Airstrip One

Domestic intrusion: Brown's budget deficit for this fiscal year will overshoot by at least £10bn.

This is part of the cost that foot and mouth wreaked on the British economy. What comes around, comes around.

Stalling for Time

Reports from the IGC confirmed that the countries were unwilling to extend qualified majority voting or hand the power of confirming the EU budget to the European Parliament.

The European Presidency, bestowed on Italy, has proposed a clumsy solution to the objections of the smaller countries over the removal of presiding rotation.

All member states accept that the current six-month rotation must go. It will be replaced with a system where each of the "sectoral" ministerial councils -- dealing with agriculture, transport or environment, for example -- gets its own rotating "team presidency." Most popular options are said to range from three-five countries per team, running the given council for 18-24 months.

Frattini said last night "practically everyone" had agreed with the general principle. "Now, there is a fairly general consensus on the rotation issue. Many feel that the principles should be enshrined in the [constitutional] treaty. And that these principles must be very firmly held. There should be equal access, parity of access to the presidency, there should be equal rotation, which should be basically equal rotation among all member states, big and small, old, and new. There should also be some consideration of the geographical balance in each team presidency, and it should be a system which would make the whole procedure functional," Frattini said.

This confusing and bureaucratic structure is indicative of the compromises that will be necessary if the IGC wishes to draft a revised constitution. They are aiming for an ambitious timetable in which this will be completed:

But gradually, national positions have emerged and the Italian presidency is now proposing to release an overall, comprehensive draft text of the constitution by late November. Foreign ministers will then meet 27-28 November in the Italian city of Naples, where most of the text -- in theory, at least -- should be approved. On 12-13 December, an EU summit is to put the finishing touches on the final document.

The other outstanding issues (extension of qualified majority voting, foreign and security policy and Spanish/Polish opposition to the demographic component of QMV) remain unresolved.

If anyone wants to pick up a free copy of the draft constitution, there's one in this month's issue of Prospect.

(28th October 2003, 22.43)

The European Council finally agreed on an EU wide framework for energy taxation, one more step on the road to a carbon tax. The usual policies included support for emissions, exemptions for public transport and renewable energy production and the exemptions for air transport fuel will remain so long as existing international arrangements remain in place.

The reason for the directive was to reduce "distortions in competition".

reduce the distortions in competition that currently exist between energy products - only mineral oils have been subject to EU tax legislation up to now and not coal, natural gas or electricity;

Referendum for Scotland

The SNP have called for a referendum in Scotland on the European Constitution. They would campaign in support of the draft except for the right to veto EU control over fishing to protect Scottish waters. After the mess of the common fisheries policy, I can't blame them and it's a step in the right direction.

If the nationalists consider that a Eurosceptic tinge might garner votes, this might prove interesting in the devolved assemblies. Labour's response was Arrogant, Righteous, Slanderous and in Error:

A Labour Party spokeswoman said the SNP move was another example of the Nationalists’ obsession with constitutional matters.

She added: "It seems to be part of a pattern of the SNP becoming more Eurosceptic and it perhaps has more to do with them trying to shore up their vote from the right."

Might be one approach - non binding referenda in the regions, whether funded by devolved assemblies or on a private basis. Souter's approach on Clause 28 was one example of this.

(27th October 2003, 20.24)

Constitutional Developments

The Assembly of the Western European Union, noting the disunity over defence in the intergovernmental conference, proposed on the 21st October 2003, that a mutual defence clause reinforcing NATO's role, should form an optional annexe to the Constitution allowing each member state to sign. New Europe favouring the variable geometry model?

The Council of Foreign Ministers, meeting today, proved unwilling to sanction the extension of the European Parliament's powers, as set out in the draft Constitution. Further detail can be found on EuObserver, which states from a report sourced in the FT that finance ministers wish to keep their authority over budgetary matters and the Growth and Stability Pact. This is further evidence that the intergovernmental model is preferred by the Member States, especially when it comes to crucial policies that impact upon fiscal, defence or foreign policy. The integrationist model, based upon supranational European institutions, like the Parliament and the Commission, will not be realised.

(27th October 2003, 20.17)