Terrorism tops EU agenda for Spain

Aznar: Keen to press ahead with economic reform

By CNN European Political Editor Robin Oakley

MADRID, Spain (CNN) -- Spain has taken over the rotating presidency of the European Union with a clear sense of priorities and a commodious mixed bag of tasks for its six months in the chair.

Inevitably some date from the events of September 11. Prime Minister Jose Maria Aznar has pledged that fighting terrorism will remain the number one priority.

Under Belgium's presidency the EU agreed a common definition of terrorism and a system of Europe-wide arrest warrants.

Now Aznar hopes to develop the work of Europe-wide investigative teams and to ensure closer co-operation between judges in the 15 member states.

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He has also promised to strengthen transatlantic ties by seeking to negotiate a Legal-Penal co-operation treaty between the European Union and the United States.

Difficulties are likely to arise both over the U.S. use of capital punishment, banned across the EU, and President George W. Bush's declared willingness to make use of military tribunals to try terrorist offenders.

The Spanish presidency will have to cope with any problems arising from the introduction of euro notes and coins across the 12 Eurozone countries on January 1. This, says Aznar, will give the term "an indisputable relevance."

Acknowledging the Spanish presidency's responsibility for a trouble-free introduction of the new currency, he said: "These notes and coins will be the most tangible and clear evidence that we Europeans are capable of achieving ambitious goals."

Aznar is a keen economic reformer, often working closely with UK Prime Minister Tony Blair in the struggle to liberalise Europe's labour markets. The Barcelona European Council in March is to be used as the platform for a new push on structural reforms, flexibility, competition and increased employment.

Hot potatoes

Aznar argues that the present slowdown in the world economy should not be used as an excuse for delaying the economic reform programme first mooted at the Lisbon summit two years ago, but as an added motivation."These reforms are the best way to convert Europe into one of the most competitive, dynamic and prosperous economic areas in the world."

Specifically, he will use the Spanish presidency to promote better linking of European transport networks, the liberalisation of gas and electricity markets, the integration of financial markets, the construction of a more flexible labour market and better training for Europe's students. All are areas on which previous occupants of the EU presidency have found it easier to talk the talk than walk the walk.

Spain's prime minister has also acknowledged the "historic obligation" of EU enlargement. But he has reflected the fears in his country about the loss of EU subsidies as more central and eastern European countries join by warning that enlargement must not upset "the existing balance in the union or the efficient operation of its institutions."

At the Barcelona Council, the 13 candidate countries will for the first time be included in formal meetings to discuss economic and social reform. But Spain faces a difficult task on EU enlargement, holding the presidency during the crunch period of negotiations on agriculture, regional policy and financial provisions, responsible for about 80 percent of the EU budget.

Not surprisingly, the Spanish presidency wants to make a special priority of European/Latin-American relations, holding an EU summit focussing on Latin America and the Caribbean in Madrid in May and hoping to strike a trade agreement with Chile.

But perhaps the thorniest task for Aznar is sorting out the mess that was left at the end of the Laeken summit in December. National horse-trading over which cities in which countries should host a dozen EU agencies or regulatory bodies, including the food safety agency, the maritime safety organisation and the police training college, reached fever pitch..

Rather than mar the Laeken declaration on Europe's future and sour the opening celebrations for the euro, Belgium's Prime Minister Guy Verhofstadt ended the meeting without a resolution. Spain now inherits those dozen hot potatoes.