EU plans a ‘blue card’
By Shadaba Islam
FORGET hopes of a new era of European harmony and unity following the agreement in Lisbon last week on a new reform treaty to whip unwieldy European Union institutions into shape: the bloc faces years of anxiety on whether the new institutional blueprint will be ratified by all 27 countries.
EU policymakers have also become entangled in a passionate and often acrimonious debate on just who should lead the EU for the coming years.
Most crucially for Asian governments, discussions in Lisbon also revealed deep and damaging fault lines on future EU economic policy and Europe’s response to globalisation. There’s little doubt that EU countries do not see eye to eye on whether globalisation is a threat or opportunity, with some still believing in the virtues of free trade but others voicing fears that global competition will lead to more job losses and the flight of investments to cheaper locations in Asia and elsewhere.
Broadly speaking, while France is leading the battle for more EU protectionism and economic nationalism, Britain and Nordic nations are struggling just as hard to keep Europe’s markets open to foreign exporters and investors.
Divisions over Europe’s economic future have also come to the fore on the sticky issue of immigration and more specifically, over European Commission plans for a so-called ‘blue card’ system to lure skilled foreigners to Europe. Once again, while some EU states believe Europe needs foreign labour to fill crippling shortages of workers in areas such as information technology, others — including Germany — are averse to any plans to import foreign workers, fearing this will further exacerbate wide-ranging xenophobic sentiment in the bloc and trigger even more social tensions.
While these and other divisions — over energy sector liberalisation for instance — are likely to dominate the EU agenda in the coming months, the current focus in Brussels and other EU capitals is on reaching agreement on the identity of the man or woman who could become the European Union’s first-ever president once the new reform treaty enters into force in mid-2009.
Former UK prime minister Tony Blair appears to be a frontrunner for the prestigious and high-profile job. Surprisingly, given the tradition of Franco-British rivalry, among those in favour of such a decision is French President Nicolas Sarkozy.
For all the pomp and ceremony attached to the post, the future EU president will have no executive powers. He will, in fact, preside over bi-annual EU summits, known in the bloc’s jargon as European Councils which bring together EU heads of state and government. The post is a two and a half year term, but it can be held twice. The system replaces the current situation where the post of EU president rotates among member states every six months.
Despite his high-profile career, however, Mr Blair — currently an international envoy for the Middle East — is just as controversial a personality inside the Union as he is outside it. Like many in the Muslim world, EU policymakers point out that Mr Blair’s support of the US-led invasion of Iraq in 2003 caused a deep rift in Europe, with France and Germany opposing the war.
In Brussels, many also believe it would be counterproductive to put Blair in the EU driving seat when Britain does not participate in key common policies, including the euro as well as justice and home affairs.
Other frontrunners for the top job are less controversial. Luxembourg’s Prime Minister Jean-Claude Juncker, currently head of the euro group, is respected by those who remain loyal to the dream of an increasingly integrated EU while others favour Danish prime minister Anders Fogh Rasmussen.
There’s much less uncertainty over who will lead the European Commission, the EU’s executive body, over the next few years. The organisation’s current president, former Portuguese premier Jose Manuel Barroso, is reportedly eyeing a second term from 2009 and is likely to be reconfirmed in his job.
Speculation is mounting, on the other hand, over who will become the first-ever EU foreign minister, a post which will combine the two current jobs of EU foreign policy chief Javier Solana and EU external affairs commissioner Benita Ferrero-Waldner. Although many EU policymakers believe the highly-respected Solana should be asked to stay on, Sweden’s Foreign Minister Carl Bildt has also been cited as a possible candidate for the post.
The new treaty will be formally signed by all European leaders in Lisbon on Dec 13 and subsequently be submitted for ratification next year, with a view to coming into place by mid-2009, ahead of elections to the European Parliament. While Ireland is obliged under its constitution to hold a referendum on the blueprint, Britain’s Gordon Brown is fighting hard to avoid such popular consultation which many fear will result in a public ‘no’ to the treaty. If this happens, the bloc could be plunged into a serious institutional crisis.
For the moment, however, agreement on the treaty allows EU leaders to shift the focus from institutional matters to issues such as globalisation and climate change. A report by the European Commission drawn up for the Lisbon summer argues that the EU should avoid being a passive spectator and start working to ‘shape’ globalisation.
The message is simple: the EU executive argues in favour of reciprocity in global trade and business relations, saying foreign trading partners — including Asian states such as China and India — should open their markets as much as the EU does.
Commission president Barroso suggests that openness is a two-way street and that third countries should offer comparable levels of openness to EU exporters and investors. In addition, foreign companies wishing to do business in EU territory should not be allowed to bypass the rules applied in the Union’s internal market.
Mr Sarkozy has emerged as the strongest advocate of such a principle. ‘Let’s not be naive, we must demand reciprocity,’ he said, complaining that EU firms were obliged to comply with severe environmental and social requirements which were not imposed on their non-European competitors. ‘We have to remind others there are rights as well as obligations,’ Mr Sarkozy added, singling out Russia and China.
One way of meeting the challenge posed by globalisation is for the EU to recruit talented and skilled foreign workers, says the EU Commission. As such, argues Commission chief Barroso, the bloc needs a blue card scheme allowing non-EU nationals to live and work in Europe for a limited amount of time.
‘We are not good enough at attracting highly skilled workers nor are we young enough or numerous enough to keep the wheels of our societies and economies turning on our own,’ Barroso has warned. ‘With the European blue card, we send a clear signal: highly-skilled workers from all over the world are welcome in the European Union,’ Mr Barroso added.
According to commission estimates, labour shortages will peak by 2050 when 25 million Europeans are expected to retire from work and one-third of the population will be over 65 years of age. While in Europe, non-European highly-qualified workers make up only 1.7 per cent of the employed population, they account for nearly 10 per cent in Australia, over seven per cent in Canada and over three per cent in the US.
The writer is Dawn’s correspondent based in Brussels.

