BRITISH MANAGEMENT DATA FOUNDATION

Introduction

The aim of the Treaty of Amsterdam is to revise the Treaties to prepare the European Union for the changes facing Europe. This includes the enlargement of the Union by admitting new Member States from Eastern Europe, the effects of globalisation on employment, international crime and the environment.

The approach of the Union is now, in general, to place more importance on the role of the Community institutions in forming guidelines and Community-wide law that would provide the bases for action by the Member States. This is termed the 'Community Method' and fundamentally changes the approach for several policies, including the foreign and security policy and police and judicial co-operation, from one where the Member States instigate actions to one where the Community acts and the Member States follow the lead given by the Community institutions.

The simplification and renumbering of the Articles has led to the Treaty effectively being split into two, with the Treaty on European Union forming one and the Treaty establishing the European Community forming the other.

Main Areas

The main areas that have been introduced by the Treaty or have had major changes to them are:

1. An area of freedom, security and justice

(a) Fundamental Rights. The Union will be based on the fundamental principles of liberty, democracy, respect for human rights and fundamental freedoms and the rule of law (Article 6, Title I).

The breach of these fundamental rights and principles by a Member State will cause that State to lose certain rights, particularly voting rights (Article 7, Title I).

(b) Free movement of persons, asylum and immigration. This is a new title (Title IV in the Treaty establishing the European Community) and includes a Protocol on incorporating the Schengen acquis into the Treaty. The United Kingdom and Ireland obtained an opt-out from the terms of the Schengen acquis. This is intended to last for five years for Ireland and until such time as the United Kingdom elects to enter the agreement. The previous UK government negotiated this opt-out.

(c) Non-discrimination. The Council, acting unanimously, will adopt measures to act against discrimination based on sex, racial or ethnic origin, religion, disability, age or sexual orientation (Article 13, Title II).

2. The relationship between the Union and the citizen

(a) Social Policy. The United Kingdom has agreed to the 'Social Chapter' of the Maastricht Treaty and so the Agreement on Social Policy, attached to the Maastricht Treaty as a Protocol, has now been incorporated into the main body of the Treaty. The Council is now able to effect the provisions on Social Policy under the legislative procedure of the EU Treaty itself regarding the whole Community, rather than the involvement of the individual Member States that had signed the Protocol.

(b) Employment. The growing concern over the high levels of unemployment in the Community has led to a broad-based policy being introduced. The general competence will remain with the Member States but the Council will co-ordinate their actions by issuing guidelines, acting by qualified majority. The European Council will annually review the state of unemployment and give the political impetus for action.

(c) Environment. The policies on the protection of the environment should be incorporated into all relevant Community acts and will be considered by the Council, the Commission and the European Parliament when they consider any proposed harmonisation measure.

(d) Subsidiarity and Proportionality. The Treaty attaches a Protocol (Protocol no 30) which is intended to define precisely the criteria for the application of these principles, including the strict observance and consistent implementation, by all the Community institutions. This indicates that where an issue is considered to be one that affects a number of Member States or the harmonisation of laws, the Community would be better to act rather than the individual States.

3. Common Foreign and Security Policy

The Treaty of Amsterdam has substantially restructured and expanded the policy and has incorporated and rewritten the existing provisions. The object is to make the policy more coherent and consistent as a Community-wide approach, with the Community taking on a more active leadership role in formulating and guiding policy. The Member States will ensure that their national policies conform to the Community's approach.

A Declaration (Declaration no 3) has been attached to the Treaty describing the increased importance the Western European Union and its possible future integration into the European Union. The Declaration acknowledges the continuing importance of NATO to the defence of Europe and describes how the Union will foster closer relations with the WEU.

4. Police and Judicial Co-operation in Criminal Matters

The Heading of this Title has been changed from 'Justice and Home Affairs', emphasising the change in approach to emphasis the new leadership and guiding role of the Community and to make the policy more far-reaching.

This will include closer co-operation between the judicial, police forces, and customs authorities of the Member States and harmonising action among the Member States in matters concerning crime, race and xenophobia.

5. Institutions of the Community

The number of areas where qualified majority voting by the Council has been greatly expanded and there is further involvement of the European Parliament in the adoption of European legislation with the extension of co-decision.

6. Closer Co-operation or flexibility

Individual Member States will be able to use the institutional framework of the Community to develop closer bi-lateral links with one another in specific areas without involving all of the Member States. The intention is that as more European states join the Union, more flexibility is required to allow some Member States to move at different speeds on certain areas, eg EMU and closer co-operation in Police and Judicial matters (Article 40, Title VI). The Council will authorise this co-operation acting by qualified majority.