Herman Van Rompuy

Van Rompuy meeting with Britain's David Cameron at Downing Street on Monday

The less-watched parallel process to selecting the new head of the European Commission has been Herman Van Rompuy’s effort, backed by several member states, to come up with a work programme for the new commission president that will lock him in for the next five years when it comes to policy programmes and priorities.

Even though advocates of such an idea appear to be pushing the same policies that are mentioned in nearly every EU summit communiqué, several countries – including strange bedfellows like the Netherlands and Italy – have argued such an agenda is in some ways more important than the leader who takes over the commission in November. They insist it will enable Europe’s prime ministers to put their stamp on the next commission and its priorities after the European Parliament was seen to have dragged the current one around.

As a first step towards agreeing such a programme, Van Rompuy, the outgoing European Council president, on Monday circulated a four-page “strategic agenda” for the new commission, which he hopes to get agreed at this week’s high-stakes EU summit. We wrote about it here, but as usual for readers of Brussels Blog, we’re providing a bit more detail for those more interested, including a copy of the document, which we’ve posted hereRead more

Van Rompuy at last month's EU summit. Will December's summit agree to the contracts?

When is a eurozone bailout not a eurozone bailout?

It’s a question that sherpas to the EU’s presidents and prime ministers will be grappling with on Tuesday when they are scheduled to debate a new proposal from Herman Van Rompuy, the European Council president, intended to further centralise economic decision-making in Brussels.

Under the 9-page plan (first uncovered by our friends and rivals at Reuters; we’ve posted the copy we got our hands on here), a country that is struggling economically could agree to a “contractual agreement” with Brussels that legally codifies its economic reform programme.

In return, that country could avail itself of a low-cost loan that would only be disbursed in tranches to insure compliance with the “contractual arrangement”. Oh, and one other thing: the European Commission would monitor the country to make sure its complying with the “contractual arrangement”.

Legally-binding economic reform agreement. Low-cost eurozone loans. European Commission monitoring missions. Sounds a bit like a bailout, no? Well, because it would be available to all eurozone countries, Van Rompuy doesn’t call it a bailout. In eurocrat-ese, it’s a “solidarity mechanism”. And if sherpas give it the signoff Tuesday, it will be debated by EU leaders at their December summitRead more

The politics and rituals surrounding the selection of a new pope are even more opaque and mysterious than the back-room negotiations over a long-term EU budget (a recent source of obsession at the Brussels Blog).

Herman Van Rompuy, the European council president, has added to the sense of papal mystery surrounding the resignation announced on Monday by Benedict XVI with the release of a terse, two-line statement. Read more

The big question entering Thursday’s summit is whether Herman Van Rompuy, the European council president, can find the right balance between the UK’s demands for an austere long-term budget and France and Italy’s calls for a more robust one. The more Van Rompuy stretches toward the Brits and fellow budget hawks by reducing his proposal, the more those on the other side of the debate pull back. Eventually, the whole thing could snap.

But on the eve of the big meeting, Van Rompuy may have found a clever way to give his budget more elasticity: By increasing the gap between budget commitments and payments. Read more

Van Rompuy discusses EU budget with Finnish prime minister Jyrki Katainen last week.

Sometimes draft communiqués Herman Van Rompuy sends around to national capitals ahead of an EU summit are interesting for the proposals that are in them. And sometimes they’re interesting for what the European Council president has left out.

The “draft guidelines for the conclusions” distributed earlier this week to national delegations ahead of the February 7 summit – obtained by Brussels Blog and posted here – falls very clearly into the second category.

While there is a lengthy section discussing the need to expand trade ties with the US, Japan, Canada, Russia and China, and another on the need to support “democratic gains” post-Arab Spring, the two most interesting topics are listed as “p.m.”, or pour mémoire, which loosely translated means “to be added later”.

The first pour mémoire topic is Mali, where the EU has been trying to catch up with events after Paris sent troops without much consultation with EU allies. And the second is the 7-year EU budget – known in euro-speak as the Multiannual Financial Framework, or MFF. Read more

Van Rompuy, left, has set out a different vision of common eurozone debt than Barroso, right.

Herman Van Rompuy, the European Council president, published the latest iteration of his plan to overhaul the eurozone this morning, just a week after his counterpart across the Rue de la Loi, European Commission president José Manuel Barroso, offered his own blueprint.

Van Rompuy’s 14-page outline includes many of the ideas he’s been proffering since October, including a requirement that all eurozone countries engage in “contractual arrangements” with Brussels, committing them to economic reform plans, and the creation of a eurozone budget. Barroso’s plan has similar elements.

But it’s worth noting where Barroso and Van Rompuy differ, because it could have major implications for the direction the eurozone heads in the coming months. And the differences are perhaps nowhere more evident than on one of the issues that has bedevilled the eurozone since the outset of the crisis: so-called “eurobonds”.

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Van Rompuy is, once again, asking summiteers to endorse the idea in draft conclusions.

When José Manuel Barroso, the European Commission president, unveiled his blueprint for the future of the eurozone last week, aides acknowledged it contained some blue-sky ideas that were meant to provoke debate as much as set firm policies.

But EU presidents and prime ministers may be asked to endorse some of its more controversial ideas if a leaked copy of the communiqué for next week’s EU summit is any indication – including a plan to have all eurozone countries sign “contractual” agreements with Brussels akin to the detailed reform plans currently required only of bailout countries. We’ve posted a copy of the draft, dated Monday, here.

The idea of the Brussels contracts was originally advocated by the summit’s chair, European Council president Herman Van Rompuy, ahead of October’s gathering. But in the end, summiteers only agreed that such a plan should be “explored”Read more

Martin Schulz, far right, with his fellow EU presidents ahead of budget talks on Monday.

Just how bleak do things look for next week’s summit intended to reach a deal on the EU’s next €1tn seven-year budget?

Only hours after French prime minister Jean-Marc Ayrault threw cold water on the latest compromise effort, another major player in the game – Martin Schulz, the European parliament president – said he now expected the high-stakes summit to come up empty.

“I’m very sceptical about an agreement next week,” Schulz told a small group of Brussels-based reporters, arguing that the compromise put out yesterday by Herman Van Rompuy, European Council president, was significantly different from that offered by the Cypriot presidency just two weeks ago – a sign of “how deep the division is within the Council.”

Van Rompuy’s proposal (a leaked copy of which we’ve posted here) has set off another round of recriminations, helping turn a meeting this morning of EU ambassadors into a complaint-fest, diplomats said. But Schulz said he believed the biggest stumbling block remained Britain, which is the only country calling for a complete EU budget freezeRead more

Rajoy is still angered by Spain's snubbing during Mersch's selection earlier this year.

If you thought the long, drawn-out saga of Yves Mersch’s nomination to a seat on the European Central Bank’s powerful executive board could not get any stranger, think again.

The Spanish government this morning informed Herman Van Rompuy, the European Council president, that it objected to the fast-track “written procedure” Van Rompuy had begun in order to get Mersch finally seated in the job. The procedure – which was begun after the European Parliament refused to sign off on the nomination last month – was due to end today, making it possible for Mersch to take the long-empty seat by November 15.

But the Spanish veto means Mersch now can’t go through and the appointment battle, which has dragged on for nearly ten months, will have to be taken up by the EU’s presidents and prime ministers when they summit in Brussels later this month.

The question gripping the Brussels chattering classes now is: Why? Was Madrid trying to fire a warning shot across the bow of the ECB and Berlin, which have been ratcheting up the pressure over the conditions of a long-expected Spanish rescue programme? Senior officials insist the real reason is far more prosaic. Read more

Van Rompuy sent the note to national delegations yesterday, ahead of today's summit start.

The issue of a collective budget for the 17 eurozone members has come roaring out of nowhere to become one of the most contentious issues heading into today’s EU summit. It’s included both in the draft conclusions sent around by Herman Van Rompuy, the European Council president, and in his report on the future of the European Monetary Union.

The proposal is so contentious – the French see it as a nascent supranational budget that would spend on things such as unemployment insurance; the Germans a small, targeted fund to help start short-term programmes such as job training schemes – that Van Rompuy yesterday sent around a “background note” to national delegations to flesh out the idea.

The note, seen by Brussels Blog, contains eight separate questions about the eurozone budget and other parts of his EMU report that have drawn controversy, in an apparent attempt to steer tonight’s discussion around the summit table. We’ve posted a copy after the jump. Read more