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Constitution, economic policy and full employment in the European Union

The Intergovernmental Conference of 13 December 2003 failed, on the basis of the draft submitted by the Convention, to agree on a Constitution for the EU. This is a major setback! The decisions in principle to enlarge the European Union to 25 members in May 2004, and also the achievement of Monetary Union with the euro as single currency in 12 Member States since 1 January 2002, are regarded as the greatest progress in European integration in recent years. But even enlargement of the Union and Monetary Union will rate as successes in the long run only if economic and social cohesion and the goal of full employment in the EU can be achieved. The process of the new Member States catching up, economically and socially, with the old Member States, and of exploiting to the full the huge employment potential of the latter (where between 30 and 35 million new full-time jobs need to be created), are in principle possible, as shown by historical precedents: for example, the German economic miracle of the 1950s and the performance of the Irish economy in the 1990s; and the virtual full employment that prevailed in the old Community from the end of the 1950s until the mid-1970s.