RS21618
The European Union's Reform Process: The Lisbon Treaty
October 21, 2009

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Summary

In December 2007, leaders of the European Union (EU) signed the Lisbon Treaty. The treaty aims to reform the EU's governing institutions and decision-making process to enable the 27-member EU to operate more effectively. This new treaty grew out of the proposed "constitutional treaty" that foundered after French and Dutch voters rejected it in referendums in 2005. The Lisbon Treaty seeks to give the EU a stronger and more coherent voice with the creation of a new position, President of the European Council. This individual would chair the activities of the 27 EU heads of state or government to help ensure policy continuity, guide the strategic direction of policy-making, and give the EU greater visibility on the world stage. The President would also coordinate relations between EU institutions. Additionally, the Lisbon Treaty would create the new position of High Representative of the Union for Foreign Affairs and Security Policy, a de facto EU foreign minister who would be supported by a new EU diplomatic service. The Lisbon Treaty would make changes to the EU's internal decision-making mechanisms. These changes have been designed to streamline the process and make it less susceptible to gridlock or blockage by a single member state. The treaty attempts to address concerns about democratic accountability and transparency in EU policy-making by granting a greater role to the directly elected European parliament, national parliaments, and citizens' initiatives. The treaty must be ratified by all 27 member countries before it can come into force. The Czech Republic is the only member that has not completed ratification. The treaty overcame a major hurdle when Ireland overwhelmingly approved it in a referendum on October 2, 2009. The vote was Ireland's second attempt to ratify--Irish voters initially rejected the document in a June 2008 referendum. The Czech parliament has approved the treaty, but full ratification is still pending the signature of the president. It is unclear how long the delay might last. Nevertheless, the EU has now begun to prepare for the treaty to take effect in early 2010. The Swedish Presidency of the EU is hoping to use a Summit scheduled for late October 2009 to resolve remaining institutional questions about the treaty's implementation. Such a Summit would likely feature vigorous debate about appointments to the new President and "foreign minister" positions. Should the issue of Czech ratification not be resolved, these decisions may be pushed back to mid-December 2009. Experts assert that the Lisbon Treaty would have positive implications for U.S.-EU relations. While the treaty is unlikely to have major effects on U.S.-EU trade and economic relations, some believe that it could allow the EU to move past its recent preoccupation with distracting internal questions and take on a more active and effective role as a U.S. partner in tackling global challenges. There are indications that adoption of the Lisbon Treaty would make the EU more amenable to future enlargement, including to the Balkans and perhaps Turkey, which the United States strongly supports. Others maintain that a stronger EU poses a potentially detrimental rival to NATO and the United States. This report provides information on the Lisbon Treaty and possible U.S.-EU implications that may be of interest to the 111th Congress. Also see CRS Report RS21372, The European Union: Questions and Answers, by Kristin Archick and Derek E. Mix.

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