The 'Treaty of Lisbon'[fr][de] 

Following the failed referenda on the draft EU Constitutional Treaty in France and the Netherlands in 2005, a "period of reflection" on the future of Europe was launched to reconnect citizens with the European project and to decide the fate of the Constitution (see Constitutional Treaty: The reflection period).

At their summit in June 2007, EU leaders managed to overcome the institutional impasse and agree on the outlines of a new EU treaty put forward by German Chancellor Angela Merkel to replace the EU Constitution. Heads of state and government signed up to a detailed mandate for an Intergovernmental Conference (IGC), which found agreement on the text of the Reform Treaty in October 2007. EU leaders signed the new treaty at a special summit in Lisbon on 13 December 2007.

Final ratification of the treaty, which EU leaders hoped would take place in early 2009, was thrown into doubt when Ireland rejected the text by popular referendum in June 2008 (EurActiv 13/06/08).

In order to allow Ireland hold a second referendum, EU leaders in December 2008 agreed on a package of Irish demands, including the retention of one commissioner for each EU member state (EurActiv 12/12/08).

Key institutional innovations:

• A double majority rule for Council decisions (55% of member states and 65% of the EU's population need to support a proposed EU legislation to pass by qualified majority). However, due to fierce Polish opposition, the new voting system will only apply from 2014, with an extra transition period until 2017 when additional provisions making it easier to block a decision will apply (the Ioannina clause);
• Poland managed to include the so-called  Ioannina clause in a protocol. This allows for a minority of member states to delay key decisions taken by qualified majority in the Council "within a reasonable time", even if they do not dispose of a blocking minority. However, the clause is not included in the actual treaty text, which means that member states can alter this provision without having to go through the cumbersome procedure of treaty change;
• a permanent Council president to chair EU summits for a two-and-a-half year renewable term instead of a six-month rotation;
• the post of a 'double-hatted' High Representative of the EU for Foreign Affairs and Security Policy replacing current EU High Representative for Foreign Affairs Javier Solana and the external relations commissioner. Due to reservations on the part of the UK, the label 'EU foreign minister' was dropped;
• reducing the number of MEPs to a maximum of 750 (with a minimum of six and a maximum of 96 per country), but Italy managed to squeeze in an extra MEP, putting it back on equal footing with the UK (73 seats each; 74 for France). The new '750 plus one' formula assumes that the Parliament president will not exercise his right to vote;
• strengthening national parliaments by giving them the right to raise objections against draft EU legislation (so-called orange card) as a reinforced control mechanism for the principle of subsidiarity;
• a single legal personality for the EU, and;
• an exit clause making it possible for members to leave the EU.

Important policy changes:

• Extending qualified majority voting to 40 policy areas, especially those relating to as asylum, immigration, police cooperation and judicial co-operation in criminal matters;  
• Reference to new challenges, such as climate change and energy solidarity, especially encountering concerns by Lithuania and Poland about heavy energy dependence on Russia, and;
• applying new opt-in/out provisions for the UK to some new policy provisions, such as policies on border checks, asylum and immigration, judicial co-operation in civil matters, judicial cooperation in criminal matters and police co-operation. 

Items dropped from rejected EU Constitution:

• The 'Constitution' label was discarded. The Reform Treaty will go back to the traditional method of Treaty change thereby amending both the EC and EU Treaties;
• reference to the symbols and anthem of the EU;
• the full text of the Charter of Fundamental Rights was replaced by a short cross-reference with the same legal value. However, due to strong British opposition, the Charter will not be legally binding in the UK. Poland has joined the UK in asking for an opt-out of the Charter, while Ireland has backed away from this option, and;
• a reference to free and undistorted competition as the EU's goals was taken out at France's request; French President Nicolas Sarkozy argued that competition was not an end in itself. However, this will not raise doubts over the general competition policy competence of the Commission (EurActiv 27/06/07).

Ratification:

• The Reform Treaty can only come into force as soon as all 27 member states have ratified it. Should Ireland vote 'yes' in its second referendum on the treaty, to be held on 2 October 2009, it is expected that the remaining countries will follow suit.

Portuguese Prime Minister José Socrates said: "With this new treaty, Europe has overcome an impasse that lasted for several years. Europe has emerged stronger from this summit, stronger to face global issues, stronger to take its role in the world and also to increase confidence in our economy and in our citizens."

Commission President José Manuel Barroso stated: "We have a treaty that will give us now the capacity to act. Our citizens want results. They want to see in concrete terms what Europe brings them…I believe we have a treaty that will give us now the capacity to act".

UK Prime Minister Gordon Brown said he was satisfied that his 'red lines' had been respected and that no referendum was needed on the new text: "The British national interest has been protected," he said. 

Speaking to journalists prior to the Lisbon Summit, he again rejected calls for a referendum on the new text, saying it was fundamentally different from the defunct EU Constitution: "Because we have a very different document with our protocol, with our opt-ins, with our emergency breaks, with all these protections for the British national interest there is no fundamental change and that is why I believe the proper way of discussing this…is parliamentary debate."

He called on EU leaders to "move from that inward-looking institutional discussion to dealing with the major challenges of jobs, prosperity, environmental security and of course security against terrorism". 

Italian Prime Minister Romano Prodi said: "We are now in a situation that recognises Italy's role in Europe. This is the end of a very long period of difficulty in European history. The EU can start again to operate in a concrete way.''

While pro-European MEPs praised the deal for "safeguarding the substance of the draft EU Constitution", Eurosceptics criticised EU leaders for passing the rejected EU Constitution with another heading.

Socialist Group leader Martin Schulz Welcomed the Treaty deal as "a victory for pro-Europeans". He said: "After six years, we have finally sorted out the institutional and structural problems of the EU. Now we need to get on with the real business of Europe.

However, he warned: "We should not underestimate the fact that a very difficult period will now begin. All those who endorsed the agreement must now secure its ratification.  I hope they will do the job better than they did for the constitutional treaty.  I urge them to show energy and commitment in winning the trust of the people for what is a good compromise." Schulz added: "This treaty is a success for Europe and a victory for the pro-Europeans.  In the end, the anti-Europeans failed to achieve anything."

EPP-ED Group chair Joseph Daul said: "Once this Treaty has been adopted, our political leaders will have to make bolder and more decisive moves to take whatever measures are needed at national level and at European level. We must try to rid ourselves of futile and dangerous accusations such as 'it is the fault of Brussels'. This is not the way to meet the challenge of globalisation."

The European Trade Union Confederation (ETUC) stated: "ETUC regrets the unambitious nature of much of the EU Reform Treaty. There was a real opportunity to revive social Europe by extending qualified majority voting and by extending the competences of the Union to control the dark side of globalisation and rampant financial capitalism. What we have instead is a series of modest adjustments to the EU’s framework of rules, which will have only a limited impact on the process of deepening Europe’s capacity to act decisively in the world."

Secretary General of the European SME employers' organisation UEAPME, Hans-Werner Müller said: "It is now time to look at the bigger picture: the Reform Treaty will increase both the room for and the speed of manoeuvre of the European institutions, and strengthen the European Union’s voice on the global arena." He added: "Europe cannot afford another slow and painful approval. EU leaders have set the ball rolling tonight – it is now up to Europe’s governments and citizens to keep up the positive momentum. This is an opportunity that cannot be missed under any circumstances."

"When you look at the detail of what has been agreed, it is clear that this is just the old EU Constitution in everything but name," Open Europe Director Neil O'Brien said. The head of the Eurosceptic UK think-tank added: "This will fool no-one. This is the same EU Constitution under a different name, and the governments must keep their promise to hold referendums."