Summary 

The past year can only be characterized as a mixed bag of achievements for the European Union. The failed ratification of the Lisbon Reform Treaty, which Ireland brought to a screeching halt, seemed to signal that Europe was heading in the direction of a loose association of states. The Irish “No” vote was a harsh reminder to the Eurocrats in Brussels that voters were still failing to connect to the elite project called the European Union. At the same time, the Union made considerable progress in key policy areas under the stewardship of France's President, Nicolas Sarkozy. As rotating Council President and under pressure to bring home the bacon to a critical domestic electorate he sheparded two projects near and dear to his heart: The creation of an EU-Mediterranean Union and a reform of EU immigration policy.  In many ways, 2008 saw the resurgence of the Franco-German tandem, after early tensions between the two heads of state, Sarkozy and Angela Merkel (not least on the shape of the EU-Med Union, as reported on the blog). Though both continue to assert their leadership role in the Union, they see eye to eye on critical points for the future of the EU, including on environmental policy, the necessity to regulate the financial markets in light of the recession and with respect to the role of the Union in international peacekeeping, most urgently in the Middle East.

Impact of Global Recession

The Eurozone countries have officially been in a recession since November 2008. Although Germany remains the world's export leader, its export figures have dropped to the lowest levels since the country's reunification. Though highly lauded for her performance on the European and international stage, her domestic critics are united in the view that she did not sufficiently steer the depth of economic reform needed to insulate the labor market from the recession that lies ahead. The topsy-turvy of the financial markets and the subsequent freeze on global capital is already impacting companies across the continent. EU governments pumped over EUR 2 trillion into the rescue efforts. Despite the leadership disarray that seemed to be at play early on in the crisis, European heads of state now seem to be singing from the same hymn sheet, in their efforts to regulate markets and reinvigorate European capitalism. Among the options being floated are the criteria of the Stability and Growth Pact that anchor the Euro.

Which Event Deserved More Attention Than it Received?

In 2008 the European Union put an end to discriminatory practices against temporary workers. The new rules aim to ensure that temporary workers supplied through agencies are treated on an equal basis with permanent workers. The agreement covers currently covers 6 million temporary jobs in the Union and gives these employees the same basic working and employment conditions as EU citizens from the day they start their assignments. This means they will have access to the same vacation and maternity leave and other key social rights. In addition they will have equal access to childcare facilities and transport services. This is an important development for migrants across the continent.
A Commonly Held Misconception About the European Union

…is how active it is on the international stage: The EU reacted quickly to the military invasion of Georgia in the summer. The Union negotiated the peace deal, delivered humanitarian aid,monitors the reconstruction package and is in charge of the peace monitoring mission.

In addition, the Union sent election observers around the world, including to Africa, Asia and Latin America. EU officials supported democratic developments and non-governmental organisations in Angola, Bangladesh, Bhutan, Cambodia, Ecuador, Guinea-Bissau, Nepal, Rwanda and Pakistan to assess whether the electoral processes there were in line with international standards for democratic elections.

The EU also remains the world's largest single donor of development aid to countries in need.
Forecast for 2009

What does 2009 bring for the Union? It is with some trepidation that I think ahead to the coming 12 months.  It will likely bring a new referendum in Ireland, following the number of concessions made at the last EU Summit a month ago, but proponents of the Treaty already fear that their Prime Minister will fail yet again to bring in the majority needed.  But even if there is a ‘yes’ vote in Ireland, too many questions have been raised to go ignored. With European Parliament elections in the summer, Eurosceptics everywhere (not least the Irish Libertas) are rallying their supporters into turning the vote into a Union-wide referendum on how the EU does business.

Thus, despite the successes of the French EU Presidency, the Czech government now at the helm of Council, inherits a long list of unfinished business, not least steering the Union through the rough waters of the financial crisis and instabilities in the Middle East . But Europe's concerns may not be entirely at the front of its mind, as the governing coalition tries to stay afloat with a cantankerous, EU-critical President in the background.

Of foremost importance, particularly for the Eurozone countries, will be finding new ways out of the financial crisis and novel methods for regulating European and global markets. With an economic area so tightly interwoven there is added pressure on all Heads of State to act and cooperate swiftly. While the early days were marked by avengers including UK Prime Minister Gordon Brown, his partners across the continent seemed to have curtailed individual advances enough to make concerted efforts possible.

Europe will continue to be an international peacekeeper. The Union looks poised to be highly involved as a broker in the current Middle East crisis. It will remain active in stabilizing the countries on its borders through the European Neighborhood Policy and the newly agreed EU-Med partnership as it begins to take shape.