Historical background

The Lisbon Treaty (or Reform Treaty) signed by the 27 EU member states to replace the Nice Treaty regulates the structure and functioning of the European Union . It entered into force on 1 December 2009. Although the Treaty had been signed by the member states since 13 December 2007, its rejection in the Irish referendum a few months later (12/06/2008) inevitably blocked the ratification process. After certain Irish demands were met, a second referendum was held on 2 October 2009 and the Irish voted “Yes” to the Lisbon Treaty by 67.1% to 32.9%. The Irish demands – also known as "guarantees” – were mainly aimed at keeping one Commissioner per member state (contrary to the Treaty’s provisions), but also included some assurances that the Treaty would not influence Ireland's neutrality and the member states' security policy.

Apart from Ireland, three other countries – the Czech Republic, Poland and Germany – delayed ratifying the Lisbon Treaty. Germany ratified the Treaty on 25/09/09, after a favourable ruling was issued by the Constitutional Court on the Treaty’s compatibility with the German Constitution. Poland speeded up the ratification process following the positive outcome of the second Irish referendum and finally ratified the Treaty on 12/10/2009, whereas the Czech Republic signed the ratification instrument on 3/11/2009, after the country's President Vaclav Claus demanded an opt-out from the Treaty’s provisions on the implementation of the Charter of Fundamental Rights.

Greece ratified the Lisbon Treaty on 11 June 2008, with 250 yeas and only 42 nays.

Structure and Content

The Lisbon Treaty is the result of painstaking negotiations within the framework of the Intergovernmental Conference, held from 24/07 to 03/10/2007, upon a mandate of the Brussels European Council (21-22/06/2007).

Its main aim - as set out in the Treaty’s preamble – is to enhance the efficiency and democratic legitimacy of the Union and to improve the coherence of its action. The enlargement to ten new member states in 2004 made the need for institutional changes imperative, in order for the Union of 27 or more member states to be able to function efficiently.

The new Treaty amends the Treaty on European Union (TEU) and the Treaty establishing the European Community (TEC), now renamed Treaty on the Functioning of the European Union.

 The two founding Treaties are therefore maintained, whereas the European Union now has a single legal personality, thus replacing the Community as a legal entity.

Introducing a marked improvement with regard to the previous Treaties , the Lisbon Treaty provides the Union with the needed tools to meet its new institutional needs, international challenges that have emerged in today’s complex globalized economy, as well as the citizens’ just demands for more democracy, security and justice and for a united Europe’s broader participation in building and strengthening international peace and security.

Basic characteristics

The Union’s principles and values, and the role of the citizen

Following the example of the Constitutional Treaty, the Lisbon Treaty adds significantly to the framework of principles and values that govern the functioning of the Union. The explicit reference to the principles of democracy, rule of law, freedom and respect for human dignity, as well as the importance of social justice, progress and full employment, coupled with the legally binding character of the Charter of Fundamental Rights and the strengthening of articles on European Citizenship, are all important steps towards achieving widespread legitimacy for the integration process with regard to European citizens. At the same time, citizens themselves are given an enhanced role through the institutionalization of the right of initiative and the strengthened auditing role of national parliaments in parallel with, and not at the cost of, broadened competencies for the European Parliament.

The new Treaty also enriches the Union’s framework of principles and values, which already characterize the Union’s objectives and operation. In this direction, the principle of solidarity is supplemented by a dimension of mutual assistance (mutual assistance clause), as well as regulations concerning civil protection.

The systemization and enrichment of the Union’s framework of principles and values as part of its acquis increases in real terms the obligations of third countries that want to cooperate with, become associated with, or accede to, the EU. As is the case with the general political and economic criteria, the promotion of the relations of third countries with the EU presupposes not only acceptance, but also practical implementation of the Union’s overall evaluation framework.

The new institutional framework

Indisputably, the new institutional framework under this Treaty will ensure greater efficiency and strengthen the democratic operation of a European Union of 27 or more member states.

The European Council has gained recognition as the EU’s institution and its role and composition are clarified; it is responsible for decision-making in a significant number of areas. The institutionalisation of a permanent EU President comes to replace the current rotating six-month Presidency. The President is elected by the European Council for a term of two and a half years, renewable once. The President ensures the preparation and continuity of the work of the European Council, the implementation of its conclusions and the external representation of the Union.

Furthermore, certain changes have been introduced in the way the Council of Ministers is chaired and in its composition, with the General Affairs Council being separated from the Foreign Affairs Council. Of particular significance is also the institutionalization of the Eurogroup, that is, the informal meetings between Finance Ministers of Eurozone's members.

As regards the European Commission’s composition, the system of one Commissioner per state is maintained. The Treaty initially provided for a reduction in the number of Commissioners. But following Ireland’s request for member states to retain one Commissioner each, the 2008 December European Council agreed to maintain the status-quo in order to convince the Irish public to vote yes to the Treaty.

The European Parliament comes out particularly strengthened from the Lisbon Treaty. According to the Treaty’s provisions, the European Parliament and the Council co-legislate as part of the ordinary legislative procedure, as well as on fiscal matters, and the Parliament is consulted in certain other areas. Its members – increased from 736 to 751 – vote for or against the European Commission President. Relations with national Parliaments are strengthened since EU institutions are now required to brief them and communicate various pieces of legislation to them, always respecting the subsidiarity principle. The substantial strengthening of the European Parliament’s competencies is also ensured through the use of the co-decision procedure in 33 more treaty articles. The European Parliament now co-decides with the Council on 95% of legislative proposals. The democratic legitimacy of the Union as legislator is thus strengthened.

Further democratic legitimacy is ensured through the transition from an ”obscure” system of vote-weighing to a more transparent and more democratic dual majority system, i.e., 55% of states and 65% of their populations, .

The Treaty upgrades the Union’s judicial system by giving greater legal power to the former Court of Justice of the European Communities, now Court of Justice of the European Union, and other judicial bodies, extending its remit to all areas under the competencies of the European Union (excluding the EFDP), but for the first time including the third pillar.

It also ushers in a sea change with regard to the Union's external presence, efficiency, and action vis-à-vis the international community, third countries and its international political and economic relations in general. The new permanent President of the Council and the EU High Representative for the CFSP – who are both accountable before the European Parliament – are the Union’s answer to the firm demand for a permanent collocutor on the part of third countries (mainly the United States). The permanent President is to prepare the meetings, coordinate and ensure continuity without prejudice to the High Representative’s competencies vis-a-vis the outside world. For his part, the EU High Representative is appointed by the European Council acting by qualified majority, with the agreement of the President of the European Commission. The High Representative – who is concurrently the European Commission's Vice-President, the President of the External Relations Council and the head of the External Action Service – is in a position to safeguard the coherence of the EU’s external action, including the CFSP.

On 29-30/10/2009, the European Council approved the Presidency’ fundamental principles for the establishment of the European External Action Service, and called upon the future High Representative to put forward a Regulation on the new Service’s organisation and functioning. This Service – founded on certain principles governing its structure and operation – will become the Union’s European Diplomatic Service.

At the informal meeting of the European Council on 19/11/2009, the former Belgian Prime Minister, Mr. Herman Van Rompuy, was elected President of the European Council, and former British MEP, Lady Catherine Ashton, was elected the Union’s High Representative for the CFSP.

Policies on internal development and EU deepening

New legal foundations for the development of policies (such as tourism), the deepening of policies on tackling new challenges (climate change, environment, energy) and the communitarisation of – thus far, intergovernmental – activities (immigration, asylum, borders) have been added to the existing network of Union policies. The informal financial perspectives are institutionalized through their incorporation in the Treaty’s financial framework.

Strengthening the Union’s international role and presence

By making the most of new structures and mechanisms in order to develop a cohesive external action, the Union is in a position to play a leading role in the international system, from external economic relations to the area of defense and security.

An important innovation in the Treaty is the use of permanent structured cooperation in crucial areas, such as defense. This kind of cooperation, in particular, is a one-way street for the European Union, and our experience shows that in the area of defense there are important differences between countries.

Alternative forms of cooperation

It is clear that a European Union of 27 or more member states cannot move forward in complete uniformity. But this realisation is not tantamount with theories that would lead to the disintegration of the community framework and to the establishment of directorates and the institutionalisation of a Union of multiple speeds. On the contrary, reinforced cooperation could lead to the deepening of European integration, by accelerating the pace, initially with the participation of a few and then more and more member states, through the gradual achievement of common goals.

Last updated: February 2010