Issues
The Financial Perspective for 2007–2013 was defined in 2005 when EU members agreed to fix the common budget to 1.045% of the European GDP. UK Prime Minister Tony Blair agreed to review the British rebate, negotiated by Margaret Thatcher in 1984. Former French President Jacques Chirac declared this increase in the budget will permit Europe to "finance common policies" such as the Common Agricultural Policy or the Research and Technological Development Policy. France's demand to lower the VAT in catering was refused. Controversial issues during budget debates include the British rebate, France's benefits from the Common Agricultural Policy, Germany and the Netherlands' large contributions to the EU budget, reform of the European Regional Development Funds, and the question of whether the European Parliament should continue to meet both in Brussels and Strasbourg.
The Treaty establishing a Constitution for Europe (TCE), commonly referred to as the European Constitution, is an international treaty intended to create a constitution for the European Union. The constitution was rejected by France and the Netherlands, where referendums were held causing other countries to postpone or halt their ratification procedures. Late in 2009, a new Reform Treaty was ratified by all member states of the European Union, and took effect on 1 December 2009.
Enlargement of the Union's membership is a major political issue, with division over how far the bloc should expand. While some see it as a major policy instrument aiding the Union's development, some fear over-stretch and dilution of the Union.
Read more about this topic: Politics Of The European Union
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