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The importance of 2004 for the European Union cannot be underestimated. On 1 May 2004, ten new member states simultaneously joined the European Union. Now embracing 25 member states, the EU is already preparing for the next enlargement. As regards the three remaining candidate countries, Bulgaria and Romania hope to join by 2007, while Turkey is not currently negotiating its membership. In order to join the Union, countries need to fulfil the economic and political conditions known as the 'Copenhagen criteria', according to which a prospective member must:
- be a stable democracy, respecting human rights, the rule of law, and the protection of minorities;
- have a functioning market economy;
- adopt the common rules, standards and policies that make up the body of EU law.
The European Council reached agreement in June on the Treaty establishing a Constitution for the EU. In the second week of June, the citizens of all 25 member states elected a new European Parliament, and a 25-member European Commission will take office in November for a new five-year term. In addition, the first referendums on the constitutional treaty could take place in 2004 now that the negotiations have actually been concluded and signing of the treaty is due to take place in autumn, following the completion of the necessary legal and linguistic preparations.
After Ireland the Dutch government has taken on the EU presidency from 1 July for the next 6 months. The priorities of the Dutch presidency are, in brief, the enlargement of the European Union, the sustainable growth of the European economy, security and justice, a sound European multi-annual budget and a more effective role for the EU in the world. The Netherlands also plans to start a debate with the Union’s citizens and governments on how to advance European integration and co-operation and on common European values.
EU News in detail
The European Commission launched a public consultation on directors’ pay, in particular as regards disclosure of remuneration policy and of individual remuneration, as well as shareholder approval of directors’ share options. Responses will be taken into account in framing a Commission Recommendation, scheduled for September. Some of the major questions will be how ‘directors’ should be defined given the diversity of board systems, what information on individual executive and non-executive directors’ salaries should be disclosed, if variable pay schemes should be subject to prior approval at the Annual General Meeting of shareholders etc.
As from 2006, EU citizens, including from new member states, will be able to freely move to and reside with their families in another member state without having to obtain a resident’s permit and apply for permanent residence after five years. This is the essence of a new EU Directive adopted by the European Parliament bringing together nine current Directives and two Regulations.
With the enlargement of the EU, European Works Councils will develop further. In the new directive new EU legislation on employee involvement has been issued, as well as goals on economic competitiveness (the Lisbon objectives) and recommendations on large-scale corporate restructuring. Consultation within EWC’s has also extended to new subject areas such as health and safety, equal opportunities, training and job mobility.
EAPM update
Malta has been welcomed as new member of the EAPM after a two years’ probationary period and has taken on a seat on the EAPM Executive Committee for the next two years. Sweden has also accepted a seat on the Executive Committee. Bulgaria and Denmark have successfully finished their probationary period and are at the moment members of the EAPM Delegates Assembly.
The EAPM launched a project on pan-European managers with the support of KPMG. The idea is to define a “Euromanager” who could be allocated in all European companies. A questionnaire has been sent out to all EAPM member countries and the results will be presented at the 22nd EAPM congress in Dublin in May 2005.
The 23rd congress will be held in Vienna in 2007. In 2009, the 24th EAPM congress will take place in the Netherlands possibly jointly with Belgium.
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