Most residents of the Grand Duchy cannot imagine Luxembourg outside a united Europe, just as it is hard to imagine the current Union of the Twenty-Five without this country. Despite its miniature size, it hosted the first institutions of the nascent community back in 1952; to this day, the headquarters of a number of major European Union institutions are located here. Moreover, traditionally playing a prominent role in Old World politics, Luxembourg has sometimes even acted as an arbiter in disputes between the continent's largest countries during difficult periods of integration. The fact that this important financial center of Europe is a net donor to the common European treasury undoubtedly adds considerable weight to its voice.
Being supporters of further EU integration, local politicians and the population as a whole look favorably upon the introduction of the single currency, the largest enlargement that took place in May of last year, and the upcoming adoption of a single constitution. As for the issue of immigration, numerous foreigners feel quite comfortable here – it is enough to talk on this topic with the Portuguese, Italians, not to mention people from North African countries, although the local labor market is not yet fully open.
By the way, a salary that is significantly more generous than the EU average attracts even residents of neighboring highly developed states – France, Germany, and Belgium, especially since their cities are quite close, and one can commute to work and back every day.
Politicians and diplomats of the Grand Duchy, located in the very heart of Europe, take a very responsible approach to solving the many important tasks that fell in the first six months of 2005. The magazine «Europe» was told about Luxembourg's priorities in the EU's internal and external policy at the country's foreign ministry and at the permanent representation of the European Commission. As follows from the conversations, the Luxembourgers identified and studied in advance the main problems and challenges that their country would have to face as chairman of the enlarged Union.
First of all, the activity of the current chairman will take place against the background of such an important pan-European process as the ratification of a single constitution. In Luxembourg itself, a referendum on this issue will be held on July 10, and local politicians do not expect any particular problems. Nevertheless, the government has launched a broad explanatory campaign among the population, although few doubt that strong integration traditions must come into play.
As the results of preliminary opinion polls show, between 60 and 70% of voters in this country intend to say «yes» to the Constitutional Treaty, drawn up by numerous wise men led by former French President Valéry Giscard d'Estaing and signed last October in Rome. However, in some other states this will not go so smoothly (it is no coincidence that in Germany there are calls for a pan-European referendum), so the Luxembourg leadership will have to take these difficulties into account in its activities.
Luxembourg diplomats sorted the priorities of their policy into two categories – internal and external.
Among the former, they primarily include the need to reach an agreement by June on the EU's future financial perspectives. At the same time, the new chairman of the EU intends to devote considerable attention to the problem of the Stability and Growth Pact. Recall: it strictly limits such a macroeconomic indicator as the state budget deficit to just three percent of the GDP of each member state.
However, some European Union states have gone beyond these financial limits and have so far been unable to return to them. There are many opinions about this criterion, and a discussion has been going on among European leaders for years, with some of them calling for it to be brought into line with current realities. This point of view is also shared by Luxembourg's Prime Minister Jean-Claude Juncker, one of the most influential figures in the EU.
Next on the list of priorities is the implementation of the Lisbon Strategy, aimed at turning the EU's economy as a whole into the world's most advanced and efficient by 2010. However, the current unfavorable international situation – above all high energy prices, the high exchange rate of the euro, as well as the need to rapidly equalize the development levels of the union's members after the accession of ten countries at once – so far significantly complicates the achievement of this goal.
Against this background, solving such problems as combating unemployment and improving the material situation of certain segments of society is considered very relevant, without which a worthy response to the most important challenges of the early 21st century is unthinkable. It is no coincidence that the European Commission has prepared a special document analyzing the path covered since 2000 within the framework of the Lisbon process and outlining tasks for the future. The next EU chairman takes it on board.
The agenda of the presiding country will be very busy in the foreign policy area as well, and the planned visits, negotiations, and summits will inevitably be supplemented by items that are always dictated by unforeseen current events and circumstances.
Interlocutors of the magazine «Europe» at the Luxembourg Ministry of Foreign Affairs highlighted, among other things, the further development of the EU security strategy aimed at ensuring peace and stability; activities related to the problems of UN reform and the pursuit of multipolar policy in general; the topic of non-proliferation of weapons of mass destruction; the state of Europe's transatlantic ties; an analysis of the situation in the Middle East and Kosovo; the Mediterranean process, which is especially valuable because it involves both Israel and Arab countries.
In the same half-year, summit meetings will be held with Russia, the USA, Canada and Japan. In Luxembourg, negotiations will take place with the foreign ministers of Latin American countries – with this continent the EU has recently been actively developing comprehensive ties.