordinate the Union's foreign policy. I believe this can be an important way to make Member States unite behind common positions and thus make the European Union a stronger foreign policy actor.

- A Permanent president elected for two and a half years will chair the European Council. This will hopefully contribute to increased continuity and stability in the Union's leadership, and serve as a complement to the rotating presidency.

The core issues of institutional reform are all included in the Reform Treaty and so are substantial changes in policy areas of high importance, predominantly in the areas of security and foreign policy, as well as in justice and home affairs. The Treaty is also carefully balanced and well drafted. I am optimistic about it and confident that it will serve the Union well as a foundation for future policy developments and indeed also for further enlargement.

I expect that the new treaty will be open for ratification in all 27 Member States by the end of this year, in order to come into force in January 2009. With lessons learned from the previous ratification process, it's necessary that all Member States take citizens' concerns seriously and make true efforts to explain the contents and importance of the new Treaty. At least one Member State - Ireland - will hold a referendum, which will probably be preceded by a thorough public debate. But it is equally important that governments in countries where ratification is done in parliament, engage in open discussions with civil society, trade unions, political parties and other actors.

As Minister of European Affairs, I am travelling a lot all across Sweden to meet university students, NGO's, the business community and local and regional councillors for discussions on the EU in general but also on the new Treaty. Starting on the 1st of October, I will travel to a number of cities around the country on a special "tour" to hold public meetings devoted to explaining and discussing the Reform Treaty with citizens.

In the case of Sweden, we will proceed with the ratification in the Riksdag as foreseen in our constitutional rules and traditions. The Government expects to bring a bill for ratification in the autumn of 2008. Needless to say, it's of crucial importance that the Reform Treaty will be ratified across Europe. If governments fail to get public and parliamentary support, Europe will face considerable problems. Not only will the whole process of European integration lack legitimacy, but our Union will also run the risk of becoming paralysed and unable to tackle a number of important challenges.

Once the Treaty is in place, we need to move forward on concrete issues where the citizens expect us to deliver: climate change, energy, migration, the fight against organised crime and a more co-ordinated foreign policy.

Sweden will take over the Council Presidency in July 2009. The government is clear in its ambition to bring Sweden into the core of the European Union, and we are putting the presidency on top of our political agenda.

I am sure it's going to be an exciting term. Millions of Europeans will go to the polls in June to elect a new European Parliament, a new Commission will be appointed and the new Treaty may enter into force. My government will have the responsibility to ensure that the transition from the present system to the new set-up works smoothly.

We are very aware of the responsibility to give the new Treaty a good start with a well-functioning coordination and cooperation between the Union's institutions. We will do our very best to work in that spirit. Considering all the important events taking place, I'm also looking forward to use 2009 as a moment to intensify the discussion on Europe with the citizens of this country. I hope that governments across Europe, national MP's, MEP's running for election and the Commission will join me in this effort.

Ladies and Gentlemen,

This seminar is a great opportunity to discuss the impact of the new Treaty, and with this impressive list of speakers, I am looking forward to a very interesting exchange of views.

Thank you.