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Last Updated: Tuesday, 27 May, 2003, 17:12 GMT 18:12 UK
EU draft tackles welfare and crime
Copies of amendments to draft articles of the European Constitution
National governments are scrutinising the draft
A charter of fundamental rights for EU citizens, tax harmonisation and a plans for a European public prosecutor's office are included in the latest draft document by the European Convention.

The unveiling of the plans for reform of the European Union marks the start of intense negotiations between the member states.

The proposals are designed to lead to a new constitution for the EU that will streamline its working before it expands next year from 15 to 25 countries.

But the draft is likely to be opposed in some quarters, particularly in Britain where a political row has broken out over the latest proposals.

DRAFT PROPOSALS
Powerful EU president
EU foreign minister
Common foreign policy
Tax harmony
More qualified majority voting
Legally binding charter of rights
EU to have "legal personality"

Eight of the 15 EU countries, including the UK, oppose the idea of a public prosecutor.

The idea is to have a network of lawyers who could, for example, pursue across borders big criminal cases involving EU money.

In Britain, the opposition Conservatives insist there should be a referendum on all the plans, which they say pave the way to an EU "superstate".

Proposals for an elected EU president, an elected foreign minister and backing for a common foreign policy were publicised on Monday.

List of concerns

The plans unveiled in Brussels on Tuesday would make the existing Charter of Fundamental Rights legally binding in all EU countries.

But it goes further on workers' rights and social policy, and that could mean a European judge having the final say on workers' right to strike in member countries.

BBC Europe correspondent Tim Franks says it may be tricky to sort out the legal status of the charter of fundamental rights.

EUROPEAN CONVENTION
Chaired by Valery Giscard d'Estaing
Holding year-long discussions
Aims to simplify treaties
Trying to decide balance of power between Brussels and governments

Britain believes the charter's list of entitlements could undercut its existing labour laws.

The plans also extend qualified majority voting (QMV) in EU-decision-making, notably to asylum policy.

Already well over half the decisions taken on EU policy are subject to QMV, including everything involving the running of the single European market.

Eurosceptics fear extending QMV to more policy areas is a move towards centralised European control of domestic policy.

"Claims for asylum are by definition international and need to be dealt with across borders" said a UK Government spokesman.

Tony Blair
Blair says he has his veto ready

"But immigration policy is very much a domestic legal area and we want any EU decisions on immigration to continue to require unanimous agreement."

The UK Government also refuses to countenance the plan to end the veto on co-ordinated social security policy and certain areas of taxation.

The European Parliament's powers are enhanced too, with the number of policy areas in which MEPs have equal say with EU ministers more than doubled from 34 to 70.

F-word dropped

National governments will now spend the next few months trying to hammer out a final agreement on the plans.

References to a "federal" Europe were dropped from the draft at UK Prime Minister Tony Blair's request after a meeting with the EU convention chairman, former French President Valery Giscard d'Estaing.

Calls to rename the EU as "United Europe" have also been dropped.

On foreign policy, the draft says EU states should "actively and unreservedly" back a common foreign and security policy.

Another president, of the European Commission, would also be elected by the European Parliament.

On the economy, the draft says: "The Union shall co-ordinate the economic policies of the member states, in particular by establishing broad guidelines for these policies."

The 148 pages of proposals have been drawn up over 15 months by the 105 members of the convention, including government ministers, Euro MPs, MPs and the European Commission.

The UK Government has said it will veto any plans which it believes are not in British interests.

The draft will be considered by EU leaders at a summit in Greece in June and it is hoped a final agreement can be reached by the end of the year.




WATCH AND LISTEN
The BBC's Carole Walker
"Critics say it will fundamentally change the way Britain is governed"



SEE ALSO:
Analysis: More of the same EU?
27 May 03  |  Europe
Blueprint for Europe published
26 May 03  |  Politics
Q&A: Europe's constitution
26 May 03  |  Europe
Q&A: The UK, Europe and referendums
20 May 03  |  Politics
EU prepares to battle for power
26 May 03  |  Europe


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