Agricultural Policy and may furthermore be perceived as a trade barrier in the
Internal Market, as exchange rate insecurity hampers trade. Thus, both the CAP
and the Single Market have created a need for stability in the exchange market;
cf. EMS and later on the establishment of the EMU.
It stands to reason to estimate the future development from a similar procedural
point of view. In the years to come, the following areas are, formally or
informally, on the agenda of the political decision-makers of the EU:
Concerted efforts to improve employment in the Member States
Tax harmonisation
Enlargement of the European Union with several Central and Eastern European
countries
Reform of regional policy related to the structural funds
Reform of the Common Agricultural Policy (CAP)
Institutional reforms of the decision-making process in the Union
In a longer time horizon, discussions may possibly also include:
Reform of the welfare state, since, once implemented, the above steps might
affect the existing welfare system, as extensive legal and illegal migration must
be expected
In the EU co-operation, the task to lower the level of unemployment has
increasingly become more important. The concern about unemployment has
been enhanced by the establishment of the EMU, which limited the autonomy
of the Member States in drawing up an independent and individual national
economic policy. As the European Central Bank is obliged to ensure price
stability, the EU co-operation of recent years has put emphasis on a joint effort
to increase employment. This had led to an incipient co-operation on the labour
market and employment policies. The obligation to co-operate in this field is
spelled out in the chapter on employment of the Amsterdam Treaty and
subsequently elaborated by a decision of the European Council in 1997 and by
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