Copenhagen - It is a club that is open to all of Europe, but
not all members are equal.
As the eurozone debt crisis forces the currency area to
integrate more closely to survive, those outside the bloc but in the European
Union are worried that they will be left as junior partners without a say.
The eurozone's response to its public debt crisis has
created layers of new agreements and mechanisms that affect the EU's 10
non-euro countries, who are shut out when deals are done and only learn later
of the decisions of the 17.
Strategies to bring all EU countries together on overarching
economic issues have had unintended consequences by creating divisions because
not everyone can agree, threatening efforts to implement policies to revive the
region's depressed economies.
"We need to make sure that the EU of 27 is actually
working," said Margrethe Vestager, the economy minister for non-euro
member Denmark, who broached the tensions when she chaired an EU finance
ministers' meeting in Copenhagen on Friday.
"There is a risk... that the cooperation quietly drifts
apart," said Vestager, whose bright red dress in a room of ministers in grey
suits signalled a desire not to be overlooked.
Danish diplomats described Friday's debate - the first time
such a discussion has formally been on the agenda - as a
"philosophical" discussion on the EU's future.
Many EU officials concede that things are getting unwieldy,
even for experts who struggle to decipher the structures intended to unify the
EU's 500 million citizens.
"We are building a fiscal union in a complicated
way," Germany's Finance Minister Wolfgang Schaeuble said of the eurozone
at a gathering of students in Copenhagen.
Concern is growing both among euro "outs" which
aspire to join the currency, and those which do not.
Poland, which aims to adopt the euro in mid-decade when it
meets the criteria, warned last month against the creation of divisive
"mini-EU coteries", that could entrench a two-speed Europe.
"The imperative for a closer cooperation of the
eurozone members should not be a means of dismantling the European Union,"
Polish Foreign Minister Radislaw Sikorski said in a speech to the European
Council on Foreign Relations in Paris.
"Decision-making in this group cannot subvert
step-by-step the decision-making among the 27."
Explicitly rebuffing a vision articulated by French
President Nicolas Sarkozy, Sikorski said: "Poland says 'no' to the
institutionalisation of 'a new core and a new periphery' in Europe."
Separately in Helsinki, Finland's prime minister urged
European Commission President Jose Manuel Barroso to avoid more divisions
between the eurozone, of which Finland is a member, and the other 10.
"The EU's unity is crucial," Jyrki Katainen told
reporters after meeting Barroso on Saturday. "“We have to avoid these kinds
of artificial divisions between the two camps," he said.
One such potentially divisive issue worrying the Finns is an
attempt to create a tax on financial transactions, which France and Germany
have tried to pursue within the eurozone after Britain blocked it at EU level.
How many pacts make a union?
Divisions that were less noticeable a decade ago have become
more apparent as the eurozone, under duress, seeks to create a central fiscal
policy to match its monetary union to convince financial markets the currency
area can stick together.
That march towards coordinated fiscal policies in the
eurozone has given rise to another schism in the EU founders' vision of
"ever closer union". Twenty five of the EU's 27 members signed a
"fiscal compact" backing budget discipline in the eurozone. Britain
and the Czech Republic stayed out.
Britain, for its part, demanded in vain guarantees that the
eurozone would not take decisions on financial services or the single market
that could affect its interests.
Eurozone leaders will now hold at least two separate
summits a year, only inviting the other signatories of the pact if issues that
might concern them are to be discussed.
In another division, only 23 of the 27 countries agreed last
year to a Franco-German strategy aimed at improving competitiveness in European
economies, the Euro Plus Pact.
"In addition to the EU of the 27 and the eurozone of
17, we now have the Europe of the 23 with the Euro Plus Pact, and the Europe of
25, the fiscal compact," Vestager said. "We need to make sure that
these formats don't split us apart," she said.
EU officials have long discussed "mechanisms of
differentiated integration", EU jargon for allowing some countries to move
forward faster together, rather than trying to create a monolith that could
lead to irrevocable strains.
Britain, Denmark and Sweden have opted out of the euro,
while London and Dublin declined to join the passport-free Schengen area.
After almost doubling its size over the past 15 years in an
eastward expansion, the EU's growing pains are understandable, with an
inevitability that not everyone can see eye to eye.
Still, the EU must address its future if it is to maintain
its integrity, according to Brussels-based think tank Bruegel, whose research
laid the basis of the discussions in Copenhagen.
One step would be to better share information between
eurozone and non-eurozone finance ministers, Bruegel said in a paper for the
ministers. The eurozone should also ensure that non-eurozone countries have
more of a voice in designing the currency area's future.
"We should try to find common ground as much as
possible," said Sweden's Finance Minister Anders Borg in Copenhagen.
But if an overarching integration strategy emerges, it must
also go beyond monetary and economic affairs.
"The concurrent circles in the EU will always differ
according to the subject," said Karel Lannoo of the Brussels-based Centre
for European Policy Studies.
"Today economic policy is most important, but tomorrow it may be defence."