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Europe inches towards changed role on world stage

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Published 05 October 2010, updated 14 October 2010

As world leaders gather in Brussels for the 8th Asia-Europe Meeting (ASEM), The European Union has signalled that it is ready to shift its role in key global fora such as the IMF and the UN climate conference.

The European Union will try to play a more influential role at the United Nations climate summit in December, while discussions are also discreetly underway with Asian partners to reform the distribution of seats at the International Monetary Fund (IMF) and the G20.

An informal agreement reached in September could pave the way for more coordinated EU representation at the UN climate meeting in Cancún, EurActiv has learned.

In Cancún, the European Commission will speak on behalf of the EU on subjects which fall under its competence, while the president of the European Council, Herman Van Rompuy, will speak on issues which fall under the authority of member states.

According to the Lisbon Treaty, the European Commission has a mandate to exercise the EU's external representation, with the exception of foreign and security policy. In the areas where the Commission shares its competence with member states, Brussels can represent the EU on a global stage if the issue at stake has primarily been dealt with by the Commission.

Climate change negotiations offer a clear example of such a case, according to various EU sources. However, EurActiv has learned that President José Manuel Barroso never asked for a mandate to represent the Union at Cancún and the risk of a setback looks very concrete, with member states appearing to pursue national agendas rather than common European goals.

Although no official mandate has been awarded to anyone, common representation should be guaranteed. Member states will still be represented by national delegations, but their coordination seems now more likely to succeed, sources said.

EU representation at the United Nations

Another key area is representation of the EU institutions in the United Nations General Assembly.

At the moment, the EU holds observer status in the assembly and is represented by its rotating presidency rather than by countries which have a permanent seat at the UN.

Brussels is not pushing to change its observer status but is instead trying to upgrade it. Rather than being confined to speak at the end of every debate, EU foreign policy chief Catherine Ashton is suggesting that the EU could speak "in a more timely way," according to a diplomatic source.

The EU institutions also want to sit next to member-state representatives rather than sitting next to international organisations, such as the Red Cross.

Brussels is currently working on a resolution to win these new powers, after an initial setback in September. If approved, the text would recognise the role of Ashton and EU President Herman Van Rompuy as formal EU representatives.

A meeting is scheduled today (5 October) between the heads of mission of EU countries in New York to discuss the issue. 

EU in IMF and G20

The Union will also try to use high-profile summits, like the G20 and the 8th Asia-Europe Meeting (ASEM) currently taking place in Brussels, to win supporters for its cause.

In this respect, the EU representation at the International Monetary Fund (IMF) will be a case in point at the Fund's annual assembly in Washington on 8-10 October.

EU policymakers have repeatedly appealed for more balanced power-sharing within the IMF to take emerging powers into account. In return, China and other emerging powers would be expected to make a greater contribution to global stability.

In their last informal meeting in Brussels last week, EU economy ministers underlined "the need to set up an adequate representation of the European interests in international fora such as the IMF or the G20," according to a note issued at the end of the meeting.

"The shared view was that the functioning of these international institutions should reflect the economic dynamism of emerging markets and under-represented countries," added the text.

Two of the eight positions held by EU countries in the 24-member board of the IMF might be left free for other members in a system which may envisage rotation of different members.

The move would not necessarily imply loss of power for the EU as a whole, because having fewer national members could help to ensure a more coordinated approach. Some countries are even campaigning for a single seat for the EU.

Voting power is also directly linked to financial contributions to the IMF, and China has come under pressure to increase its share.

The EU-China summit in Brussels on Wednesday (6 October) will provide an opportunity to review the situation and see what could outline an emerging global deal.

Positions: 

"We are ready to start negotiations to review the composition of the board of the IMF and to review the current representation in favour of under-represented countries," said Didier Reynders, acting Belgian finance minister and current holder of the rotating EU presidency.

Nuria Molina, director of the European Network on Debt and Development (Eurodad) said: "European countries are failing to understand that the world has changed and that developing countries should also have a seat at the table. This short-sightedness further undermines the role of Europe as a player on the global scene."

Oxfam spokesperson Pamela Gomez said: "It's time developing countries had a say about the way the global economy is run. It's outrageous that current IMF quotas give Luxembourg more voting weight than the Philippines, which has almost 200 times the population. Europe needs to give up seats on the IMF Board, and the US must relinquish its power of veto." 

Next steps: 
  • 4-5 Oct. 2010: EU-ASEM Summit in Brussels.
  • 5 Oct. 2010: EU diplomatic meeting on UN resolution on EU role at the General Assembly.
  • 6 Oct. 2010: EU-China Summit.
  • 8-10 Oct. 2010: Annual IMF Assembly in Washington.
EU foreign policy chief Catherine Ashton
Background: 

Voting rights at the International Monetary Fund (IMF) are calculated on the basis of each member country's donations.

The European Union is over-represented, with eight seats reserved for EU countries on the Fund's executive board. The four biggest EU donors – Germany, France, UK and Italy –  together hold almost 20% of IMF voting power.

The United States alone holds almost 17% of the total vote. China, the emerging power, contributes to less than 4% of the overall funding, and therefore holds just 3.66% of the voting rights. 

Two EU member states, the UK and France, are also permanent members of the UN Security Council. The European Union is currently considered an observer in the UN Assembly, alongside the Red Cross or the Arab League, with no voting power and limited authority to intervene in debates.

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