Luxemburgs EU-voorzitterschap eindigt in mineur (en)

EUOBSERVER / BRUSSELS - Despite some real achievements during its six-month tenure at the helm of the EU, the Luxembourg presidency was in the end overwhelmed by the failure to get a deal on the bloc's budget and the double rejection of the constitution.

Luxembourg's reign over the EU, finishing on Thursday (30 June) started off well with an early deal in March on the stability pact - the rules underpinning the euro.

Using his close connections to both Berlin and Paris, prime minister Jean-Claude Juncker managed to broker a deal which was acceptable to large countries - allowing member states to run budget deficits over the agreed limit in certain circumstances - but which was not too loose to have irritated small countries, which had faithfully adhered to the old pact.

A deal was also forged on reforming MEPs' pay under Luxembourg's watch - something that had taken years to achieve and which had severely tarnished the reputation of the European Parliament.

Other high points of the presidency include a commitment by member states to double their current aid to developing countries by 2015 as well as an EU agreement with Russia covering four areas, just as Brussels-Moscow relations appeared to be entering a new low.

Member states also agreed to take more national responsibility for the floundering economic agenda known as the Lisbon Agenda, whose continually missed economic goals since 2000 were becoming something of joke as successive summits made empty commitments to stick to their economic promises.

Overshadowed

But all of this was completely overshadowed by the French and Dutch rejections of the EU constitution in the last month of the Luxembourg presidency.

Appearing personally upset by the outcomes, Mr Juncker, a veteran politician and passionate EU supporter, at first insisted that ratification should continue although this was undermined almost immediately by the UK, which shelved its plans for a referendum.

At a summit later in June, EU leaders came to a messy compromise on the document calling for a period of reflection but allowing countries to postpone their referendums but avoiding explaining what it means legally for member states that choose to continue.

Mr Juncker's own political career also came under the spotlight when it emerged that the no camp in his Grand Duchy had leapt to 45 percent, something unthought of before the French and Dutch rejections - Mr Juncker said he would resign in the event of a no by his own country on 10 July.

Budget wrangles

But it was really the budget wrangles that meant the presidency ended on a sour note. After a long build up and then fraught negotiations during a prolonged summit, EU leaders broke off negotiations without having been able to agree how much money each should spend and on what during the next financial period (2007-2013).

Mr Juncker used all of his diplomatic skills to try and get an agreement saying beforehand that failure to do so after the referendum results would give the impression that Europe is in real crisis.

Following hours of bilaterals and promises of deals for this or that member state, failure mainly came down to disagreement over the annual British rebate, which London said it would only consider reviewing, if the EU's farm subsidies were reviewed.

Mr Juncker presented it afterwards as a clash between those who want more European integration and those who want just a free market zone for the EU.

He later lashed out at UK leader Tony Blair during a summary of his presidency before the European Parliament, for which he got a standing ovation.

However, since then, Mr Blair's view on modernising Europe appears to be gaining the upper hand, after he was at first castigated for his role during the summit.

It was also notable that during his own address to the European Parliament, which occurred the next day, he received virtually as strong a round of applause as Mr Juncker.

The UK takes over the EU presidency on 1 July for six months.